INVESTOR PSYCHOLOGY..

Investor psychology:)>

ONE: Investors behavior is quite funny especial the shallow pocket and and small investor,they have the tendency to chase the mad rush when asset price is rising like any thing then they tend to buy the asset without taking care of the value of the asset.

TWO:They reluctant to book profit swiftly because greed comes in the way and this act is the missed opportunity and sometime led to loss.

THREE:They don't want to buy in the panic market because they feels it will go down further and this act led lo missed opportunity when market bounced.

FOUR: They always look at their sold asset and when it go up after sell they think and frustat

Derivatives Definition..

Derivative is a product whose value is derived from the value of one or more basic variables, called bases (underlying asset, index, or reference rate), in a contractual manner. The underlying asset can be equity, forex, commodity or any other asset. For example, wheat farmers may wish to sell their harvest at a future date to eliminate the risk of a change in prices by that date. Such a transaction is an example of a derivative. The price of this derivative is driven by the spot price of wheat which is the "underlying". In the Indian context the Securities Contracts (Regulation) Act, 1956 (SC(R)A) defines "derivative" to include-

1. A security derived from a debt instrument, share, loan whether secured or

unsecured, risk instrument or contract for differences or any other form of security.

2. A contract which derives its value from the prices, or index of prices, of underlying securities. . . Derivatives are securities under the SC(R)A and hence the trading of derivatives is . governed by . the regulatory framework under the SC(R)A.

what GE does...

General electric one of the greatest company known for their innovative approach to change the world around them. The core competency of the company is their approach to the future .I am quoting the statement of the CEO of the company.

At GE we ask, “Why predict the future when you can create it?” From our earliest days, our company has used the tools of research, combined with a little inspiration, to create the world of tomorrow. The legacy of GE’s ingenuity offers a rich history we are proud to share with the world.

Look!!!!! The GE approach to their business