Alfa One Corporation: Equities

Alfa One Corporation
Equities

Alfa One Corporation: Equities

In regards to equity investments, the most commonly encountered avenue for this type of investment involves the purchase and holding of company shares, whether these are common or preferred shares or stock. In this manner an investor is taking on a portion of ownership in the concern proportional to the number of shares that have been issued for it.

Alfa One Corporation: Equities

Shares can be issued for private and public companies, the main difference being that shares in public companies are freely traded on a registered board. A further distinction is to be made between common and preferential stock, which may be issued on behalf of the same concern. A preferred stock often has attached a yearly dividend rate and may achieve a higher value than a common share in any liquidation action that the concern may undergo, but does not have any voting rights in the company it is issued for.

Alfa One Corporation: Equities

The main benefits to an investor in holding common shares of a company’s stock is the ease of purchase and disposal allowing for timely entry and exit from the investment. This also allows for significant volume of trade to occur which is highly beneficial to increasing the value of the stock in question over time. Generally all portfolios should contain a portion of commonly traded stock in a range of well performing companies in different industries and markets.

Alfa One Corporation: Commodities

Alfa One Corporation
Commodities

The next most commonly encountered investment vehicle after stock and shares is that of commodities. These are based on actually traded material and products ranging from minerals such as oil, gold and copper to agricultural produce, orange juice, coffee and rice. Products are also traded in the same manner as raw commodities though to a lesser degree and can include such items as computer components.

Alfa One Corporation: Commodities

Commodities markets, by virtue of the fact that many of the traded assets are staple requirements, generate massive amounts of volume and are often quite volatile and more readily affected by impressions opposed to actual realities. Because of these dynamic ranges the commodities markets are ideal in terms of fast returning short term investments, but care must also be taken to ensure that risk management strategies are always in effect.

Alfa One Corporation: Commodities

Though not all trading is still linked to an actual physical product and its price, this does still remain the bedrock of the commodities market. Newer investment vehicles which negate the actual purchase of an interest in the product are linked solely to prices being offered on the products and materials in question and are often referred to as ETFs or Exchange Traded Funds and offer an excellent alternative or compliment to more traditional commodities investment types.

Alfa One Corporation: Commodities

One of the greatest strengths of the commodities market as an avenue for investing is that unlike the share market where a company’s stock doesn’t have to be bought and sold on any given day, real physical products must be. While prices may fluctuate, people still have to buy food, industries still have to buy raw materials and so on. This means that trade is constantly ongoing and the potential for gains present themselves on a daily basis.

Trading Commodities


Incorporating commodities trading in future delivery contracts or by means of ETFs into any well structured investment portfolio can bring serious potential gains to bear, but as with all forms of investment risk is inherent and must be suitably accounted for, both in the actual investment and when judged in regards over the entire portfolio. Advantages to commodities investment consist primarily of the following:


  • Precious Metals
  • Oil & Natural Gas
  • Grains
  • Energy
Alfa One Corporation: Bonds

Alfa One Corporation
Bonds

Alfa One Corporation: Bonds

Another type of financial instrument used in the construction of a well laid out portfolio are Bonds. These are a debt based instrument whereby the investor lends money to a company, group or government for pre agreed period of time with a determined interest rate to be paid on the loan over the course of its life. These are most commonly held as mid to long term investments.

Alfa One Corporation: Bonds

Most bonds are tradable instruments, meaning that they can be sold during the course of the loans life before it reaches maturity. Depending on the prevailing interest rates at the time of the sale the bonds rate can cause it to have a higher or lower value than when initially purchased.

Alfa One Corporation: Bonds

At Alfa One Corporation we maintain full access to a broad range of Bonds issued by Corporations and Governments throughout the world. By selecting these instruments over a the course of your investment timeline, you gain the ability to profit from fluctuations in diverse interest rates around the globe, adding both gains and minimizing risk to your portfolio as a whole. Advantages offered to the investor through Bond issues include the following:

  • Less volatility as opposed to shares and commodities trading.
  • Ease of purchase and disposal in world markets.
  • Flexible investment over a range of term lengths and interest rates.