Stock investment in dubai
It was even higher last summer, but in the recent months it has underperformed due to falling oil prices and strong dollar — this might actually be a good buying opportunity. Nevertheless, contrary to popular belief, equity markets in the Middle East are not just oil and gas. Other sectors, including financials, transportation, consumer goods, real estate and industrials, are also heavily represented among UAE traded stocks. Bonds are debt instruments. He receives regular income in the form of coupon or interest payments and also gets the full nominal value of the bond back at maturity, which can range from a few months these short-term bonds are typically called bills or notes to as long as 30 years or more.
While some UAE traded bonds work just like the typical western bonds, others have very different risk and return profiles. Many investors, especially those with smaller amounts of money or limited experience, will benefit from investing in stocks and bonds through mutual funds or exchange traded funds. However, this does not mean that selecting funds which are most suitable to your objectives and risk profile is an easy task.
There are many different kinds of funds available to UAE investors — equity funds, fixed income funds, value and growth funds, sector funds, active and passive funds, and Sharia compliant or non-compliant funds. Those with larger portfolios have additional options such as hedge funds, private equity funds and other alternative funds.
Apart from local specifics like Islamic Law, investors should follow the same investing rules as anywhere else. Know your time horizon, objectives e. Make sure you understand how costs and taxes will affect your returns many investors underestimate them. Do not keep all your eggs in one basket and diversify, but at the same time do not fragment your portfolio too much, as doing so will increase costs and limit your ability to manage it effectively.
Most investors will find that professional advice from the right person or firm is worth the cost, especially when you are not familiar with the region or with the particular kinds of investments. Standard beta is co-called levered, which means that it reflects the capital structure of the company including the financial risk linked to the debt level.
Unlevered beta or ungeared beta compares the risk of an unlevered company i. Unlevered beta is useful when comparing companies with different capital structures as it focuses on the equity risk. Unlevered beta is generally lower than the levered beta. However, unlevered beta could be higher than levered beta when the net debt is negative meaning that the company has more cash than debt.
Many different betas can be calculated for a given stock. The main common variables that affect beta calculations are the time period, the reference date, the sampling frequency for closing prices and the reference index.
The calculation divides the covariance of the stock return with the market return by the variance of the market return. The WACC is essentially a blend of the cost of equity and the after-tax cost of debt. The cost of equity is usually calculated using the capital asset pricing model CAPM , which defines the cost of equity as follows: Levered beta Unlevered beta 1-Year 1.