What Is an Investment Advisory?

Investment consulting is an investment consulting agency that accepts entrustment from various departments, enterprises, and units to invest in the technical and economic feasibility of fixed asset investment, budget (budget) review, financial management, appropriation, loans, accounting and other investment activities. Through investigation, analysis, and judgment, put forward precise opinions and views. At present, China's investment consulting agencies mainly include China Investment Consulting Corporation, China International Engineering Consulting Corporation, China International Economic Consulting Corporation, China Foreign Economic and Trade Consulting Corporation and other units. Carrying out investment consulting business is of great significance to avoid investment risks and improve the scientificness of decision-making. ^[1]

Investment Advisory

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Investment consulting is an investment consulting agency that accepts entrustment from various departments, enterprises, and units to invest in the technical and economic feasibility of fixed asset investment, budget (budget) review, financial management, appropriation, loans, accounting and other investment activities. Through investigation, analysis, and judgment, put forward precise opinions and views. At present, China's investment consulting agencies mainly include China Investment Consulting Corporation, China International Engineering Consulting Corporation, China International Economic Consulting Corporation, China Foreign Economic and Trade Consulting Corporation and other units. Carrying out investment consulting business is of great significance to avoid investment risks and improve the scientificness of decision-making. ^[1]

"Investment company" engaged in direct

Common problems of enterprises in hedging 1. Unclear positioning 2. Thinking that there is no risk to hedging 3. Understanding of hedging does not require analysis of market conditions 4. Management operations are not standardized 5. Dogmatic hedging knowledge points 2, hedging Risks of Value Preservation 1. Management and Operational Risks Cash Flow Management Risks, Decision Risks, Price Forecasting Risks 2. Delivery Risks 3. Operational Risks 4. Basis Risks 5. Liquidity Risks

The basis of the new type of hedging theory is that the basis of profit-based hedging is not whether the risk can be eliminated but whether the change in the basis is profitable. The portfolio investment hedging futures market plays a "risk management" function, not a "risk transfer" function. The optimal hedging ratio is equal to the product of the standard deviation of the spot price change during the hedging period and the standard deviation of the futures price change. Take the correlation coefficient of the two.

The role of hedging 1. Lock in the cost of raw materials or product sales profits 2. Lock in processing profits 3. Inventory management 4. Use the futures market to actively control pricing power. Ways of hedging 1. Revolving hedging 2. Arbitrage hedging 3. Expected hedging 4. Strategic hedging 5. Option hedging