A basic guide for investors and students titled ‘Stock Market and Investment Alternatives’ by Y.W. Gunawardane provides an overview of the Colombo stock market including simplified but comprehensive information on other financial instruments like units and corporate bonds.
Mr. Gunawardane’s experience in the Colombo Stock Market dates back to 1966 when he purchased his first stocks in an Initial Public Offering with hardly any knowledge or understanding of how the stock market worked.
In the preface, Mr. Gunawardane says that over the years, he has found that other newcomers to the securities market have the same level of understanding. “If this is the case with stocks, one could imagine the average level of understanding about less popular financial instruments such as units, corporate bonds and derivatives,” he wrote. It is in this context that Mr. Gunawardane accepted the call by the Securities and Exchange Commission of Sri Lanka to write this book.
Essentials for beginners, organization of the securities market, buying and selling, stock valuation, risk, company directors and investor interest and unit trusts are some of the information contained in the book. Mr. Gunawardane also gives a summary of the performance of selected companies such as Aitken Spence, HNB, Sri Lanka Telecom, Dialog Telekom and Tokyo Cement.
Mr. Gunawardane has also contributed much to the public awareness and understanding of investment options through the electronic media. His current interest revolves around the impact of the crisis in the world financial markets on Sri Lanka, following the collapse of the sub-prime mortgage market in the US. Dubious Sri Lankan savings and investment schemes that collect investors’ money without proper legal authority have also attracted his attention. |
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