Alastair Matchett

Investors can use indices to measure the relative performance of a stock market and its volatility (which varies from time to time). Moreover, investors wish to judge the performance of their stock market investments or portfolio, in terms of both absolute returns and how well or badly did the same perform when compared to the market as a whole, or a particular sector of the market. Investors are keen to know if they have outperformed or underperformed the stock market.

Seed equity is a form of start-up capital that is used to provide companies with early stage finance to establish their business models.  As an equity investment, it carries all of the risks and rewards typically associated with equity; however, the potential for growth is huge due to the very high risk of investing early in a company’s timeline.

Capital gains can be classified based on the asset’s holding period (short-term vs. long-term capital gains) or whether the gains have been realized or exist only on paper (realized vs. unrealized capital gains).