Understanding the Markets

䊏 Efficient portfolio management (EPM) rationales

䊏 Approved markets

Accounting controls will include regular reconciliations of cash,

dividend and interest records and stock positions with banks and

trustees for both the capital and income account. These will be the

subject of compliance monitoring and the annual audit. Realized and

unrealized profit and loss and income is also an important issue.

Transactions in the portfolio lead to realized and unrealized profits

and losses. In this case transactions refer to the purchase and sale of

assets, which may be closed off against an existing position to

generate a realized profit or loss or be held as positions ...