Educational Articles

Sustainable finance and investing are becoming mainstream in the world of finance. Concerns about global warming and adverse weather events have intensified discussions around the need for sustainable development. Financing for Sustainable Development Report 2024 published by United Nations (UN) has estimated that financing and investment gaps to meet the sustainable development goals are between USD 2.5 trillion to 4 trillion annually, highlighting the exigency of scaling up sustainable finance.

Investors buy and trade securities that are issued by companies and governments that need to raise capital. Markets in which companies and governments sell their securities to investors are known as primary markets. Each type of security has its own primary market. For example, in most countries, there is a primary market for shares issued by companies or bonds issued by the sovereign (national) government.

It is important to determine whether the return made by the company is sufficient from the perspective of the shareholders. That is, is the return high enough for investors to still want to own the share? One ratio commonly used to answer this question is return on equity (ROE).

The company’s financial performance matters to investors because it affects the returns on their investments.

One way to begin to evaluate a company is to look at its past performance. The primary summary of past performance is a company’s financial statements, which indicate, among other things, how successful a company has been at generating a profit to repay or reward investors.

Investing for the long term involves creating a well-diversified portfolio designed to provide you with the appropriate levels of risk and return under a variety of market scenarios. But even after designing the right portfolio, no one can predict or control what returns the market will actually provide. It is important not to expect too much and to be careful when figuring out what to expect.

Asset classes that are currently tradable in Boursa Kuwait such as Equity Securities, and other classes that will be available for trading in the future, such as Bonds.

Each investor has different investment objectives and they differ in how much return they need to meet their goals. Their goals could include saving a certain amount to provide additional income in retirement, to pass on a legacy to their children, to buy a larger home, to provide for extended family, and so on.

The investment industry helps individuals, companies, and governments save and invest money for the future.
Individuals save to ensure that money will be available to cover unforeseen circumstances; to buy a house, to cover their living expenses during retirement, to pay for university tuition, to fund such discretionary spending as travel and charitable gifts, and to pass wealth on to the next generation.