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Essential Term To Know About Share Market---1

Sunday, April 29, 2007 | Labels: | 1 Comments |

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Almost 6000 companies are listed on Bombay Stock Exchange. Sensex represent them. General market condition comes out through Sensex.

When we start to become aware about financial matters, then automatically by human nature we start to seek more financial knowledge. There so many media are available in this information age. We go to person who is more knowledgeable than us, we read news paper, use internet.

By this various channels of information, we know various head spinning term. Then we getting bored and confuse by this term. So now first we learn some essential term, but I try to avoid head spinning technical stuffs.

When we see financial news paper then we see like this


ACC 574: This line indicate name of company or script and its current price

High 600: This line indicate highest price till.

Low 525: This line indicate lowest price till.

Change 2: This line indicate change in price from previous days close.

Volume 10000: This line shows traded volume.

Spurt Volume: This volume show sudden increase in script

52 week High: This line shows highest price from last 52 week

52 week Low: This line shows lowest price from last 52 week

Now this is too much to know, we step by step discover various complicated but essential term.

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What is Sensex?

Friday, April 27, 2007 | Labels: | 2 Comments |

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SENSEX

We are much familiar basic of saving, equity and security market. It is time to proceed.

I try to put every thing here very logical manner and easy to understand so it may take time. By default it takes your exam of patience. Hurry is very bad habit and if we do then we have to pay its prize. So keep patience in market.

Proceed!!


SENSEX (BSE Sensitive Index) is like thermometer to measure economic temperature of Bombay Stock Exchange. It is value-weighted index composed on 30 major and active market player companies. The base value of the Sensex is the base value of the Sensex is 100 on April 1, 1979 and the base year of BSE-SENSEX is 1978-79.

SENSEX words credit goes to Deepak Mohoni. In decade of 1990 he works as analyst in columns of magazine and newspaper.

So first we have to know those major players of market,so list of these companies given here. Read them carefully. Always keep them in our mind.

Major 30 Companies in Sensex (till April 07)

COMPANIES
Sr. No.
1. ACC
2. BAJAJ AUTO
3. BHEL
4. BHARTI AIRTEL
5. CIPLA
6. DR. REDDY

7. GRASIM
8. GUJRAT AMBUJA CEMENTS
9. HDFC
10. HDFC BANK
11. HERO HONDA MOTORS
12. HINDALCO
13. HLL
14. ICICI BANK
15. INFOSYS
16. ITC
17. L&T
18. MARUTI
19. NTPC
20. ONGC
21. RANBAX
22. RCOM
23. RELIANCE ENERGY
24. RELIANCE INDUSTRIES
25. SATYAM
26. SBI
27. TCS
28. TATA MOTORS
29. TATA STEEL
30. WIPRO


Constructive comments are always welcome to make blog more informative and easy.

To know more about this you can visit http://en.wikipedia.org/wiki/Sensex

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Basic Requirements to get started in Indian Security Market

Thursday, April 19, 2007 | | 0 Comments |

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Now days due to spreading of internet, it is easy to everyone get in investment market easily. Now day so many DP are provided easy and almost free market research. With help of media common person easily can decide in which company share they want to invest. But before dive in Indian share market there are some minimum requirements.

Basic requirements are as follows;

1. First upon make positive mind and got to open De-mat account.
Broking firm available in India;
Icici bank, Sharkhan, Geojit, Motilal Oswal, Kaycee finance, Reliance money, Anagram, India infoline, Indiabull, Sarswat bank, UTI bank
Here I give here only few of them. There are more than 500 SEBI approved firm are available. Choose one of them which are convent to us.


What is De-mat account?

Shares are available in electronic format and broking firm are manage for us that. That electronic format is nothing but de-materialize i.e. share is not available in physical certificate like old days.
So broking firm open one separate account to manage to this de-materializes. This is like normal saving bank account.

2. Documents required to open De-mat Account

A. PAN card Xerox. (Permanent Account Number: which is given by Indian income tax Department)
B. Saving Bank account Xerox
C. Address proof
D. 2 no. Passport size photo
E. One blank cheque Xerox ( few firm take it)


There may very few chances to require another extra document proof. This differ firm to firm, these are essential basic documents.

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Indian Market: Introduction to Indian Share Market.

Tuesday, April 17, 2007 | Labels: , , | 0 Comments |

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After 1995 in India, Castle of “License Raj” dissolves in soil. Indian economy starts to escape from strong and brutal hand of Government Servant. Businesses start to grow rapidly. Our Ex-Prime Minster Mr. N. R. Rao and Ex-Finance Minster Mr. M. N. Singh Signed on WTO Treaty. In those years every one fears about Developed countries businesses will take-over Indian businesses. Everyone blame those two scholars.

Now Indians start to plant Tricolor Flag day by day in new soil.

Everyone starts friendly with internet. Online share Investing make investment process easy, plus SEBI start to strict guidelines to provide shelter to small investor. Sensex travel 5000 to 13000, many small investor gains in good figure. Indian small investor starts to attract towards this new but risky sector. They leave conventional less profitable sectors and start to walk in this new floor. But with big fall of they get spoil there money also. Many of them leave…

“Early exit from any sector only happen due to excess run without knowledge.”

It is not necessary you must be thinking about start in share market so you are here. Every piece of knowledge is hide till it get chance to prove. Just wait to chance. Till grab every piece of knowledge. Be student always. Students are only live.


Let’s start to know a b c of share market.

Share Market (Capital Market):
Share market is place like our grocery market, rather than grocery here shares are transact. In share market so many businesses invite to people to invest in their business. In other word they makes you partner. Biggest benefit of share is you don’t have any liabilities to give time & share losses. When you should suspect any clues of decline of share price, you can exit.

Shares:
Organization builds capital by various institution, government and common public. They divided their capital in small parts invite investor to Initial Public Offer. Organizations build big part themselves, percentages of part they build themselves indicate interest to start or grow specific business. Remaining part collect from financial institutes, public.

SEBI (Securities and Exchange Board of India):
This board regulates exchange for fair deal. SEBI keep eyes on every move in market. SEBI try to protect investor by making and upgrading guideline.

Depository
Depository is an organization which holds shares of investors in electronic form.
There are two depositories;

1. NSDL: National Securities Depository Limited (NSDL)
2. CSDL: Central Depository Services (I) Limited (CDSL)

They are registered with SEBI.

Depository Participants (Broker):
Depository Participants are those organizations which bridge between Depository and Small investor. Depository Participants hold shares (securities) in form of electronic format. There are more than 500 DP.

Investor:
We are Investor who buy shares from Depository Participants (DP) and sell again to DP. For that transaction they charge brokerage.

This is two way communication process





This is rough idea about Securities market to understand basic. You are right person to judge information, try on your own risk. I am not liable to any misunderstanding and damage.


If you want to detail knowledge

Visit to http://investor.sebi.gov.in

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Invest Money: where, why?

Sunday, April 8, 2007 | | 0 Comments |

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Now time to invest money. We have some money. We have to invest them so our money gets increase day by day. Where to invest them? Any risk is there…

In market various types of instrument are available. Anyone among them we can choose to put of our money. Investment is depend on various factor, major is RISK. Risk is factor is always on our bow. At any start RISK is major criteria to think on particular subject. So let’s introduce with various sector and instrument, with risk analyses.

Broad view of available instrument available in market

Fixed Deposit
 Postal Saving Scheme
 Government bond
 Insurance
 Share Market
 Mutual Fund
 Real Estate
 Art
 Gold




Fixed Deposit:
Fixed deposit is available by various banks. Fixed deposit is available by baker with fixed amount of interest and duration. Before that duration you can not withdraw. If you withdraw your money, then you should miss all interest that banker will pay after completion of fix period.

There are some scheme provided by banker in which banker allow to withdraw money partially without any lose to our gain.

This is safe and almost risk free if banker having good profile. Do not run behind high interest and unbelievable scheme. May be this banker going to ruin your precious money.

Postal Saving scheme:
Government offer various saving scheme. Main purpose of this scheme is build mind set of people for saving. Here government is banker in behind Post Department. Government uses this money to build the nation. This money is directly and indirectly serves us.

It is risk free scheme. Interest is low. Some schemes have income tax exemption on interest; help to reduce our income tax.

Government Bond:
Government offered various bond. Aim of this bond is fixed. Main purpose of this bond is collect money for various developments. These bonds have security of government. These bonds are profitable when nation in developing phase.

This bonds return are depending on project, where to our money utilize.
E.g. Government offer bond when big dam would propose.

Insurance:
Insurance sector is also good instrument to invest money. This instrument is offer investment as well as insured person.

We are going to invest our saving money, so this instrument looking less attractive. Because insurance companies cut big amount as there fees.

Share market:
Share market is place where we can invest money. Gain is totally depending on our mind set.
E.g. Long term with blue chip (market mover share) gets very good profit.

In share market profit may be unimaginable. Be careful with this instrument. It pictured in mind very high expectation, but behind it risk is also too high. In market don’t go without knowledge.

In share market too many sub-instruments available.
E.g. Equity, Derivatives etc

Mutual Fund:
Mutual funds are one of the good instruments. Recent time mutual fund play very big role worldwide. Mutual fund pays very good profit. It is bridge between fixed deposit and share market. Mutual fund invests in so many instruments, give combination of good t investor. Individual investor merely invests such vast variety of sector.

It is less risky than share market, more risky than fixed deposit. It gains good profit.

Normally it is depend on share market.

Real Estate:
Real estate is one important sector. Real estate required high one time investment. Real estate investment required good study of estate around us.

Many bankers provide loan to invest real estate. Small investors are step away from loan. It pays high with great risk.


Art:
So many rare art pieces of art are pays high profit. Invest in artist. Study emerging artist.

This sector requires knowledge and interest in particular art. A Fruits of gain reap with time.

Gold:
Gold is one of the conventional ways to invest form ages. It is easily convertible. Due to excess use in electronic industries gold have future.

Invest in gold may useful in disaster time like war, economical problem of country.






All information provide to broad introduction of various sector. If you are interesting particular any sector. Do study. Avail service of specialist of particular sector. Always go to top ten of sector. No matter service of such top firm or person seem costly.


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Hard work or Smart work, it’s your choice?

Wednesday, April 4, 2007 | Labels: | 0 Comments |

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Everyone is run for money. Someone say it’s for my bread and butter. Some says it’s for passion. Everyone get gain in form of money. Only few peoples are doing without any wants, they are call as “Yogi”, “Monk”,” Prophet”. Except those, all people work for money? It’s bitter to say but its truth.

Second thing is what our present profession is field of our interest? If you confused to get answer, then don’t worry. If you should get monthly pay even though you not work on current profession, then you like to give efforts for same work. Simply this answer will be “YES or NO” .By default if answer is YES then you work in your interest field else not.

This above things are may feel trifle but it not. When you don’t think on, then we give only efforts without aim. We found so many people around us say, “I do my level of best but fate…. Unsuccessful”, “I am frustrated by my job”. Only those are successful who work with interest .No matter how they educated or not. History gives proof of that.

We don’t work with interest, then only hard work. Always new idea comes in our field of interest work and we can work smartly.

How problem will solve? We get financially assured, problem get automatically solved. Then we can give time with relax mind for our interest work. We can use our full potential for that work. Then success always knocks on our door and flood of money fill our banks, we should get financially free.

That’s right!! It is circle. Devil trap!! Only saving money is only way to break that circle, escaped from that devil trap.



“Money is precious but time given for that money more precious than money”

_ source anonyms

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Be cautious about market robber

Tuesday, April 3, 2007 | Labels: | 0 Comments |

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When we save money and wallet start to sound, don’t keep money in liquid form. It will evaporate fast. Try to make them solid as early as possible. Question arises in mind where to make them solid? There are so many instruments available in market which makes them solid. This money is totally separated from our daily needs so don’t put them again in household things. This is strict warning!

If we have learned to fight with sword, then we never use sword to cut apple. It is wastage of power of sword. Now every single rupee is warrior who is fight with daily inflation.

This is time to actually to, be alert every moment. Around us there are so many big fish available in search of soft target, to kill them and bag there money. They generate various advertisements like keep money here and get double in year, invest money in real estate of tourist spot, enjoy free living on that spot month every year plus get rent monthly of that estate. Once we trap, our money going to ruin.

So just keep in mind don’t go on only shining things, it may be false. Keep studying market, market opportunities where can we invest and get right proportional profit or gain. Profit or gain is directly proportional to risk, make that amount of money.


Please don’t mind. I don’t want to teach to anyone. I revised my own knowledge with you. If you feel to take something from here, take!! Use it on your own risk. I am also polished my brain like in school, only difference is. This is life!!



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Put Down Figure on Paper 0 1 2 3 4 5 6 7 8 9

Monday, April 2, 2007 | Labels: | 0 Comments |

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When we check our wallet then found we have very small amount of currency in our wallet, whatever we owe in bank or in various types instrument of investments. Only small amount of money we carry in wallet at time.

How can one express what he or she have!! We calculate our assets, our loans in figure. Figures are transfer from one hand to another hand, one bank to another bank. Only it moves with tag of our name. So whatever will be our profession we come in contact with various figures daily.

We are lazy about figure, counting. When we do hard work to earn some money in that figure, then we have to very keen about them. Start to put down figures on paper daily.
Always carry one plain paper in pocket, diary will be best. In day end make summation of all. Make some specified categorization when week end. In the end of month do inventory of weekly notes. Then automatically we found where our money goes. Ask our self, “Is really money goes in right place, with right value?”

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Saving Is Only One Way To Become Financially Free Bird.

Sunday, April 1, 2007 | | 0 Comments |

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If anyone thinks we got lotto or we found jackpot , it may be happen with only one person. Other person’s only pay there share to become one person rich or “Krodpati”.

So I try to provide some information rest other.

When we to come to know about money, we found one magical fact. That if we should want to become financially free, we have one good habit “saving money”. When we make it as habit then we automatically divert our ways towards financial progress. I know we want leisure life, but when our every pay slip is die to complete our bills and credit card loans then we are in devil trap.

No matter how small you save, it has consistency. Small savings with time become strong hand to work for us. Power of compound make it huge amount. Then we divert it in various ways which give us continuous fruit. Single rupee will work for us day and night even when we sleep.

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