with the help of broker is either by walking to your broker’s office or by calling to Your Broker’s Customer care number. Al the Brokers will maintain some systems with Internet connections for the convenience and use of their customers. Those systems will be maintained by the Relationship officer. You can walk to your nearest office at any time and watch the market and place the order for buying and selling shares. If you don’t find the time to walk to Your Broker’s Branch, then you can place a call to your Broker’s Customer Care Number and place your order for buying or selling particular company shares.
With the help of Customer care no you can know the current Value of shares and your value of shares and your available funds, your available shares, your outstanding orders e.t.c. Some Brokers offer you this facility with free of charge but some charge you some amount on the basis of your orders. So before Choosing your broker compare particular broker’s services with others and choose. The minimum requirements you have to have with you to buy shares at your broker’s office is as given bellow.1) Bank Account with Net Banking Facility
Saturday, December 5, 2009
How to deposit money in your trading Account.
After getting your Demat and Trading Accounts you will not be having any Balance in your Trading Account. In order to buy shares you should have money in your Trading Account. Ok well, but how to Deposit or Transfer Money to your Trading Account? There are two ways to Transfer funds to your Trading Account.
One is giving a Bank Cheque to your Broker. He will then Transfer the money to your Trading Account mostly after clearance of your Cheque. It may take 1 day to 3 days time to get money deposited in to your account.Second way is online transferring of funds to your Trading Account from your Bank account through your Broker's Payment Gate Way. To Transfer funds in this way you should have Internet Banking User Id and Password. In this option your money from your Bank account will be Transferred to your Trading Account with in seconds. To proceed through this option you should have account with the particular bank with which your broker has registered for Payment Gate Way. Ask your broker to get Payment Gate Way Bank details and open account with that particular bank.
One is giving a Bank Cheque to your Broker. He will then Transfer the money to your Trading Account mostly after clearance of your Cheque. It may take 1 day to 3 days time to get money deposited in to your account.Second way is online transferring of funds to your Trading Account from your Bank account through your Broker's Payment Gate Way. To Transfer funds in this way you should have Internet Banking User Id and Password. In this option your money from your Bank account will be Transferred to your Trading Account with in seconds. To proceed through this option you should have account with the particular bank with which your broker has registered for Payment Gate Way. Ask your broker to get Payment Gate Way Bank details and open account with that particular bank.
Meaning and explanations of short sell and short tecniqe.
Short Sell is a very interesting and surprising topic in the share market.It has got good advantage for the day traders who expect one particular will reduce on that day. Many Traders book profit by using this technique. This technique not only having advantages but also having disadvantage. you will understand the disadvantage of short sell technique after learning what is Short sell?I hope you already know ? well, the total process I explained in that post is of general procedure of buying and selling shares. I didn't add any Short Sell related topic in that post.
when coming to the point, in general procedure you should buy shares first then wait for that scrip value to raise, then you have to sell in order to book profits. But in the short Sell Technique you can sell the shares at market price with out buying them first. Yes what you read is correct. you can sell shares even if you don't have those shares in your portfolio. and you can buy shares later but on the same day when the price of that particular scrip reduced. It is just reverse procedure to the general procedure which I explained previously.
Here in short Sell you sell shares first with out having them and buy later on the same day at low price. The difference between the selling and buying price is your profit. for better understanding with example see the below picture.
when coming to the point, in general procedure you should buy shares first then wait for that scrip value to raise, then you have to sell in order to book profits. But in the short Sell Technique you can sell the shares at market price with out buying them first. Yes what you read is correct. you can sell shares even if you don't have those shares in your portfolio. and you can buy shares later but on the same day when the price of that particular scrip reduced. It is just reverse procedure to the general procedure which I explained previously.
Here in short Sell you sell shares first with out having them and buy later on the same day at low price. The difference between the selling and buying price is your profit. for better understanding with example see the below picture.
Take Your First Step Into The Financial.
You could not have chosen a simpler way to understand the Stock Market. Learning to make your wealth grow, you are set to become a smart investor!
The FiRSTSTEP program is made especially for beginners. It teaches you with step-by-step demos. From the very beginning, up to when you’re ready to do your first trade. Sharekhan with his years of experience will help you through each step. From the right tools to the right information. He will simplify financial jargons like Equities, Commodities, Mutual Funds, Derivaties or IPOs. So that you know exactly when, where, and how much to invest.
The FiRSTSTEP program is made especially for beginners. It teaches you with step-by-step demos. From the very beginning, up to when you’re ready to do your first trade. Sharekhan with his years of experience will help you through each step. From the right tools to the right information. He will simplify financial jargons like Equities, Commodities, Mutual Funds, Derivaties or IPOs. So that you know exactly when, where, and how much to invest.
Friday, December 4, 2009
According to a current Gartner study, Windows Mobile has lost 28% of the mobile market share over the last year.
As reports, based on a Gartner study, Windows Mobile lost nearly a third of the share of the mobile phone market from 2008 Q3 to 2009 Q3 and is dead last among the major players at just 8%. One reason for the breakdown is Microsoft's delayed release of Windows Mobile 6.5, while still not delivering what most mobile phone users are demanding, such as touchscreens. According to Gartner analyst Roberta Cozza, version 6.5 is "not a major improvement" over its predecessors. A recent Gartner has further prognostications.
Symbian, having since become an open source operating system, also lost market share by 10% over the two third quarters, going from 50% to 45%. The more closed environments iPhone and RIM's Blackberry, on the other hand, have gained share.
From the open source perspective, however, 2009 has been a watershed year in the mobile phone market. Android mobile phones gained 4%, even though at the time of the study only two devices had Android. Even the free Palm WebOS has passed the 1% mark.
Gartner analysts had predicted the end of Windows Mobile earlier this year: they guessed by 2015 that there would be four remaining players in the field, Android, Symbian, Mac OS and Blackberry.
Symbian, having since become an open source operating system, also lost market share by 10% over the two third quarters, going from 50% to 45%. The more closed environments iPhone and RIM's Blackberry, on the other hand, have gained share.
From the open source perspective, however, 2009 has been a watershed year in the mobile phone market. Android mobile phones gained 4%, even though at the time of the study only two devices had Android. Even the free Palm WebOS has passed the 1% mark.
Gartner analysts had predicted the end of Windows Mobile earlier this year: they guessed by 2015 that there would be four remaining players in the field, Android, Symbian, Mac OS and Blackberry.
Share Magazines
Share Magazines are basically magazines dealing with everything related to shares. These come under the category of business magazines. But they provide more than that of a typical business magazines.
Share Magazines generally advocate the philosophy of laissez-faire and free market economy. They always argue in favor of less restrictive import and immigration policies. Share magazines are generally biased towards supply side economics and explain the economic concepts important for it such as Laffer Curve .
Business Magazines generally give informations about the present scenario of the business as a whole, company specific news, and economy news.
But the share magazines do much more than this. It gives the following news and articles :-
Present Domestic Business Scenario
Present World Business Scenario
Present situation of the economy which could affect the Share Market
Present situation of the world which could affect the Share Market
Company Specific News
Share Tips ( Resistance Levels , Support Levels , Targets , etc.) on the indexes and Specific Shares
Technical Analysis on portfolio of shares with charts
Fundamental Analysis on selective prospective shares
Ratios and various calculations of a wide range of shares
Share Magazines generally advocate the philosophy of laissez-faire and free market economy. They always argue in favor of less restrictive import and immigration policies. Share magazines are generally biased towards supply side economics and explain the economic concepts important for it such as Laffer Curve .
Business Magazines generally give informations about the present scenario of the business as a whole, company specific news, and economy news.
But the share magazines do much more than this. It gives the following news and articles :-
Present Domestic Business Scenario
Present World Business Scenario
Present situation of the economy which could affect the Share Market
Present situation of the world which could affect the Share Market
Company Specific News
Share Tips ( Resistance Levels , Support Levels , Targets , etc.) on the indexes and Specific Shares
Technical Analysis on portfolio of shares with charts
Fundamental Analysis on selective prospective shares
Ratios and various calculations of a wide range of shares
Tuesday, December 1, 2009
How can one convert physical holding into electronic holding i.e how can one dematerialise securities?
n order to dematerialise physical securities held by an investor, he has to fill in a DRF (Demat Request Form) which is available with the DP and submit the same along with physical share certificates one wishes to dematerialise. Separate DRF has to be filled for each ISIN Number. The complete process of dematerialisation is outlined below
What is dematerialisation?
Dematerialisation is the process by which physical share certificates of an investor are converted to an equivalent number of securities in electronic form and credited into the investor's account maintained with his/her depository participant (DP). It is like having a bank account where instead of money, you hold securities in your account.
Rupee gains as stocks rise, dollar falls
The partially convertible rupee closed at 46.31/32 per , 0.4 per cent stronger than its Monday's close of 46.50/52. "The crosses were back on fire today, the finance minister's statements on divestment and easing fears about the Dubai crisis, all together helped the rupee," said Nitesh Kumar, an inter-bank dealer with Development Credit (DCB).
The index of the dollar, a gauge of its performance against six major currencies, was down 0.5 per cent. India will not sell more than 10 per cent in listed state-run firms "at this stage," and would time sales to get maximum value, Finance Minister Pranab Mukherjee told parliament on Tuesday.
The sharemarket rose 1.6 per cent, and has now reclaimed all of its losses at the end of last week when global markets were rattled by Dubai's debt problems.
Foreign buying of local about $15.4 billion this year has helped the rupee recover from a record low of 52.2 hit in early March. Last year, outflows of more than $13 billion had pushed the local unit down by a fifth. "Even the forward premiums rose today, in line with the positive rupee sentiment. Importers booked forward contracts finding current levels attractive," DCB's Kumar said. Six-month forward premium rose to a high of 58.5 points on Tuesday after they had hit a four-month low of 51 points in the previous session. One-month offshore non-deliverable forward contracts were at 46.27/37, little changed from the onshore spot closing rate.
In the currency futures market, the most traded near-month contracts on the National and MCX-SX closed at 46.3950 and 46.4050 respectively, with the total traded volume on the two exchanges at about $3.1 billion.
The index of the dollar, a gauge of its performance against six major currencies, was down 0.5 per cent. India will not sell more than 10 per cent in listed state-run firms "at this stage," and would time sales to get maximum value, Finance Minister Pranab Mukherjee told parliament on Tuesday.
The sharemarket rose 1.6 per cent, and has now reclaimed all of its losses at the end of last week when global markets were rattled by Dubai's debt problems.
Foreign buying of local about $15.4 billion this year has helped the rupee recover from a record low of 52.2 hit in early March. Last year, outflows of more than $13 billion had pushed the local unit down by a fifth. "Even the forward premiums rose today, in line with the positive rupee sentiment. Importers booked forward contracts finding current levels attractive," DCB's Kumar said. Six-month forward premium rose to a high of 58.5 points on Tuesday after they had hit a four-month low of 51 points in the previous session. One-month offshore non-deliverable forward contracts were at 46.27/37, little changed from the onshore spot closing rate.
In the currency futures market, the most traded near-month contracts on the National and MCX-SX closed at 46.3950 and 46.4050 respectively, with the total traded volume on the two exchanges at about $3.1 billion.
Wednesday, October 14, 2009
What is risk management of derivatives in India?
Stock exchanges follow robust risk management measures for derivative trading. These include, initial base minimum capital requirements, real time and system based monitoring of positions and automatic deactivation of trading terminals in case of exceeding the limits as imposed by exchanges, margins and daily mark to market margin system and initial Value at risk (VAR) based margin system. Apart from that there are various position limits, broker wise limits and scrip wise limits are also there to avoid building up of huge positions.
Friday, September 25, 2009
What are Dividends and When they're Issued ?
Dividends are payments made by companies to their stockholders in order to share a portion of the profits from a particular quarter or year. The amount that any particular stockholder receives is dependent upon how many shares of stock they own and how much the total amount being divided up among the stockholders amounts to. This means that after a particularly profitable quarter a company might set aside a lump sum to be divided up amongst all of their stockholders, though each individual share might be worth only a very small amount potentially fractions of a cent, depending upon the total number of shares issued and the total amount being divided. Individuals who own large amounts of stock receive much more from the dividends than those who own only a little, but the total per-share amount is usually the same.
When Dividends Are Paid
How often dividends are paid can vary from one company to the next, but in general they are paid whenever the company reports a profit. Since most companies are required to report their profits or losses quarterly, this means that most of them have the potential to pay dividends up to four times each year. Some companies pay dividends more often than this, however, and others may pay only once per year. The more time there is between dividend payments can indicate financial and profit problems within a company, but if the company simply chooses to pay all of their dividends at once it may also lead to higher per-share payments on those dividends
When Dividends Are Paid
How often dividends are paid can vary from one company to the next, but in general they are paid whenever the company reports a profit. Since most companies are required to report their profits or losses quarterly, this means that most of them have the potential to pay dividends up to four times each year. Some companies pay dividends more often than this, however, and others may pay only once per year. The more time there is between dividend payments can indicate financial and profit problems within a company, but if the company simply chooses to pay all of their dividends at once it may also lead to higher per-share payments on those dividends
What is a Bull Market
There are two classic market types used to characterize the general direction of the market. Bull markets are when the market is generally rising, typically the result of a strong economy. A bull market is typified by generally rising stock prices, high economic growth, and strong investor confidence in the economy. Bear markets are the opposite. A bear market is typified by falling stock prices, bad economic news, and low investor confidence in the economy.
A bull market is a financial market where prices of instruments (e.g., stocks) are, on average, trending higher. The bull market tends to be associated with rising investor confidence and expectations of further capital gains.
A market in which prices are rising. A market participant who believes prices will move higher is called a "bull". A news item is considered bullish if it is expected to result in higher prices.An advancing trend in stock prices that usually occurs for a time period of months or years. Bull markets are generally characterized by high trading volume.
Simply put, bull markets are movements in the stock market in which prices are rising and the consensus is that prices will continue moving upward. During this time, economic production is high, jobs are plentiful and inflation is low. Bear markets are the opposite--stock prices are falling, and the view is that they will continue falling. The economy will slow down, coupled with a rise in unemployment and inflation.
A bull market is a financial market where prices of instruments (e.g., stocks) are, on average, trending higher. The bull market tends to be associated with rising investor confidence and expectations of further capital gains.
A market in which prices are rising. A market participant who believes prices will move higher is called a "bull". A news item is considered bullish if it is expected to result in higher prices.An advancing trend in stock prices that usually occurs for a time period of months or years. Bull markets are generally characterized by high trading volume.
Simply put, bull markets are movements in the stock market in which prices are rising and the consensus is that prices will continue moving upward. During this time, economic production is high, jobs are plentiful and inflation is low. Bear markets are the opposite--stock prices are falling, and the view is that they will continue falling. The economy will slow down, coupled with a rise in unemployment and inflation.
What is NET ASSET VALUE ?
The Term Net Asset Value (NAV) is used by investment companies to measure net assets. It is calculated by subtracting liabilities from the value of a fund's securities and other items of value and dividing this by the number of outstanding shares. Net asset value is popularly used in newspaper mutual fund tables to designate the price per share for the fund.
The value of a collective investment fund based on the market price of securities held in its portfolio. Units in open ended funds are valued using this measure. Closed ended investment trusts have a net asset value but have a separate market value. NAV per share is calculated by dividing this figure by the number of ordinary shares. Investments trusts can trade at net asset value or their price can be at a premium or discount to NAV.
Value or purchase price of a share of stock in a mutual fund. NAV is calculated each day by taking the closing market value of all securities owned plus all other assets such as cash, subtracting all liabilities, then dividing the result (total net assets) by the total number of shares outstanding.
Calculating NAVs - Calculating mutual fund net asset values is easy. Simply take the current market value of the fund's net assets (securities held by the fund minus any liabilities) and divide by the number of shares outstanding. So if a fund had net assets of Rs.50 lakh and there are one lakh shares of the fund, then the price per share (or NAV) is Rs.50.00.
The value of a collective investment fund based on the market price of securities held in its portfolio. Units in open ended funds are valued using this measure. Closed ended investment trusts have a net asset value but have a separate market value. NAV per share is calculated by dividing this figure by the number of ordinary shares. Investments trusts can trade at net asset value or their price can be at a premium or discount to NAV.
Value or purchase price of a share of stock in a mutual fund. NAV is calculated each day by taking the closing market value of all securities owned plus all other assets such as cash, subtracting all liabilities, then dividing the result (total net assets) by the total number of shares outstanding.
Calculating NAVs - Calculating mutual fund net asset values is easy. Simply take the current market value of the fund's net assets (securities held by the fund minus any liabilities) and divide by the number of shares outstanding. So if a fund had net assets of Rs.50 lakh and there are one lakh shares of the fund, then the price per share (or NAV) is Rs.50.00.
What is Technical Analysis ?
Technical Analysis is a method of evaluating future security prices and market directions based on statistical analysis of variables such as trading volume, price changes, etc., to identify patterns.A stock market term - The attempt to look for numerical trends in a random function. The stock market used to be filled with technical analysts deciding what to buy and sell, until it was decided that their success rate is no better than chance. Now technical stock analysis is virtually non-existent.
The Readers Submitted Examples page has more on this topic.
Technical analysts study trading histories to identify price trends in particular stocks, mutual funds, commodities, or options in specific market sectors or in the overall financial markets. They use their findings to predict probable, often short-term, trading patterns in the investments that they study. The speed (and advocates would say the accuracy) with which the analysts do their work depends on the development of increasingly sophisticated computer programs.
The Readers Submitted Examples page has more on this topic.
Technical analysts study trading histories to identify price trends in particular stocks, mutual funds, commodities, or options in specific market sectors or in the overall financial markets. They use their findings to predict probable, often short-term, trading patterns in the investments that they study. The speed (and advocates would say the accuracy) with which the analysts do their work depends on the development of increasingly sophisticated computer programs.
What is a Demat Account
Though the company is under obligation to offer the securities in both physical and demat mode, you have the choice to receive the securities in either mode.
If you wish to have securities in demat mode, you need to indicate the name of the depository and also of the depository participant with whom you have depository account in your application. It is, however desirable that you hold securities in demat form as physical securities carry the risk of being fake, forged or stolen.Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, Nowadays, you need to open a demat account if you want to buy or sell stocks.
If you wish to have securities in demat mode, you need to indicate the name of the depository and also of the depository participant with whom you have depository account in your application. It is, however desirable that you hold securities in demat form as physical securities carry the risk of being fake, forged or stolen.Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, Nowadays, you need to open a demat account if you want to buy or sell stocks.
Nowadays, practically all trades have to be settled in dematerialised form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, nobody wants physical shares any more.
So a demat account is a must for trading and investing.
Most banks are also DP participants, as are many brokers.
You can choose your very own DP.
To get a list, visit the NSDL and CDSL websites and see who the registered DPs are.
A broker is separate from a DP. A broker is a member of the stock exchange, who buys and sells shares on his behalf and on behalf of his clients.
A DP will just give you an account to hold those shares.
You do not have to take the same DP that your broker takes. You can choose your own.
What are active Shares ?
Shares in which there are frequent and day-to-day dealings, as distinguished from partly active shares in which dealings are not so frequent. Most shares of leading companies would be active, particularly those which are sensitive to economic and political events and are, therefore, subject to sudden price movements. Some market analysts would define active shares as those which are bought and sold at least three times a week. Easy to buy or sell.
What is a Share ?
In simple Words, a share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market.
By owning a share you can earn a portion and selling shares you get capital gain. So, your return is the dividend plus the capital gain. However, you also run a risk of making a capital loss if you have sold the share at a price below your buying price.
A company's stock price reflects what investors think about the stock, not necessarily what the company is "worth." For example, companies that are growing quickly often trade at a higher price than the company might currently be "worth." Stock prices are also affected by all forms of company and market news. Publicly traded companies are required to report quarterly on their financial status and earnings. Market forces and general investor opinions can also affect share price.
By owning a share you can earn a portion and selling shares you get capital gain. So, your return is the dividend plus the capital gain. However, you also run a risk of making a capital loss if you have sold the share at a price below your buying price.
A company's stock price reflects what investors think about the stock, not necessarily what the company is "worth." For example, companies that are growing quickly often trade at a higher price than the company might currently be "worth." Stock prices are also affected by all forms of company and market news. Publicly traded companies are required to report quarterly on their financial status and earnings. Market forces and general investor opinions can also affect share price.
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