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Now, if you decided to enter stock markets the first access is having a pan card.
Pan card means ‘permanent account number’, it was issued by income tax department. it is to handle tax escapers as all the profits getting in stock markets are subject to tax deduction. Hence according to SEBI regulations PAN is must precondition to invest in stock markets (in any securities).
The application forums of pan card are available at brokers, financial advisers, Internet centers etc. Apply with adequate proofs of bank account, address proof, photo identity. Approximately within 20 days pan will be posted to address we mentioned during application.
The next is having a good bank account; your savings account is just sufficient for this. But confirm that your bank account offers chequebook, online transactions account, and etc facilities. Its also better if the bank offers Demat account itself at reasonable prices. Its better to have a account on local branch of bank for your brokerages, this facilitates flexible transactions of cheque deductions etc.(in fact the bank having tie-up with your brokerage is much more preferable)
Showing posts with label Stock Market Basics. Show all posts
Showing posts with label Stock Market Basics. Show all posts
Can money doubles with stock market investments
Yes, it’s very easy to get money doubled within short period in stock markets as return on investments is very high, but in how much period we shouldn’t think off.
Stock markets gives good profits may be more than doubling. But never invest with that targets with time period like ‘I am investing in stock markets to make my money double in 2 months’, ‘Advice me best stocks that double within 3 months’. My advice is not to set targets for your returns while investing.
All the returns depends equally on the ‘Market Conditions’, your invested ‘Company Performance’, ‘the Sector to which company belongs’, nothing more than these…
Picking a ‘Right stock’, operating in ‘Right sector’ in ‘Right conditions’, gives the satisfactory returns on our investment.
Some small cap company stocks grow by more than 20% in a single day in stock markets. But also there are many cases where stocks grow by more than 50% within 2-3 days. But expecting and timely catching those stocks is not an easy task.
For example, some leading small cap companies announce exponential profits during its quarterly results announcement. Then its share price outperforms, it may grow by more than 20%. But it’s not easy to approximately expect the quarterly results of small cap companies.
Below are some outlined guidance’s for higher returns:
Generally shares in sectors Information technology (IT) and Reality are very volatile, they grow more than others in bull markets and vice versa in bear markets.
Generally stocks of Small Cap Companies give good profits than large cap and mid cap stocks. But much more care is necessary while picking small cap stocks.
Expecting the quarterly results of companies and investing before announcement.
If results reach expectations stocks outperforms.
Investing with clues ‘for a sector’ or ‘individual company’ or of ‘general market clues’.
For example,
Company clue: Investing in a pharma company, that FDI may accept the drug in pending. Or ‘expectations on patents of pharma companies.
Sector clue: Investing in railway stocks, with clue of benefits for railway companies in railway budget announcement.
General market clues: With vast positive expectations during GDP, IIP numbers, packages, RBI Reporates, budget announcements etc.
Conclusion: Definitely your money doubles in stock markets, if you followed a right way. But not enter with that type of greed expectations.
Stock markets gives good profits may be more than doubling. But never invest with that targets with time period like ‘I am investing in stock markets to make my money double in 2 months’, ‘Advice me best stocks that double within 3 months’. My advice is not to set targets for your returns while investing.
All the returns depends equally on the ‘Market Conditions’, your invested ‘Company Performance’, ‘the Sector to which company belongs’, nothing more than these…
Picking a ‘Right stock’, operating in ‘Right sector’ in ‘Right conditions’, gives the satisfactory returns on our investment.
Some small cap company stocks grow by more than 20% in a single day in stock markets. But also there are many cases where stocks grow by more than 50% within 2-3 days. But expecting and timely catching those stocks is not an easy task.
For example, some leading small cap companies announce exponential profits during its quarterly results announcement. Then its share price outperforms, it may grow by more than 20%. But it’s not easy to approximately expect the quarterly results of small cap companies.
Below are some outlined guidance’s for higher returns:
Generally shares in sectors Information technology (IT) and Reality are very volatile, they grow more than others in bull markets and vice versa in bear markets.
Generally stocks of Small Cap Companies give good profits than large cap and mid cap stocks. But much more care is necessary while picking small cap stocks.
Expecting the quarterly results of companies and investing before announcement.
If results reach expectations stocks outperforms.
Investing with clues ‘for a sector’ or ‘individual company’ or of ‘general market clues’.
For example,
Company clue: Investing in a pharma company, that FDI may accept the drug in pending. Or ‘expectations on patents of pharma companies.
Sector clue: Investing in railway stocks, with clue of benefits for railway companies in railway budget announcement.
General market clues: With vast positive expectations during GDP, IIP numbers, packages, RBI Reporates, budget announcements etc.
Conclusion: Definitely your money doubles in stock markets, if you followed a right way. But not enter with that type of greed expectations.
Labels:
Doubling money,
Stock Market Basics
What’s necessity to invest in stock markets?
What is the reason beyond to prefer investment in stock markets, why not to continue in banks or mutual funds?’. Below are suspected reasons why it’s always preferable to invest in stock markets, over traditional investment options.
Compared to stock markets, growth of money in banks (with simple interest) or mutual funds (where fund company shares some profit) is very less.
Growth of money by gaining good profits is very faster and higher with stock markets.
With savings on banks we need to satisfy with just interest (of 8-10%) on fixed deposits.
Another demerit with banks or mutual funds is lock in period, where our money locks up to completion of fixed deposit period or maturity of a close ended mutual fund. Fixed deposits and many mutual funds even not offer tax benefits. But shares can be bought and sell at any instant we desire.
Another factor is Inflation, which if once entered the orbit outperforms bank interest rates. For example, just before recession inflation rocketed to above 12%, where bank interests stayed below 10%. So in actual we are losses by 2% by saving in banks. To tolerate growing inflation (life expenses) we should invest in stock markets or gold.
There is no entry load or additional charges, for stock market investments (only minor brokerage and transaction charges) like mutual funds with hidden charges.
With stock markets we directly get the Dividend from companies, the additional profit apart from increased share price.
Trading of shares is much more easy than mutual fund units, with outcome of online trading.
We have wide range of companies from various sectors available at optimum risk, unlike in mutual funds where the fund itself offers pre-lined sectors or companies.
Wide range of data is available to analyze stock companies, where relatively less data is available about the fund.
In mutual funds, public gets no vote or right either to influence investment decisions or demand of dividends, where public have rights in stock companies.
Even mutual funds never compete with stocks in returns, they equally corrected to shares during the last recession.
Conclusion: It’s always better to invest in stock markets due to its huge benefits over mutual funds or bank savings.
Compared to stock markets, growth of money in banks (with simple interest) or mutual funds (where fund company shares some profit) is very less.
Growth of money by gaining good profits is very faster and higher with stock markets.
With savings on banks we need to satisfy with just interest (of 8-10%) on fixed deposits.
Mutual funds perform at an annual rate of 25-30%. But it’s possible to gain above 100% annual returns only with stock markets. Some small cap stocks even double and even triple within one-year time elapse.
Another demerit with banks or mutual funds is lock in period, where our money locks up to completion of fixed deposit period or maturity of a close ended mutual fund. Fixed deposits and many mutual funds even not offer tax benefits. But shares can be bought and sell at any instant we desire.
Another factor is Inflation, which if once entered the orbit outperforms bank interest rates. For example, just before recession inflation rocketed to above 12%, where bank interests stayed below 10%. So in actual we are losses by 2% by saving in banks. To tolerate growing inflation (life expenses) we should invest in stock markets or gold.
There is no entry load or additional charges, for stock market investments (only minor brokerage and transaction charges) like mutual funds with hidden charges.
With stock markets we directly get the Dividend from companies, the additional profit apart from increased share price.
Trading of shares is much more easy than mutual fund units, with outcome of online trading.
We have wide range of companies from various sectors available at optimum risk, unlike in mutual funds where the fund itself offers pre-lined sectors or companies.
Wide range of data is available to analyze stock companies, where relatively less data is available about the fund.
In mutual funds, public gets no vote or right either to influence investment decisions or demand of dividends, where public have rights in stock companies.
Even mutual funds never compete with stocks in returns, they equally corrected to shares during the last recession.
Conclusion: It’s always better to invest in stock markets due to its huge benefits over mutual funds or bank savings.
Risk factors Associated in Stock Market Investments
Stock markets are absolutely secure, but they are risky for common investors. Risk depends on stocks, which you have selected for investment. There are low risk shares, but there are no risk free shares.
The extent of risk depends on various factors, some of these are:
Individual stocks you invested: Risk depends on individual companies.
In general large cap stocks are of low risk, but small cap companies especially with high promoter stake are of high risk. All BSE 30, NSE 50 stocks and stocks with good brand value compromises of low risk, even they are corrected, have ability to actively rebound.
Choosed sector for investment: some sectors are riskier than others.
Example, Reality and Infra sectors are risky and volatile.
While Pharma, Health care sectors are of low risk.
Time point of investment:
Investment at peak of stock market rallies is highly riskier (as Rally-Correction are Cyclical). Who invested at starting phase of rally gains good profits.
Example, investment at 2008 December Peak returned high risk, paid of huge losses.
Conflictingly, investment on 2009 march Dips is good timing and returned good profits.
Also stock markets are widely effected by global and national economic factors, rumors (for short term only), inflation, commodities alterations, companies quarterly results, industrial production, GDP numbers, economic surveys and reports etc. a lot of factors… All these ‘Market Factors’ when negative to stock markets can be considered as risk factors.
The study of all risk factors, their co-relation among them and with individual stocks, their intensity, future violence they would create, is a matter of complex science.
These are some directions to Tolerate the Risk:
Select shares of bse30, nse50 index. (Especially of brand value).
Avoid low float value stocks.
Follow systemic investment.
But also risk varies, depending on security you bought
Future trading (highly risky)
Options trading (relatively low risk than futures, but high risk than cash segment)
Cash market/direct shares (comparatively low risk than above two)
So always consider the risk factors before investing your money in stock markets, but no fear. Simply follow long-term investments, the best technique to avoid risk.
The extent of risk depends on various factors, some of these are:
Individual stocks you invested: Risk depends on individual companies.
In general large cap stocks are of low risk, but small cap companies especially with high promoter stake are of high risk. All BSE 30, NSE 50 stocks and stocks with good brand value compromises of low risk, even they are corrected, have ability to actively rebound.
Choosed sector for investment: some sectors are riskier than others.
Example, Reality and Infra sectors are risky and volatile.
While Pharma, Health care sectors are of low risk.
Time point of investment:
Investment at peak of stock market rallies is highly riskier (as Rally-Correction are Cyclical). Who invested at starting phase of rally gains good profits.
Example, investment at 2008 December Peak returned high risk, paid of huge losses.
Conflictingly, investment on 2009 march Dips is good timing and returned good profits.
Also stock markets are widely effected by global and national economic factors, rumors (for short term only), inflation, commodities alterations, companies quarterly results, industrial production, GDP numbers, economic surveys and reports etc. a lot of factors… All these ‘Market Factors’ when negative to stock markets can be considered as risk factors.
The study of all risk factors, their co-relation among them and with individual stocks, their intensity, future violence they would create, is a matter of complex science.
These are some directions to Tolerate the Risk:
Select shares of bse30, nse50 index. (Especially of brand value).
Avoid low float value stocks.
Follow systemic investment.
But also risk varies, depending on security you bought
Future trading (highly risky)
Options trading (relatively low risk than futures, but high risk than cash segment)
Cash market/direct shares (comparatively low risk than above two)
So always consider the risk factors before investing your money in stock markets, but no fear. Simply follow long-term investments, the best technique to avoid risk.
Is my Money Secure in Stock Market Investments?
Absolutely, invested money in stock markets is 100% secure in stock markets provided your stockbroker or brokerage is a SEBI registered.
A Stockbroker should be SEBI registered. SEBI follows strict regulations regarding the security of money in Demat and Trading accounts. Also as the technology using by stock exchanges is very fine, no way of fraud in money transactions with Demat accounts.
So, before openings demat account confirm that your broker is SEBI registered. Also remember, there is no need to give any direct cash payment to broker cash trading account, instead always give in the form of cheque or D.D form, which are much safer form and no chance of any misuse by sub-brokers.
“Here readers should not understand the security of money as risk, which is a different concept that always exist in stock markets”
Instead of all these security labels, unfortunately there reported some misshapes on money transactions between stock trading accounts. Its best fit to use the word “Technical Mistakes/Errors” for this miss-happens, instead of ‘fraud’ or ‘misuse’. Online platform is source of many of these technical mistakes.
Some examples of these are:
Missed-orders, wrong orders or order cancellations
Your money may harvest in orders that you may not be placed actually. These are due to technical errors or technical incompatibility between exchanges and brokerages. But many brokerages are resolving these mistakes within 15days you may also complain about this type of issues in sebi official website.
Problems with online passwords:
We should work with extreme care while entering and saving online account passwords, and to change them timely. Indecimate use of online passwords would result in heavy misuses. It’s always preferable to work with your online trading account on own pc. But it’s not a big problem as many brokerages allow money transfer from trading account to single bank account only (that is registered with trading account), so that even third persons that know your password cannot able to transfer money to his account.
Conclusion: Money in trading accounts is absolutely secure; cases of misuse or technical mistakes are very very minor.
A Stockbroker should be SEBI registered. SEBI follows strict regulations regarding the security of money in Demat and Trading accounts. Also as the technology using by stock exchanges is very fine, no way of fraud in money transactions with Demat accounts.
So, before openings demat account confirm that your broker is SEBI registered. Also remember, there is no need to give any direct cash payment to broker cash trading account, instead always give in the form of cheque or D.D form, which are much safer form and no chance of any misuse by sub-brokers.
“Here readers should not understand the security of money as risk, which is a different concept that always exist in stock markets”
Instead of all these security labels, unfortunately there reported some misshapes on money transactions between stock trading accounts. Its best fit to use the word “Technical Mistakes/Errors” for this miss-happens, instead of ‘fraud’ or ‘misuse’. Online platform is source of many of these technical mistakes.
Some examples of these are:
Missed-orders, wrong orders or order cancellations
Your money may harvest in orders that you may not be placed actually. These are due to technical errors or technical incompatibility between exchanges and brokerages. But many brokerages are resolving these mistakes within 15days you may also complain about this type of issues in sebi official website.
Problems with online passwords:
We should work with extreme care while entering and saving online account passwords, and to change them timely. Indecimate use of online passwords would result in heavy misuses. It’s always preferable to work with your online trading account on own pc. But it’s not a big problem as many brokerages allow money transfer from trading account to single bank account only (that is registered with trading account), so that even third persons that know your password cannot able to transfer money to his account.
Conclusion: Money in trading accounts is absolutely secure; cases of misuse or technical mistakes are very very minor.
Minimum Investment Needed to Enter Stock Markets
“Stock markets needs no specific minimum amount to enter, so it’s possible to start your investments, no doubt with very small amounts of money”
Only practical unit is to buy a single share. Buying of fractional number of shares is not possible.
E.g. Buying of 2.5 shares not possible
1, 2, 3,4…only possible.
So anyone can start their investments in stock markets by buying atleast one share, of course there are different shares in markets ranging from below one rupee to more than ten thousand. Hence theoretically it’s possible to enter investments in stock markets with a single rupee.
But this is not the case with all the stock brokerages; some may fix their own minimum amount. Many brokerages cannot accept amounts below 1000 rupees, also transactions pause when the balance is reached below 1000 rupees.
Lacking of minimum amount is an immense advantage to investors. That’s we start our investment with small amounts first, then after better expertise we make our full sized investment. Thereby avoiding the losses by lack of experience during our initial practices. Most of mutual funds have atleast 5000 rupees as their minimum investment and also we share our profit with the mutual fund company. Also they are preferable than other investment options like gold (requiring atleast 1gm buy), currency futures (1000$) or other commodities having their own minimum amounts.
But, how much you invest that much you profited. But its best to start your stock market investment career with a start amount of 5000 rupees minimum.
Conclusion: Stock Markets have NO minimum amount must required to invest, But arbitrarily its better to start with atleast 5000 rupees. Hence always prefer stock markets for your investments and make better.
Only practical unit is to buy a single share. Buying of fractional number of shares is not possible.
E.g. Buying of 2.5 shares not possible
1, 2, 3,4…only possible.
So anyone can start their investments in stock markets by buying atleast one share, of course there are different shares in markets ranging from below one rupee to more than ten thousand. Hence theoretically it’s possible to enter investments in stock markets with a single rupee.
But this is not the case with all the stock brokerages; some may fix their own minimum amount. Many brokerages cannot accept amounts below 1000 rupees, also transactions pause when the balance is reached below 1000 rupees.
Lacking of minimum amount is an immense advantage to investors. That’s we start our investment with small amounts first, then after better expertise we make our full sized investment. Thereby avoiding the losses by lack of experience during our initial practices. Most of mutual funds have atleast 5000 rupees as their minimum investment and also we share our profit with the mutual fund company. Also they are preferable than other investment options like gold (requiring atleast 1gm buy), currency futures (1000$) or other commodities having their own minimum amounts.
But, how much you invest that much you profited. But its best to start your stock market investment career with a start amount of 5000 rupees minimum.
Conclusion: Stock Markets have NO minimum amount must required to invest, But arbitrarily its better to start with atleast 5000 rupees. Hence always prefer stock markets for your investments and make better.
Labels:
Minimum investment,
Stock Market Basics
Who can invest in stock markets? Average persons?
“Always new investors have one doubt; can stock markets are suitable to me? Because amount I can able to invest is not a huge. But in fact stock markets are very useful For Small Investors, as they support very small amounts even less than minimum amount required for mutual fund investing”
Anyone can invest in stock markets, by buying the shares of companies. They are never confined way of investment only for large investors. The simple requirements are small amount required to buy atleast one share we are favoring and transaction accounts (Demat and Trading accounts)
We observe many persons who think of stock market are not for normal people. Also they think, persons investing in the stock markets are so rich. But it’s not the real case, because stock markets are available to all. But also investing in stock markets is so simple if you have Demat and trading accounts, it’s only telling your broker which shares to buy.
In fact, the primary Aim of Stock Markets is to Make Involve Common Public in larger companies. All the Public financial corporations, Mutual funds are only to facilitate indirect investment in stock markets for people who not much known about it.
Even there are certain arbitraries in front of SEBI on fixing certain minimum amount of stake holding by common public (retail investors) in all companies.
Conclusion: Any average persons can able to invest in stock markets, starting with small amount of money having.
Anyone can invest in stock markets, by buying the shares of companies. They are never confined way of investment only for large investors. The simple requirements are small amount required to buy atleast one share we are favoring and transaction accounts (Demat and Trading accounts)
We observe many persons who think of stock market are not for normal people. Also they think, persons investing in the stock markets are so rich. But it’s not the real case, because stock markets are available to all. But also investing in stock markets is so simple if you have Demat and trading accounts, it’s only telling your broker which shares to buy.
In fact, the primary Aim of Stock Markets is to Make Involve Common Public in larger companies. All the Public financial corporations, Mutual funds are only to facilitate indirect investment in stock markets for people who not much known about it.
Even there are certain arbitraries in front of SEBI on fixing certain minimum amount of stake holding by common public (retail investors) in all companies.
Conclusion: Any average persons can able to invest in stock markets, starting with small amount of money having.
Basic stock market concepts: What are shares?
“They are most associated terms with stock market investments. We do either buying or selling i.e. trading of shares based on the performance of the stock companies”
The aim of many companies is to attract even the small investors to invest in their company. But company worth’s crores of rupees, so not possible for small investors to invest that larger amount. Hence the total value of the company is divided into small divisions, called shares.
For example, if the value of the company is 50 lakhs. The shares equal to the 50 lakhs rupees will be allotted by the company i.e. 5000 shares each of cost 1000 rupees. (Companies specify price range to their shares based on their desire, but total value of shares should be equal to the total value of the company). Anyone who is impressed by the performance of specific company can buy its shares from stock markets at price they are currently trading. If company of which you bought shares is performing well and getting good profits, company value rises and ultimately shares prices increases. This is based on the demand and supply rule. Hence of buying right company shares is a logical art, which make you good profits.
The owners or who are part of company management and holding large number of shares are called promoters of the company. Promoters and other shareholders of the company, who are part of the company decisions, are restricted to trade their company shares in stock markets (can sell/buy their shares only with adequate information supplied to the stock exchanges).
Only the shares that are sold by company owners on the stock markets are available to trade by public, this is called as open market. Investors should buy shares at the fixed price range by company, if it is newly listing in stock markets (through IPO). But once listed in stock markets the price of shares changes basing on performance of company and investors can buy shares at the current market price (CMP).
Companies have a right to make desired changes in the shares i.e. they can split or bond shares or can issue bonus shares to their shareholders, provided the total value of the company will not changes. For example, company can split its share pricing 1000 rupees into 2 shares each valuing 500 rupees or can bond two or more shares into one valuing accordingly.
As the shares are a part of the company value, hence they are often called as ‘equity shares’. Equity shareholders (who buy company shares) can demand the company regarding various aspects of their business. And even can change the management of the company, if have 51% of the total shares in your hand. Hence companies generally hold more than 51% of shares and sell some percentage of shares in stock markets to public holding. The shares that are trading on stock markets for public holding are called free float shares (free float value of company). For example, 90% of company shares in promoter’s hand, only 10% in stock markets, so 10% shares are free float shares. All the shares we are buying on stock markets are free float shares. Even though only some shares of company trades in stock markets, the value applies to all shares of company. The total sum of value of shares calculated by their market price is Market Value Of The Company.
The aim of many companies is to attract even the small investors to invest in their company. But company worth’s crores of rupees, so not possible for small investors to invest that larger amount. Hence the total value of the company is divided into small divisions, called shares.
For example, if the value of the company is 50 lakhs. The shares equal to the 50 lakhs rupees will be allotted by the company i.e. 5000 shares each of cost 1000 rupees. (Companies specify price range to their shares based on their desire, but total value of shares should be equal to the total value of the company). Anyone who is impressed by the performance of specific company can buy its shares from stock markets at price they are currently trading. If company of which you bought shares is performing well and getting good profits, company value rises and ultimately shares prices increases. This is based on the demand and supply rule. Hence of buying right company shares is a logical art, which make you good profits.
The owners or who are part of company management and holding large number of shares are called promoters of the company. Promoters and other shareholders of the company, who are part of the company decisions, are restricted to trade their company shares in stock markets (can sell/buy their shares only with adequate information supplied to the stock exchanges).
Only the shares that are sold by company owners on the stock markets are available to trade by public, this is called as open market. Investors should buy shares at the fixed price range by company, if it is newly listing in stock markets (through IPO). But once listed in stock markets the price of shares changes basing on performance of company and investors can buy shares at the current market price (CMP).
Companies have a right to make desired changes in the shares i.e. they can split or bond shares or can issue bonus shares to their shareholders, provided the total value of the company will not changes. For example, company can split its share pricing 1000 rupees into 2 shares each valuing 500 rupees or can bond two or more shares into one valuing accordingly.
As the shares are a part of the company value, hence they are often called as ‘equity shares’. Equity shareholders (who buy company shares) can demand the company regarding various aspects of their business. And even can change the management of the company, if have 51% of the total shares in your hand. Hence companies generally hold more than 51% of shares and sell some percentage of shares in stock markets to public holding. The shares that are trading on stock markets for public holding are called free float shares (free float value of company). For example, 90% of company shares in promoter’s hand, only 10% in stock markets, so 10% shares are free float shares. All the shares we are buying on stock markets are free float shares. Even though only some shares of company trades in stock markets, the value applies to all shares of company. The total sum of value of shares calculated by their market price is Market Value Of The Company.
Labels:
Shares of companies,
Stock Market Basics
How stock markets are personally useful to me?
“Stock markets are useful tools for companies to get money for their business, then how can they are useful to me personally?” especially for common investors how they are useful?”
India, being a developing country the economy is growing at a faster rate. Only way to participate in this race is by “Investing in stock markets”. To participate in the growth of the nation and to make profited equally stock markets are useful for every individual.
Today you may be a middleman or somewhat rich, but after some years you definitely become financially poor if you stay out of this race, especially if you are a non-business person.
So Stock markets are not a useful investment tool, but “Must Essential” Investment Practice.
You may not be running a business, but how to participate in the fastest growing business and companies in India, by investing in stock markets. The companies, which you are invested, are doing business and sharing the profits equally with you. How nice…profits without participating in business, just by buying the shares of that company.
For example, companies like Infosys.
Once upon a time it is a small software company. But later by software boom it had grown very fastly. The people who invested in that are benefited hugely by its growth and profits without even knowing what business it is. So, They do business for all (for company and investors).
You may invest in the India’s largest companies, by buying the shares of that company.
Can you think off the Oil Refinement Business, or Car Manufacturing or becoming the starting the business of Telecom services with relatively small amount of money you have, never…. but, yes you can do…how?, with the investment in stock markets.
But its not direct, you need not to do that any business operations. But equally get the profit from the business.
How can achieve this? Suppose if you are invested in reliance industries limited by buying its shares, now you are a part of the company business. You are doing indirectly the oil refinement business.
Likely similar in any big companies like Tata motors, Airtel or any….
Being a partner, by investing in good company you get good profits both with increased share price and any dividend offered by the company.
India, being a developing country the economy is growing at a faster rate. Only way to participate in this race is by “Investing in stock markets”. To participate in the growth of the nation and to make profited equally stock markets are useful for every individual.
Today you may be a middleman or somewhat rich, but after some years you definitely become financially poor if you stay out of this race, especially if you are a non-business person.
So Stock markets are not a useful investment tool, but “Must Essential” Investment Practice.
You may not be running a business, but how to participate in the fastest growing business and companies in India, by investing in stock markets. The companies, which you are invested, are doing business and sharing the profits equally with you. How nice…profits without participating in business, just by buying the shares of that company.
For example, companies like Infosys.
Once upon a time it is a small software company. But later by software boom it had grown very fastly. The people who invested in that are benefited hugely by its growth and profits without even knowing what business it is. So, They do business for all (for company and investors).
You may invest in the India’s largest companies, by buying the shares of that company.
Can you think off the Oil Refinement Business, or Car Manufacturing or becoming the starting the business of Telecom services with relatively small amount of money you have, never…. but, yes you can do…how?, with the investment in stock markets.
But its not direct, you need not to do that any business operations. But equally get the profit from the business.
How can achieve this? Suppose if you are invested in reliance industries limited by buying its shares, now you are a part of the company business. You are doing indirectly the oil refinement business.
Likely similar in any big companies like Tata motors, Airtel or any….
Being a partner, by investing in good company you get good profits both with increased share price and any dividend offered by the company.
Labels:
Stock Market Basics,
Stock market benefits
Simply tell what Stock Markets are?
“When I try to understand about stock markets, every one answering it in a complex manner. Tell me in simple what actually stock markets are…”
Every company wants To Expand Their Business And To Make It Larger Company. For this step companies needs money. The money reserve of companies is not sufficient for this. What they can do in these situations?
Simply two ways before.
Not expanding, staying where they are.. (Or)
Selling the company.
For this second step stock markets are working. Companies’ Can Sell Some Percent Of Their Company In Stock Markets and gets money. Any one can buy the company who want to share the profits earning by the company from stock markets. Here the buyers are stock market investors.
Below example, clarifies you this…
Suppose, you have a four big hotels in mumbai (worth Rs.40 crore). Now you want to expand the business to some more areas in India, suppose to Pune. To construct a new big hotel in Pune it needs atleast 20 crores. Who can give this money?
Can you wait until you get 20 crore profit on your mumbai hotels or take a bank loan…..?
Here’s a simply way to get money, than above difficult steps. The stock markets!
List your mumbai hotels group in stock markets, for 40 crore business you get 40000 shares each of Rs.1000/- cost. Sell the 20000 shares in stock markets, you get 20 crores. Simple..
But now you have only 50% right on your company. You should equally share the profits getting from hotels with the persons who bought your shares.
That buying of these shares is called “Investing in Stock Markets”.
Who buys the shares of good companies get good profits…
So stock markets are centers, where
“Someone needs money for business.
Someone gives to him” after they equally share profits (of course, loss also) getting on their business.
Here who needs money are the companies
Who gives money are our self…stock market investors
From stock markets anyone can buy the shares from any company, starting from a single share. So even common people can invest in big companies like Reliance, Tata etc and equally get profits from them. Stock exchanges (BSE, NSE for India) are middle mans between the companies and people, that safely allow these financial transactions.
Can the article tells you what are stock markets? Comment..
Every company wants To Expand Their Business And To Make It Larger Company. For this step companies needs money. The money reserve of companies is not sufficient for this. What they can do in these situations?
Simply two ways before.
Not expanding, staying where they are.. (Or)
Selling the company.
For this second step stock markets are working. Companies’ Can Sell Some Percent Of Their Company In Stock Markets and gets money. Any one can buy the company who want to share the profits earning by the company from stock markets. Here the buyers are stock market investors.
Below example, clarifies you this…
Suppose, you have a four big hotels in mumbai (worth Rs.40 crore). Now you want to expand the business to some more areas in India, suppose to Pune. To construct a new big hotel in Pune it needs atleast 20 crores. Who can give this money?
Can you wait until you get 20 crore profit on your mumbai hotels or take a bank loan…..?
Here’s a simply way to get money, than above difficult steps. The stock markets!
List your mumbai hotels group in stock markets, for 40 crore business you get 40000 shares each of Rs.1000/- cost. Sell the 20000 shares in stock markets, you get 20 crores. Simple..
But now you have only 50% right on your company. You should equally share the profits getting from hotels with the persons who bought your shares.
That buying of these shares is called “Investing in Stock Markets”.
Who buys the shares of good companies get good profits…
So stock markets are centers, where
“Someone needs money for business.
Someone gives to him” after they equally share profits (of course, loss also) getting on their business.
Here who needs money are the companies
Who gives money are our self…stock market investors
From stock markets anyone can buy the shares from any company, starting from a single share. So even common people can invest in big companies like Reliance, Tata etc and equally get profits from them. Stock exchanges (BSE, NSE for India) are middle mans between the companies and people, that safely allow these financial transactions.
Can the article tells you what are stock markets? Comment..
Labels:
Indian stock markets,
Stock Market Basics
Non-financial persons and capital markets
“Even though interested in stock market investments, I am not from financial business field. Can the investment terms and patterns used in stock markets are understandable to me? Is they are easy to learn by non-financial persons?”
For understanding about the stock market investments, you need not be a person in financial field. All you needed is interest to learn. When you spend a little bit of time regularly, they are quite easy to understand. Starting from basics, every step in stock markets is quite simple. In fact, most of the investors profiting are not from financial field. The techniques followed in stock markets are unrelated to finance, but they are completely logical.
The steps to understand is to clarify common doubts like “what are stock markets”, Basics, then how to start investing, next of is about the selection good shares, then understanding how to follow different strategies and techniques to increase profits in stock markets. All these are mostly unrelated to financial terminology. But the understanding of simple basics and terminology of stock markets is helpful to regularly follow the business and stock market news, unless they may not be understandable to new non-financial persons.
Also many magazines and business papers are now guiding which shares to buy, basing on the market situations and fundamentals of the companies, which makes the stock market investments quite simpler without burden on investors, to completely analyze the companies they want to invest.
Conclusion: stock markets are understandable and easy to invest for persons from any field.
For understanding about the stock market investments, you need not be a person in financial field. All you needed is interest to learn. When you spend a little bit of time regularly, they are quite easy to understand. Starting from basics, every step in stock markets is quite simple. In fact, most of the investors profiting are not from financial field. The techniques followed in stock markets are unrelated to finance, but they are completely logical.
The steps to understand is to clarify common doubts like “what are stock markets”, Basics, then how to start investing, next of is about the selection good shares, then understanding how to follow different strategies and techniques to increase profits in stock markets. All these are mostly unrelated to financial terminology. But the understanding of simple basics and terminology of stock markets is helpful to regularly follow the business and stock market news, unless they may not be understandable to new non-financial persons.
Also many magazines and business papers are now guiding which shares to buy, basing on the market situations and fundamentals of the companies, which makes the stock market investments quite simpler without burden on investors, to completely analyze the companies they want to invest.
Conclusion: stock markets are understandable and easy to invest for persons from any field.
Working with Demat and Trading Accounts
Trading in the stock markets is not possible without appropriate Demat account and Trading account, they are electronic or digital forms of your stock market securities, all the shares/securities you have brought or sold is done only with your Demat account or trading account. Unlike the earlier forms of trading in stock markets they offer much security and easy trading platform.
Opening Demat account:
The first step to open a demat account is getting a pan card, along with the appropriate bank account, cheques, address proof’s and applying for demat from a near by stock broker.
After applying for a Demat account the process completes within 4-5 days, you can also apply for a Demat account in online on website of your choice stock brokerage. While applying for a demat account should be very careful about signatures all signatures on your pan card, application, bank cheques address proofs should match.. Opening a Demat account with an good bank account having cheque book, online transfer, mobile transfer facilities is preferable even through, they are not essential for your demat account, they facilitate an easy way of trading and transfer between your demat, trading accounts and bank account. Most brokerages are opening Demat account at a cost of Rs.500/-. After opening of Demat account apply for trading account.
Trading account:
Within one day of opening of demat account you will got trading account if applied, the trading account acts much like your original demat account, it is just a easy user friendly facility created by the stock brokerages. Opening a trading is no risk but also faster all the work is done by your stock broker, generally it is opened free of cost, but Stock Exchanges or SEBI does not promise any security to your money in trading account as it is completely related your stock brokerage. Almost all trading is preferable through the trading account (expect long-term investment where demat account offers good security) the trading account offers
Facilities like:
“Easy trading without any relation to your demat account
Displays your account details instantaneously
Updates of the intraday, delivery margins.
Displays any messages you are getting from your brokerage (E.g.: stock tips)
Facilitates the online transfer and online trading in the stock markets
Easy trading by your brokerages without any signatures by persons, i.e. trading can be done by broker with a simple phone call.”
Now you are eligible to start trading in stock markets, you can also take sophisticated webtools for faster and convenient trading.
Online platform:
If you want to trade in shares without our stockbroker, you can! Using your stock brokerage website, login. And access using a user-friendly trading platform. What you need for this is opening an online trading account. Most brokerages suggest this at the time of opening trading account. But much care should be taken while trading using your online account, because putting a wrong order may leads to heavy losses in shares. So only trade with the guidelines of your broker first, and then trade 1 or 2 shares until you got necessary to access to online trading account. But trading using wifi or from Internet cafes is less preferable as they not provide enough security and less speed. Quoting in the order column is preferable than using in the market column as the alterations in your Internet speed may sell/buy shares at different prices. But also using installed trading software gives more security and speed than using the brokerage website.
Recently, Some brokerages like reliance money had launched mobile trading platform for its users which uses the Gprs enabled handset for its trading in shares. But, in fact SEBI is not permissioned the brokerages for starting mobile trading, as it is received many complaints in countries like u.s. but launching a mobile trading platform by avoiding all technical problems and at much faster, be definitely a boom to stock trading as in the conversion from the paper documents in trading to electronic trading as the mobile users in the Indian is far more than the internet users.
Opening Demat account:
The first step to open a demat account is getting a pan card, along with the appropriate bank account, cheques, address proof’s and applying for demat from a near by stock broker.
After applying for a Demat account the process completes within 4-5 days, you can also apply for a Demat account in online on website of your choice stock brokerage. While applying for a demat account should be very careful about signatures all signatures on your pan card, application, bank cheques address proofs should match.. Opening a Demat account with an good bank account having cheque book, online transfer, mobile transfer facilities is preferable even through, they are not essential for your demat account, they facilitate an easy way of trading and transfer between your demat, trading accounts and bank account. Most brokerages are opening Demat account at a cost of Rs.500/-. After opening of Demat account apply for trading account.
Trading account:
Within one day of opening of demat account you will got trading account if applied, the trading account acts much like your original demat account, it is just a easy user friendly facility created by the stock brokerages. Opening a trading is no risk but also faster all the work is done by your stock broker, generally it is opened free of cost, but Stock Exchanges or SEBI does not promise any security to your money in trading account as it is completely related your stock brokerage. Almost all trading is preferable through the trading account (expect long-term investment where demat account offers good security) the trading account offers
Facilities like:
“Easy trading without any relation to your demat account
Displays your account details instantaneously
Updates of the intraday, delivery margins.
Displays any messages you are getting from your brokerage (E.g.: stock tips)
Facilitates the online transfer and online trading in the stock markets
Easy trading by your brokerages without any signatures by persons, i.e. trading can be done by broker with a simple phone call.”
Now you are eligible to start trading in stock markets, you can also take sophisticated webtools for faster and convenient trading.
Online platform:
If you want to trade in shares without our stockbroker, you can! Using your stock brokerage website, login. And access using a user-friendly trading platform. What you need for this is opening an online trading account. Most brokerages suggest this at the time of opening trading account. But much care should be taken while trading using your online account, because putting a wrong order may leads to heavy losses in shares. So only trade with the guidelines of your broker first, and then trade 1 or 2 shares until you got necessary to access to online trading account. But trading using wifi or from Internet cafes is less preferable as they not provide enough security and less speed. Quoting in the order column is preferable than using in the market column as the alterations in your Internet speed may sell/buy shares at different prices. But also using installed trading software gives more security and speed than using the brokerage website.
Recently, Some brokerages like reliance money had launched mobile trading platform for its users which uses the Gprs enabled handset for its trading in shares. But, in fact SEBI is not permissioned the brokerages for starting mobile trading, as it is received many complaints in countries like u.s. but launching a mobile trading platform by avoiding all technical problems and at much faster, be definitely a boom to stock trading as in the conversion from the paper documents in trading to electronic trading as the mobile users in the Indian is far more than the internet users.
following systemic pattern for your investments
The Timely (periodic) Investment of Total capital without accumulation at an occasion in stock market shares or mutual fund units (or any securities) is called as Systemic Investment Strategy. Currently, Systemic Investment Policies (SIP’s) are gaining importance which pattern also works Best in Shares.
Time As A Key Factor Of Investment:
The value of Time in Investment is a Key Factor, But Systemic Disrupts some valuable time, Then how systemic investment is recommended? Considering an example of Recession period, where investors are losses crores of rupees in their shares invested far before or just before that point (some financial months) of recession. One that invests all portfolio before recession victims high, while those systemic followers invested a part of total capital risking less and ultimately losing less.
Saying another way, Systemic Traders Are Conditional, although they are not perfect Analyzer’s or Super experienced investors. Because systemic technique it-self follows different analysis strategies and experiences.
Its Not Risk Free, But Risk Tolerable:
Systemic investment is not risk free, but makes player of its risk tolerable, one of the requirements in stock markets investment. Even larger players of Investment Companies also solely follows systemic investment pattern.
Time As A Key Factor Of Investment:
The value of Time in Investment is a Key Factor, But Systemic Disrupts some valuable time, Then how systemic investment is recommended? Considering an example of Recession period, where investors are losses crores of rupees in their shares invested far before or just before that point (some financial months) of recession. One that invests all portfolio before recession victims high, while those systemic followers invested a part of total capital risking less and ultimately losing less.
Saying another way, Systemic Traders Are Conditional, although they are not perfect Analyzer’s or Super experienced investors. Because systemic technique it-self follows different analysis strategies and experiences.
Its Not Risk Free, But Risk Tolerable:
Systemic investment is not risk free, but makes player of its risk tolerable, one of the requirements in stock markets investment. Even larger players of Investment Companies also solely follows systemic investment pattern.
Analysis of markets with technical factors associated
Expecting the movement of stock price or stock market movement with the past experiences is called as technical analysis. Simply, it is possible or probable stock market movement more considering the past happening rather than present conditions.
For example, Expecting The Market Movement On A Particular Month By Technical Analysis Poses To Consider Atleast 10 Years Stock Market Movement Data On That Month, Finally Concluding The Average Or Most Happened Event Is Almost Repeatable That Month Of Present Year.
The Limiting Factors:
Technical analysis works many times, but entirely difference conditions under the Analyzing period acts as big limiting factor for the technical analysis of stock markets.
Another limiting factor is FII Trend Cannot Reflect The Market Technical Analysis, as they more prone Global Situations.
Theories Of Stock Market are assumptions of past, but also Technical analysis. So what’s the distinguishing factor? But the theories are pure experience based assumptions with evident of some success or failure. But analyzing also based on present situations along with highly probable expectations.
Technical analysis reflects intra-day and short-term market movement, but theories are long term market predictions. Technical analyzing changes time to time, but stock market theories are valid for long time intervals.
Technical Analysis And Outcomes: The technique technical analysis works superlative in many cases and in some special predictable sessions, but exceptional cases may be Sudden Crash Or Upper Circuit Sessions where technical merely fails.
Also the technique works mostly in cash rather than in future and options. Technical analysis based on chief considerable current factor, as Volatility Index forces a good success rate.
Our final suggestion is to trade according to your unique trading strategy, Technical analysis may a part of it. But never solely depend on it. Considering all possible factors, according to their Intensity Ratios to alter stock markets will regret a real success with technical analysis.
For example, Expecting The Market Movement On A Particular Month By Technical Analysis Poses To Consider Atleast 10 Years Stock Market Movement Data On That Month, Finally Concluding The Average Or Most Happened Event Is Almost Repeatable That Month Of Present Year.
The Limiting Factors:
Technical analysis works many times, but entirely difference conditions under the Analyzing period acts as big limiting factor for the technical analysis of stock markets.
Another limiting factor is FII Trend Cannot Reflect The Market Technical Analysis, as they more prone Global Situations.
Theories Of Stock Market are assumptions of past, but also Technical analysis. So what’s the distinguishing factor? But the theories are pure experience based assumptions with evident of some success or failure. But analyzing also based on present situations along with highly probable expectations.
Technical analysis reflects intra-day and short-term market movement, but theories are long term market predictions. Technical analyzing changes time to time, but stock market theories are valid for long time intervals.
Technical Analysis And Outcomes: The technique technical analysis works superlative in many cases and in some special predictable sessions, but exceptional cases may be Sudden Crash Or Upper Circuit Sessions where technical merely fails.
Also the technique works mostly in cash rather than in future and options. Technical analysis based on chief considerable current factor, as Volatility Index forces a good success rate.
Our final suggestion is to trade according to your unique trading strategy, Technical analysis may a part of it. But never solely depend on it. Considering all possible factors, according to their Intensity Ratios to alter stock markets will regret a real success with technical analysis.
Institutional and retail investors effecting markets
Above are Diverse Categories of investors, the Major Achievers of Indian stock markets. Their liquidity levels are almost equivalent, but effecting markets in different ardent ways.
Institutional Investors are large players in stock markets with financial supplementary basis, simply Able to Drive Stock Markets. The typical examples are Mutual Funds, Financial co-operations and Individual persons with good liquidity. If these institutional investors are of foreign they are called Foreign Institutional Investors. They are specially registered allowable institutional groups by SEBI.
Domestic Institutional Investors are Indian Mutual Funds or Insurance Policies investing in large amounts in stock markets like the LIC OF INDIA, UTI, ICICI, PARIDAS, RELIANCE, HDFC etc. They may be of governmental organizations.
Retail Investors are small Domestic Individual Investors with relatively small amounts of free liquidity. But, as all they constitute major group of investing category enforcing as liquidity as that of institutional investors.
But the Strategy Of Investment, Capability Variations, Aims of these categories are completely variable to each other category.
Retail investors had No Complete Concord, No Enough Familiarity, and Knowledge in financial markets. Most of they follow Stock Tips, Fii trends or some other services. Their network is Randomly Concentrated to either of Institutional Investors.
The foreign investment groups (FII”S) Follow A Different Strategy from domestic and they are highly risked, more regulated liquidity on global and own counties economic conditions. Mostly, Drive Stock Indices With Their Risky Future And Optional Investments.
Contrast, to foreign investors are domestic investors, even they have a hefty buying supplementary as Fii’s, but they never be only alternators of stock indices either on intra-day or long-term as they lack risk and more concerned with simple buying of shares in cash segment ultimately performing at no intense response for their investment strategy.
But in sense it is essential for an ideal stock analyzer to consider apart from global conditions, is Buying Power And Strategy Of Different Investment Groups of Foreign Institutional Investors, Domestic Institutions and Retail constituent Investors.
Institutional Investors are large players in stock markets with financial supplementary basis, simply Able to Drive Stock Markets. The typical examples are Mutual Funds, Financial co-operations and Individual persons with good liquidity. If these institutional investors are of foreign they are called Foreign Institutional Investors. They are specially registered allowable institutional groups by SEBI.
Domestic Institutional Investors are Indian Mutual Funds or Insurance Policies investing in large amounts in stock markets like the LIC OF INDIA, UTI, ICICI, PARIDAS, RELIANCE, HDFC etc. They may be of governmental organizations.
Retail Investors are small Domestic Individual Investors with relatively small amounts of free liquidity. But, as all they constitute major group of investing category enforcing as liquidity as that of institutional investors.
But the Strategy Of Investment, Capability Variations, Aims of these categories are completely variable to each other category.
Retail investors had No Complete Concord, No Enough Familiarity, and Knowledge in financial markets. Most of they follow Stock Tips, Fii trends or some other services. Their network is Randomly Concentrated to either of Institutional Investors.
The foreign investment groups (FII”S) Follow A Different Strategy from domestic and they are highly risked, more regulated liquidity on global and own counties economic conditions. Mostly, Drive Stock Indices With Their Risky Future And Optional Investments.
Contrast, to foreign investors are domestic investors, even they have a hefty buying supplementary as Fii’s, but they never be only alternators of stock indices either on intra-day or long-term as they lack risk and more concerned with simple buying of shares in cash segment ultimately performing at no intense response for their investment strategy.
But in sense it is essential for an ideal stock analyzer to consider apart from global conditions, is Buying Power And Strategy Of Different Investment Groups of Foreign Institutional Investors, Domestic Institutions and Retail constituent Investors.
Comment on stock brokerage companies of India
An Indian stockbroker or stock brokerage was an registered person or authority by Indian stock market controller SEBI (securities exchange board of india) that allows safe transactions in stock markets.
Present Trend: Subsequently, the trading of most retail investors is predominantly increased with stock brokerage organizations than previous trading methods using favorite individual stockbroker.
The Main Reasons for this condition in Indian stock brokerages may be of following reasons:
- A high security offered by the large stock brokerage organizations than that of individual stockbrokers.
- Many stock brokerage companies in india are with large market capital, some of them are listed in stock markets
- User compatible Trading Methods
- Decrease in Brokerage Charges by brokerage companies due to large competition in this field.
- Huge Margins giving by brokerage companies for their faithful traders and for large stock players as their clients.
- Timely mobile alerts and stock tips for free offering by some brokerages.
- Special subscription packages of various stock tips offering by the stock brokerages for their traders.
- Free or low premium Insurance facilities offering by some brokerages for their clients.
- Emerging Online trading facility and mobile banking, trading facilities. And their immediate esurience by stock brokerage companies rather than individual brokerages.
- Using of advanced software’s as their trading platform by the brokerages which are offering a high security along with easy trading platform.
- Finally the advertisement of stock brokerages on major business channels.
Below are the some stock brokerages mainly concerned with India with huge capital and large number of traders as their customers:
Reliance Money Brokerage:
It is a group company of Anil Ambani. It is offering latest mobile trading platform for its customers. It is offering lowest Intraday transaction brokerage charges and huge margins. But the required limit for trading is high compared to other brokerages. But also it following different criteria for trading in options ultimately forcing for large investment and risk.
Karvy Stock Brokerage:
Even through it is one of the oldest Brokerage with large number of clients, now it is working with a huge competition of other stock brokerages that are predominating it in their advanced technologies, only it can survive if it changes its brokerage strategy according users requirements and facility.
Indian Infoline Brokerage:
Infoline is Leading Stock Brokerage of India. It may be compared with Nse of india, likewise it is following the advanced software systems and advertisements and branches, showing that it will become the predominantly largest brokerage in india. But it is Not offering the special low brokerage plans or large margin strategies for its traders.
Religare stock brokerage, kotak securities, HDFC stock brokerage, Bonanza online are other stock brokerages leading in india.
With the severe competition existing among these trusted brokerage systems, investment traders are getting increase facilities and securities for their shares in stock markets.
They may be much decline in brokerage charges (excluding common stamp duties), better security during online transactions, increasing chain among the country, free subscription packages, phone banking interrelated trading, free daily stock tips, proper guidance, increasing time limit for margin trading, adapting advanced brokerage software’s, offering trading in other investment options related to stock markets like commodity investment and currency trading etc may be the reasons.
But stock market investors and traders should always be conscious about these stock brokerages, consider all the factors above to choose their choice brokerage including personal preference, security, value for money, proper placement, packages, other interrogatives. Having a good customer support center is essential for getting immediate response for your problems.
Growing Employment:
With a minimum certificate course many private stock brokerage companies are employing large number of candidates required for their expansion plans and growth opportunities in emerging Indian economy.
Investment In Brokerage Companies:
We suggest investment in Indian infoline. As a brokerage infoline is outperforming. It attracted a large number of customers from last few quarters even the recession suppresses the sector. Thoroughly analyzing performance, growth rate, expansion plans, financial capability, fraud less history, future of brokerage market confirms infoline as a First Option for a Portfolio Including Investment in Stock Brokerages.
Present Trend: Subsequently, the trading of most retail investors is predominantly increased with stock brokerage organizations than previous trading methods using favorite individual stockbroker.
The Main Reasons for this condition in Indian stock brokerages may be of following reasons:
- A high security offered by the large stock brokerage organizations than that of individual stockbrokers.
- Many stock brokerage companies in india are with large market capital, some of them are listed in stock markets
- User compatible Trading Methods
- Decrease in Brokerage Charges by brokerage companies due to large competition in this field.
- Huge Margins giving by brokerage companies for their faithful traders and for large stock players as their clients.
- Timely mobile alerts and stock tips for free offering by some brokerages.
- Special subscription packages of various stock tips offering by the stock brokerages for their traders.
- Free or low premium Insurance facilities offering by some brokerages for their clients.
- Emerging Online trading facility and mobile banking, trading facilities. And their immediate esurience by stock brokerage companies rather than individual brokerages.
- Using of advanced software’s as their trading platform by the brokerages which are offering a high security along with easy trading platform.
- Finally the advertisement of stock brokerages on major business channels.
Below are the some stock brokerages mainly concerned with India with huge capital and large number of traders as their customers:
Reliance Money Brokerage:
It is a group company of Anil Ambani. It is offering latest mobile trading platform for its customers. It is offering lowest Intraday transaction brokerage charges and huge margins. But the required limit for trading is high compared to other brokerages. But also it following different criteria for trading in options ultimately forcing for large investment and risk.
Karvy Stock Brokerage:
Even through it is one of the oldest Brokerage with large number of clients, now it is working with a huge competition of other stock brokerages that are predominating it in their advanced technologies, only it can survive if it changes its brokerage strategy according users requirements and facility.
Indian Infoline Brokerage:
Infoline is Leading Stock Brokerage of India. It may be compared with Nse of india, likewise it is following the advanced software systems and advertisements and branches, showing that it will become the predominantly largest brokerage in india. But it is Not offering the special low brokerage plans or large margin strategies for its traders.
Religare stock brokerage, kotak securities, HDFC stock brokerage, Bonanza online are other stock brokerages leading in india.
With the severe competition existing among these trusted brokerage systems, investment traders are getting increase facilities and securities for their shares in stock markets.
They may be much decline in brokerage charges (excluding common stamp duties), better security during online transactions, increasing chain among the country, free subscription packages, phone banking interrelated trading, free daily stock tips, proper guidance, increasing time limit for margin trading, adapting advanced brokerage software’s, offering trading in other investment options related to stock markets like commodity investment and currency trading etc may be the reasons.
But stock market investors and traders should always be conscious about these stock brokerages, consider all the factors above to choose their choice brokerage including personal preference, security, value for money, proper placement, packages, other interrogatives. Having a good customer support center is essential for getting immediate response for your problems.
Growing Employment:
With a minimum certificate course many private stock brokerage companies are employing large number of candidates required for their expansion plans and growth opportunities in emerging Indian economy.
Investment In Brokerage Companies:
We suggest investment in Indian infoline. As a brokerage infoline is outperforming. It attracted a large number of customers from last few quarters even the recession suppresses the sector. Thoroughly analyzing performance, growth rate, expansion plans, financial capability, fraud less history, future of brokerage market confirms infoline as a First Option for a Portfolio Including Investment in Stock Brokerages.
Indian securities exchange regulatory board, SEBI
Securities exchange board of India.
To protect the rights and benefits of companies and investors, Indian government established SEBI. All the exchanges, brokerages work under regulations of sebi and every step by a stock exchange should be SEBI permissioned. Brokerages should be SEBI registered.
The primary function of regulatory authority is to regulate the capital markets.
Some of which includes:
-To control the stock markets from overflow of investments.
-To encourage the public participation in companies and to protect their rights.
-To prevent the malpractices in stock markets by any parties.
-Regulations that ultimately is to reach the capital expenditures and inflows towards the right edge.
Companies came to listing only after the IPO approval by SEBI. SEBI has to right to ban any investor, broker, companies insiders to participate in stock markets. Due to strict privileges by securities board, the complicated stock market deals are ensuing without any frauds.
Some SEBI regulations may be discouraging to foreign investments, but they are of very much essential to regulate markets.
Some examples of sebi regulations are:
The shares that are not in electronic form are not allowed to trade, so every share should be treated only if trader contains Demat account.
Stoppage of trading in a particular stock or whole markets, if they reached a certain maximum level (profits or losses).
Company promoters should inform to stock exchanges prior to any deals in their own company shares, sebi also planning to fix certain mandatory stake that promoter should have in their company.
Sebi may serious, if there is heavy short selling in some counters, especially by foreign institutional investors.
Sebi holds the right to suspend any investors, brokerages from trading in stock markets, if they participated in any mal-practices.
To protect the rights and benefits of companies and investors, Indian government established SEBI. All the exchanges, brokerages work under regulations of sebi and every step by a stock exchange should be SEBI permissioned. Brokerages should be SEBI registered.
The primary function of regulatory authority is to regulate the capital markets.
Some of which includes:
-To control the stock markets from overflow of investments.
-To encourage the public participation in companies and to protect their rights.
-To prevent the malpractices in stock markets by any parties.
-Regulations that ultimately is to reach the capital expenditures and inflows towards the right edge.
Companies came to listing only after the IPO approval by SEBI. SEBI has to right to ban any investor, broker, companies insiders to participate in stock markets. Due to strict privileges by securities board, the complicated stock market deals are ensuing without any frauds.
Some SEBI regulations may be discouraging to foreign investments, but they are of very much essential to regulate markets.
Some examples of sebi regulations are:
The shares that are not in electronic form are not allowed to trade, so every share should be treated only if trader contains Demat account.
Stoppage of trading in a particular stock or whole markets, if they reached a certain maximum level (profits or losses).
Company promoters should inform to stock exchanges prior to any deals in their own company shares, sebi also planning to fix certain mandatory stake that promoter should have in their company.
Sebi may serious, if there is heavy short selling in some counters, especially by foreign institutional investors.
Sebi holds the right to suspend any investors, brokerages from trading in stock markets, if they participated in any mal-practices.
Labels:
SEBI,
Stock Market Basics
Optimistic future of commodity exchange MCX-India
Multi commodity exchange of India.
As like NSE is specialized for its derivatives segment, commodities segment are best traded in MCX-India. A large number of commodities that are allowed by Indian government are traded for forward contracts in mcx exchange.
Mcx is the fine leading exchange of India. It has greater aspirations to grow, the likely reasons are:-
-In commodities trading mcx is outstanding exchange
-It is offering further improved, user-friendly technology of trading. Mcx launched its trading platform in local languages of India.
-Mcx already announced its curiosity to enter the stock trading.
-Bse, Nse had lesser chances to enter and to compete with mcx in full commodities.
Considering these if mcx entered stock trading with same technology and cost effective exchanging, definitely it turns into future leader.
As like NSE is specialized for its derivatives segment, commodities segment are best traded in MCX-India. A large number of commodities that are allowed by Indian government are traded for forward contracts in mcx exchange.
Mcx is the fine leading exchange of India. It has greater aspirations to grow, the likely reasons are:-
-In commodities trading mcx is outstanding exchange
-It is offering further improved, user-friendly technology of trading. Mcx launched its trading platform in local languages of India.
-Mcx already announced its curiosity to enter the stock trading.
-Bse, Nse had lesser chances to enter and to compete with mcx in full commodities.
Considering these if mcx entered stock trading with same technology and cost effective exchanging, definitely it turns into future leader.
Labels:
MCX-stock exchange,
Stock Market Basics
Stock exchanges; BSE and NSE of India
‘Bombay stock exchange’ and ‘National stock exchange’ are reputed stock exchanges in India.
BSE: Bombay stock exchange
It was established in mumbai.
It is the historical stock exchange of India.
It had wide horizons with credit of having listed large number of Indian companies.
Even though it is so far in listing large number of companies than other stock exchanges, Bse is pronouncing plenty competition from Nse.
NSE: National stock exchange, mumbai, India.
It is outstanding Bse with its new technology and user-friendly methodology.
Although listed companies are lower in number than BSE, total exchanged volumes are higher in Nse.
Nse is specialized in Derivatives segment (F&O)
Almost all major Indian companies are listed in both exchanges. The index of BSE is ‘Sensex’, while of NSE is ‘Nifty’. Most of us consider sensex as economic pointer of nation rather nifty. Because BSE has more listed companies it best represent the economic condition of country.
Now both the stock exchanges are valuing stocks under free float technique.
Stock exchanges work under the rules and regulation quoted by securities exchange board of India (SEBI)
Apart from the NSE, BSE there are few other exchanges of which mcx-India is reputed in commodities.
Brokers most prefer trading in NSE as it offers very new technology, which offers fastness, security, and user-friendly platform along with timely updates of various issues regarding trading, while Bse shows mild behavior towards these. But Bse is also planning to fortune its loosen fame, by launching its new model derivatives trading, website especially for delisting information of PSU”s etc.
BSE: Bombay stock exchange
It was established in mumbai.
It is the historical stock exchange of India.
It had wide horizons with credit of having listed large number of Indian companies.
Even though it is so far in listing large number of companies than other stock exchanges, Bse is pronouncing plenty competition from Nse.
NSE: National stock exchange, mumbai, India.
It is outstanding Bse with its new technology and user-friendly methodology.
Although listed companies are lower in number than BSE, total exchanged volumes are higher in Nse.
Nse is specialized in Derivatives segment (F&O)
Almost all major Indian companies are listed in both exchanges. The index of BSE is ‘Sensex’, while of NSE is ‘Nifty’. Most of us consider sensex as economic pointer of nation rather nifty. Because BSE has more listed companies it best represent the economic condition of country.
Now both the stock exchanges are valuing stocks under free float technique.
Stock exchanges work under the rules and regulation quoted by securities exchange board of India (SEBI)
Apart from the NSE, BSE there are few other exchanges of which mcx-India is reputed in commodities.
Brokers most prefer trading in NSE as it offers very new technology, which offers fastness, security, and user-friendly platform along with timely updates of various issues regarding trading, while Bse shows mild behavior towards these. But Bse is also planning to fortune its loosen fame, by launching its new model derivatives trading, website especially for delisting information of PSU”s etc.
Labels:
BSE and NSE of India,
Stock Market Basics
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