A promoter is an individual or company that, for a fee, helps raise money for some type of investment activity. Most often, promoters raise money for a company through offering investment vehicles other than traditional stocks and bonds, such as limited partnerships and direct investment activities. Often times, these promoters are paid in company stock or free entrance into the investment activity as compensation for their work in raising funds from others.
Showing posts with label Share Market. Show all posts
Showing posts with label Share Market. Show all posts
Friday, March 18, 2016
Thursday, January 21, 2016
MAX India Ltd
"Max India Ltd is demerging its health & allied business and
specialty film business into Taurus Ventures Ltd and Capricorn Ventures
Ltd, respectively. Effective at the open of Wednesday, January 27, 2016,
Max India will be dropped from the indices," BSE said in a circular
issued on Thursday.
In all, Max India will be excluded from seven indices, including S&P BSE 200, S&P BSE 500, S&P BSE AllCap and S&P BSE Industrials.
Kansai Nerolac Paints and Syngene International will fill its slot in BSE 200 and BSE 500, respectively.
In all, Max India will be excluded from seven indices, including S&P BSE 200, S&P BSE 500, S&P BSE AllCap and S&P BSE Industrials.
Kansai Nerolac Paints and Syngene International will fill its slot in BSE 200 and BSE 500, respectively.
Tuesday, December 1, 2015
Rakesh Jhunjhunwala
Rakesh Jhunjhunwala (born 5 July 1960) is an Indian Investor and Trader. He is a qualified Chartered Accountant. He manages his own portfolio as a partner in his asset management firm, Rare Enterprises.
Jhunjhunwala is the chairman of Aptech Limited and Hungama Digital Media Entertainment Pvt. Ltd. and sits on the board of directors of various Indian companies such as Prime Focus Limited, Geojit BNP Paribas Financial Services Limited, Bilcare Limited, Praj Industries Limited, Provogue India Limited, Concord Biotech Limited, Innovasynth Technologies (I) Limited, Mid Day Multimedia Limited, Nagarjuna Construction Company Limited, Viceroy Hotels Limited and Tops Security Limited.
NET WORTH: USD 1.90 billion (Sep.2014)
Monday, November 9, 2015
Capital Gains Tax
At the time of Sale of any Asset, tax is liable to be paidon the gains earned on the sale of Asset. Such Gains could either be Short Term or Long Term. The Clssification for the same for Assets other than Shares and Mutual Funds are as follows,
1. Short Term Capital Gain (STCG): If the Asset is held for less than 36 Months
2. Long Term Capital Gain (LTCG): If the Asset is held for more than 36 Months
Classification for Sell of Shares or Mutual Funds:
1. Short Term Capital Gain (STCG): If the Asset is held for less than 12 Months
2. Long Term Capital Gain (LTCG): If the Asset is held for more than 12 Months
1. Short Term Capital Gain (STCG): If the Asset is held for less than 36 Months
2. Long Term Capital Gain (LTCG): If the Asset is held for more than 36 Months
Classification for Sell of Shares or Mutual Funds:
1. Short Term Capital Gain (STCG): If the Asset is held for less than 12 Months
2. Long Term Capital Gain (LTCG): If the Asset is held for more than 12 Months
Monday, November 2, 2015
Foreign Investors
Qualified foreign investors (QFIs) can now invest directly in Indian equities. A QFI is an individual, an association or a group from a foreign country complaint with standards mandated by the Financial Action Task Force, an inter-governmental body that formulates policies to combat money laundering and terrorist financing. Foreign institutional investors (FIIs) and foreign venture capital investments do not come under the QFI category.
An individual QFI can invest up to 5 per cent of the paid-up capital of a listed company. Total investment by QFIs in a listed company cannot exceed 10per cent of its paid-up capital. Foreign investors will also be allowed to acquire equity shares by way of rights issue, bonus shares or equity shares on account of stock split, amalgamation, demerger or such corporate action.
The QFI investment limits will be over and above the ceilings set for FII and non-resident Indians under the Portfolio Investment Scheme for foreign investment in India.
An individual QFI can invest up to 5 per cent of the paid-up capital of a listed company. Total investment by QFIs in a listed company cannot exceed 10per cent of its paid-up capital. Foreign investors will also be allowed to acquire equity shares by way of rights issue, bonus shares or equity shares on account of stock split, amalgamation, demerger or such corporate action.
The QFI investment limits will be over and above the ceilings set for FII and non-resident Indians under the Portfolio Investment Scheme for foreign investment in India.
Thursday, October 15, 2015
Yo-Yo Market
Very volatile market is known as Yo-Yo Market. It will
have no distinguishing features of either an up or down market, taking
on characteristics of both. Security prices in a yo-yo market will swing
very high to low over a given period of time, making it difficult for
buy and hold investors to profit.
Yo-yo markets can, however, be profitable environments for astute traders who are able to recognize buy and sell points and make trades before the market reverses. The name comes from the movements of a yo-yo, where security prices continually go up and down; a yo-yo market moves like its toy namesake.
Yo-yo markets can, however, be profitable environments for astute traders who are able to recognize buy and sell points and make trades before the market reverses. The name comes from the movements of a yo-yo, where security prices continually go up and down; a yo-yo market moves like its toy namesake.
Friday, October 9, 2015
Obligation
In the financial world, obligation refers to an outstanding debt that a
party must still repay - and if they do not pay, they default on the
debt. Obligation
is a facility which supports selling of shares on the next trading day after they are purchased in delivery, by allowing you to sell the
shares that you have purchased in delivery even before those shares are
credited to your Demat account.
Suppose, you have purchased a specific share on Monday, it will take two trading days for those shares to be credited to your demat account i.e. you will receive those shares on Wednesday evening. This is known as T+2 settlement of shares. During these two days when the settlement is still under process these shares will remain in obligation. Thus giving you the liberty to sell those shares even before the settlement cycle is completed.
Suppose, you have purchased a specific share on Monday, it will take two trading days for those shares to be credited to your demat account i.e. you will receive those shares on Wednesday evening. This is known as T+2 settlement of shares. During these two days when the settlement is still under process these shares will remain in obligation. Thus giving you the liberty to sell those shares even before the settlement cycle is completed.
Thursday, August 27, 2015
China Impact
By now we all can see the Chinese economy is falling apart. Will that affect us? Yes, What happens in China will have a massive impact on economies around
the world, which means most stocks will get hit. We have to remember China is not Greece.
The China has continued to build high-end real estate in order to show GDP growth, but very few people live in these so-called ghost cities. (Same can be said about India in few years, if we realized it on time and learn from China now.) The Chinese government has also banned short selling, temporarily halted IPOs, pressured state-owned banks to make loans to struggling businesses, allowed pension funds to invest up to 30% of their net assets in stocks, and temporarily banned company shareholders with stakes of more than 5% from selling. If these aren't desperate measures, what is?
If the Chinese stock market crashes, it means that the investors do not believe in a bright future for China's economy. As people see their portfolios shrink, they might start selling stocks. That may trigger more selling. Another thing the Chinese might sell is gold. And if gold prices fall significantly, there is a good chance panic would come to India as well because the Indians traditionally are holding onto a lot of gold.
But there are other views too, which elaborates Indian economy much stronger to survive such external stock. And we all should believe that but just trade cautiously. Having said that there is no need to get panicked either, rather it can be seen great opportunity to invest in companies which we use and hear about everyday. These are companies will be there for long time.
The China has continued to build high-end real estate in order to show GDP growth, but very few people live in these so-called ghost cities. (Same can be said about India in few years, if we realized it on time and learn from China now.) The Chinese government has also banned short selling, temporarily halted IPOs, pressured state-owned banks to make loans to struggling businesses, allowed pension funds to invest up to 30% of their net assets in stocks, and temporarily banned company shareholders with stakes of more than 5% from selling. If these aren't desperate measures, what is?
If the Chinese stock market crashes, it means that the investors do not believe in a bright future for China's economy. As people see their portfolios shrink, they might start selling stocks. That may trigger more selling. Another thing the Chinese might sell is gold. And if gold prices fall significantly, there is a good chance panic would come to India as well because the Indians traditionally are holding onto a lot of gold.
But there are other views too, which elaborates Indian economy much stronger to survive such external stock. And we all should believe that but just trade cautiously. Having said that there is no need to get panicked either, rather it can be seen great opportunity to invest in companies which we use and hear about everyday. These are companies will be there for long time.
Thursday, August 20, 2015
BLUE-CHIP STOCK
Blue-chip Stock can be defined as stock of a large, well-established and financially sound company that
has operated for many years. A blue-chip stock typically has a market
capitalization in the billions, is generally the market leader or among
the top three companies in its sector. You will invariably find that is to be a household name. Most blue-chips have a record of
paying stable or rising dividends for years. The term is
believed to have been derived from poker, where blue chips are the most
expensive chips.
Friday, June 19, 2015
Support & Resistence
Support is the price level at which demand is thought to be strong
enough to prevent the price from declining further. The logic is that,
when the price declines, there will be more demand for the particular
share. By the time the price reaches a particular level, it is believed that demand will overcome supply and prevent the
price from falling below support.
Resistance is just the opposite of ‘support’. A Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. The logic behind the theory is that , as the price advances , sellers become more inclined to sell and buyers become less inclined to buy. By the time the price reaches a particular level it is believed that supply will overcome demand and prevent the price from rising above resistance.
Resistance is just the opposite of ‘support’. A Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. The logic behind the theory is that , as the price advances , sellers become more inclined to sell and buyers become less inclined to buy. By the time the price reaches a particular level it is believed that supply will overcome demand and prevent the price from rising above resistance.
Monday, June 15, 2015
Bonus Share
Bonus shares are additional shares given to the shareholders without any additional cost, based upon the number of shares that a shareholder owns. These are company's accumulated earnings which are not given out in the form of dividends, but are converted into free shares. The basic principle behind bonus shares is that the total number of shares increases with a constant ratio of number of shares held to the number of shares outstanding. For instance, if Investor A holds 200 shares of a company and a company declares 4:1 bonus, that is for every one share, he gets 4 shares for free. That is total 800 shares for free and his total holding will increase to 1000 shares.
Companies issue bonus shares to encourage retail participation and increase their equity base. When price per share of a company is high, it becomes difficult for new investors to buy shares of that particular company. Increase in the number of shares reduces the price per share. But the overall capital remains the same even if bonus shares are declared.
Wednesday, June 10, 2015
Chart Analysis
- Chart analysis is the technique of using patterns formed on a chart to get an idea about the price movement of a share.
- There are two types of chart patterns: reversal and continuation.
- A continuation pattern suggests that the prior trend will continue upon completion of the pattern.
- A reversal pattern suggests that the prior trend will reverse upon completion of the pattern.
Monday, June 1, 2015
Stocks to Invest : L&T Ltd
The company is well poised to capitalise on the upcoming business opportunities, particularly in the infrastructure, power and defence sectors, which are likely to benefit from the government's thrust.
The management expects about Rs 150000 crore of orders in the next couple of quarters to come for bidding. These include orders from airports, metros, dedicated freight corridors, urban infrastructure, power generation, including nuclear power plants, T&D, etc.
Larsen & Tourbo
The management expects about Rs 150000 crore of orders in the next couple of quarters to come for bidding. These include orders from airports, metros, dedicated freight corridors, urban infrastructure, power generation, including nuclear power plants, T&D, etc.
Larsen & Tourbo
Target Price: 2123
Wednesday, May 27, 2015
What is 52-Week High/Low?
Prices of commodities, securities and stocks fluctuate frequently, recording highest and lowest figures at different points of time in the market. A figure recorded as the highest/lowest price of the security, bond or stock over the period of past 52 weeks is generally referred to as its 52-week high/ low.
It is an important parameter for investors (as they compare the current trading price of the stocks and bonds to the highest/lowest prices they have reached in the past 52 weeks) in making investment decisions. It also plays an important role in determination of the predicted future prices of the stock.
It is an important parameter for investors (as they compare the current trading price of the stocks and bonds to the highest/lowest prices they have reached in the past 52 weeks) in making investment decisions. It also plays an important role in determination of the predicted future prices of the stock.
Monday, May 25, 2015
PEG Ratio
Popularized by the legendary Peter Lynch, It’s a ratio that will
help you look at future earnings growth You calculate the PEG by taking
the P/E and dividing it by the projected growth in earnings.
If you have a stock with a low P/E. Since the stock is has a low P/E, you start to wonder why the stock has a low P/E. Is it that the stock market does not like the stock? Or is it that the stock market has overlooked a stock that is actually fundamentally very strong and of good value?
To find that answer, PEG ratio will help. If the PEG ratio is big (or close to the P/E ratio), you can understand that this is probably because the “projected growth earnings” are low. This is the kind of stock that the stock market thinks is of not much value.
On the other hand, if the PEG ratio is small (or very small as compared to the P/E ratio, then you know that it is a valuable stock) you know that the projected earnings must be high. You know that this is the kind of fundamentally strong stock that the market has overlooked for some reason.
www.switch2life.com
- PEG = (P/E) / (projected growth in earnings)
If you have a stock with a low P/E. Since the stock is has a low P/E, you start to wonder why the stock has a low P/E. Is it that the stock market does not like the stock? Or is it that the stock market has overlooked a stock that is actually fundamentally very strong and of good value?
To find that answer, PEG ratio will help. If the PEG ratio is big (or close to the P/E ratio), you can understand that this is probably because the “projected growth earnings” are low. This is the kind of stock that the stock market thinks is of not much value.
On the other hand, if the PEG ratio is small (or very small as compared to the P/E ratio, then you know that it is a valuable stock) you know that the projected earnings must be high. You know that this is the kind of fundamentally strong stock that the market has overlooked for some reason.
www.switch2life.com
Saturday, May 23, 2015
What is IPO
The initial sale of stock by a private company to the public which turns it into a public company. IPOs are typically offered by smaller, younger companies who are seeking to expand through the infusion of capital from the IPO. It can also be done by large privately owned companies looking to become publicly traded.
Most IPOs use the services of an underwriting firm, which helps it determine the type of security to issue. The underwriting firm also helps select the price and timing for the IPO.
The initial day of trading as well as the near term can see huge swings in price. For small private investors, this makes IPOs tough to predict and highly risky for small investors. Most companies with an IPOs are going through a transitory growth period, which adds to the uncertainty regarding their future values.
Wednesday, May 20, 2015
Online Trading
Online trading is nothing but trading via the Internet with the help
of trading software provided by the broker. But for many of us this trading platform can be very confusing. You can also transfer funds online from your
bank account to your share trading account with the click of a button.
The advantages of using online trading are:
The advantages of using online trading are:
- Fully automated trading process which is broker independent.
- Access to advanced trading tools to perform technical analysis
- Investors have direct control over their trading portfolio.
- Ability to trade multiple markets and/or products. You can trade in BSE / NSE.
- Real-time market data.
- Faster trade execution.
- Easy to operate and manage account
- No geographical limits i.e. you can be anywhere in the world you can invest in Indian share market through online trading platforms.
Monday, May 18, 2015
Types of Price Gaps
Common gaps: Common gaps are ‘common’ and ‘uneventful’. If a Gap is formed when the markets are moving in a narrow range, it is called a Common Gap.
Breakaway Gaps: A “breakaway” gap ends a consolidation pattern and happens as prices break out. Often, they would be accompanied by huge volumes. Break-out Gaps are generally not filled for a long time, i.e. in the case of an uptrend, the price does not fall back to wipe off the gains. They may be filled as and when the prices retrace after a substantial up move. If the breakout happens to be a downtrend, the prices may not rise soon to wipe off the loss.
Runaway Gaps:Runaway gaps are best described as gaps that are caused by increased interest in the stock. For runaway gaps to the upside, it usually represents traders who did not get in during the initial move of the up trend and while waiting for a retracement in price, decided it was not going to happen. Increased buying interest happens all of a sudden, and the price gaps above the previous day’s close. This type of runaway gap represents an almost panic state in traders. Also, a good uptrend can have runaway gaps caused by significant news events that cause new interest in the stock. Runaway gaps can also happen in downtrends. This usually represents increased liquidation of that stock by traders and buyers who are standing on the sidelines. These can become very serious as those who are holding onto the stock will eventually panic and sell – but sell to whom? The price has to continue to drop and gap down to find buyers. So, in either case, runaway gaps form as a result of panic trading.
Exhaustion Gap: An “exhaustion” gap occurs at the end of a price move. If there have been two or more gaps before it, then this kind of gap should be regarded very skeptically. A genuine “exhaustion” gap is filled within a few days to a week. It is generally not easy to distinguish between the Runaway and Exhaustion Gaps. Experience in reading charts will help in due course. The best clue available is that Exhaustion Gaps are not the first Gaps in the chart, i.e. they follow the Runaway Gaps and usually occur when the runaway Gap is nearing completion. Exhaustion Gaps do not indicate whether the trend will reverse, they only call for a halt in the price movement.
www.switch2life.com
Friday, May 8, 2015
Technical Analysis: Price GAP
A gap is an area on a price chart in which there were no trades. It
is easy to see gaps if you take candle stick charts. Let us try to
understand gaps in another way. The fluctuations in stock prices are
coherent in nature. That means that the price rises or falls gradually.
Thus, in rising scrip, if on one day the low was Rs 100 and the high
was Rs 135, on the next day the low would be Rs 130 and the high Rs 140.
Here, the low for the next day falls within the high-low range of the
previous day. But suppose for the second day, the low was Rs 145 and the
high Rs 150. Then, the low for the next day has fallen above the
previous day High-Low range, or it was higher than the previous day’s
high. So, when one draws bar charts showing High-Lows every day, there
would be a discontinuity, termed as a ‘Gap’ in technical theory. An
interesting feature of Price gaps is that it gets filled within a short
amount of time. That is, the price would come back to fill the price gap
of Rs 140 – Rs145, where there was no trade in the previous days.
In simple terms-a gap occurs when the current bar opens above the high or below the low of the previous bar. On a price chart, a space appears between the bars indicating the gap.
www.switch2life.com
In simple terms-a gap occurs when the current bar opens above the high or below the low of the previous bar. On a price chart, a space appears between the bars indicating the gap.
www.switch2life.com
Thursday, July 24, 2014
Share Market Timings
Trading on the Indian equities segment takes place on all weekdays. There is No trading on Saturday, Sunday and Published Indian Stock
Market Holidays declared by the Indian Stock Exchange in advance.
Only 50 stocks of the NIFTY index can be traded during this time on both NSE and BSE. Normal trading for all other stocks will start at 9:15AM till 3:30PM.
- The Market Opens at: 09:15 hours and Closes at: 15:30 hours
- Pre open trade session will be from 09:00 ~ 09:15 hours
Only 50 stocks of the NIFTY index can be traded during this time on both NSE and BSE. Normal trading for all other stocks will start at 9:15AM till 3:30PM.
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