World Of Finance

        World of Finance by M.Vijaya Sai   Making money from Indian stock market was never so simple. Even though markets are in the upswing we can find more and more people losing in stocks. A close study shows non understanding of financial markets as the major reason for this. Fundamental study helps you to identify potential winners which can be multi-baggers. Technical analysis helps to time the markets. But there is one more important factor that affects the profits of your investments that is Tax. In this article we have briefly explained different types of Taxes that influences your Returns. Securities Transaction Tax (STT) Securities Transaction Tax (STT) is a tax on the value of shares bought and sold on a stock exchange. The Tax has to be paid irrespective of your profit or loss; it is a turnover based tax. STT has been introduced in the in the year 2004-05. It is levied on the purchase or sale of equity shares, derivatives, equity-oriented funds a

Stock Tips Stock market is one of the most attractive platforms that help you to multiply your wealth. A beginner can enter into stock market only with the help of an expert because without prior experience one may not be able to understand the market dynamics. The working mechanism of stock market is very confusing; to get benefited from the market you should be tricky enough to manage according to the market fluctuations. Stock tips are very common these days; you can find stock tips in areas such as websites, newspapers, magazines, chat rooms, etc. Especially free stock tips are dominant everywhere - forums, newsletters, and a wide variety of publications exist exclusively to give stock tips to new investors. When it comes to stock tips, everyone claim to be an expert. But the concern is that how reliable their tips are? However, not all stocks tips are the same. If you're looking for tips to buy/sell stocks, you should be very careful while considering the advice of exper

The term IPO stands for Initial Public Offer and it is in practice in the primary market of shares and stocks. It is the first issue of shares of a company to the public . An Initial Public Offering (IPO) is the first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded. IPOs can be a risky investment . For the individual investor , it is tough to predict what the stock will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, and they are therefore subject to additional uncertainty regarding their future value.   In short we can say that IPO is the medium through which a company raises equity capital from the public. By this process it also gets listed on the

Prospectus is a legal declaration that a company makes for an initial public Offering . This is a gateway for investors to get overall information about the company, everything about a company right from the type of business that they are into, their business model, their financial performance , board of directors , promoters, their branches, products, competitors, their marketing strategies etc. is given in the Prospectus. The prospectus is submitted to SEBI for its approval for IPO then it is open for public viewing. Most of the times prospectus is not less than 100 pages now the question is should an investor go through each word of each page to decide whether to invest or not, if yes then it would call for lot of time, concentration, patience of an investor. So we will be discussing some of the points which can give you a clear picture of the company without going through each and every word of prospectus.          Before starting to read the prospectus what I would tell th

An investor who is interested in trading through Internet has to register himself with an online brokerage firm. Some formalities such as filling the account opening form, copies of identity proof, residence proof, etc. are made to register with the e-trader. Secondly, the investor would be required to open a bank account with a scheduled bank and adequate balance should be kept in the account. Thirdly he would be required to open account with a depository participant (DP) because only dematerialized shares can be traded on Internet. Below given structure shows the working of online Trading; The client places order via net by logging on to his Broker’s site ↓ The broker accepts and executes the order and places it with the exchange ↓ The exchange accepts the order after checking the share limit for the day. ↓ The broker makes the payment either directly through the client bank account or pays through its own account and recovers it later from the client. ↓ The exchange re