George Soros Predicts Stagflation - YouTube

Monday, December 26, 2011

George Soros Predicts Stagflation - YouTube:

'via Blog this'

What happened to gold?

Thursday, October 28, 2010

Share trading,important types of trading

Sunday, October 10, 2010

Buying or selling of shares is known as share trading.
There are two important types of share trading.
Day trading and Delivery trading.

Day trading

Purchase and sale of the same scrip/indice on the same day is called day trading.It is also called as intraday trading and daylight trading.One must sell stocks before 3.30,that he bought on the day and buy scrips that he sold on the day.Selling before buying is possible on delivery trading.But you must buy the scrip before market close.It is safe compared to short term trading, because there is no over night risk. But it is important to keep stop loss on intraday trading.Holding stocks which bought on intraday basis is some times risky.

Delivery trading

Delivery means the legal transfer and recipt of ownership rights.You have to take the delivery of shares.There is a one plus two settlement (One trading day and two other days) for delivery trading.After getting scrips into your demat account you can sell them at any time.Normally it will take up to three days.You should have sufficient money to buy shares on delivery basis.Selling before buying is not possible on delivery trading.

Short term, mid term, and Long term share trading

Short term

Trading of shares done from three days to six months is called short term.It depends upon news and performance of companies.

Mid term

Share trading done from six months to less than one year is called mid-term.Mid-term trading is also based on news and company performance.

Long-term

Usually share trading done after one year is called long term.Company's fundamentals, performance, news and market conditions affect long term trading.

Important terms related to stock/share market trading

Open-Open is the first price of a scrip/indice when the market opens

High- When the price of a scrip/Indice reaches day's highest level while trading it is called high

Low-When the price of a scrip/Indice reaches day's lowest level while trading it is called low

Close- Price of a scrip when market closes for the day

Previous Close- Close price of a scrip on previous day

Volume- Number (quandity) of Scrips traded

Bid-Buying price is called bid

Offer-Selling Price is called offer price

Bid Quandity-Total number of shares available to buy

Offer Quandity-Quandity of shares available for selling

52 week high (Year high)- When the price of a scrip/Indice reaches 52 week's highest level

52 week low (Year low)-When the price of a scrip/Indice reaches 52 week's lowest level

Permanent account number (PAN)

Permanent Account Number (PAN) is unique alphanumeric combination issued to all juristic entities identifiable under the Indian Income Tax Act 1961. PAN is issued by the Indian Income Tax Department under the auspices of the Central Board for Direct Taxes (CBDT) and is almost equivalent to a national identification number. One can not open demat account with out PAN card.

Uses of PAN

It is used as an important Identity proof.
PAN is Mandatory for financial transactions such as opening bank account, to file income tax returns and to purchase assets above specified limits.

The primary aim of PAN is to bring a universal identification key factor for all financial transactions.It indirectly prevent tax evasion by keeping a track of monetary transactions of high net worth individuals.

Features


PAN is unique and permanent.Address change inside the country will not affect PAN.

What is Demat account and how to open

Demat is the short form of dematerialization.It is defined as the movement from the use of physical certificate into an electronic form.
Demat account is must for stock market trading.Unlike savings account no minimum sares are required to maintain a DP account.But there ia an annual account maintanance fee, which may vary on differant DP's.

How to open a demat account-
Approch a DP (Depository Participant) to open demat account.Most banks, brokers and other financial institutions are depository participants.
Complete list of depository participants are available on http://www.nsdl.co.in and http://www.cdsl.co.in

Essential documents required to open a demat account-

PAN CARD
Voters ID Card
Passport/ration card/Driver's license/Employee ID card/IT Returns/Electricity Bill/Land Phone Bill
Bank Pass Book

Depository, DP and Broker

Depository, Depository participant and Broker are the three essential parts of share trading.

Depository-
Depository is a bank or a company which maintains shares in the electronic form.In India  NSDL (National Securities Depository Ltd) and CDSL (Central Depository Services India Ltd.) are the two Depositories.

Depositaory Participant (DP)-

Depository participants are organizations involved in the financial services.They are mostly banks and brokers. They are in control of Depository.

Broker-

Broker is an individual or firm who acts as an intermediary between a buyer and seller.A license is required to be a shre broker.Majority of approved brokers are banks.

Stock Market, Stock and Share holder

Stock Market –
Stock market is the place where the shares of listed companies are bought and sold.
NASDAQ, FTSE, Shanghai etc are some of the important Global stock exchanges.
Bombay Stock Exchange and National Stock Exchange are the important stock exchanges in India.

Share-

The owner ship of a company is divided into small parts and each part is called a share.It is also known as stock.

Share holder-

A person carrying share in the company is called share holder.In other words share holder is one of the owners of the company.A person holding maximum shares in a company has maximum ownership.They will be the directors or Chairman in the company.