Tag Archives: stock market investment

What are the products dealt in the Secondary Markets?

Following are the main financial products/instruments dealt in the Secondary market which may be divided broadly into Shares  and Bonds: Shares: Equity Shares: An equity share, commonly referred to as ordinary share, represents the form of fractional ownership in a  business venture. Rights Issue/ Rights Shares: The issue of new securities to existing shareholders at a ratio to those already held, at a price.

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Why should one invest?

One needs to invest to: •earn return on your idle resources •generate a specified sum of money for a specific goal in life •make a provision for an uncertain future One of the important reasons why one needs to invest wisely is to meet the cost ofInflation. Inflation is the rate at which the cost of living increases The cost of living is simply what it

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When to start Investing?

The sooner one starts investing the better. By investing early you allow your investments more time to grow, whereby the concept of compounding (as we shall see later) increases your income, by accumulating the principal and the interest or dividend earned on it, year after year. The three golden rules for all investors are: •Invest early •Invest regularly •Invest for long term and not

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What care should one take while investing?

Before making any investment, one must ensure to: 1.obtain written documents explaining the investment 2.read and understand such documents 3.verify the legitimacy of the investment 4.find out the costs and benefits associated with the investment 5.assess the risk-return profile of the investment 6.know the liquidity and safety aspects of the investment 7.ascertain if it is appropriate for your specific goals 8.compare these details with

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What are various options available for investment?

One may invest in: •Physical assets and/or •Financial assets like real estate, gold/jewellery, commodities etc.  such as fixed deposits with banks, small saving  instrume nts with post offices, insurance/provident/pension fund etc. or securities  market related instruments like shares, bonds,  debentures etc.     Get Live Intraday BTST Short Term Research Call on Mobile , Yahoo , Chat : visit:www.moneymantrastock.com for Commodity Research call Visit

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What is meant by a Stock Exchange?

The Securities Contract (Regulation) Act, 1956 [SCRA] defines ‘Stock  Exchange’ as any body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the  business of buying, selling or dealing in securities. Stock exchange could be a regional stock exchange whose area of operation/jurisdiction is specified at the time of its recognition or national exchanges, which are permitted to have

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What is Simple Interest?

Simple Interest: Simple Interest is the interest paid only on the principal amount borrowed. No interest is paid on the interest accrued during the term of the loan. There are three components to calculate simple interest: principal, interest  rate and time. Formula for calculating simple interest: I = Prt Where, I = interest P = principal r = interest rate (per year) t =

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