Interest Rate Risk The possibility of a reduction in the value of a security, especially a bond, resulting from a rise in interest rates. This risk can be reduced by diversifying the durations of the fixed-income investments that are held at a given time.With the rise and fall of interest rates, announced by the Reserve Bank of India from time to time, the fortunes of the bond … [Read more...]
Archives for 22/10/2009
insider and market terms
Insider Not just a person working in a particular company, but one who knows the crucial facts about the company, such as contracts won, takeover bids, current results, etc, which the public do not know yet. Insiders include owners, executives and consultants of a firm. It is illegal for an insider to indulge in speculative trading in the company’s shares, although the … [Read more...]
basic concepts of trading
Dodd and Braham theory A method advocated by the two authors in their book Security Analysis, published some sixty years ago, which advises: 1. Buy shares of companies with undervalued assets, as these are bound to appreciate to their true value; 2. Buy shares in companies where current assets exceed current liabilities and all long – term debt; 3. Also, such shares should be … [Read more...]
glamour shares and terms
Glamour Shares Shares of companies that are very popular with individual and institutional investors, and are happy to have them in their portfolios. The glamour has been achieved by consistent above – average growth in sales and earnings over a considerably period. A glamour stock is often a blue chip, but its essential characteristic is its high earnings growth … [Read more...]
golden rules of stock trading
Gold Certificates Issued in exchange of specified amounts of gold, these are tradable in the market in a deregulated economy. The central bank of the country fixes the price of the certificates daily in line with price of gold in the London Metal Exchange and the dollar rate against the local currency. Investors also have an option to receive cash equivalent or gold when … [Read more...]