What is Sub-prime? Some borrowers may have issues like poor credit history or hard to prove income, which makes Them ineligible to borrow money at prevailing market rates or prime rates. Sub Prime Lending is the Practice of financing such borrowers at a higher than prime rate. Such loans are considered risky Because of high interest rates, bad credit history and lack of … [Read more...]
Archives for January 2010
Technical Indicator- Moving Average used in Indian stock market
MOVING AVERAGE The concept of moving average in statistics is used to analyze the time series data. Moving averages simply measure the average price or exchange rate of a currency pair over a specific time frame. For example, if we take the closing prices of the last 10 days, add them together and divide the result by 10, we have created a 10-day simple moving … [Read more...]
IPOs : In detail
An initial public offering (IPO) occurs when a company first sells common shares to investors in the public. Generally, the company offers primary shares this way, although sometimes secondary shares are also sold as IPOs. This article contains: What are the eligibility criteria for a company to issue an IPO? Why companies … [Read more...]
Trader or an Investor ?
It's Important to Know the Difference Are you investing in a stock or a company? That may sound like confusing question, but it is an important distinction and can get you in trouble if you don’t know the answer? First, let’s be clear that either answer is okay. The problem arises when investors confuse one with the other or start out investing in a stock, then change their … [Read more...]
Basic Principles of Short-term Trading
The first principle is to do few trades. At any point, one should not have more than 6 trades outstanding. A good number is 3-5. Equal capital allocation: Divide your short term trading capital equally into each trade. Ideally if one has Rs 1 lac of capital, … [Read more...]