Investment Analyst investments analysts are finance professionals employed by banks, stockbrokers, investment companies, mutual funds, and unit trusts to advise them on stocks and investments. They study the market by using technical and fundamental method of analysis give their recommendations and advises. Investment Club A group of retail investors who pool some of their … [Read more...]
basic terms on investment
Havala or Hawala (also, Making Up Price) it is the rate fixed by the stock exchange for the purpose of working out the liabilities between the members and brokers at the end of the SETTLEMENT PERIOD in respect of unfulfilled contracts in specified securities which are to be carried over to the subsequent period. If members were to try and individually settle all carry over … [Read more...]
interest and shares : basic terms
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...]
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...]