Have you ever wondered why people usually say “whenever I buy shares the prices becomes low and when I sell them immediately after that the prices becomes high”.. this is the case with most of us with regrets in mind . For example: One say's "I bought "XYZ Company" at Rs.5000 and immediately after I bought the stock price dropped to Rs.4500." I feel sad. Another comes with a … [Read more...]
Net Asset Value(NAV)- Meaning
Net asset value (NAV) is a term used to describe the value of an entity's assets less the value of its liabilities. The term is most commonly used in relation to open-ended or mutual funds due to the fact that shares of such funds are redeemed at their net asset value. However, the term may also be used as a synonym for book value or the equity value of a business. Net asset … [Read more...]
what is a stock option?
Stock option is a contract giving its holder the right to purchase or sell the underlying security before a certain point in time for a specified amount of money as outlined by the contract.. It is Having the Rights to purchase a corporation's stock at a specified price. Infact There are two definitions of stock options. 1. The right to purchase or sell a stock at a … [Read more...]
what is the exact meaning of shares?
In general a share is a part of the ownership of a company. A person who buys a portion of a company's capital becomes a shareholder in that company's assets and as such receives a share of the company's profits in the form of an annual dividend. Lucky or astute investors may also reap a capital gain as the market value of the shares increases. In finance a share is a unit of … [Read more...]
defining: premium issue
Generally, shares have a face value (i.e. the value as in a balance sheet) of Rs.10 though not always offered to the public at this price. Companies can also offer a share with a face value of Rs.10 to the public at a higher price.and this difference between the offer price and the face value is called premium . . As per the SEBI guidelines, new companies can offer shares to … [Read more...]