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glamour shares and terms

22/10/2009 by admin

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 rate.

Godfather Offer
it is a takeover offer that is so attractive that the target company cannot refuse. Usually takeovers result in a change of the management team. Shareholders too, sometimes have reasons to assume that the takeover will serve some ulterior motive of the predator (such as asset stripping, transfer of reserves) rather than uphold their interest. A godfather offer has none of these nasty implications.

Going Long
Buying a share for speculation; opposite of GOING SHORT where the operation is that of selling. Speculators who take long or short positions do not actually buy or sell shares, nor do they have nay intention of doing so. Rather, they hope to make money based on UNDHA BADLA or BADLA charges, and through favourable movement in the prices of the shares.

Going Private
Change from public ownership of a company to private ownership either by the company repurchasing all its shares, or by a private buyer doing so. This usually happens when the company isn’t doing well and the market prices of its shares has fallen below their book value, making it possible to acquire the assets cheaply. Sometimes the management itself will do so to fend off takeover threats.

Going Public
it is a Offer by a private company to sell it shares to the public by making a public issue. It does so to expand its capital base and finance growth plans. After the public issue the shares of the company may become marketable, i.e., if the listing requirements of stock exchanges are met.

Going Short
its Sale  a share that the seller does not actually possess. but hopes to pick up when the price has gone further down, and so aims at making a profit.

Filed Under: General Tagged With: glamour share, godfather offer, going long, going private, going public, going short

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