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Sunday, January 31, 2010

Realestate Investment Trust

Realestate Investment Trust

Real Estate Investment Trust or REIT is similar to a equity, But in Real Estate Investment Trust or REIT the investors money is been invested into the Real Estate and the investors gains benefit through the dividends this is good mostly for a long term investor wherein the investors get much more profit than the normal bank It is said that in Bursa Malaysian market around 90% of the profit has to be returned to the investors as dividends. It is based on the structure of the Mutual Fund Marketting.

Difference between a REIT and a Mutual Fund

  • A REIT allows the investor to select its own company and invest in it whereas in Mutual Fund the selection lays in the hands of Mutual Fund Manager
  • A REIT is more liquid than a Mutual fund.
  • The person can buy any amount of REIT stocks and the buying price and there is no minimal amount for investing whereas for Mutual Fund there is a Minimal Amount and some times even a locking period.

Future of REIT

Since the realestate sector is booming in all around the world so is the profit got from the Real Estate sector is also more. Investing in REITS provides much more profit than the money just been kept in the bank for its gowth.

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Quarterly Results

Lupin Q3 net up 38 pct, in line with forecast

Tata Steel Q3 net up 155% to Rs 1,191.75 cr

Canara Bank Q3 profit zooms 50 pct

Dena Bank Q3 net dips 4 pct to Rs 134 cr

Lanco Infratech Q3 net up 34 pct at Rs 106 cr

Motherson Sumi Q3 net nearly triples as sales surge

BPCL Q3 net down by more than half

Stock Terms and jargons

Active Share: An active share is the one which has a volume in trade (it has changed hands in many), these are the shares which are easy to buy or sell. which also may have some news sticked along with it.

Advance-Decline ration: It is also known as advanced decline ratio. This ratio is used to find whether market is in bullish trend or in the bearish trend, in other words whether the market is in advacing or declining. It is found by dividing the total number of advanced shares to the total number of declined shares. For instance: there are a total of 10000 stocks listed in the market of them 800 advances and 200 declines then the Advance Decline ratio would be 4 and since the ratio. Any value more than 1 would indicate a rising trend (bullish trend) and any value which is less than 1 would indicate a declining trend (bearish trend).

ADR: American Depository Receipt is a negotiable receipt issued by the US banks stating that the number of shares have been deposited with them. This can be directly traded in the stock market. This in turn eases an American investor to buy ADR than to buy an foreign stock in a foreign market. The rate of an ADR is close to the rate of the stock in the home market.

After-Tax:

Aging Schedule

AGM or Annual General Meeting

Amortization

Annual Report

Application-Money

Asset

Asset Coverage

Asset Financing

Auction Market

Auctioning of an Issue

Automated Screen Trading (AST)

Average

Averaging

Averaging In/Averaging Out.