The New York Stock Exchange and The Nasdaq

The New York Stock Exchange
The most prestigious exchange in the world is the New York Stock Exchange (NYSE). The "Big Board" was founded over 200 years ago in 1792 with the signing of the Buttonwood Agreement by 24 New York City stockbrokers and merchants. Currently the NYSE, with stocks like General Electric, McDonald's, Citigroup, Coca-Cola, Gillette and Wal-mart, is the market of choice for the largest companies in America.

The trading floor of the NYSE
The NYSE is the first type of exchange (as we referred to above), where much of the trading is done face-to-face on a trading floor. This is also referred to as a listed exchange. Orders come in through brokerage firms that are members of the exchange and flow down to floor brokers who go to a specific spot on the floor where the stock trades. At this location, known as the trading post, there is a specific person known as the specialist whose job is to match buyers and sellers. Prices are determined using an auction method: the current price is the highest amount any buyer is willing to pay and the lowest price at which someone is willing to sell. Once a trade has been made, the details are sent back to the brokerage firm, who then notifies the investor who placed the order. Although there is human contact in this process, don't think that the NYSE is still in the stone age: computers play a huge role in the process.



The Nasdaq
The second type of exchange is the virtual sort called an over-the-counter (OTC) market, of which the Nasdaq is the most popular. These markets have no central location or floor brokers whatsoever. Trading is done through a computer and telecommunications network of dealers. It used to be that the largest companies were listed only on the NYSE while all other second tier stocks traded on the other exchanges. The tech boom of the late '90s changed all this; now the Nasdaq is home to several big technology companies such as Microsoft, Cisco, Intel, Dell and Oracle. This has resulted in the Nasdaq becoming a serious competitor to the NYSE.
The Nasdaq market site in Times Square


On the Nasdaq brokerages act as market makers for various stocks. A market maker provides continuous bid and ask prices within a prescribed percentage spread for shares for which they are designated to make a market. They may match up buyers and sellers directly but usually they will maintain an inventory of shares to meet demands of investors.

GST – INDIA’S MOST AMBITIOUS INDIRECT TAX REFORM

The big bone of contention in implementation of GST has been – how will the state and the Centre levy one flat rate of tax? Right since the time GST was proposed, the challenges had seemed so overwhelming that many felt, GST would either remain only on paper or would see a very watered down version getting implemented.



And the proposal put out by the FM is a relief – relief because GST will indeed the light of the day but would be a watered down version. To get the states to agree to meet the 1st April 2011 deadline, the FM has diluted the biggest plus point of GST – to have one tax slab for the state as well as the Centre. What is proposed now is multiple tax slab, and it will not include actual money earners like alcohol, petroleum products, electricity and real estate.



So what we could now have is Central GST (CGST) rate pegged at standard rate of 10%, 6% concessional for goods and 8% for services. The proposed timeline is three years, starting next fiscal, 2011-12 where there will be dual GST rate – CGST at 6% for essential commodities and 10% standard rate on other goods. This means, combined GST will be between 12 to 20%. In 2012-13, only standard rate will be reduced to 9%, with CGST remaining constant at 6%. In 2013-14, all rates will be brought down to 16%, both CGST and State GST (SGST) put together (8% each on CGST and SGST). The FM expects peak rates to be 15% in first year, coming down to 12% by end of third year.



This is probably the best formula which the FM could come up with, more importantly, he stuck to the deadline of 1st April 2011 and got the states to agree. The indirect tax stands simplified - goods at 20%, services at 16% and essential items at a concessional 12%. But this has come at a cost. This dual GST is expected to increase costs. Undoubtedly, 20% is high but it could be slightly lower than the current rate, which is around 22.5-23%, excise plus VAT. Only if the manufacturers pass on their benefits to consumers, will the tax burden come down for the common man. A list of 99 essential items exempt under the value-added tax regime will not be taxed under the GST as well. But many have voiced concern that many essential items which get charged just a 4% VAT, will now come under the 12% bracket. And that could be the main cause for concern.







What is GST?

Known as Goods and Service Tax (GST), it is a reform in the entire indirect taxation process of India. This Finance Minister has set the deadline of 1st April 2010 for implementation of GST. The basic idea of GST is to simplify the indirect taxation process and earn more revenue. Its aim is to re-distribute the burden of taxation equitably between manufacturing and services.



What will GST include?

It will include central excise, service tax and state VATs. It will also include entertainment tax, luxury tax and entry tax. GST would be on all products except petroleum, electricity, real estate and liquor. It is a consumption based tax. Currently, the despatching state pays the tax but under GST, it is the receiving state which will pay the tax. There would be a lower rate for necessary items and goods of basic importance and a standard rate for goods in general. Exports would be zero-rated but imports would attract GST, both from the state as well from the Centre. Inter-state transactions would attract an integrated GST of state and centre. Tobacco products, like cigarettes and gutka would face the double wrath and will attract both GST as well as excise duty.



What is input tax credit?

Input tax credit will allow a manufacture to deduct the tax he has already paid on an input from the tax on final product. Credit would then be available on the calculation of GST.



How to calculate GST?

Suppose a manufacturer buys his inputs for production at Rs.10 and then he makes the product with value add which costs Rs.30. The his total cost on goods would be Rs.30, so assuming GST is 10%, GST on output would be Rs.3 and input tax credit would be 10% of cost of input, which would be Re1. So net GST to be paid would be GST on output minus the input tax credit, ie; Rs.3 – Re1 = Rs.2. This is how net GST would percolate down the value chain – from the manufacturer to the wholesaler and then to the retailer and as it goes down the chain, as the purchase price goes on at each level, the net GST would come down.



Does this mean higher prices for common man?

The introduction of GST would remove all the current effects on pricing due to levy of CENVAT and service tax and its cascading effect. Currently, both the Centre as well as states, levy tax on production, manufacture and many more, which add on to the cost of the goods and is passed on to the consumer. Under GST, the central taxes – service, excise, additional excise and customs duties, countervailing duty, surcharges and cesses, all will be subsumed under GST. On the state level - VAT, entertainment tax, luxury tax, taxes on lottery, betting and gambling, state cesses and surcharges, will all come under GST. Hence the idea of GST is that the taxation burden would reduce as it goes down the value chain and by the time it gets to the consumer, rates would be lowest.

Stock Suggestions

Stock Suggestions

* Do not overtrade.

* Do not trade on rumors.

* Do not trade in all stocks of one sector.

* It's better to buy the wrong stocks at the right time than to buy the right stocks at the wrong time.

* Trade with the trends rather than trying to pick tops and bottoms.

* As long as a market is acting right, don't rush to take profits.

* Don't buy something because it is low priced.

* Money cannot be made everyday from the markets.

* Avoid making average, when stock is coming down.

* Don't watch or trade too many stocks at once.

Trading Trick (General Market Advice)

Trading Trick (General Market Advice)


1. Never chase a stock.

2. Buy when markets are in the grip of panic.

3. Only buy fundamentally strong stocks, which are undervalued.

4. Buy stocks grown in top line and bottom line over the past years.

5. Invest in companies with proven management.

6. Avoid loss-making companies.

7. PE Ratio and Growth in earnings per share are the key.

8. Look for the dividend paying record.

9. Invest in stocks for sure returns.

10. Stocks have been the high yielding asset class over the past.

11. Stocks are an asset class.

12. The basic property of any asset class is to grow.

13. Buy when everyone is selling and sell when everyone buys.

14. Invest a fixed amount each month.

Govt plans to export wheat

Govt plans to export wheat and rice even if the food inflation soars to 17.9%.

For the first time in six years govt is planning to export wheat and rice which is about to touch 81 million tonne in 2009-10. India is second largest wheat producing country in the world. Major wheat players and expected to benefit from this move, players like Adani. AWB, Glencore.

Sugar production has also gone up this year.

Food Inflation hovering at around 17%.

Food Inflation hovering at around 17%. Todays biggest concern is the raising food inflation with the food pricing index going higher and higher with an annual rise of 17.87% this week.

Truckers have also decided to raise the price which would also impact inflation and make it a major concern. High food prices coupled with a pick in manufacturing and fuel prices are expected to push the headline inflation to double digits by end March from 8.56% in January.

Suzuki has bought an addition 5% stake in Maruti.

Suzuki has bought an addition 5% stake in Maruti. This makes Suzuki to have 55% stake in Maruti. Suzuki requires enough of approvals in this acquisition. This acquisition has also made Maruti to increase its unit capacity from 1 million units to 1.8 million unit. Maruthi comprised 80% of Suzuki’s stake in it and is the largest overseas acquisition to Suzuki and over to that Suzuki gets most of its profit from Maruti .In fact it is Maruti sells more units than Suzuki.

Since Government also has stake in Maruti and Suzuki is an foreign entity it requires fair bit of approvals from RBI and even SEBI’s .

Sanjay Kapoor takes over as Bharti CEO for South Asia and India

Sanjay Kapoor takes over as Bharti CEO for South Asia and India. Bharti Airtel which is in rase to buy out Kuwaiti telecome gaint Zain had announced earlier that it would nominate Sanjay Kapoor as its CEO for South Asia and India from March 1

Airtel paid $9 billion for 42mn customers of zain in African countries.

Airtel paid $9 billion for 42mn customers of zain in African countries. The countries in which Zain provides its service are Burkina Faso, Niger, Malawi, Sierra Leone, Tanzania, Uganda, Zambia, Ghana, Kenya, Madagascar, Gabon, Congo, Democratic Republic of Congo. Zain also provides 90% all African Subscribers connection. All subscribes is also growing at around 30% for Zain in Africa. Subscribers growth in Africa remains to be good. Due to Africa’s limited fixed line infrastructure, the mobile networks are beginning to play an increasing role in Internet services in a growing number of markets.

Sugar Prices after 5 days of straight fall

Sugar Prices after 5 days of straight fall

Sugar Prices after 5 days of straight fall, from its peak. A dealer said Demand has improved at lower levels. Government has asked millers to sell their part of their monthly non levy Quota every week, failing which the unsold quantity will be converted into leby sugar and sold at subsidized rate through the public distribution system

ICICI is said to be the top gainer in the Indian ADR for the month of Feb

ICICI is said to be the top gainer in the Indian ADR for the month of Feb and on a total Indian ADR s have added $4 billion to their Market capitalization. ICICI itself has gained about $2.05 billion and made the market capitalization to $21.31 billion

Standing Next was Indian IT giant Infoysys hiked its market capitalization by $1.61 billion to $32.47 Billion

HDFC remained to be the major looser followed by Tata Communication.

New Cars to be launched in India

New Cars to be launched in India

BMW 3 Series

Price : 27 lakhs – 30.5 lakhs

Ford Figo

Price: 3.6 lakhs – 5.45 Lakhs

Mitshubishi Outlander

Price: 19.96 Lakh

Chevrolet Cruze

Price: 11 Lakh- 12.64 lakh

Asian markets gains second day on a row

Asian markets gains second day on a row and is also accepted to raise very much until May 2010. Hong Kong hit 2 per cent after china said that its manufacturing unit kept on growing last month.

Another important reason for market to shine was strengthen of Crude price to $88 per barrel and hence US Dollar shined over Yen and Euro.

What does it mean by future contracts?

What does it mean by future contracts?
Future contracts are fairly simple Future Contracts means to buy or sell a specified commodity of standardized quality at a certain date in future at a certain market determined price (Future Price).

What does it mean by Options?
A put is the option to sell a future contract and a call is the option to buy a future contract. The strike price is the specified price at which the future is traded if the option is exercised.

Government to earn an additional of Rs 40k Crore from fuel hike.

Government to earn an additional of Rs 40k Crore from fuel hike.

Government has increased 10 percent in petroleum products. The government stands to gain Rs 3,000 crores from service taxes on 8 new segment and 4 existing ones and another Rs 2,000 crore from the clean energy on coal. Other changes in the indirect taxes will contribute in addition of Rs 1.5k

Union Budget Affects Market, Good or Bad?

Union Budget Affects Market, Good or Bad?

On the Budget day markets spiked and ended with a 1% upside, no doubt that the union budget this year did make a good impression for the market. Especially the relief for the tax payers was the main reason for markets to shine. The slabs for the taxpayers has been hiked the central excise duty on non-petroleum products across the board from 8 to 10 percent.

Monica Works Web Design

Monica Works Web Design

Monica Says five years ago me being a entrepreneur was just a dream now the dream has turned into reality. It really took a lot of patience and hard work and not to forget the encouragement which I got from my friends to create website.

It was in the year 1999, when I was in search of a medium to show my skill of art, I really dint what my canvas would be, but I just wanted to show my talent. When I had first designed a website I just liked it the most and had contacted ten of web designers but their response was all negative and discouraging. But thanks to my friends who encouraged me a lot to design the website. Then I began working with non profit organizations creating new logos and sites

Until now I have created than 50 websites and one of a kind graphics,

Her advice to new start up businessman is that, believe in yourself and work hard for it. it will surely result in fruitful results.

Budget Impact on aviation

Sevice tax of 10.89% which until now was levied only on international travel in business and first class and which showed up on tickets as JN has now been expanded to include all classes and all travel.

Unlike 2008 airlines now are smarter and with healthy demand will be quick to pass on the fuel price increases in the form of increased fuel surcharges.

Low fare airlines face the dilemma of passenger demand that is price sensitive. For full service airlines, premium and business traffic is generated by fresh investment by industry.

Budget impact on Crude Prices.

Petrol and Diesel prices to rise after Pranab Mukherjee on Friday raised customs and excise duties on the two entities. Customs duty on Petrol and Diesel were hiked to 7.5 per cent from 2.5 per cent while excise duties on the two was raised Re 1 a litre

Petrol in Delhi currently and excise duty would result in Petrol prices going up by Rs.2.67 a liter in Delhi and diesel by Rs. 2.58 per liter. Mukerjee also imposed 5 per cent import duty on Crude, a move that would impact refiners like Reliance Industries and Essar Oil with their input cost going up.

Web Hosting Business of Christopher Faulkner

Christopher Faulker now, 37 has lots of ups and downs in his life. He says he has experiments with 202 busisness of them 197 failed.

Christoper Faulker ‘s 2004 projected Sales of more than $45Million and is also expected in next couple of years. C I Host commands has shown an impressive figures of 210,000 customers, 5,000 new customers every month and around 9,000 servers around the world.

Christopher’s began his first business at the age of 15years of age as a baseball cards and sports memorabilla in Bedford, Texas. He built his first website as a fanzine for the band Pearl Jam in 1995, and by the year end he was running a fledgling version of C I Host out of his apartment.

Railway budget 2010

Today is the day of most awaited railway budget. Railway budget is to be presented at noon.

Expectation from the railway budget, as usual budget is said to reach out the common man with populist measures. Today Ms Banerjee is said to lay foundation for the implementation of the ambitious railway vision document for the coming decade.

The document is said to generate large scale employment. Since elections round the corner in Bihar and west Bengal, Banerjee is unlikely to touch passenger though she is under pressure to review.

Stocks to Buy at this time.

Reliance and Bharati is being watched today

Bharati has gone for the open offer to a Kuwaiti Operator Zain , who would sign their agreement today.

Reliance Industries has raised its offer to buy Lyondell Basell to about $14.5 billion.

Market might trade higher on 22^nd and on 23^rd Feb but later might blead and touch levels of 4400 in the Nifty.

Titagarh Wagons Ltd is the stock in News and is expected to trade higher until Railway Budget and might even see levels of 600 which is said to be likely in the future.

Shree Renuka Sugars to acquire 51pc stake in Brazilian co

Shree Renuka Sugars to acquire 51pc stake in Brazilian co

Shree Renuka Sugars announced that it had entered into an agreement with the Brazilian company, Grupo Equipav for an investment of Rs 1530 crores for controlling a stake of 51 per cent hence making the majority stake holder.

Air India to get Rs 800 Crore of equity Support

Air India to get Rs 800 Crore of equity Support

The government of India on Thursday approved an Rs 800 crore of equity support to Air India. According to the cabinet meeting the equity investment is going to happen in two equal months

The carried had earlier set a target of crores 2000 but has managed to save only Rs 800 Crores.

In September last year Jadhav had proposed a PLI-Cut for its existing level employees but had a revoke from the staff, which itself had caused a loss to the company.

The carrier is said to have rationalize routes till march 2010 by restructuring operations over the Frankfurt hub adjusting capacities and eliminating the overlap operations of Nacil and Air India.

IMF plans to sale gold attracts Asian Banks

IMF plans to sale gold attracts Asian Banks

IMF plans to sale its remaining 191.3 tonnes of gold to raise new fund and seeks buyers among asian central banks.

Dollar and gold are said to be inversely equal because of IMF gold sale there was a fall in gold price in the market and because of it Dollar rose in its price.

The US dollar rose to its 9-months high against euro. Shares In Japan edged higher as a weaker Yen helped exporters stocks

Many of the Fedral Reserve policy are also pretty confident of US recovery and want to begin selling security.

Gold fell to 0.4 percent to $1,101.5 an ounce after peaking at 1,126.85 higgest since January 20, before IMF news on gold sales.

Jet Fuel price cut 2.5%, making Airlines stocks attractive.

Jet Fuel price cut 2.5%, making Airlines stocks attractive.

In a measure to relive Airlines govt owned oil distributors Indian Oil, BPCL, and Hindustan Petroleum Has announced a cut of 2.5% in jet fuel.

Jet fuel costs about 40% of airline expense and a cut a 2.5% in jet fuel would mean a lot to the airliners.

In Mumbai rates have been cut from Rs 1015 to 39,167 per kl. In Delhi the rates have been cut by Rs. 974 per kilolitre

The three oil firms revise their rates on 1^st and 16^th of every month.

The Man behind Wal Mart

Samuel Moore “Sam Walton” after leaving the military opened a variety store in Newport, Arkansas. With a loan of $20k and his saving of $5K which he saved during the military.

Coming from a Strong Christian faith Sam pioneered his concept in managing his store especially keeping it open late night and with a wide variety of products and also buying from wholesalers who would sell for cheap price and hence selling for a discounted price and hence transferring profits to the buyers. The one major for his success was the centre location of his retail shop.

Walton later wanted to expand his business and compete with his competitor the Sterling Store, , Walton leased Kroger Store and opened it as an Eagle Department store But the land lord later refused to renew the lease and hence passing it to his sons. This was one of the biggest lessons Walton had learned thought his career.

Walton later moved to Bentonville, Arkansas to expand his business. Walton went on opening more and more store with help of his brothers and family. Later Walton opened a store in Ruskin Heights which was a shopping but this store was not has successful has his other store so he turned down his expansions of his business in Shopping malls and concentrated only in centre location of the city.

Today Alice Walton Daughter of Sam Walton is said to be richest women in the world and along with her Christy

How to invest in stock market, Stock basics and how stock market works

This blog contains the following topics

• How stock market works
• Stock Market Basics
• How to invest in stock market

How to invest in Stock Market

There are certain rules which the investor needs to follow before investing in stock market.

· The first and foremost rule to invest is that you must be minimum of 18years of age.

· You must have a pan card of your own

· You must have a demat account

· You must prove yourself in identity and in address at a stock brokare.

· You must have a bank account

· There may be certain other rules which are of small or with minor impact to a person who wants to invest in stock market.

· Further there may be rules by the broker side too like minimum balance or minimum number of stock able to purchase

· Amount of brokerage.

Stock Market basics

There are two types of trading

• Online Trading: it is a portal where stocks can be brought and sold under a stock broker.
• Offline Trading: it is where shares can be brought and sold by given a phone call to the stocks broker.

Types of investing

· Long Term Investing this is where most of the big shots invest in. this is said to give a lot of profits if invested in right stock. The best stock can give a profit of about 1000% i.e 10 times the invested amount. But if invested in the wrong it can also give a loss of 50% also. But to invest in this type requires a lot of patience in the investor. Because of its huge returns it keeps on checking investor then and then again.

· Short Term Investing is said to be regular market watcher like. But involves a lot of risk, but the ones who check markets regularly do make a lot of profits in it.

· Medium Term Investing this is said to be a way where most of the investors invest in. this takes around a invest time of about of 3 months and It also involves in risk

How stock market works

Stock markets works in simple logic of if a investor wants to sell the stock there will be someone else who would love to buy the stock. To say it in other words if say the current market price is 100 and if a person X wants to buy the stock the market price would go a bit higher and the stock comes in the hand of X. and say if the investor Y wants to sell the stock then the price would come a bit down. Or in other words for every buying of the stock there will some one else wanting to sell the stock.

The VeeV

VeeV is a liquor brand in America, the success story of VeeV is one of the best which I ever heard of .

It began this way two brothers Courtney Reum and Carter Reum quit their job in Goldman Sacs to start their own Liquor Brand VeeV.

six years ago Courtney and his brother Carter had been to Brazil. Both the brothers had a drink made of açaí berry amazed with the drink thought of starting their own liquor brand.

With no experience in liquor and tried of drinking same old Red Bull but with a lot of innovation ideas thought that they were normal just like the other entrepreneurs.

They began their drink alternate to Vodka and also VeeV had a lot of antioxidants which were also good for the health. The word VeeV stands for natural / vitalizing. Started their business with $250,000. with a lot of loss and panic in the first year the two brothers thoughts of getting some advise for a açaí berry expert. They then friended with Sambazon who were açaí berry experts in America. Then they thought of finding a distillery who would be capable of blending açaí berry to get its extract. With lots of dead phone calls at last found a distillery in Idaho. Then the thorn on the road was the shape of bottle the two brothers found a unique style of bottling in New York glass exhibition. The came the marketing and competition with were already in the market for this they began “ a Dollar per Bottle supports Rainforest” which really helped them in marketing their product and also popularizing in the market. For this they had found a non governmental group in Brazil who would work for this cause.

VeeV is now a company of $10 million and is still growing more and more bigger.

How to mint money with day Trading

Day trading is one of the most famous among all the other type of transaction in recent years.

For day trading the trader has to have a lot of patience and this is most crucial because this involves a lot of risk along with the risk it also produces equal amount of profit to the trader. Day trading allows you to make any number of traction per day.

As I earlier told in this article that a online trader needs to have a lot of patience.

Before investing one has to analyze the performance of the stock a week before investing into the stock.

If you are doubtful of certain stock please get out of it at the right time.

Analyzing and profiting in Oil market

There are a few basic but important steps that you need to follow if you want to make profits in oil market

• 52week highs and lows: it is the highest and lowest price which the oil prices hit In the previous year.
• Fibonacci analysis this is one of the most famous among the oil trading every number in the sequence is the result of previous 2 numbers and the resulting number can be converted into their ratios that seem to be important reversal signals whenever the oil rates crosses these Fibonacci ratios it would a buy or a sell signals.
• Elliot wave principle these are the pattern of five wave 1, 3 and 5 being upward wave and 2,4 being downward wave by recognizing these waves one can find whether the market might move upwards or downwards.
• Momentum indicator compares the current oil price with that of several years may be 10 yrs or even more by calculating the rate of change between these years divided by price several years ago. Whenever the result crosses 0 it indicates a trade to buy or sell.
• Relative strength index it compares the upward close to the downward close of the stock.

Short selling

Short selling a share mean you sell the stock before you own. This sounds weird isn’t it but this is the way it goes.

Short selling basically goes this way here the stock actually comes from the broker / brokerage firm who lends you the share in lieu you can sell this share but subsequently you need to buy this share from the market and thus returning back to the brokare.

Here the profit comes only if there is a loss for the share say for instance you had shorted a share for market price 100 and the then closed the short (covering the short) by buying at 98 then you are in a profit of 2 * number of share you shorted. In otherwords to be in a profit your shorting price should be higher and your closing the short (buying ) (covering the short) should be lower.

Entrepreneur’s Gallery

Success stories

• Café Barcomi’s Success Story

• The VeeV

Union Budget on 26th Feb 2010

Union Budget is going to be likely on 26^th of Feb 2010. this is because of Prophet Mohammed’s birthday which falls on 27^th which is a government holiday. 28^th is a Sunday. Even though the date for budget is still not announced 26^th is going to be the most likely the day for annual budget.

Different kinds of Investments

Different kinds of Investments

• 401k Plan It’s the most popular one among the employed. This is the saving scheme which most of the job provide. Wherein a small sum of money will be deducted from the Salary

• Share Trading This is the one which provide maximum profit but with equal amount of risk. Here the investor becomes the part of the company’s share.

• Bonds It is basically a note or a bill which especially government or a sometimes even a private company provides to you. Where you promise to give a certain some of money and you agree to have it with them for a certain set of years and in return they pay you with a pre-determined rate of interest.

• Real Estate This is a sector where most of the people in the present time invest. But here it involves to buy and rent a piece of land and even sell it. It is a space where most of the people make a lot of money over a period of time.

• REIT It is similar to investment in Share market but it involves investing only to the Real estate sector. The most of the profit comes as a dividend and in some nation over 90% of the profit to the company has to be returned to the investor.

• Money Market It is where investing into the currency market. It is space with low risk.

• Commodity Market It is similar to currency or money market it is where investing to the commodity. The profit goes with the rise and fall of the price of the commodity betted.

• Brokered Certificates It’s a safe investment it includes you investing your money for a certain period of time and at any time you can withdraw your money with the profit.

• Annulities It is an agreement between you and the insurer. It produces income for you and protect your earning potential.

• Life Insurance This is also an investment where most of the people are familiar with, it insures your family with money when you die. And it also produces with tax deduction.

Café Barcomi’s Success Story

Café Barcomi is the biggest café in Germany, it all began when Cynthia Barcomi then a professional dancer wanted to open her own business and make a living. Cynthia Barcomi was from Seattle, Washington, USA. Came to Germany after graduating from Columbian university in 1985 moved to Germany to teach dance.

Barcomi started her small business selling brownies, muffins, bagels and roasted Coffee. Back in 1997 starting her business with her small savings of $15000 and a bank loan of $100,000. For Barcomi getting this $100,000 was not so easy as she was not a German and lot dint even care for her idea of opening the business. Back then she had to learn baking all of her own as there was no Google to says “ I remember me going to library to find the dealer for coffee vending machine”. She had learnt a lot of the blending recipes in the library and to get the loan she had to do a lot of hard work she had gone for more than 20 banks asking for loan and she been rejected in all the banks and finally after 2 months of intense hard work of finding for loan she was given a loan in a bank to start her business. After getting her loan she began her business with a big opening but later business began to fall and then she realized that she had to come up with a way to get people. As she came to know that Germans loved coffee and cake very much she promoted coffee and cake on Sundays. Later she had really made lots of effort in decorating the café as she came to know that people began to love her café. Later in 1997 she came up with another café in Mitte district a bit larger than the previous one.

Barcomi says “one of my biggest blender was when I had hired two experienced French pastry chefs. I thoughts that they would be great for my kitchen but they were disrespectful for me since I had not much experienced as they did and I had made a lot of progress in café business. Those two had sued me and I sued them back. But however at the end I won the case.”

There were lots of ups and downs in her business and some of her experience was really challenging and even awful. Since she was also from a different culture she had to listen to a lot of people giving her a damn. But she kept on with her entrepreneurship thinking and hence she had a success in her business.

Her current estimate $2.07 million. And she is also known by the name “The coffee queen of Berlin”.

Indo German talks to strengthen Indian position in Germany

Horst Koehleer who is on a visit to India held talks with prime minister Dr. Manmohan Singh, which included Security against terrorist attack, Trade and Investments, climate change and energy. Both the leaders agreed to train Indians in Germany against terrorism by Germans anti terrorist’s specialists.

Suzlon may sell its stake in Hensen

Currnetly Suzlon is holding 26% stake in Hensen. Back in 2006 Suzlon had purchased a 100% stake in Hensen. But the company is not seeing any major befits for Hensen. Suzlon is planning to sell all of its stake in Hensen to fulfill all its debts, Suzlon is currently in a debt of around 100 billion INR. Suzlon is also been advised by its major Investors to sell its Hensen stake.

Nomura Fall hit the Japanese indices

Nomura was expected to be at a profit of 32 billion Japanese yen for this quarter. But Nomura’s quarterly was only 10 billion Japanese yen and Nomura’s expansion in US may take a hit, since the President of United States has put a regulation against the banks in limiting the size of investments in the hedge funds. Nomura after the result took a hit to a fall of 2.9%

The Railway Budget 2010

The Indian railway budget is going to be in last week of February and this is the time wherin we need to pour in money to buy out stocks related to stock.

Some of the most active railway related stocks are:

Titargarh wagons: it’s a company involved in construction of wagons

Kalindee rail; it’s a company involved in construction of rails

Both of these are good railway related stock, which move tremendously up during the time of railway budget and this is the sector we need to be in during the railway budget.

During the times of railway budget is going to bring in a lot of orders to the railway related stocks and also a lot of people do buy during the budget season, this is why railway related stock move up tremendously,

Fundamental Analysis

Fundamental Analysis

Fundamental analysis in a stock market is analyzing the business health, management of a company

There are two analytical models in analyzing a Stock:

• Fundamental analysis is where markets may mispriced a certain security in the short run, but later it would come back to its value and this short run is been taken advantage.
• Technical Analysis is where the movement of a stock is been reflected in its stock price. The price for which people buy in lots and the price for which people sell in lots the way in which a stock would flow.

Mutual Fund Investments or Unit Trusts

Mutual Fund Investments or Unit Trusts

If you are new to investments I would suggest you to get started through Mutual Fund wherein the risk is much less compared to Stock Market its mainly because it is being managed by professional Fund managers who do their best to manage your investments.

Massachussets Investors Trust now known as MFS Investment Mangement was the first Mutual fund founded in 1924.

Mutual Fund is basically where money from all the investors are made into a pool and then been managed by Fund Managers. There are a lot of companies and Banks which offer Mutual Funds in India. The buying of Mutual Fund will include a small percentage as brokerage. Mutual Fund is basically meant to hold the fund for atleast two years. Even most of the Mutual Fund will have a two year of locking period within which you cannot sell your Mutual Fund.

Types of Mutual Funds:

Exchange Traded Fund

Equity Funds

Open ended Fund

Bonds Fund

Money Market Funds

Funds of Fund

Hedge Funds

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.

Hot News from the Market

Hot News from the Market

• RBI hikes CRR by 75 basis points.
• Long Term investors and enter the Market at 4000-4200 levels.
• Govt may Deregualate Petrol prices near Budget.

Bearish Stock (Falling Stocks)

Bearish Stock (Falling Stocks)

Here are some bearish stocks at this point of time:

• Aban offshore

• JSW Steels

• India Bulls Real estate

• Tata Steel

• Jindal Saw

• Educomp

These are accepted to show less momentum than other stocks.

The Indian ADR

The Indian ADR

Infosys Technologies Ltd. 52.41

HDFC Bank Ltd. 120.3299

ICICI Bank Ltd. 35.90

Mahanagar Telephone Nigam Ltd. 3.25

PATNI COMPUTER SYS 19.04

REDIFF.COM INDIA ADS 2.7101

Satyam Computer Services Ltd. 4.9599

Sify Ltd. 1.8936

Tata Motors Ltd. 14.95

Wipro Ltd. 19.90

Which Stocks to Buy.

Market might correct (fall) from here a bit more. But for a short term (2-3 months) target it would be good if you invest in those stocks that have corrected a lot in this times correction. I prefer you to buy Suzlon to make fast money which has been fallen from 94 to the current price of 72. If not Suzlon, Unitech is also a good bet. Unitech has fallen from 89 levels. RCF is accepted to come down to 90 and then move up. For a short term Buy any of Railways a week or two before the Railway Budget.

Now its time for those who are bearish, market might see levels of 4200 sooner.

What does Averaging basically mean in a stock market?

What does Averaging basically mean in a stock market?

Averaging is nothing but buying a stock at different rates so that the average price becomes the value of the stock. It is basically done when the investor is not sure of what would be the future of the stock whether it is increasing in price or decreasing in price.

For example: the investor has brought the stock at $100 and the current price in the market is $75. since the stock is in a loss and the investor doesn’t want to loose his money and is also believes that stock would come up in price in future hence he buys the stock at $75 so that the average buying price would much lesser than $100.

In other words if 100 stocks are brought at $100 so the amount invested would be 10000 and if the stock has lowered in price and the current market price is $75 then the total value of stock currently would be 7500 , now if the investor goes for averaging say investor has brought another 100 stocks at current market price then the current investment would be 7500, and the total investment would be 17000 with the total current value being 15000. then the average price would be 87.5 per share.

It is basically calculated by total monthly invested divided by total number of share. In the above case the total investment is 17500 with number of price being 100+100=200 so 17500 / 200 = 87.5

National Stock Exchange

National Stock Exchange

National Stock Exchange (NSE) has been recognized as a stock market since April 1993 by Security Contract Regulation (Act), 1956. Commenced in Wholesale debt market (WDM) in June 1994 and in Equity market in Nov 1994 and derivative in 2000. the following NSE introduced Internet Trading, Exchange Transfer Funds (ETF), stock derivatives, currency index in 2008 ,volatile index. IndiaVIX. And exactly one year later NSE introduced Interest Rate Futures.

Address:

NSE - Corporate Office
National Stock Exchange of India Ltd.
Exchange Plaza,
Plot no. C/1, G Block,
Bandra-Kurla Complex
Bandra (E)
Mumbai - 400 051.

Tel No: (022) 26598100 - 8114
Fax No: (022) 26598120
E-mail : cc_nse@nse.co.in

BSE (Bombay Stock Exchange) (Mumbai Shear Bajar)

History of BSE

BSE is the oldest stock market in the whole of Asia. Which was established in 1875. back in 1875 it was known as “The Native Share and Stock Brokers Association”. Which began with a membership fee of re.1.

BSE is the first stock exchange which got a permanent recognition from the Government of India under the Security Contract and Regulation Act.

ISO 9001:2000 certification BSE is the First market in the India and Second in World.

BSE is world’s largest in terms of number of Stocks listed and fifth largest in terms of transaction which reached USD 1.79 Trillion.

BSE has entered a index corporation with Deutsche Börse, to make BSE indices available to the investors in America and Europe. Moreover Barclays Global Capital the global leaders in ETF ( Exchange Traded Fund) has made 'iShares® BSE SENSEX India Tracker' which tracks the SENSEX. ETF enables the investors in Hong Kong to invest in the Indian markets.

The Indices in BSE :

The companies are classified as A, B, S, T and Z groups. An investor can choose any stock of more than 4700 companies listed in the exchange.

In 1986 BSE came with a indices known as SENSEX. It has 30 stocks representing 12 major sectors. Apart from this BSE offers 21 indices including 12 sectorial indices.

In the year 1989 BSE came with another index known as BSE National Index which consisted of 100 best listed stocks in major stock exchanges of INDIA namely Mumbai, Kolkatta, Madras and Ahmedabad. This got later renamed as BSE-100 later in October 1996. In 2006 BSE launched its Dollar version of BSE-100

As the company listing began to increase BSE came up with another indeces known as BSE-200 or the Dollex -200

BSE-500 in 1999.

In 2001 BSE launched its BSE-PSU index countries first free-floating Index, as the years went on BSE shifted all its Indices in free-floating based index.

Contact Address:

BOMBAY STOCK EXCHANGE LIMITED

PHIROZE JEEJEEBHOY TOWERS
DALAL STREET
MUMBAI- 400001
PHONES : 91-22-22721233/4
FAX : 91-22-22721919

Hot picks

• Intra Day Trading

Aviation looking Smart

• Short term Trading(10-15 days)

• 3-6 Months

1. Now RCF is accepted to fall, Buy RCF once it reaches 90 with a target of 100-105
2. Buy Railway stocks a week or two before the railway budget, and sell on the day before the railway budget.

• 6-1yr
• Long Term (1yr and more)

1. Buy Infrastructure and power stocks for a Long term view (ex: Unitech, DLF, Suzlon, Adani Power)
   
   
   
   
   
   
   
   

   for trading account visit

A Word from Stock Market

• Start accumulating Stocks now with a 3 months holding period. You would really make a lot of money with this

• Nifty likely to be in a narrow range until budget.
• Nifty likely to be at 4600.
• Fertilizer would be a good bet befor the budget but also be cautious.
  

More Hot picks Sector Wise

• Fertilizer looking strong.
• Sugar sector is also strong on 3-6 months view.
• Infra good on a long term play especially unitech, DLF and HDIL.
• Telecom sector also good for very short term play.
  

How Stock Exchange Works

The Indian Stock Exchange is a market place to buy and sell stocks.

• The Stock brokers who buy and sell stocks for u arrange the deal with a commision which might be around 1%.
• The Marketers who buy and sell for you get the profit.

In India we have infact who major stock markets.

• BSE (Bombay Stock Market) (Mumbai Shear Bajar)
  
• NSE(National Stock Market)

BOMBAY STOCK EXCHANGE(MUMBAI SHEAR BAZAR)

Mumbai Stock exchange popularly known as BSE is the oldest stock

in asia and has greatest number of stocks listed in the world. It has the operating time between
9 am and 15:30 IST.

Best Stock Picks

This is a Blog which deals mainly with the HotPicks for the week.

This Blog also checks for the views of many famous stock market experts including Warrent Buffet, Christopher Woods and many more.

disclaimer: the onwner of the blog is not responsible for any of the views been mentioned in the blog.