CAT | Stocks
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The Basics of Investing: Risk,Reward and Time Horizons
0 Comments | Posted by Ash in Risk Management, Stocks, The Basics
A position
In trader parlance, one takes a “long position” in an asset if he/she buys that asset and takes a “short position” if he/she borrows that asset and sells it.
The difference between investing and trading
Investors are people who buy assets (in this case, stocks) in anticipation of long term appreciation in their value. Traders are [...]
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The Basics of Investing through Stockbrokers
0 Comments | Posted by Ash in Stocks, The Basics
Buying/Selling stocks
Stocks are traded on stock exchanges. Individual investors generally need to make use of the services of a stock broker to buy/sell shares. Stock brokers carry out transactions on the behalf of clients for a commission. Individuals who want to transact in shares should open an account with a stock broker.
Bid-Ask Spread
Stock brokers [...]
Definition
Equity Shares, commonly known as stocks are small parts of a company (corporation). Stocks represent ownership of the issuing company and typically entitle the holder to voting rights when major corporate decisions of the issuing company are put to vote.
Rights of the shareholder
Shareholders collectively also appoint the board of directors of the issuing company and [...]
I am watching the following stocks traded on the Indian markets closely. I will consider taking medium term(1-2 years horizon) positions in these stocks after 10-20% falls in prices.
The List
Reliance Industries – Petroleum Refining and Petrochemicals
Tata Motors - Automobiles and parts (cyclical)
Tata Steel – Metal (Cyclical)
Tata Consultancy Services – IT
Infosys – IT
ICICI Bank – Finance [...]
In this context, leverage is simply the practice of using borrowed money to make investments. Let us suppose that you have a strong feeling that a particular stock(say the stock of Goldman Sachs) is going to increase in value. You also want to earn insane amounts of money by investing in that stock but only [...]
