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 [...]
Introduction to Asset Classes
Stocks
Bonds
Bank Deposits
Commodities
Derivatives
Real Estate
Investing Framework:
Historic return
Risk
Business Cycle effect
Basics
Risk-Reward
Statisical measures of risk, reward
Var, Maximum Draw Down
Portfolio Management
Diversification
Portfolio Context
Long-term issues
Basics of Taxation
Capital Gains Tax
Personal Income Tax
Wealth Tax
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 [...]
There seems to be fairly widespread concern that a poor monsoon may hold back a quick economic recovery in India. Monsoon winds bring rainfall to much of India between June and September every year. The agricultural sector depends heavily on the monsoon for rainfall to irrigate fields since the irrigation system in India is at [...]
According to Rupya.com, DBS Bank, a Singapore based bank pays 8.5% p.a, the highest interest rate on fixed deposits (2 year maturities) in India followed closely by YES Bank, which pays 8.25% p.a. Public sector banks such as State Bank of India and Andhra Bank pay 7.25% p.a . It is also interesting to note [...]
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 [...]
The Indian markets have had a roller-coaster ride over the last 5 months or so. From the early 8,000 levels in March to the mid- 15,000s in mid-June to the early 14,000 s as of today. What a ride! In less than 6 months, we witnessed the euphoria after the election results, the disappointment of [...]
Arbitrage is the process of taking advantage of the mis-pricing securities or a price difference between two or more markets. Suppose that the exchange rates between the Euro, US Dollar and Singapore Dollar are as follows:
EUR -USD – 1.4808(buy), 1.5008(sell)
EUR-SGD – 2.0975(buy), 2.1175(sell)
USD-SGD – 1.4472(buy), 1.4672(sell)
This essentially means that the Foreign Exchange firm (say Thomas [...]
I will aim to write and post 1 article every 4-5 days in the near future.I will be writing articles titled :
The Sub-Prime Crisis Demystified
The Fall of the US Dollar : Is the end in sight?
Are Apple and Google Overvalued Stocks ?
The Fundamentals of Diversification
and many more…….
I came across a very interesting article on “Stumble!” called, “Everything You Ever Really Needed to Know About Personal Finance on the Back of Five Business Cards”. It explains the basics of personal money management in a very simple and coherent manner. Very often in life and in our careers, we lose sight of [...]
