LEARN STOCK MARKET

BOOK VALUE: In simple terms  "If company sold all its assets and paid up all liabilities and remaining amount divided in all shareholders then value (amount) what investors get per share is book value."  For example : If company has a assets of 100 cr and liabilities of 95 cr and total number of outstanding shares (total shares of company ) are 1 cr.  Then  Book value of company= 100 cr - 95 cr                                           =5 cr. Now 5 cr divided by 1 cr (total shares outstanding) 5 cr ÷ 1 cr =5 Rs. (Booka value of shares) MARKET VALUE: " it will give you idea about how much premium or discount investors willing to pay." Market value = total outstanding shares × curren share price. Market value = 1 cr × 7 Rs (assume)                         = 7 cr market value  Market value pr share...

Dow theory was created by Charles H Dow and they are the person introduced indices to the stock market for first time. What is the Dow theory? Dow theory is financial theory that says the market is in an upward trend if one of its averages advances above a previous important high and is accompanied or followed by a similar advance in the other average. Not get it ?? Don't worry example given below will make this easy. For example- If NIFTY makes new high than Sensex is expected to follow nifty How this theory works? 1. The Market Discount Everything: In simple language whether it is Risk factors or whether it is Opportunity in market discount everything with data or information market have. (In fact price tells everything) if price increase there are hopes for opportunities in market and prices decrease there are in fear of risks. 2. Three primary market trends: For long term(about 10 years) there are three trends 1. Up trend 2. Down trend 3. Sideways trend ...