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Showing posts with the label stocks.

What is Dollar index?

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The dollar index, also known as the DXY, is a measure of the value of the U.S. dollar relative to a basket of six other major world currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc. The DXY is calculated by taking an average of exchange rates for these currencies against the U.S. dollar, and weighting the averages based on each currency's significance in international trade. The euro, for example, has a higher weighting than the Swedish krona, because it is used more widely in international transactions. The dollar index is a widely-used benchmark for the value of the U.S. dollar, both in financial markets and in international trade. It is used by investors to gauge the strength of the U.S. economy and to make investment decisions based on how the dollar is likely to perform against other currencies. It is also used by government officials in making monetary policy decisions, and by companies in setting prices for their goods and ser...

BOOK VALUE AND MARKET VALUE

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...

What is Stock exchanges and Indices?

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As we know BSE and NSE are major exchanges of india. To know the trend of all listed shares we use indices which is nifty for NSE and sansex for BSE. 1. NIFTY - NATIONAL + FIFTY =NIFTY50 that means top 50 companies of nation listed on NSE in all sector make one index called Nifty. Allocations of sectors in nifty shown below: banking/finance, technology, oil and gas has a 50% allocations in nifty that means these sectors can more impact on index if buyers in these sector are heavy then nifty shows as bullish trend as shown in above pictures.  There are also key indices in NSE 1. BANKNIFTY 2. NIFTYMIDCAP 100 3. NIFTY NEXT 50 4. NIFTY 100 5. NIFTY 200 6. NIFTY 500 7. NIFTY SMALLCAP 100 8. NIFT MIDCAP 50 9. INIDA VIX (VOLATILITY INDEX) Sectoral indices  1. NIFTY AUTO 2. NIFTY IT 3. NIFTY PSU BANK 4. NIFTY FINANCE SERVICE  5. NIFTY FMCG 6. NIFTY PHARMA 7. NIFTY METAL 8. NIFTY MEDIA 9. NIFTY REALTY...

What is IPO and how to apply?

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IPO (Initial Public Offering) What is IPO? This is a Process of listing of any company on exchange. Price of the share is decided by company management as per the guideline of SEBI.  (SEBI is the govt. body which regulate stock exchanges and companies listed on exchanges) people will apply in this IPO if they are interested and subscription of IPO will end in 3 days. after some days (previously decided date) listing of that company will done and then share will trade in secondary market after listing.again demand and supply theory will work here if demand of IPO is more then allotted shares than listed price will increase and if supply is more then demand then prise of share will decrease. we will discuss on IPO in detail separately.  How to apply in IPO? Simply you just have a Demat AC where your allotted stock will store and Trading AC with you can buy or sell a shares. You can open your Demat and  Trading AC with banks or brokerage companies. How to check quality o...