Monday, August 15, 2016

fundamental analysis vs technical analysis in stock

SHARE MARKET INVESTMENT KNOWLEDGE part-3

fundamental analysis vs technical analysis in stock
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What Is Fundamental Analysis Of Stock?
Fundamental Analysis Means Analysis Of Financial Statement, Annual Reports To Get An Understanding Of The Company’s And Overall Economic & Industry Condition To The Management Of A Company. Its Analyse The Stock Through The Financial Analysis. So That Find Out The Movement Of Stock Price In The Future.


It Includes Following Factors:-


         Earning Per Share(EPS): Means A Company How Much Earn On Per Share After    Deducting Its Taxes & Preferred Dividend.


          EPS =  Net Income – Preferred Dividend

                             Outstanding Share

  

          Net Profit Margin RatioThis Ratio Indicates The Net Profit Per Rupee Of Sales      Revenue.


          Net Profit Margin = Net Profit/Sales


           Return On Equity (Roe)Means The Net Profit Is Related To The Firms  Capital. Its Measures The Company’s Profitability. Higher Roe Means Good Performance Of A Company.


          Return On Equity = Net Profit/Net Worth


           Price Earning Ratio (P/E): Means A Ratio Which Measures Its Current Stock Price By  Dividing Earning Per Share (Eps).


  Price Earning Ratio = Market Value Price Per Share

                                          Earning Per Share


        Book Value: It Means The Total Assets Of A Company Divided By The Common  Stocks.In  the case of insolvancy share holder get its share value on the basis of book value. if its  higher then good for investors.


     Book Value = Total Asset/Common Stocks


           Debt-Equity Ratio: It’s The Ratio Which Compared Company’s Debt/Liabilities By Its Total   Assets/Equity.


      Debt Equity Ratio = Total Debts/Total Assets


What Do You Mean By Technical Analysis Of Stock?

Technical Analysis Is Analysis Of Share Price, Direction Of Price, Charts Of Data, Past Data, Past Behavior Of Share, Trend, Primarily Price And Volume And Also Maintains All Information Is Reflected Already In Stock Price. After Above Analysis A Prediction Comes Related To Share Price. All The Things Done Through Technical Base.


Continued to be.......

Thursday, July 7, 2016

Know Share Market 2 -

SHARE MARKET INVESTMENT KNOWLEDGE part-2

Know Share Market 2 -
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         What is Index in share market?
Index is like an indicator used in measurement and reporting of changes in the market value of a group of stocks/shares.

What is Sensex?
Sensex is an indicator of all the significant companies related in BSE which is 30 companies.

What is Nifty?
Nifty is an indicator of all the significant companies related in NSE which is 50 companies.

What is Stock?
Stock is a Share in the ownership of a company.

What do you mean by Shareholders?
A person Who hold the shares/stocks of a company is called Shareholder .Who is able to claim to the assets of a company.

What causes the stock prices to change?
It’s totally depends on the factors of Supply & Demand, if more people wants to buy a particular stock then demand of stock increased consequence the price of stock moves up.
         
Conversely, if more people want to sell a particular stock than buy it, then the price of stock goes down.

How to decide which stocks to buy?
Before choosing the Right stock you need to do some analysis.
1)   Fundamental analysis
2)   Technical analysis
          After, this analysis you would be able to pick up right stock.

Continued to be……

Thursday, June 23, 2016

know Share Market -

SHARE MARKET INVESTMENT KNOWLEDGE


know Share Market -
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  What is Investment? 
INVESTMENT:- Investment means employment of funds on assets with the aim of earning income through regular return and capital appreciation.

     What is Share Market/Security market/Stock market?
Share Market is the market, where is provide a platform for the buyer & seller to buy and sell a share of various companies.
It’s a place where shares of public listed companies traded.

In share market/security market mainly two types of market i.e, 1) PRIMARY MARKET 2) SECONDARY MARKET.

    What is Primary Market?
Primary market is the market where shares are sold for the first time, its also known as the new issue market. The issuer may be a new company or an existing one.

    What is Secondary Market?
Secondary market is the market where outstanding securities are traded through stock exchange.

What are the differences between Primary market Secondary Market?
Once, the primary market sold his shares and stock is listed in stock exchange, then they are traded in the secondary market. The main difference between the two is that in the primary market, an investor gets securities directly from the company through IPOs (Initial public offering), while in the secondary market, one purchase securities from other investors willing to sell the same.

    What is traded in the secondary market?
In secondary market, traded Equity Shares, Bonds, Preference Shares, Treasury Bills, Debentures, Mutual Funds etc.

What is SEBI?
SEBI (Securities and Exchange Board of India) is the regulator of securities market. It was established in the year 1988 and given powers on 12 April 1992 through the SEBI Act 1992.

    What is BSE?
BSE (Bombay Stock Exchange) is the first and largest securities Exchange in India. It was established in 1875 in Mumbai.

    What is NSE?
NSE (National Stock Exchange) is the India’s largest financial market, Established in 1992.

Continued to be……