Saturday, June 30, 2007
dos n don'ts of stock market
1. Always deal with the market intermediaries registered with SEBI / Exchanges.
2. Give clear and unambiguous instructions to your broker / agent / depository participant.
3. Always insist on contract notes from your Broker. In case of doubt of the transactions, verify the genuineness of the same on the Exchange website.
4. Always settle the dues through the normal banking channels with the market intermediaries.
5. Before placing an order with the market intermediaries please check about the credentials of the companies, its management, its fundamentals and recent announcements made by them and various other disclosures made under various Regulations. The sources of information are the websites of Exchanges and companies, databases of data vendor, business magazines etc.
6. Adopt trading / investment strategies commensurate with your Risk bearing capacity as all investments carry risk, the degree of which varies according to the investment strategy adopted.
7. Please carry out due-diligence before registering as client with any Intermediary. Further, the investors are requested to carefully read and understand the contents stated in the Risk Disclosure Document, which forms part of investor registration requirement for dealing through brokers in Stock Market.
8. Be cautious about stocks, which show a sudden spurt in price or trading activity, especially low price stocks.
9. Please be informed that there are no guaranteed returns on investment in stock markets.
Don'ts
1. Don't deal with unregistered brokers / sub-brokers, intermediaries.
2. Don't deal based on rumours generally called ‘tips'.
3. Don't fall prey to promises of guaranteed returns.
4. Don't get misled by companies showing approvals / registrations from Government agencies as the approvals could be for certain other purposes and not for the securities you are buying.
5. Don't leave the custody of your Demat Transaction slip book in the hands of any Intermediary.
6. Don't get carried away with onslaught of advertisements about the financial performance of Companies in print and electronic media.
7. Don't blindly follow media reports on corporate developments, as they could be misleading.
8. Don't blindly imitate investment decisions of others who may have profited from their investment decisions.
For the benefit of investors, the Exchange has installed a Toll Free line 1800 22 6663, wherein they can inform on any specific lead with regard to any type of undesirable trading practices in any scrip or any type of market aberration observed by them. Investors are hereby requested to get their messages recorded in English or Hindi. Identity of the investor will be kept confidential.
Issued in the public interest by :
Investor Protection Fund
Bombay Stock Exchange Ltd.
P.J.Towers, Dalal Street, Mumbai.
Tel.Nos.22721233 / 34
Toll Free number: 1800 22 6663
Please visit our website : www.bseindia.com
important books for infosys
(2) More Puzzles - Shakuntala Devi (very Important)
(3) Puzzles and Teasers - George Sammers (very very Important)
(4) Brain Teasers - Ravi Narula (Optional, but few old sums are here)
(5) Quantitative Aptitude - R.S Agarwal ( Important)
(6) Verbal Reasoning - R.S Agarwal (very very Important)
(7) Previous Papers
fanna dialogus
Ankhen to pyar me dilki zuban hoti hai,sachi chahat to sada bezuban hoti hai,pyar mai dard bhi mile to kya gabrana,suna hai dard se chahat aur jawan hoti hai....
Phool hun Gulaab kaâ?Chameli ka mat samjhnaâ?Aashiq hun aapkaâ?Apni Saheli ka mat samjhnaâ
Dur Humse Jaa Paoge Kaise,Humko Bhool Paoge Kaise.Hum Who Khushbu Jo Saanson Mein Utar Jaye, Khud Apni Saanxon Ko Rok Paoge Kaise..
Bekhudi Ki Zindagi Hum Jiya Nahi Karte,Yun kisika ka Jaam Hum Piya Nahi Karte.Unse Kehdo Mohabbat Ka Izhaar Aakar Khud Karein,Yun Kisika Peecha Hum Nahin Karteâ
RONE DE TU AAJ HAMAKO TU AANKHE SUJANE DEBAHO ME LELE AUR KHUD KO BHEEG JANE DEHAI JO SEENE ME QUAID DARIYA WO CHUT JAYEGAHAI ITANA DARD KI TERA DAMAN BHEEG JAYEGA..
tere dil mein meri saanson ko jagah mil jaayetere ishq mein meri jaan fanaa ho jaayeadhoori saans thi dhadkan adhoori thi adhooren hammagar ab chaand poora hain falak pe aur ab pooren hain ham
Friday, June 29, 2007
जोके ऑफ़ थे वीक
Behind him was a queue of 200 men walking in single line.
The man couldn't stand his curiosity.
He approached the man walking with the dog, "I am so sorry for your loss, and I know now is a bad time to disturb you, but I've never seen a funeral like this with so many of you walking in single line. Whose funeral is it?"
The man replied, "Well, that first coffin is for my wife."
"What happened to her?"
The man replied, "My dog attacked and killed her."
He inquired further, "Well, who is in the second coffin?"
The man answered, "My mother-in-law. She was trying to help my wife when the dog attacked and killed her also."
A thoughtful moment of silence passes between the two men.
Then the first one asks in excitement
"Can I borrow the dog?"
The man replied "Join the queue "
how to calculate BSE SENSEX
How to calculate BSE SENSEX?
This article explains how the value of the “BSE Sensex” or “sensitive index” is calculated. The Sensex has a very important function. The Sensex is supposed to be an indicator of the stocks in the BSE. It is supposed to show whether the stocks are generally going up, or generally going down. To show this accurately, the Sensex is calculated taking into consideration stock prices of 30 different BSE listed companies. It is calculated using the “free-float market capitalization” method. This is a world wide accepted method as one of the best methods for calculating a stock market index. Please note: The method used for calculating the Sensex and the 30 companies that are taken into consideration are changed from time to time. This is done to make the Sensex an accurate index and so that it represents the BSE stocks properly. To really understand how the Sensex is calculated, you simply need to understand what the term “free-float market capitalization” means.
What is "market capitalization"?
You probably think that you have never heard of the term “market capitalization” before. You have! When you are talking about “mid-cap”, “small-cap” and “large-cap” stocks, you are talking about market capitalization!Market cap or market capitalization is simply the worth of a company in terms of its shares! To put it in a simple way, if you were to buy all the shares of a particular company, what is the amount you would have to pay? That amount is called the “market capitalization”! To calculate the market cap of a particular company, simply multiply the “current share price” by the “number of shares issued by the company”! Just to give you an idea, ONGC, has a market cap of “Rs.170,705.21 Cr” (when this article was written)Depending on the value of the market cap, the company will either be a “mid-cap” or “large-cap” or “small-cap” company! Now the question is, how do YOU calculate the market cap of a particular company? Having seen what market cap is and how to find out the market cap of a particular company, let us try to understand the concept of “free-float market cap”
What is "free-float market capitalization"?
Many different types of investors hold the shares of a company! The Govt. may hold some of the shares. Some of the shares may be held by the “founders” or “directors” of the company. Some of the shares may be held by the FDI’s etc. etc!Now, only the “open market” shares that are free for trading by anyone, are called the “free-float” shares. When we are calculating the Sensex, we are interested in these “free-float” shares!A particular company, may have certain shares in the open market and certain shares that are not available for trading in the open market. According the BSE, any shares that DO NOT fall under the following criteria, can be considered to be open market shares:
· Holdings by founders/directors/ acquirers which has control element
· Holdings by persons/ bodies with "controlling interest"
· Government holding as promoter/acquirer
· Holdings through the FDI Route
· Strategic stakes by private corporate bodies/ individuals
· Equity held by associate/group companies (cross-holdings)
· Equity held by employee welfare trusts
· Locked-in shares and shares which would not be sold in the open market in normal course.
A company has to submit a complete report about “who has how many of the company’s shares” to the BSE. On the basis of this, the BSE will decide the “free-float factor” of the company. The “free-float factor” is a very valuable number! If you multiply the "free-float factor" with the “market cap” of that company, you will get the “free-float market cap” which is the value of the shares of the company in the open market!
A simple way to understand the “free-float market cap” would be the total cost of buying all the shares in the open market! So, having understood what the “free float market cap” is, now what? How do you find out the value of the Sensex at a particular point? Well, it’s pretty simple….
First: Find out the “free-float market cap” of all the 30 companies that make up the Sensex!Second: Add all the “free-float market cap’s” of all the 30 companies!Third: Make all this relative to the Sensex base. The value you get is the Sensex value! The “third” step probably confused you. To understand it, you will need to understand “ratios and proportions” from 5th standard mathematics. Think of it this way:Suppose, for a “free-float market cap” of Rs.100,000 Cr... the Sensex value is 4000…
Then, for a “free-float market cap” of Rs.150,000 Cr... the Sensex value will be..
So, the Sensex value will be 6000 if the “free-float market cap” comes to Rs.150,000 Cr!Please Note: Every time one of the 30 companies has a “stock split” or a "bonus" etc. appropriate changes are made in the “market cap” calculations.Now, there is only one question left to be answered, which 30 companies, why those 30 companies, why no other companies? The 30 companies that make up the Sensex are selected and reviewed from time to time by an “index committee”. This “index committee” is made up of academicians, mutual fund managers, finance journalists, independent governing board members and other participants in the financial markets.
The main criteria for selecting the 30 stocks is as follows:
Market capitalization: The company should have a market capitalization in the Top 100 market capitalization’s of the BSE. Also the market capitalization of each company should be more than 0.5% of the total market capitalization of the Index. Trading frequency: The company to be included should have been traded on each and every trading day for the last one year. Exceptions can be made for extreme reasons like share suspension etc. Number of trades: The scrip should be among the top 150 companies listed by average number of trades per day for the last one year. Industry representation: The companies should be leaders in their industry group. Listed history: The companies should have a listing history of at least one year on BSE. Track record: In the opinion of the index committee, the company should have an acceptable track record.
Having understood all this, you now know how the Sensex is calculated.
