Archive for May 20th, 2008
Share Tips are an important for generating volume of a particular share and consequently for the whole stock market as a whole. Share tips are informations given by an individual or firm or organization on certain shares.
Share Tips are the tips given to the investors by the research agencies on
- Intraday trades (Scalp Trades, Momentum Trades)
- Delivery Trades (Swing trades,longterm trades, etc.)
Specifically, the share tips give
- Buy and sell calls about a portfolio of shares
- Targets of the shares and indexes
- Support and Resistance levels for the portfolio of shares and indexes
Share tips are given by :-
Share Research Agencies
There are many research agencies who do extensive research on shares. Every agency has its own specialized sector in which it gives best research report.
Share Broking Firms
Share Broking firms now-a-days also maintain a research team which gives share tips (for both intraday and delivery trades). One of the main motives behind giving share Tips by these Broking firms is simply to instigate the investors to invest so that the volume of trade increases and ultimately the brokerage increases.
Individuals doing research on the prospects of share
Individuals who are able to do research on stock market and are experts in fundamental or technical analysis or both also give share tips to the investors in lieu of monthly, or quarterly, or yearly contracts.
The researchers who give share tips basically rely on :-
- Updated Market Informations
- Study of the entire market on a day-to-day basis
- Fundamental analysis This looks into any type of relevant data (cash flow, return on assets, history of profits, etc.) associated with the company which could have an effect on the value and price of the stock. It tries to measure the intrinsic value of a company’s stock.
- Technical analysis
Technical analysis tries to evaluate the future trend of stock prices by using various statistical tools, charts, etc. Technical analysts focus on the historical price movement of a stock.
Share tips are generally given to the investors by the above mentioned entities through :-
- Share Terminals (both online and offline)
- Mobiles
- Printed format in the form of Research Report
May 20th, 2008
Share Quotes are the prices available in the share market for trade (either buy or sell).
Basically, share market is a order driven market where an investor gives an order either of buy or sell . If the order finds a match in the system then it gets executed known as Active Order . But if it doesn’t find a matching order then it gets submitted in the order book and waits for a suitable match for getting executed which is known as the Passive Order .
Now, the orders one could watch in the share trading terminal , either active or passive, are regarded as the share quotes .
Generally, quotations are the most currently available highest bid price and the lowest ask price of a share which gets displayed on the share trading electronic terminal at a brokerage firm (known as Quotation Board ).
The price at which the last trade takes place is known as quoted price .
Now let us discuss about some of the very important terms associated with Share Quotes without which the knowledge remains incomplete :-
Bid Price or Bid
Bid Price is the price which a buyer offers to a seller for buying a share usually referred as bid. It is the highest price quoted by a buyer of a share. In the practical world, Bid price refers to the price available to an investor for selling the share.
Ask Price (Ask) or Offer Price (Offer)
Ask or Offer price is the price offered by the seller for accepting to buy the share. It is the lowest quoted price offered by a seller to sell a share. In the practical world, Ask price refers to the price available to an investor for buying the share.
Bid/Ask Spread
The difference between the quoted buying (bid) price and the selling (ask) price of a share at a given time is known as the Bid/Ask Spread.
Market Maker
Market makers are persons or firms who give quotes of both buy order and sell order in the share market in the pursuit of making profit out of the bid/ask spread. They are basically entities who buy or sell shares of a particular company in their own account. Market makers give buy and sell orders or quotations for a specified number of shares. Once he gets the opposite order, he pounces on it by taking the opposite position of the order from his own inventory of shares. This continuous flow of orders help to maintain liquidity in that share and consequently attracting more investors towards the same.
NASDAQ is known as the prime stock exchange for the operation of the market makers.
There are different types of share quotes available in NASDAQ , USA :-
1. Info Quotes
This gives information about :-
- Last Traded Price
- Previous Close Price
- Net Change of price from previous day
- Best Buy Order
- Best Sell Order
- Today’s High
- Today’s Low
- Volume
of Shares, Options and Mutual Funds.
2. Flash Quotes
This gives information about :-
- Last Traded Price,
- Net Change of price from previous day
- Volume
of Shares, Options and Mutual Funds.
3. Pre-Market Quote
These give well-reviewed and well-summarized information to the investors on :-
- Pre Market Price
- Pre Market Time
- Pre Market Volume
of Shares, Options and Mutual Funds.
4. After Market Hour Quote
These quotes help an investor in calculating his moves for the next trading session. After Market Hour Quote is considered are the leading indicators for the coming trading session. The quotes given are :-
- After Market Price
- After Market Time
- After Market Volume
Stocks, Options and Mutual Funds.
Hence, Share Quotes are an inevitable part of the share market and helps the investors in making decisions about trade.
May 20th, 2008
Share Market Trading includes buying and selling of company shares either through Stock Exchange or Over-the-Counter (OTC). It is also called the Equity Trading.
Shares are certificates which represents ownership rights of the holder in a company.
Share Market is the market for securities where organized issuance and trading of shares takes place either through exchanges or over-the-counter in electronic or physical form. It plays an important role in channelizing capital from the investors to the business houses which consequently leads to the availability of funds for business expansion.
Basically, Share Market can be divided into two parts :-
1.Primary Market It is the market where new issues of securities are offered to the investors.
2.Secondary Market An investor of a secondary market buys a security from another participant of the same and not from any issuing corporation (as in case of Primary Market).
Shares in the Share Market are either traded through :-
(a) Stock Exchange These are organized market places where stocks, bonds are other equivalents are traded between the buyers and sellers where exchange acts as a counter-party to both the participants in case of any default. The contracts are standardized and not customized ones. For example, NYSE, NASDAQ, NSE, NIKKEI, etc.
(b) Over-the -Counter (OTC) These are not centralized exchanges. Here, the trade takes place through a network of dealers. Generally, the OTC contracts are bilateral customized contracts and not standardized ones.
The shares traded are Common Stocks. Common Stocks :-
Gives an ownership right to the holders of the stock and hence the share holders are entitled to the earnings of the company according to their stake. Holders also get dividends on those stocks as and when given by the company. Liquidity of common stocks are very high and can be bought and sold at any time of the market hours.
Important Participants of Share Market Trading are :-
Buyer An investor who buys a script in the belief that the market will rise. If his hinge becomes right then he makes profit otherwise he suffers loss.
Seller Seller of a stock sells in the hope that the stock price will go down.
Stock Broker Brokers are persons or firms who execute buy/sell order on behalf of the investors and charge a commission for rendering the service.
Share Trading are done in three ways:-
(a) Offline Share Trading In this form of trading the customer either goes to the share broker’s place and sits before the share trading terminal and asks the dealer to place orders in his account. or rings the share broker, asks the share quotes and other relevant informations, and accordingly places orders over the phone.
(b) Online Share Trading The client could avail the share market and could place his order on his own from any place he wants, provided he has a computer with an Internet connection.
Open Outcry Trading
Here, the investors put their orders through the brokers and these share brokers in turn place and execute orders on behalf of them on the floor of the exchange. These brokers gather in a particular place on the trading floor known as Trading Post. There is a person called as the Specialist present in the trading post who does the matching of the buy and sell orders. This type of auction method is called Open Outcry Method.
May 20th, 2008
Share Market Report is the report on the share market of an economy. It generally includes fundamental and technical analysis. Investment professionals use this report for interpreting the future movement and valuation of the share market. Economists utilize the informations from the Share Market Report for determining the health of the domestic financial market and consequently its impact on the country’s market.
Share Market Report provides a sketchy summary of the equity market on a wide array of disciplines in order to give a cross-section view on the financial health of the country at a given time.
Share Market Report generally contains :-
Texts incorporating daily data
Charts incorporating daily data
Year-end-Report
Additional Charts
Annual Data
Share Market Report gives the following informations :-
Technical Trend of the Financial Market of a country (through Data, Statistical Tools, Charts) Every country has one or more stock exchanges. Each Stock Exchange has its own index. This report gives the technical charts, statistical tools (such as Relative Strength Index, Stochastic, Moving Averages, etc.) and data on each of these indexes and also a comparative study of the performance of all the stock exchanges.
Volatility (through Data, Statistical Tools, Charts) Share Market Report supplies with the indicators (eg. Call-Put ratio) gauging the volatility of the different indexes.
Sector-wise Performance (through Data, Statistical Tools, Charts) Share Market Report gives the comparative analysis of the performance of various important sectors of the economy.
Valuation (through Data, Statistical Tools, Charts) Share Market Report gives price-earning ratios (both historical and current); analysis of growth of earnings for the last 1, 3 and 5 years; macro projection of the analysts about the growth of the future earnings.
Comparative Returns (through Data, Statistical Tools, Charts) Share Market Report also does a comparative analysis on the dividend earnings of the investors through holding of shares in different quarters of the year. This is done by calculating the dividend-price ratio.
Some of the terms and tools used by the analysts in the Share Market Report are :-
1.Moving Averages
Generally, the moving averages used by the analysts are 200DMA, 50DMA, 18DMA and 9DMA. These give the historical average price of a share or an index. i.200 and 50 DMAs are used by the chartists for finding out the resistance and support levels. ii.18DMA and 9DMA are used together for finding out the buy and sell signals through their different cross-over patterns.
2. Highs and Lows (New)
New highs and lows of any share or index signify strong resistances and supports.
3. Relative Strength Index (RSI)
RSI is a momentum oscillator. It tries to gauge the velocity of the directional movement of price which shows either overbought or oversold conditions.
4. Momentum Oscillator
This tool helps an investor to gauge the overbought or oversold conditions which is calculated by considering the moving average of the last 10 days. Its goal is to show whether a stock or index is slowing down or gaining in momentum.
Hence, Share Market Report helps the analysts, strategists, chartists and the economists to come to conclusions about the health of the domestic financial market and ultimately about the economy as a whole.
May 20th, 2008
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