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CAPITAL MARKET

Basics

  • MEANING OF OPEN INTEREST

    Open Interest also know as OI, is the total number of options and futures contracts that are not closed on a particular day. As you might be aware of volume in a particular stock in equity market, option trading involves the creation of a new option contract when a trade is placed. Open interest
    will tell you the total number of option contracts that are currently open.

    Open Interest is mostly used to confirm a trend for a particular futures contract, For eg, lets look at Reliance 1000 May CALL, the open interest might tell us that there have been 5 options open in the month of May, a trader might then wonder does this refer to the number of contracts bought
    or sold.

  • PRE-APPROVED LOANS

    Pre-sanctioned home loans appear attractive, but they may not suit everybody. Take a closer look before going for one for a house-hunter, next to zeroing in on the dream home, obtaining a home loan is the toughest hurdle that he or she has to cross. How would you like it if you have the loan in your pocket even before you approach the developer to negotiate? Banks and housing finance companies are now offering home-seekers pre-approved home loans or loans for property that have not been identified.

  • ECONOMIC INDICATORS

    Economic indicators are valuable and reliable reports assembled by the government, universities, and private-sector businesses. They measure the economic health of the overall economy. Most are monthly reports but some are weekly. Generally, the market as a whole and traders in particular listen very carefully to economic results to determine whether they are “net buyers” or “net sellers” for the day…

  • Bulk Deals in BSE 1st Dec , 2010

    Members are required to make a disclosure on a daily basis up to 5.00 p.m. through DUS (Data Upload software), with respect to all transaction in a scrip for a client where the total quantity bought/sold is more than 0.5% of the number of equity shares of the company listed at BSE…

  • NSE Bulk Deals – India Equity Market 23rd Aug, 2010

    Bulk deal is a stock trading where stock quantities buy or sell by an investor is more then 0.5% of total number of equity shares of the company listed at India stock exchanges.

    In year 2004 SEBI bring more transparency to the bulk deals by making is compulsory for stock exchanges to publish intraday bulk deals at the end of the trading day.

    Below are current bulk deals at National Stock Exchange of India (NSE):

  • The ingredients that contributed to the European crisis are many:

    ■ Slow-growing, unproductive and uncompetitive economies.
    ■ Low birthrates and aging populations. (“In the 1950s there were seven workers for every retiree in advanced economies. By 2050, the ratio in the European Union will drop to 1.3 to 1.” – New York Times, May 23)
    ■ Generous benefits and social services; cradle-to-grave safety nets.
    ■ Extensive vacations and strict limits on the work week…

  • INTRODUCTION TO HEDGE FUNDS

    Hedge funds are difficult to define. The category has a startling variety of investment styles, instruments, strategies, fee schemes
    and other characteristics. Yet, these generalities apply:

    • Hedge funds tend to be private, that is, shares do not trade publicly.

    • They tend to be illiquid – investors are not free to take out capital at will.

    • They tend to be exempt from many of the regulations and taxes imposed on other investment vehicles.

    • They tend to be flexible and to speculate in a wide variety of instruments.

    • They tend to use leverage, that is, to borrow in order to boost returns.

    • Their managers tend to be extremely well paid. They reap sometimes outlandish amounts, even when they don’t succeed. These fees are quite controversial.

  • Various types of asset allocation

    IN THE uncertain world of finance, we know that systematic investment and sticking to your asset allocation hold the key to success. But wealth management experts use asset allocation strategies not only to create wealth, but also to protect it during volatile times. It is not the maximisation of returns, but optimisation of returns that becomes the goal of money managers. Asset allocation strategy has to be reviewed continuously. This process plays a key role in determining the risk and return from your portfolio…

  • EIGHT KEY RATIOS FOR PICKING GOOD STOCKS

    ploughback. Dividend is that portion of a company’s profits which is distributed to its shareholders, whereas ploughback is the portion that the company retains and gets added to its reserves. The figures for ploughback and reserves of any company can be obtained by a cursory glance at its balance sheet and profit and loss account.

  • MARKET REVIEW 4th Mar, 2010

    Key benchmark indices ended slightly lower after witnessing intraday volatility, ending three-day winning streak. Fears of rise in interest rates following rise in food inflation weighed on the sentiment. Weak global cues also played spoilsport after strong gains on the domestic bourses over the past three trading session. Firm global stocks had aided the rally on the domestic bourses recently….

  • INFLATION & DEFLATION

    Cash inflation is an excessive increase in the money supply of a given economy, which results in a rise in the general level of prices over time. It may also refer to a rise in the prices of a specific set of goods or services. In either case, it is measured as the annualized percentage rate of change of a price index such as the CPI.

  • MANGALAM CEMENT LIMITED (ANAGRAM)

    To read the full report: MANGALAM CEMENT

  • RETURN ON ASSETS

    The Return on Assets (RoA) ratio is a measure of profitability of a company relative to its total assets (which includes share capital plus all its short-term and long-term loans). It tells us how effectively and efficiently a company’s management is utilising its assets to generate a profit.

  • Happy New Year – 2010

    .
    Dear User,

    Wish you and your family a very happy and prosperous New Year 2010.

    With regards,
    webtutorials4u.com Team

  • BANKING SECTOR

    Banking is “accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheques, draft, order or otherwise.”

    Bank is defined as a person who carries on the business of banking. Banks also perform certain activities which are ancillary to this business of accepting deposits and lending.

  • HEDGING AND DIVERSIFICATION

    Hedging is one of the principal ways to manage risk, the other being diversification. Diversification and hedging do not have havecost in cash but have opportunity cost. Hedging is implemented by adding a negatively and perfectly correlated asset to an existing asset. Hedging eliminates both sides of risk: the potential profit and the potential loss. Diversification minimizes risk for a given amount of return…