Accumulated Reserves and Surplus as Investment Criteria?
I often see a confusing (and somewhat disturbing) trend of looking at accumulated reserves and surplus of a company when some people make investment decisions. To be fair, there is nothing wrong with this; a company with healthy accumulated reserves and surplus is able to withstand economic slowdowns with far more ease compared to its […]
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Many people look at the share market as a place for legalized gambling, where every morning people place bets and win or lose small or big amounts of money. The Honest Truth is that this is exactly what seems to be happening for many of them. At least until they get tired of betting. When you sign […]
How Share Market is Used to Convert Black Money Into White
In a country like India with a shadow economy the size of ~ 25% of GDP (total unaccounted money within India is estimated between Rs. 10 – 15 lakh crore by various accounts), it is not surprising that newer methods are constantly being evolved to make use of black money in the real economy. Not […]
High Dividend Paying Stocks in India
If you like to own high dividend paying stocks in India then I am sure that by now you are aware of many companies which pay extremely handsome dividends. While some of them manage to consistently pay such dividends, others are not so consistent. Again, even amongst these subsets, the share price of some companies […]
A Risk Free Stock Investing Rule
Every time the stock market rises by a few percentage points, people start flocking to invest in stocks. More the market rises, more people start joining in. This has remained a mystery to me and to all those who believe in value investing. You will find value when the worth of a business falls below […]
Trading calls providers for stocks, futures and options
A few days back I got a call to subscribe for a service which promised to offer powerful trading calls which will help my financial planning goals. Given that I do a fair bit in the financial planning area, I probed further. They proposed a free trial for a couple of days after which I had […]
Ratio Analysis: 6 Important Points to Keep in Mind
Ratio analysis involves a mathematical interpretation of the financial records of a company, in order to understand its past performance and future prospects. Ratio analysis is an important tool for understanding the financial health of a company and for analyzing the progress of the business. While conducting ratio analysis it is important to keep some key […]
How Futures and Options Affect Share Prices?
Of course, the price of derivatives (including futures and options) has a major impact on the price of the underlying share (and vice versa). How can you as a trader benefit from this co-relation has been the subject of many books and much research work. While it is not important to trade on this basis, it is […]
NRI Investment in Indian Shares – Documentary Requirements
Sometime back I wrote an article on how resident Indian’s can invest in shares of companies listed on foreign stock exchanges. Likewise, many overseas investors would like to invest in shares of companies listed on the Indian stock exchanges. In this article, I will focus on how Non Resident Indians (i.e. NRI’s) can invest in […]
Sensex Target for 2020: Are 40,000 – 60,000 levels achievable?
A lot of research goes into predicting future prices and Sensex targets. Analysis of past data for such predictions suggests that analysts are far more accurate over a longer term. Shorter your time frames, higher are the chances of error. Yet, analysts and market commentators regularly throw out targets for anywhere between a few years […]