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Sunday, 4 June 2017

Mutual Fund

What is Mutual Fund? Ans: A mutual fund is an investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks,bonds,money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's portfolio is structured and maintained to match the investments objectives stated in its prospectus.
One of the main advantages of mutual funds is they give small investors access to professionally managed,diversified portfolio of equities,bonds and other securities. Each share holder,therefore,participates proportionally in the gain or loss of the fund. Mutual funds invest in a wide amount of securities,and performance is usually tracked as the change in the total market cap of the fund derived by aggregating performance of the underlying investments. Mutual fund units or shares,can typically be purchased or redeemed as needed at the fund's current Net Asset Value(NAV) per share, which is sometimes expressed as NAVPS. A fund's NAV is derived by dividing the total value of the securities in the portfolio by the total amount of shares outstanding.
Mutual funds are investment strategies that allow you to pool your money together with other investors to purchase a collection of stocks, bonds, or other securities that might be difficult to recreate on your own. This is often referred to as a portfolio. The price of the mutual fund, also known as its Net Asset Value(NAV), is determined by the total value of the securities in the portfolio, dividend by the number of the fund's outstanding shares. This price fluctuates based on the value of the securities held by the portfolio at the end of each business day. Note that mutual fund investments do not actually own the securities in which the fund invests they only own shares in the fund itself.
In the case of actively managed mutual funds, the decisions to buy and sell securities are made by one or more portfolio managers supported by teams of researchers.A portfolio manager's primary goal is to seek out investment opportunities that help enable the fund to outperform its benchmark, which is generally some widely to allowed index, such as the standard & poor's 500. One way to tell how well a fund manager is performing is to look at the returns of the fund relative to this bench mark. Note that while it may be tempting to focus on short-term performance when evaluating a fund, most experts will tell you that it is best to look at long-term performance, Such as three and five years returns.
For the average small investors, mutual funds can be a smart and cost-effective way to invest you don't have to a lot of money-most fund will let you buy shares with as little as Rs.5000/- up front and invest as little as Rs.500/- per month. Buying shares in a mutual fund is also an easy to help diversity your investments, which is really another way of saying that you won't have all your eggs in one basket. For instance, most mutual funds hold well over 100 securities. For someone with just a few thousands Rupees to invest, building and managing a portfolio containing that many securities could potentially be highly impractical, if not impossible.

Friday, 7 April 2017

International Market

What is international market?

Ans: - "At its simplest level, international marketing involves the firm in making one or more marketing mix decisions across national boundaries. At its most complex level, it involves the firm in establishing manufacturing facilities overseas and coordinating marketing strategies across the globe."
       " International marketing is the performance of business activities that direct the flow of a company's goods and services to consumers or users in more than one nation for a profit."


"International marketing is the application of marketing orientation and marketing capabilities to international business."
                         "The international market goes beyond the export marketer and becomes more involved in the marketing environment in the countries in which it is doing business."

Friday, 4 November 2016

What is Stock?
Ans: A stock is a type of security that signities ownership in a corporation and represents a claim on part of the corporations assets and earnings.
                       
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                        There are two main types of stock Common and Preferred. Common stock usually entitles the owner to vote at shareholders' meetings and to receive dividends. Preferred stock generally does not have voting rights. but has a higher claim on asset and earning than the common shares. For example , Owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated.
       
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                                                                                                                          Also known as "shares" or "equity".
                   A holder of stock (a shareholders) has a claim to part of the corporation's assets and earnings. In other words, a shareholder is an owner of a company. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares. For example, it a company has 1000 shares of stock out standing and one person owns 100 shares, that person would own and have claim to 10% of the company's assets.
                                                    Stocks are the foundation of nearly every portfolio. Historically they have out per formed most other investments over the long run.
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Stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock , it all means the same thing.
 
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                                                                   Holding a company's stock means that you are one the many owners (Shareholders) of a company and as such, you have a claim (albeit usually very small) to every thing the company owns. Yes, this means that technically you own a tiny sliver of every piece of furniture, every trademark, and every contract of the company. As an owner, you are entitled to your share of the company's earning as well as any voting rights attached to the stock.
       
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A stock is a general term used to describe the ownership certificates of any company. A share , on the other hand, refers to the stock certificate of a particular company. Holding a particular company's share make, you as shareholder.
                                Stocks are two types - Common and preferred. The difference is while the holder of the former has voting rights that can be exercised in corporate decisions, the later doesn't However, Preferred shareholders are legally entitiled to receive a certain level of dividends can be issued to other shareholders.
                There is also something called convertible preferred stock This is basically a preferred stock with an option of converting into a fixed number of common shares, usually any time after a predetermined date.
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Wednesday, 28 September 2016

BSE


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What is BSE?
Ans: BSE is the first and largest securities market in India, the Bombay Stock Exchange (BSE) was established in 1875 as the Native share and Stock Brokers Association. Based in Mumbai, India, the BSE lists close to 6000 companies and is one of the largest exchanges in the world.The BSE has helped develop the country's capital markets, including the retail debt market, and helped grow the Indian corporate sector.
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                            In 1995 the BSE Switched from an open-floor to an electronic trading system securities listed by the BSE include stocks, stock futures, stock options, index futures, index option and weekly options. The BSE's overall performance is measured by the Sensex, an index of 30 of the BSE's largest stocks covering 12 sectors.
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Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage, now spanning there centuries in its 133 years of existance. What is now popularly known as BSE was established as "The Native Share & Stock Brokers" Association in 1875.
     
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                                                                       BSE is the first stock exchange in the country which obtained. permanent recognition(in 1956). from the Government of India under the securities contracts (Regulation) Act 1956. BSE,s pivotal and per-eminent role in the development of the Indian capital market is widely recognized. It migrated from the open outcry system to an online screen-based order driven trading system in 1995. Earlier an Association of persons(AOP), BSE is now a corporatised and demutualised entity incorporated under the provisions of the companies Act, 1956, pursuant to the BSE(corporatisation and Demutualisation) Scheme, 2005 notified by the securities and exchange Board of India(SEBI). With demutualisation, BSE has two of world's best exchanges, Deutsche Borse and Singapore Exchange, as its strategic partners.
          
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                                                                                         Over the past 133 years BSE has faciliated the growth of the Indian Corporate sector by providing in with an effcient access to resources. There is perhaps no major corporate in India which has not Sourced BSE's Services in raising resources from the Capital market.
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The Bombay Stock Exchange (BSE) is an Indian Stock exchange located at Dalal Street, Kala Ghoda, Mumbai, Maharashtra, India, Established in 1875, the BSE is Asia's first stock exchange. It claims to be world's fastest stock exchange, with a median trade speed of 6 microsecond. The BSE is the world's 11th largest stock exchange with an overall market capitalization of $1.7 trillion as of 23 January 2015, more than 550 compamies are publicly listed on the BSE. 


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The Bombay is the oldest exchange in Asia, its history dates back to 1875, when five stockbroker. would gather under banyan frees in front of Mumbai's town hall. The location of these meetings changed many times to accommodate an increasing number of brokers. The group eventually moved to Dalal Street in 1874 and in become an official organization known as "The Native share & stock Brokers Association" in 1875.

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Friday, 23 September 2016

NSE

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What is NSE?
Ans: The National Stock Exchange of India Limited (NSE) is India's largest financial market. Established in 1992, the NSE has developed into a sophisticated in 1992, the NSE has developed into a sophisticated electronic market, which ranks third in the world for transacted volume. The NSE conducts transactions in the wholesale debt, equity and derivative markets.
     
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                                                                                            NSE based in Mumbai, India, the national stock exchange is a leader in market technology. The exchange's supports more than 3,000 VSAT terminals, making the NSE the largest private wide-area network in the country. The National Stock Exchange has been a pioneer for Indian financial markets, being the first electronic limit order book to trade derivatives and ETFs.
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The National Stock Exchange in India. Set up in November 1992, Unlike Bombay Stock Exchange (BSE), was the result of the recommendations of a high-powered group set up to study the establishment of new stock exchanges, which would operate on a pan-India basis. Its share holders consist of 20 financial institutions including state-owned banks and insurance companies.
       
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                                                                                                       Headquartered in Mumbai, NSE offers capital raising abilities for corporations and trading platform for equities, debt, and derivatives including currencies and mutual fund units. It allows for new listings, initial public offers(IPOs), debt issuance and Indian Depository Receipts(IDRs) by overseas companies raising capital in India.
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The National Stock Exchange of India Limited (NSE), is a Mumbai-based stock exchange. It is the largest stock exchange in India and the third largest in the world in terms of volume of transactions. Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions.
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        NSE is mutually-owned by a set of leading financial institutions, banks, Insurance companies and other financial intermediaries in India. But Its Ownership and management operate as separate entities. As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India. In October 2007, the equity market capitalization of the companies listed on the NSE was US $ 1.46 trillion, making it the second largest stock exchange in South Asia, behind the Bombay Stock Exchange, and the eleventh largest in the world.
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Wednesday, 14 September 2016

Secondary Market

What is secondary market?
Ans: The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market", though stocks are also sold on the primary market when they are first issued. The national exchange, such as the Newyork Stock Exchange(NYSE).
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       Though stocks are one of the most commonly traded securities, there are also other types of secondary markets. For example, investment bank and corporate and individual investors buy and sell mutual funds and bonds on secondary markets. Entities such as Fannie Mae and Freddie Mae also purchase mortgages on a secondary market.
       
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                                            Transactions that occur on the secondary market are termed secondary simply because they are one step removed from the transaction that originally created the securities in question. For example, a financial institution writes a mortgage security. The bank can then sell it to Fannie Mae on the secondary market transaction.
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The secondary market , also called the after market, is the financial market in which previously issued financial instruments such as stock, bonds, options and futures are bought and sold. Another frequent usage of "Secondary market" is to refer to loans which are sold by a mortgage bank to investors, such as Fannie Mae and Freddie Mae.

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                                            The term "secondary market" is also used to refer to the market for any used goods or assets, or an alternative use for an exiting product or asset where the customer base is the second market (for example, corn has been traditionally used primarily for food production and feed-stock, but a "second" or "third" market has developed for use i ethanol production).
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This is the market where in the trading of securities is done. Secondary market consists of both equity as well as debt markets.
 
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                   Securities issued by a company for the first time are offered to the public in the primary market. Once the IPO is done and the stock is listed, 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 though IPOs, while in the secondary market, one purchases securities from other investors willing to sell the same.
   
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                       Equity shares, bonds, preference shares, treasury bills, debentures, etc are some of the key products available in a secondary market. SEBI is the regulator of the same.
      
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Primary Market

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What is primary market?
Ans: A primary market issues new securities on an exchange for companies, governments and other groups to obtain financing through debt-based or equity-based securities. Primary market are facilitated by underwriting groups consisting of investment banks that set a beginning price range for a given security and oversee its sale to investors. Once the initial sale is complete, further trading is conducted on the secondary market, where the bulk of exchange trading occurs each day.
  
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                                                                                                                  Companies and government entities sell new issues of common and preferred stock, corporate bonds, and government bonds, notes, and bills on the primary market to fund business improvements or expand operations. Although an investment bank may set the securities initial price and receive a fee for facilitating sales, most of the funding goes to the issuer. Investors pay less for securities on the primary market than on the secondary market.

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The primary market is the part of the capital market that deals with issuing of new securities. Companies, governments or public sector institutions can obtain funds through the sale of a new stock or bond issues through primary market. This is typically done through an investment bank or finance syndicate of securities dealers.
     
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                                       The process of selling new issues to investors is called underwriting in the case of a new initial public offering(IPO). Dealers earn a commission that is built into the price of the security offering , though it can be found in the prospectus. Primary market create long term instruments through which corporate entities borrow from capital market.
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The primary market is also known as new issues market. Here, the transaction is conducted between the issuer and the buyer. In short, the primary market creates new securities and offers them to the public.
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   For instance, initial public offering(IPO) is an offering of the primary market where a private company decides to sell stocks to the public for the first time. An important point to remember here is that in the primary market, securities are directly purchased from the issuer.
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Features of primary markets are Followings:-
(I).  This is the market of new long term equity capital. The primary market is the market where the securities are sold for the first time. Therefore, it is also called the new issue market(NIM).
(II). In a primary issue, the securities are issued by the company directly to investors.
(III). The company receives the money and issues new security certificate to the investors.
(IV). Primary issue are used by companies for the purpose of setting up new business or for expanding or modernizing the existing business.
(V). The primary market performs the crucial function of facilitating capital formation in the economy.
(VI). The new issue market does not include certain other sources of new long term external finance, such as loans from financial institutions. Borrowers in the new issue market may be raising capital for converting private capital into public capital, this is known as "going public".
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