Earning Per Share (EPS) and Price / Earning (PE) for Dummies

Fundamental 💥POST 1💥                    EPS & PE You must have heard about all these terms used by experts but a few of you must be knowing how to use it! These both are terms which should be there in everyone's financial vernacular. See imagine you are running a company and the prime focus of yours would be to grow the company and increase its profits... The primary function of a business is to increase profits, everything else is...

Read More

Authorised Share Capital

                   #TermoftheDay - Authorised Share Capital Suresh Baskaran: Authorised share capital is the maximum amount for which a company can issue shares to its investors/shareholders. However, company can choose to not to fully issue shares worth total authorised share capital. It can issue shares at a later date also when it wants to raise capital. For example: If a company's authorised share capital is 10 crore, it can issue shares worth...

Read More

Periodic Call Auction

                   #TermoftheDay - Periodic Call Auction Alex Maria: It is a trading mechanism implemented by sebi for all illiquid stocks (such as avg daily trading volume is less than 10000 in a quarter, average daily nonpf trades is less than 50 in a quarter) in equity market to be traded in a different way during normal trading hours.. it will be conducted in sessions where each session longing for one hour where 45 mins for 45 mins for order...

Read More

Flag & Pole Pattern

                   #TermoftheDay - Flag & Pole Pattern Mukesh Gupta: As name suggests, it’s a candlestick formation resembles an either a upwards flag (bullish one) or a downwards flag (bearish one). In a bullish formation price moves upwards with a consistent pace and forms a pole, than consolidate in a bearish trend (in a range) by making a lower highs and lower lows (*imp-these lower lows are always high than the low of pole*) thus forming a...

Read More

My Trades - Equity - March 2017

Click here to view my Trades - Equity - January 2017   Click here to view my Trades - Equity - February 2017   Click here to view my Performance Report Date: 1st Mar, 2017 Time: 8:41 IST DLF - News of Rental arm selling - Flashing - Expected to see BTST returns. Will book profits as per my appetite. Time: 9:08 IST DLF -155 Time: 9:13 IST Axis Bank made a low of 504.60. We calculated 503.60 and now it is trading...

Read More

Journey of Novice Investor by Samrat Sridhara

My romance with Stock Market began from an early age when I was probably in my 7th standard when my father would talk to me and teach me couple of his tricks. Owing to financial constraints he couldn’t purchase much of sizable equity. I have begun investing directly in equity little late. Here are some tips which I have picked up from the journey so far, which I believe has just started. You can read it with a pinch of salt as these are based on my introspection. Let us start from where most middle class would begin Your first pay doesn’t...

Read More

Right Issue

                   #TermoftheDay - Rights Issue Dharma says Rights issue is when a company issues its existing shareholders a right to buy additional shares in the company. Company will offer more shares to its shareholders to raise extra money for the company.  Vikas explains Rights issue - company gives the rights to the existing shareholders to buy more/new shares. The company receives more capital and the no of shares in market also...

Read More

ESOP

                   #TermoftheDay - ESOP Dinesh Shah explains ESOP -- employee stock ownership plan Given to a higher levels of employees where they are offered shares at discount with some lockin Rohan Vaidya adds that an option provided to employees by the company to buy fixed quantum of equity shares at fixed price. The purpose is to provide extra motivation to employees by giving them chance to participate in profits of the company. For...

Read More

Doji

                   #TermoftheDay - Doji Tushar Popat says Doji is a type of candle which signals that buyers and sellers are almost equal in strength with no significant direction. Mukesh Gupta adds Doji is a candle which is formed by a very small body indicates that opening and closing of the candle are in a close range + typically it has long shadows. Doji indicates an indecision in the price movement for that particular duration, meaning...

Read More

Long Unwinding

                   #TermoftheDay - Long Unwinding Vijay Singh says Long unwinding means selling long time holding by FII’s and DII’s. Dinakara adds Long unwinding is the place where profit booking starts after going long i.e., may be positional stock till then Deepa Bhatia: Unwind means offloading your position. Long means going long with your stocks i.e. holding a stock for longer period. Long unwinding means selling the positional stock...

Read More

Reverse Repo Rate

                   #TermoftheDay - Reverse Repo Rate Balesh Daga says rate at which RBI lends money to the banks. Harshil Shah adds Reverse Repo rate is the short term borrowing rate at which RBI borrows money from banks. RBI uses this tool when it feels there is too much money floating in the banking system and wants to reduce the money flow in the market. This can also be used to reduce the inflation rate in very short period. ...

Read More

Spinning Top

                   #TermoftheDay - Spinning Top Ankur Neshti explains Spinning top is a candle with its wicks equally distributed from its body, while the body is comparatively smaller. It can be considered as a neutral indicator because it can be bearish or bullish. It indicates is indecisiveness. Suresh Bhaskaran adds Spinning top is a candle with short body and long shadow on both sides. It indicates indecisiveness as neither bulls nor bears...

Read More

Double Bottom

                   #TermoftheDay - Double Bottom Gopi Narayanaswamy says a double bottom is a charting pattern used in technical analysis. It describes the drop of a stock or index, a rebound, another top to the same or similar level as the original drop and finally another rebound. Tushar Popat adds double bottom is one of the chart pattern used in Technical Analysis. Double Bottom happens in a down trend where in stock price reaches the support...

Read More

Grey Market Premium

                   #Termoftheday - Grey Market Premium Grey Market Premium, as explained by Pratik Mehta, is the extra price which is charged over & above the issue price for any Upcoming IPO. GMP varies according to the demand of the IPO amongst the public before the issue. Rohit Sachdev explains Grey market premium as the premium which people are willing to pay for an ipo above the issue price to buy it from people before the allotment....

Read More

Short Covering

                   #Termoftheday - Short Covering Pratik Mehta explains Short Covering happens when Shorts (Sell First Buy Later) that are built anticipating fall in a scrip, are bought back or covered, is called Short Covering. It signifies that the downtrend for the scrip has come to an end and we can see some upside in coming sessions. Mukesh Gupta further adds a scrip which is in a finite downtrend, short covering is a halt where...

Read More