Hi All,
I am starting new topic for all the new starter's of stock market. Please ask your qustions/queries on stock market. Will try to answer with best of my knowledge.
>Take
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Hi All,
I am starting new topic for all the new starter's of stock market. Please ask your qustions/queries on stock market. Will try to answer with best of my knowledge.
>Take
What is NIFTY?
I have two queries -
1- What is upper circuit?
2- What is BTST?
NSE Index FiftyQuote:
Originally Posted by Raj
Upper Circuit is the limit (percentage) upto which a share can go high in a particular day.Quote:
Originally Posted by GenNext
eg. the UC limit is 5% for STC
so if it is 1000 bucks today. It can go maximum by only 5% or 50 rupees on this day!Ithe share gets locked and no more buying can take place.
Buy today sell tommorrowQuote:
2- What is BTST?
Thanks >Take for this thread :thumb:
Can anyone answers the below questions:-
1. What is Short?
2. What is Position?
To understand this first look at Long, Long is when you have bought a stock, when you think that the stock would move upward. While Short is when you have sold a stock(even if you dont own it), when you think that the stock would move downward.Quote:
1. What is Short?
You cannot carry stock short beyond intraday, but can carry short position in futures and options.
When you buy and sell a stock you are having a 'position' in those stocks. Either long or short.Quote:
2. What is Position?
You will get answers of your queries online on ICICIDirect -
http://content.icicidirect.com/learn.../coursemap.htm
Thanks Confused for the Link :thumb:Quote:
Originally Posted by CONFUSED
I have one query -
What is square off?
I have two basic questions. Please answer when you have time -
What are Futures?
How they are different from shares?
Thanks in advance!
Quote:
Originally Posted by Sumant
A 'Future' is a contract to buy or sell the underlying asset for a specific price at a pre-determined time. If you buy a futures contract, it means that you promise to pay the price of the asset at a specified time. If you sell a future, you effectively make a promise to transfer the asset to the buyer of the future at a specified price at a particular time.
What are Options contracts?
You have bought/sold a certain script and then you sell/purchase the same script the same day is called square off.Quote:
Originally Posted by tigershark
In square off, you do not carry home the same trade for next day.
Options contracts are instruments that give the holder of the instrument the right to buy or sell the underlying asset at a predetermined price. An option can be a 'call' option or a 'put' option.Quote:
Originally Posted by CopyCat
A call option gives the buyer, the right to buy the asset at a given price.
Similarly a 'put' option gives the buyer a right to sell the asset at the 'strike price' to the buyer. Here the buyer has the right to sell and the seller has the obligation to buy.
Futures : Futures are a contract wherein you have to buy a specified share at a specified price on a specified date. It is compulsory to buy the share on that particular date.Quote:
Originally Posted by Sumant
I have a small query -
What is right issue? Is it simmilar to IPOs?
Issue of shares at par or at a premium by an existing company to its share holders in a certain proportion to their holdings,as a matter of their right to receive preferential treatment. Its different from IPOs.Quote:
Originally Posted by mohan
Right issue is for existing shareholder of the company, so it is not public issue like IPOs. In it existing shareholders have right to apply or reject the right issue. Normally company give some discount in the price of share for right issue.Quote:
Originally Posted by mohan
Rights Issue is another way of raising capital from the market. The money is raised from the existing shareholders. No party except the existing shareholders can subscribe to it. And its not a compulsion on shareholders to subscribe.
It is intentionally priced below CMP. Otherwise it makes no sense for the shareholder to buy them. If its priced above CMP, then obviously it makes sense to buy from secondary mkt rather than subscribing to Rights.
What is Debenture?
The term is used in corporate finance for a medium to long-term debt instrument used by large companies to borrow money. In some countries the term is used interchangeably with bond, loan stock or note.Quote:
Originally Posted by Raja
Source - http://en.wikipedia.org/wiki/Debenture
What is insider trading in shares? I was reading one news about one guy, who did insider trading, so just curious about this term :-).
Insider trading is the trading of a company's stock by individuals with potential access to non-public material information about the company. Eg. If a company's stock is trading at 500 and someone learns that the company will be taken over for 650 a share, that information would be material.Quote:
Originally Posted by Mayur09
What is Stop Loss in shares? How to put stop loss in ICICI Direct?
A stop-loss limit allows you to specify the minimum price at which you are willing to hold a stock and trigger the sale of the shares when they reach, or fall below, the price you've set. regarding your ICICI Direct query, you can check here - https://secure.icicidirect.com/tradi...radinghelp.aspQuote:
Originally Posted by Sharma
Thanks Policy_Expert. Buy the info I am looking for is from delivery shares perspective not from futures perspective. In the above link ICICI Direct explained on futures way.
Thanks again,
Sharma
Check with ICICI Direct customer care, they are in best position to explain your query.Quote:
Originally Posted by Sharma
Is there is difference in Shares and Stock? Most of the people use them interchangeable. It's silly one question, but if any expert help me out in understanding this would be great.
The stock or capital stock of a business entity represents the original capital paid or invested into the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors. Stock is distinct from the property and the assets of a business which may fluctuate in quantity and value.Quote:
Originally Posted by RajS
The stock of a business is divided into shares, the total of which must be stated at the time of business formation. Given the total amount of money invested into the business, a share has a certain declared face value, commonly known as the par value of a share.
Source - wikipedia.org
Shares and stocks are one and the same thing.
What Does Shares Mean?
A unit of ownership interest in a corporation or financial asset. While owning shares in a business does not mean that the shareholder has direct control over the business's day-to-day operations, being a shareholder does entitle the possessor to an equal distribution in any profits, if any are declared in the form of dividends. The two main types of shares are common shares and preferred shares.
What Does Stock Mean?
A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
Also known as "shares" or "equity".
Source - Investopedia.com
Good Info Expert. My understanding is also same. But now I got the meaning of both the terms.
I am new to investment, have two basic queries on demat.
1- What is demat?
2- Is demat compulsory?
A demat account, the abbreviation for dematerialised account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialised account is used to avoid holding physical shares: the shares are bought and sold through a stock broker.Quote:
Originally Posted by Investor
If you want to trade than demat account is mandatory. If you just want to buy and keep shares, than you can keep as a paper-based physical stock shares (without demat account).Quote:
2- Is demat compulsory?
Dear Copycat,Quote:
Originally Posted by CopyCat
Option is a financial instrument that is used to decrease( or increase- eg speculation) risk in the investments. It gives the 'buyer' of the option right but not obligation to buy (call option) or sell(put option) an asset on a particular previously decided date(eg european type option) or any date before expiry date (eg american type option).
you can obviously read more about it here
If you have any question pls feel free to ask.
@ others: my apologies if i made some techical mistake- take it easy on me its my first post ! :-)
Could you please tell me the online link of any website which tell you about the shares hitting 52 week high?
You can use moneycontrol or business standard. I use the later one - http://www.business-standard.com/sto..._high_more.phpQuote:
Originally Posted by Raja
- What is "de-listing of shares"?
- Is there is any effect on shares of shareholder by de-listing?
Delisting refers to the practice of removing the stock of a company from a stock exchange so that investors can no longer trade shares of the stock on that exchange.Quote:
Originally Posted by Investor
Investor should sell the shares in the market before de-listing.
Source - wikipedia.org
Is it possible to re-list the shares after it's been delisted?
Yes.Quote:
Originally Posted by Naresh
What is relisting of shares?
Companies desirous of getting their securities listed on the BSE are required to enter an agreement with the exchange called Listing Agreement, under which they are required to make certain disclosures and perform certain acts, failing which the company may face some disciplinary action, including suspension/delisting of securities. Hundreds of listed companies are now either suspended or delisted for violation of listing norms. Some of these companies have started coming forward for relisting the securities following the market boom in 2007-08. In short, these companies comply with the listing norms and get their shares listed again for trading on stock exchanges.
Source - Link
What does buy back means?