Share Market..

I always wanted to invest my money on Shares...Though I have no money as of Now,Being so Bored I started collecting Information about the Sharemarket and those stuff,But I could'nt understand so many concepts in share markets.... I was reading Economic times and Business Today to know about share market ,the Real thing is one shouldn't read those without knowing the share market.After collecting few information I would like to post what i Learned..
First...I just now clearly learned What is a Share...The first time when a company needs a Huge capital, that a company’s certain %age of shares are issued to the public, it is by a process called the initial publicoffering (IPO). It is listed in market and its value varies accordingly by company's performance.


How can we invest in Shares.
The first way to Purchase shares is from the primary market (ie IPOs) I have seen these type of Ad everywhere almost once in week. Most IPOs these days do not have a fixed offer price. Instead they follow a method called the bookbuilding process, where the offer price is placed in a band or a range with the highest and the lowest value (refer to the newspaper clipping on this page).The public can bid for the shares at any price in the band specified. Once the bids come in, the company evaluates all the bids and decides on an offer price in that range. After the offer price is fixed, the company either allots its shares to the people who had applied for its shares or returns them their money.

The Other Way to Invest is By Seconday Markets....ie STOCK EXCHANGES

Once the offer price is fixed and the shares are issued to the people,stock exchanges enable the trading of shares for the general public. Once a stock is listed on an exchange, people can start trading in its shares. In a stock exchange the existing shareholders sell their shares to anyone who is willing to buy them at a price agreeable to both parties. Individuals cannot buy or sell shares in a stock exchange directly, they have to execute their transactions through authorised members of the stock exchange who are also called stock brokers.Even after these information I could'nt get some information. I went deeper into the working of the ShareMarket...but i could understand a little.. My dad said Sharemarket is a place where shares are sold and bought,Its like our koyambedu market..here vegetables ,there Share.Popular markets are NASDAQ,NYSE,BSE,NSE

What do the brokers do

After some work in net i found that,If you want to buy or sell a share, you should contact a broker. Each stock exchange has a limited set of brokers and these brokers contact each other using trading terminals to find out who is interested in the share you want to buy or sell. Brokers have terminals linked to the BSE or the NSE and they directly purchase or sell shares using these terminals.The entire transaction happens electronically or through websites like www.icicidirect.com,Sharekhan.com.Brokers may also authorise a sub-broker to conduct the transactions on behalf of them.Since brokers are providing a service they charge you for the same. Normally this payment is not a flat rate, but a commission of the transaction value.Some broking companies like Reliance Money has Flat rates like 500 per year.But there are some complaints about Reliance Money . Brokerages normally range from 0.5% to 1% for delivery-based transactions(long time transactions, will tell u later about this in brief) and from 0.10% to 0.25% for intra-day transactions.

Depositaries

Depositaries hold shares of investors, In India we have Two depositaries -National Securities Depository Ltd.,Central Depository Services Ltd. They hold shares and on request,in electronic form through a registered depository participant (DP). It can be compared with a bank as it holds securities in an account,transfers securities between accounts on the instruction of the account holder, facilitates the transfer of ownership without the account holder needing to handle securities and makes the safekeeping of shares easy.The agent through which a depositories interfaces with the investor is known as a depository participant. You can create a demat account with a DP some DP's are ICICI,AXIS(UTI),HSBC,I think SBI too, who will keep an account of all the shares you own. This is much like the banking system,where you just create an account and have a passbook which updates you on the money you own and the transactions you have made. In your demat account you own shares in an electronic format and your account gets updated as you buy and sell shares. Online trading account - We have to open an online trading account with any of the bank or financial trading system like ICICIdirect.com, 5paisa.com, Sharekhan.com etc. Their will be nominal annual charges. These charges vary from bank to bank but should not be more than Rs.1000 annually.After opening accounts with these DP's we can trade from our home.

Day trading and Delivery trading are the two main types of shares trading.
Day trading
Buying and selling of shares on daily basis is called day trading this is also called as Intra day trading. Whatever you buy today you have to sell it today very importantly during market hours that is 9.55 am to 3.30 pm (Indian time).
Delivery Trading
In Delivery Trading, as the name say, you have to take the delivery of shares and after getting these shares in you demat account you can sell them at anytime (or you can hold them till you want, there is no restriction). In delivery trading you need to have the amount required to buy share for example, if you want to buy 100 shares of Reliance at price 500 than you must have (100*500) Rs. 5000 in your account; once you purchased these shares will get deposited in your demat account (say after basically, trading day and 2 additional days). Then you can sell these shares when the price of these shares goes up or else you can sell whenever you want..

Some Jargons in Online Share trading

Open which means The first price at which the stock opens when market opens in the morning.
High it says,The stock price reached at the highest level in a day.
Low is the stock price reached the lowest level in a day.
Close ,the end The stock price at which it remains after the end of market timings or the final price of the stock when the market closes for a day.
Bid,The Buying price is called as Bid price.
Offer,The selling price is called offer price.
Bid Quantity ,The total number of shares available for buying is called Bid Quantity.
Offer Quantity ,The total number of shares available for selling is called Offer Quantity.
Transaction,One complete cycle of buying and selling of shares is called One Transaction.
Squaring off ,This term is used to complete one transaction. Means if you buy then have to sell (mean square off) and if you sell then you have to buy (means square off).
Limit Order ,In limit order the buying or selling price has to be mentioned and when the share price comes to that price then your order will get executed with the mentioned price by you
Market Order,When you put buy or sell price at market rate then the price get executes at the current rate of market. The market order get immediately executed at the current available price

The sample video for online share trading system of ICICI,Forgive me if the quality is bad....If u wish to upload this video in rapidshare or 4shared..Pls can tell me in comments









Though I managed to get all these Info,I could'nt how the SENSEX numbers are calculated and I don know what that mean....Even I dont know concretely How inflation is calculated....Hope i will find those answers in few days.

Funny Quote I read in a magazine

Worldwide survey was conducted by the UN. The only question asked was:"Would you please give your honest opinion about solutions to the foodshortage in the rest of the world?"The survey was a huge failure,
In Africa they didn't know what 'food'meant,
In India they didn't know what 'honest' meant,
In Europe theydidn't know what 'shortage' meant,
In China they didn't know what'opinion' meant,
In the Middle East they didn't know what 'solution'meant,
In South America they didn't know what 'please' meant,
And inthe USA they didn't know what 'the rest of the world' meant!

Abhinav Bindra.....He is Our Pride.....

Abhinav Bindra-The CEO of Abinav Futuristics....An extra-ordinary MBA graduate with good academics,Promoter of Saitek audio brands in market,He associated with Gary Kasprov for his PC game portal,Very shrewd Businessman and he is a Olympic Gold Medalist tooooooooo......No one expected Bindra to win,infact many don know wat is Air Rifle 10m...He Surprised everyone and He remains the Pride of India after 30 years....Inspite of tooooooooooooooooooooooooooo much hype to Sachin Tandulkar India lost in Test match with SriLanka..too.
Atleast from now,Let the crooks know the potential of Indian Athelets.The spectacular win by Indian in Olympics now make us to expect some more medals to India....I hope that I will write another post that "Rajyavardhan Singh Rathore got Olympic medal in Beijing 2008" ..hmm...as i said in my previous post we cant achieve without great expectations......

Lets think wat made him to get a medal.....very simple confidence.....I wont agree even if God says "Indians are Less competent"....each and every Indian is talented ,may be they are not agressive and cunning....bcoz of their Culture....we need agressiveness to achieve...

My Expectations....If Dragons did ,so the Tigers!!!!!!?????

Summer olympics 2008 was launched in Beijing with a spectacular opening...I thought it was a graphics ....

Damn God!! everything is real....The opening ceremony was really great...I have seen 2004 Athens lauching ceremony.It is noway equivalent to Beijing,they worked very hard,they achieved.But to be True, i was jealous about Chinese.Mittal bought Arecelor,Tata bought corus just to tap the Infrastructure boom in China due to Olympics 2008 .
England Olympic association said it would support Olympics in India at 2020....Even China said it would support,But I they they wont,They said so to get votes for Beijing 2008 and London 2012....As Dr.APJ.Abdhul Kalam said India will become super power at 2020, If India becomes so,We should host a Olympic Games like China....I respect the Chinese,They clearly said that "we are global in stage....We have put a stage for the world".Extraordinary efforts!!!!!

When i was seeing Olympic videos in YouTube, I got a mail from My friend Ram OMG...

USA team with a bang

Japan .....

Canada...................

Roaring Britain

China....Ahhhhhhhhhhhhhhhhhhh!!!!!1

And

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Finally Our Most Beloved India with a billion hearts!!!!!

After seeing that mail........I left my expectations...... wat do u say.....????

Moorthy and Gates...Gates'' Our University system is the best"

There is no doubt that these Legendary Capitalists influenced the lives of Several millions not only in India and US.....But the world itself...The NDTV inteviewed both of them at December7,2005...I was searching for those interactions for a long time,Atlast I found that .I post the excerpts of those defining moments.

PRANNOY(He is from NDTV) : To me and many of us at TiE, it is a special moment. We have with us together two icons of our times - Mr. Bill Gates and Mr. Narayana Murthy. Both iconic entrepreneurs, but in fact both much more than that. As you look into their lives there are so many similarities. Like both started life as hardcore software guys. Mr. Bill Gates wrote the basic compiler and Mr. Murthy, in the early 70s, also wrote the first basic compiler. Both today have given up being CEOs and taken a step back to help with the bigger kind of picture with bigger vision. Both of them have superb right hand people i.e:Steve Ballmer and Nandan Nilekani. Both have huge businesses but even larger social goals with larger hearts. Both have wives, Melinda and Sudha, who infact are even more committed to changing society, to philanthropy and charity. As icons they have to resist tremendous pressures, sometimes to enter politics. Both remarkable men, that come once in a lifetime, once in a generation. Both used to travel economy class, some say they were stingy, for some it is about principles. If it is stingy, certainly it is not visible in their charity. Ironically both are voracious readers, books are their passion. One major similarity - both really believe in spreading wealth among their employees through ESOPs but now both have stopped that and the list of their similarities is endless.

PRANNOY ROY: What are the defining moments in your life?

BILL GATES: Certainly the opportunity to use a computer at young age, I was only 13 at that time and I was 16 when I first understood the magic of chips with double power every two years. The school teacher asked me to teach computer to the class. That was when I got fascinated and completely immersed. My decision to leave school and start a company, that's a nice milestone since it worked. In my case I thought the time was very important to get in and be the very first. So this chip computer comes out and I decided to go to Paul Allen and provide the software for the very first personal computer, which again was incredibly limited. The willingness to take the risk before anybody else was doing it, I think that was a big help to us. My parents thought that I was going on leave and will come back as the company will not succeed, even Harvard was nice enough to say that I could come back and even today they are willing to take me back.

NARAYANA MURTHY: There have been at least three defining moments in my life.First when I was incarcerated in Bulgaria, a communist country and without food and water for 96 hours. Later I decided that I don't want to be a part of this system and I will go back to India to pursue entrepreneurship and create wealth legally and ethically.

Second was in 1990, we had started the company in 1981. It didn't progress because there was so much of friction in business in India. There was an offer from somebody to acquire us for $1mn, from this offer six of my group members got excited but towards the end I decided that I am not going to sell it off.

Third was frankly getting listed on NASDAQ. In fact it was a small step for NASDAQ but a giant leap for Infosys and Indian software industry. I would say that these were the three defining moments in my life.

PRANNOY ROY: How do you keep yourself motivated to work on and on and on?

BILL GATES: I love my work, I get to work with smart people and it's a field that's constantly changing. Every couple of year's people say that a new company will throw you out of the business and we get to show people "not this time". My vision was not about sales or profits but it was about this computer, what it could do and we don't have that computer yet. We cannot talk to the machine and it cannot talk to us and we are still looking for that computer. I have a dream of having a computer in every home, in everydesk. We are not even half way in achieving that goal, here in India we are scratching the surface. So there is still lot of work to be done as there is no finish line anywhere near.

NARAYANA MURTHY: Most passionate people in the world are held by larger goals.At Infosys, we have a vision to become a globally respected organization, not only in India but also in US, Japan, Germany, Australia UK and that's still a long marathon.Maybe 10,000 or 12,000 Infosysians have already made some money but there are 30,000 other Infosysians who still have to make that kind of money and it is our responsibility to give our best, our commitment to make sure that they and future Infosysians can make money.

PRANNOY ROY: Both of you started ESOPs and both of you have given it up. Why?

BILL GATES: Microsoft shared more wealth than any other company has in the history of capitalism. If you get to a point where industry is so hot, it almost hyped then you start to get deviations that not only go up but they also fluctuate, so to pass the risk of those market conditions on to the employees may not be right. But we are actually into shares now where you get your salary and shares of stock and so we cut the variance down and so the predictability is much greater and still plenty of personal wealth. We are still sharing the wealth but in a different way and it wasn't to do anything with the new accounting principles.

NARAYANA MURTHY: I always believed that leadership does not succeed in a vacuum, you need people who are smarter than you, who have same or higher level of passion and energy. If you want to bring those people on board then you need some equitable paradigm and that is why Infosys adopted the ESOPs model. We suspended it because we have to expense it out according to US regulations and then we realized that it is not the best model for us anymore. And then as it was pointed out, we made an analysis and found that by creating a paper or variable performance model, we will be able to provide a decent compensation for all.

PRANNOY ROY: India has got a new energy with Democracy as its foundation.People have started questioning. Is democracy important in taking business decisions?

BILL GATES: Democracy means right way of looking at resources. It is the real commitment to the future. It is a must and we, US, stand for it.

NARAYANA MURTHY: We value knowledge as the most intangible asset. However,the important question now is, Is it really paying? There has to be a greater premium on time. We waste lot much of it in discussions. One of my friends from Harvard aptly quoted, "Two of my greatest challenges are – How to get my Japanese students to speak up and Indian students to shut up". We have to come to conclusion out of discussions and get to execution.

PRANNOY ROY: Does a anti-American wave affect you? Lack of US sensitivity in handling international affairs to the world issues affects your relationships with your partners.

BILL GATES: The world depends on the US to do certain things right whether it is funding science or whether setting a good example for free trade. I won't say we lost business or have some impact it is because of the US politics. Everybody resents the most successful country and everybody loves the most successful country. It is all the love-hate relationship. In the US there are mixed feelings about what they think the US is doing good and not doing well. It is for the world to understand the benefits of free trade system. The US should be imitated by others. The way we run our university system should be learnt by everyone. We stand for – Be good in every way, innovation in products, markets, etc. People talk of India versus China, why not India plus China. India should learn from China and China should learn from India. I am proponent of the combined best practices of India, China and the US.

PRANNOY ROY: Does the use of force by US in international affairs worry you?

BILL GATES : It is best to use when the stake is very dramatic. Even in US, people say we need more evidence (in Iraq issue) but then for us it is good, for it is for the democracy.

PRANNOY ROY: Is it love-hate relationship? Even we say "Yankee go home, but take me with you"

NARAYANA MURTHY: I am unabashed admirer of US for their openness. I don't know of any other society as open as the US. It is for us to work harder to convince the US people, decision makers, law makers, that there is good value for them (in outsourcing).If there is an outcry, dissatisfaction, I see it as our failure. 'The day you say market is wrong, you are finished', this should be learnt by US.

PRANNOY ROY: Now we will take some of the questions from the audience.

A1. My question is for Mr. Narayana Murthy. What challenges are faced by large and small companies in attracting, keeping and retaining best talent?

NARAYANA MURTHY: It is all about creating the dream and vision and articulating that everybody is able to take the rainbow and put in pocket. It is all about making sure that people will get their value, people will automatically come to you.

A2. My question is for Mr. Bill Gates. After the internet, what technology will take the world now?

BILL GATES : We need to get a device which will get us value at the low cost. Like speech recognition, mapping devices etc. I see natural interface technology as the important area that shall dominate the sphere.

A3. My question is for Mr. Bill Gates. What human qualities are important for success?

BILL GATES: You need passion, intelligence and some kind of integrity to underst and what your limits are. Very strong combination of all the three shall help to achieve success.

A4. My question is for Mr. Narayana Murthy. Very large companies are created in US. What do we need to do to have the same in India?

NARAYANA MURTHY: We need a more competitive market. Corporations have torealize the importance of innovation, good venture capital system, environment that enhances the quality of education system that focuses on problem solving and good set of mentoring who will take care of entrepreneurs' linkages with the requisite networks.

BILL GATES: We always talk big companies like Yahoo, Microsoft, Google, etc. We don't think of numerous companies that fail. It is all market economy that survives.

A5. My question is for Mr. Bill Gates. What is the fundamental difference between managing a startup and a large corporation?

BILL GATES: The leadership styles are quite different. When the companies grow, you acquire skill sets, create a system, take a step back, monitor the people and manage the managers.

PRANNOY ROY: The last question - Will you ever enter into politics?

BILL GATES: No

NARAYANA MURTHY: No

PRANNOY ROY: Thank you very much.

This is not the full conversation.You can download the full conversation from here---->NRN&GATES

One world ,One dream

The countdown starts for the world's multi-sport event, Olympics-Beijing 2008 with a bigbang Just 25 hrs more for it.... Amidst of several protests and boycots of Pro-Tibetian supporters , Several human rights violations People's republic of China is hosting summer olympics 2008 with a caption "ONE WORLD , ONE DREAM".The offical website of Beijing Olympics looks filthy.The funny thing in Beijing olympics is the o national teams will not enter in English alphabatic order, but in stroke count with the Simple chinese characters. For example, this will place Australia in 203rd position, just ahead of Zambia because the character is written in 15 strokes and is in 16 strokes, while Italy will enter as 191st nation. The rehearsal music of opening ceremony of Beijing olympic is secretly shooted by a South Korean media company and it uploaded in YouTube ....Though it was deleted..Many downloaders uploaded the Video.
The Link

Hmmmmmm......Let us think about our country.....Prime Minister of India Dr.Manmohan Singh along with Union minister of Sports and Mrs.Sonia Gandhi may also attend the Opening Ceremony. Just 57 contestants attend Olympics from 100 crore population.

According to a study by Anirudh Krishna and Eric Haglund, two development experts at the Duke University in the US, low social mobility is the key reason for India's failure at Olympics.Low social mobility means that the pool of people who can "effectively participate in sports" remains small.As per the study, the reasons for low social mobility are poor road connectivity between the rural areas and big metros and poor radio and other information networks that keep the masses ill-informed.Huge population, too, has little to do with winning medals at Olympics. Going by population size, the United States should have won 43 while, smaller countries like Jamaica should have won nothing. India should have won at least 157 medals in the 2004 Olympics, going by its huge population size.However, at the end of the Athens Olympics, the US won almost three times the number of medals, Jamaica won five medals, while India won just one medal.

The question that many people ask is, why India fails to deliver in the Olympics.????Itz a Million dollar question...not million ..billion..

Common logic would suggest that it is because Indians are poor, and thus more engaged in a daily battle for survival.But it is wrong Economicaly poor countries perform well than Indians.I will always say that India is not poor country.The wealth is unevenly distributed.The rich dont look athletics as a career option

However, the new theory suggests otherwise. It is poor social mobility because of poor infrastructure that leads to poor performance at the Olympics.

Another Major reason is CRICKET ......It is given toooooooooooooo much of Importance ....Though the government provides jobs for athletes in railways ,Indian oil, or in state government it didnt give them social status like cricketers.Even sports quota is there for admissions for graduate admissions.But all went vain......

The Olympic hopes of India

The hope lies with Rajyavardhan Singh Rathore, Trap world champion Manavjit Singh Sandhu,Gagan Narang , a former world No.1,Leander Paes and Mahesh Bhupathi, when this pair plays Indians hope foe a medal. Middleweight boxer Vijender Singh beat the reigning Olympic champion this year.....Hopes never die for an Indian ....lets hope....

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