A WORD TO THE AUDIENCE

This blog is a startup guide for those who want to invest in stocks but don't know where to start. That is why this Blog has been named as “Dummies Guide to invest in Indian Bourse". There is no prerequisite of the subject on your part. You need not be a Economist, CA, or mathematician to invest in shares. All you need is some commonsense, eagerness to learn and willingness to spend some time.
Remember!!
"Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it." -Peter Lynch(1995)

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Rajat Verma

Tuesday, April 18, 2006

Some Basic Questions

Let us begin with some basic questions you are likely to ask.

What are Shares?

In everyday language, shares normally refer to equity shares of ordinary shares of a company. The terms shares and stocks essentially mean the same thing, the latter being a more common American usage.

An equity share is evidence of ownership in a company.
In other words, Certificates or book entries representing ownership in a corporation or similar entity. The ownership rights are proportionate to the number of shares one own.

The shares are issued by companies in fixed denominations, called face value or par value of that share, which is clearly indicated on a share certificate. Please note that face value bears no relationship to the share's market price which fluctuates all the time. Moreover, Dividends are issued at face value of a share and not its market value.

What is Investment?

"An investment in knowledge always pays the best interest."
-Benjamin Franklin (1706 - 1790)

Investment essentially refers to what you do with your savings in order to preserve them and make them grow or yield an income. Keeping your savings in form of cash will surely diminish it in value because inflation causes the purchasing power of money to go down. Therefore, in order to maintain or increase the value of your savings, one should keep them in forms other than cash. This is what investment is all about.

Thursday, April 06, 2006

Introduction


"...a notable example of the mad and fond curiositie of our nature, amusing it selfe to preoccupate future things, as if it had not enough to doe to digest the present."
Michel De Montaigne (1533 - 1592)

Of Prognostications

With a staggering number of stocks posting tremendous gains over the last years, it was beginning to look extremely easy to be able to make a fortune in the asian markets!Of course, throw in several dives here and a few really short haircuts there, and the next thing you know... Your convictions are severely shaken... Not stirred!

There are a lot of people these days "playing" the stock markets. It can be fun, exhilarating and sometimes, it's almost intoxicating!But, it's not a game! Investigate your investments, define your goals and objectives, and invest your money instead of just "playing" with it!

The purpose of this blog is to provide all the necessary information so that you can acquire new skills and expand your knowledge, in order to accomplish profitable investments in the stock market!

If you were wondering if the good times were over and you missed them ...

Think again!

It's time for a serious, profitable perspective that only comes from knowledge!

The intention of this blog is to provide advice on investments for beginners and aims to offer fresh ideas for investors.

It will include advice ranging from the best investments for young people, to how to find a stockbroker. Coupled with such advice, it offers a comprehensive outline of many major terms and important phrases that the reader would need to be familiar with upon their embarkation into investment.

This blog will not claim to give tips on particular investments, but rather aims to provide the reader with the broad, general advice necessary to be translated into stock market success.

The logical and straightforward way in which this blog will be written and organized would enable the reader to follow the route of the advice and argument easily.

Remember!!

"Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it."
-Peter Lynch(1995)

Cheers!