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FAQ’s on Stock Market

What are the Things to know before investing in Stocks?

What are the Things to know before investing in stocks?

 

know before investing in stocks

Benjamin Graham who is known as “the father of value investing” and also the mentor of Warren Buffett recommended several things that a defensive investor must know before investing in any stock, they are discussed below:

  1. Adequate Size of the Company

According to the market capitalization of the companies, stocks are categorized as – the mega cap, large caps, mid caps, small caps, micro caps and the nano caps. Micro cap companies have greater market capitalization than nano caps but less than small, mid, large and mega cap companies. Here what Graham says is that the stocks of the very small size companies should be avoided as they are affected very badly in adverse situations. Continue reading

How does Inflation affect Stock Market?

How does Inflation affect Stock Market?

 

Inflation affect Stock Market

It is not necessary that Inflation affects stocks of every listed company in the stock market. It may affect stocks adversely or favorably depending on their fundamentals. If any company is having poor fundamentals then the stocks of that particular company will definitely suffer and on the contrary, the prices of stocks having rich fundamentals will go up. Continue reading

What is Inflation and how it is calculated?

What is Inflation and how it is calculated?

 

What is Inflation

What is Inflation: Inflation means “a general rise in the prices of goods and services over a time period which results in the loss of currency purchasing power.” It is observed that when the general price level rises due to rise in inflation, we are forced to buy fewer goods and services as we were buying earlier. We can explain them by quoting an example here. If we were buying one liter of Milk for Rs. 10-12 in 1995 then the same Milk we are buying at Rs. 40-45 in 2015. Thus, we can say inflation results in loss of value of money purchasing power. Continue reading

What is Technical Analysis of Stocks?

What is Technical Analysis of Stocks?

 

Technical Analysis of Stocks

The study of stock market action mainly through use of charts and other tools to forecast future trends is called Technical Analysis. In technical analysis, mainly the Price, Time, Volume and the Breadth of the stocks are considered. In other words we can say that technical analysis is the science of recording the actual history of trading in a geographical form to identify the stock market pattern. Continue reading