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Ambika Prasad replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 8 years, 6 months ago
Short – It means you are investing hoping that your investment will fail.
Long covering- It means you are investing hoping your investment will go up over a long period of time.
Long unwinding- When you sell your stock after creating a long position .
Short covering-When you buy a stock after creating a short position.
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Ambika Prasad replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 8 years, 6 months ago
Trading is about implementing an action(buying or selliing) when conditions arise. Analysis involves looking at the markets, conditions and time frame and predicting where the market would go. Analysis is all about probability but trading has to be precise. There is no money required for analysis, but trading involves money changing hands.…[Read more]
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Ambika Prasad replied to the topic Who decide the stock price? in the forum Basics of Stock Trading 8 years, 6 months ago
At the most fundamental level, supply and demand in the market determines stock price. So, its the buyers and sellers who converge on a price for the stock. As the demand for the stock increases and supply decreases, stock price rises. Converse is true as well.
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Ambika Prasad replied to the topic What is online trading? in the forum Basics of Stock Trading 8 years, 6 months ago
The act of buying and selling products using an online platform is said to be online trading.
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Ambika Prasad replied to the topic What happens if I quote high price to buy a stock compared to its current market price? in the forum Basics of Stock Trading 8 years, 6 months ago
If I quote a high price to buy a stock compared to its current market rate, it means that I am willing to pay “upto” that price to buy the stock. Trade will happen at the current market rate immediately.
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Ambika Prasad replied to the topic What are the other markets? in the forum Basics of Stock Market 8 years, 6 months ago
Some of the other markets are:
- commodity market
- options
- futures
- spot market
- derivative market
- auctions
- bond market
- foreign exchange market
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Ambika Prasad replied to the topic Can share holder has right to ask for refund / can he ask for dividends? in the forum Basics of Stock Market 8 years, 6 months ago
No, the shareholder has no rights watsoever to demand a dividend from the company. Its the Director who decides the payment of dividends.
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Ambika Prasad replied to the topic What is the role of SEBI? in the forum Basics of Stock Market 8 years, 6 months ago
Securities and exchange board of India “SEBI” regulates the securities market through its independent powers. It can provide license to dealers, stop fraud, control the merger, acquisition and takeover of companies, audit the performance of market, make new rules and keep track of portfolio management activities.
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Balaji and Ambika Prasad are now friends 8 years, 6 months ago
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EQSIS and Ambika Prasad are now friends 8 years, 6 months ago
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usha muthukumar and Ambika Prasad are now friends 8 years, 6 months ago
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Ambika Prasad replied to the topic Who are share holder, promoter, and director? What is the role and rights of them? in the forum Basics of Stock Market 8 years, 6 months ago
Share holder is one who holds shares of stock in a company. He has the rights to attend the annual company meeting, vote on appointment of directors, receive dividends etc.
Directors are the major decision makers of the company. His role is one of strategic governance and management. He enjoys a certain level of rights and discretion.
A Promoter…[Read more]
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Ambika Prasad replied to the topic What is IPO? What is the process of applying for IPO? in the forum Basics of Stock Market 8 years, 6 months ago
An IPO or Initial Public Offering is the first time a company sells its shares to the public. You can choose the “online” or the “offline” way to apply for an IPO. Either way a demat account is required. Online application is a simpler option while the offline option requires purchasing the form from the investment broker and then submitting the…[Read more]
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Ambika Prasad replied to the topic How come NSE become popular than BSE? in the forum Basics of Stock Market 8 years, 6 months ago
NSE was set up in 1993, years after BSE was founded. It was supervised by SEBI and promoted by leading financial institutions. It brought about ‘Transparency and Professionalism’ to the markets. BSE was run by brokers and was not at all professional. NSE also introduced more features such as Futures and Options and hence is rightly more popular…[Read more]
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Ambika Prasad replied to the topic What is the difference between primary market and secondary market? in the forum Basics of Stock Market 8 years, 6 months ago
A primary market is the first venue where the securities or stocks are offered. It may happen that a company might require capital for it’s business. Then it approaches the primary market and issues shares in an IPO( Initial public offer). After the capital is raised it gets listed on the stock exchange and stocks can be traded. This is the…[Read more]
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Ambika Prasad replied to the topic Why do we need stock market? in the forum Basics of Stock Market 8 years, 6 months ago
We need a stock market because it provides a structured exchange where the investors can safely buy and sell stocks in a regulated way.
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Ambika Prasad replied to the topic What is the difference between Investments and trading? in the forum Basics of Stock Market 8 years, 6 months ago
When we gradually build our wealth over a long period of time through ‘buying and holding’ of stocks, we are said to be investing. Trading is more about frequent buying and selling of stocks.
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Ambika Prasad replied to the topic What is DEMAT a/c? in the forum Basics of Stock Market 8 years, 6 months ago
A ‘Demat’ account is where our shares and securities are held electronically. This is much easier than having a physical possession of our share certificates. This account is opened when an investor registers with an investment broker.
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Ambika Prasad replied to the topic What is Stock Market? in the forum Basics of Stock Market 8 years, 6 months ago
Stock market is a platform provided by the stock exchange where buyers and sellers exchange trades.
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Ambika Prasad became a registered member 8 years, 6 months ago