" guide to financial markets "by economist ,author is marc levinson ,very useful
,have fundamental and some tech analysis of financial markets
UOTE=rahul_caty]" guide to financial markets "by economist ,author is marc levinson ,very useful
,have fundamental and some tech analysis of financial markets
Dood that book is lil boring...me an engineer..tried my hand at it...i think generall reading on the net it a better option...
ciao
UOTE=rahul_caty]" guide to financial markets "by economist ,author is marc levinson ,very useful
,have fundamental and some tech analysis of financial markets
Dood that book is lil boring...me an engineer..tried my hand at it...i think generall reading on the net it a better option...
ciao
me undergoing engineering ,found it interesting , well if u can tell me some interseting sites to learn about markets ,i will be thankful to u
i read the related article about hedge funds ,i could not understand following points related hedge fund strategies :
1.using arbitrage - seeking to exploit pricing inefficiencies between related securities - for example, can be long convertible bonds and short the underlying issuers equity.
2.investing in deeply discounted securities - of companies about to enter or exit financial distress or bankruptcy, often below liquidation value.
????????????
#1. It works like this.. Explained a little more, so as to make it edible 😉 for others too..
Convertibles are bonds which offers lower interest rates(and yields), because they can be changed to stock.. a convertible follow the underlying securities' price.. if the stock price goes down,obviously one would not convert and will stick to those meagre returns from the bond, but limits the market-risk.. But, as the stock price goes up, pepl will become more interested in this, leading to higher bond price.. so the yield on the bond for whoever holding this will be increasing.. (definitely,if it goes much higher then the company will forcefully convert the bonds.. similar to the concept of callable bonds, where they redeems it before maturity date..)
Coming back.. I short sell shares of A now, and also buys convertible bonds of A itself.
If share prices go up:
the bond prices go up, giving u extra money when u sell.. Use it to cover the short-sold shares from the market for delivery, and keep what is left.. the math will be complex depending on the bond yield, and conversion ratio of the bond..
If the share prices go down:
You short sold shares at a higher price.. price went down.. buy it from the market at lower price, for delivery and keep the rest of money and the convertible.
If you wish, you can sell the convertibles too to pay some amount of your buying.
Bottomline is, you are hedging your investment against market movements - up or down.
Hope this helps,
T'Blazer..
Disclaimer: Moi not an expert.
Jus , I develop applications for US capital markets.
guys thought i would contribute something on the pnb public issue......
ok i feel there is a great risk free return of close to 7% on arbitrage that somebody who has close to 7 lakhs can make by shorting the apr futures of pnb and applying for 25% more than 1200 shares that is 1500 shares and hope that u are alloted close to 1200 shares that should reduce ur risk.......
if things go well and even if the issue is priced at 390 the higher end of the band then u make a cool 60k on your investments.. what say guys.....
please comment on the following strategies and ur take on it.....
thought this thread shd have been more active as the markets are notionally at all time high....
Rahul
ok i feel there is a great risk free return of close to 7%
Rahul
why do u feel so?
+ man where am i gonna get so muich money from...7 lakhs:shock::shock::shock::shock::shock::shock:...me pop's gonna throw me out mayta few more queries ...can some one clear the funda bout the groups on BSE...as in ! B1 B2 S T Z....i am guessing that they may be realted to market cap but what exactly are the limits....what is the total market cap of the sensex(approx of course
)....and how many companies are listed on the BSE....ciao
P.S: Holy shit! there is an 11% :shock::shock::shock:arbitrage opportunity NSE-> BSE...on padmjee agro...i never knew such massive differences existed...
hey
can anyone suggest me an online broker for day trading. i'll be putting in 10k initially. i've thought of 5paise.com, hdfc, sharekhan.
guys please suggest the best alternative. i have to open the demat a/c in a week.
any tip on trading is also welcome..
cheers!!
ANUPAM
Which stock u guys think will fetch the best returns in the next 1 month ?
Hii PPl
i m applying for PNB public issue . I want to get 100 shares . How much shud i apply for? Also Retail investor limit is raised to 1 Lakh. But u need PAN for Investing above Rs50000. Is that true? is it necessary that 1st holder has to have PAN since i have an A/c with my MOM who has a PAN.But she is secondholder in demat a/c. Let me know soon.
Sujay
i m applying for PNB public issue . I want to get 100 shares . How much shud i apply for? Also Retail investor limit is raised to 1 Lakh. But u need PAN for Investing above Rs50000. Is that true? is it necessary that 1st holder has to have PAN since i have an A/c with my MOM who has a PAN.But she is secondholder in demat a/c. Let me know soon.
Sujay
mbabuster SaysWhich stock u guys think will fetch the best returns in the next 1 month ?
man if someone could actually predict that then he'd be a millionaire wudnt he
anywayz i got a few queries on derivatives....
How are the values of BSE\NSE Futures calculated?
What signals can be read fron the values of the BSE Futures and NSE Futures when u compare their values with those of the underlying index....as in , by their realtive posn wrt the indices....
third, wrt index futures, what is spot\stricke price?
ciao
rohit
Hi,
After reading the mails in the thread I am very much excited to play my luck on Stock market. But before investing in the stocks I have to get to know these things.
Can anyone tell me is it possible that I have a Demat Account in one bank lets say in ICICI and I opt for online broker some other say 5paisa.com.
Please reply soon.
And also tell me the first thing to start trading.
After reading the mails in the thread I got to know that ICICI online broker is not good.
So shall i opt for online broker as 5paisa.com and Demat Account in ICICI bank..................................
pls pls help me out of this soup
amar
Hi everybody,
There is a peculier situation. My demat a/c is showing me 200 shares of SBI, where as I never bought them.
I confirmed it and there are indeed 200 shares of SBI.
Now I would like to ask that how can this happen? and if I sell them what are the consequences of that.
I know that it might be illegal to sell those shares because I never purchased them, but as they are in my demat a/c so I have every right to sell them and make money.
Kindly tell me what can be the consequeces of it?
That's must be mine ... i lost 200 shares of SBI from my demat account
C'mon man ... u should ask or check in u r trade book ( if in ICICI ) how those shares have come to u r account and then lodge a complaint ..if nothing happens then go and sell it ... and give us all a party !!! How about that !!
Hi everybody,
There is a peculier situation. My demat a/c is showing me 200 shares of SBI, where as I never bought them.
I confirmed it and there are indeed 200 shares of SBI.
Now I would like to ask that how can this happen? and if I sell them what are the consequences of that.
I know that it might be illegal to sell those shares because I never purchased them, but as they are in my demat a/c so I have every right to sell them and make money.
Kindly tell me what can be the consequeces of it?
Hi everybody,
There is a peculier situation. My demat a/c is showing me 200 shares of SBI, where as I never bought them.
I confirmed it and there are indeed 200 shares of SBI.
Now I would like to ask that how can this happen? and if I sell them what are the consequences of that.
I know that it might be illegal to sell those shares because I never purchased them, but as they are in my demat a/c so I have every right to sell them and make money.
Kindly tell me what can be the consequeces of it?
hey hi 2004
i am into equities for the last 24 months......
even i have encountered the same sweet problems........
what i di??????
sold them and ate the money.......
nobody asked me but if they do ask u.....u mite have to buy it in the auction........
RAhul
Ah now i know where they went... Must be a SUN outage again... somewhere atleast...
I guess we can make a deal give me those for half the price... I will never sell them nobody has to know...
K
mbabuster SaysWhich stock u guys think will fetch the best returns in the next 1 month ?
hi
i think stocks of steel sector like tisco,sail and essar steel look pretty promising in the short term as well as in the long term. cement is one sector where there is a good run up expected because of increase in cement prices in the near future.
happy trading
hey hi 2004
.....u mite have to buy it in the auction........
RAhul
Can you pls elaborate on this auction part?
wanted a piece of advice n some help frm CA's n BCom guys.....actually i have been in the stock markets 4 the last 2 yrs....but i want 2 b more organised and informed...so wanted 2 learn 2 read balance sheets and company's financial statements......ne books or sites tht ppl could suggest ???
would b of gr8 help.
wanted a piece of advice n some help frm CA's n BCom guys.....actually i have been in the stock markets 4 the last 2 yrs....but i want 2 b more organised and informed...so wanted 2 learn 2 read balance sheets and company's financial statements......ne books or sites tht ppl could suggest ???
would b of gr8 help.
www.investopedia.com
enjoi