Archive for April, 2008

Automatic Reinvestment04.29.08

This is a option wherein the investors’ profit from dividends and capital gains from stocks are reinvested to increase investor holdings in the market thereby increasing profits.

Posted in Investment Terminologywith No Comments →

Automatic Investment Plan04.27.08

It is a agreement by which the investor allows money to be withdrawn from his bank to purchase stocks and mutual funds.

Posted in Investment Terminologywith No Comments →

Asset Allocation Fund04.27.08

A portfolio of diverse bonds, shares and cash in a mutual fund.

Posted in Investment Terminologywith No Comments →

Asset Allocation04.25.08

The segregation of the capital investment into different types of assets like capital, bonds, percent.

Posted in Investment Terminologywith No Comments →

Annuity04.23.08

This is an agreement between a insurance company and a individual by which the insurance company agrees to pay a monthly payment for life or for a fixed time frame in return for large amounts of cash or periodic installment deposits.

Posted in Investment Terminologywith No Comments →

Annual Report04.21.08

This is an report which is filed annually by listed companies which includes reports about the assets, earnings, profits and liabilities and other statistics; financial or otherwise. This is a mandatory report to be filed.

Posted in Investment Terminologywith No Comments →

Advance Decline Index04.14.08

Advance Decline Index is a Index which helps one find out bull or bear trends of the share market at a single glance. It is calculated by dividing the number of shares risen in prices with those which have fallen. Numbers more than 1 indicate a bullish market and less than one show a bearish market.

Posted in Definitionswith No Comments →

Trading Versus Investing04.14.08

Trading and Investing are two different things and should never be confused even though they are used interchangeable in the share market world. One notable and perhaps the most important is the time each hold on to a stock.

While the investor is more interested in the appreciation of the company stocks over a relatively long periods of time. He is not very concerned with the changes in daily market as he knows that these will be overridden as time passes by. They carefully rely on the analyze a companies’ long term prospectives and follow a ‘buy and hold’ call on most stocks.

Whereas the trader is more concerned about the rising/diping of the market prices on a daily basis or even on a hourly prices. These traders tend to make money on the short term fluctuations of the market. They make use of the market outlook, industry news and general rumours to make capital gains on their money.

In todays market scenario, investors are few and traders are many since the market is unpredictable as the weatherman. :) Also, as a market watcher, my analysis is to be a investor, but hold on to a stock only if you are sure about its appreciation over the time. Otherwise, book your profits/losses and enter the market at a lower price point.

Posted in Definitionswith No Comments →

Aging Schedule04.14.08

Aging Schedule is a report generated by the company auditor who lists the amounts receivable by the company sorted by maturity as current, or in various states of default. This is very important to the companies’ creditors, sales team and industry analysts. It also helps analyze the financial situation of the company.

Posted in Definitionswith No Comments →

AGM: Annual General Meeting04.14.08

Annual General Meeting(AGM) is a annual meeting of the directors of a listed company and the shareholders where the companies’ annual performance are reported to the investors. Any vacancies in the board is filled at this meeting along with the shareholders approval. Also it is necessary for the company to send out a Annual Report to every investor who may or may not attend the Annual General Meeting. Here the auditors reports are filed and new auditors are appointed as deemed necessary and their remuneration fixed.

Posted in Definitionswith No Comments →

  • You Avatar
    Share Market World is a site where you can learn and understand the stock market ground up. Start from the bare share market basics and become a share trading guru with us. Share market World is a site designed to help you learn how, when and where to invest your money into and get the maximum returns out for it