Stock Investing Strategies Part -1 (Begineers)

Welcome,
As in my previous post mentioned that I am going to start a new section of STOCK INVESTING STRATEGIES (refer Part-0) with reference to that, 

Stock Investing Strategies Part -1:-

Before going in to actual study of STOCK INVESTING STRATEGIES, it is necessary to understand some of the basics of SENSEX (or) Standards of Share market…. like 

what is sensex ?

How to calculate sensex?

What is market capitalization?

What is free float?

What is free float market capitalization?

 Sensex? – It is an index, what is Index? Index is an indicator which shows generally most of the stocks has gone up or down. Here we have two Indicators; Sensex is an Indicator of all major companies under BSE(Bombay Stock Exchange) and Nifty is an Indicator of all major companies under NSE (National stock exchange)

Sensex is calculated by considering top 30 listings under BSE, It is calculated by the method of free float market capitalization which is accepted by worldwide. Before we study free float market capitalization, it is necessary to understand what market capitalization is!!

Market capitalization: It is the worth of a company in shares, Example: If you are buying all the shares of a company then the price of total shares will become market capitalization. 

Free float: Generally, any company doesn’t allow all the shares in to the open market, some of the shares with board directors and some of the shares with investors and also with government etc, by excluding all these bodies the remaining shares will treated as open market shares. So we can do trading only in this open market shares.  

Total no of open market shares * Price of the share = Free float Market capitalization

For your reference: 

According to the BSE, any shares that DO NOT fall under the following criteria can be considered to be open market shares:

• Holdings by founders/directors/ acquirers which has control element
• Holdings by persons/ bodies with "controlling interest"
• Government holding as promoter/acquirer
• Holdings through the FDI Route
• Strategic stakes by private corporate bodies/ individuals
• Equity held by associate/group companies (cross-holdings)
• Equity held by employee welfare trusts
• Locked-in shares and shares which would not be sold in the open market in normal course.

Now the free float market capitalization simply means that the sum of all free float market cap of top 30 listings under BSE gives the free float market cap of particular intraday trading. The company with higher free float will have the higher weight in index. That means most of shares will be in open market gives the higher free float. Here the percentage of free float in total capital is not the free float market capitalization, according to the authority board there are different slabs to decide free float adjacent factor, which multiplies with free float open market shares and gives total free float market capitalization. Please go through the following table for better clarity. 

In reliance case, No of shares = 3274230107 with Full Mkt. Cap. 288001.28

No of open market shares =    ?               With Free Float Mkt. Cap 158400.7

By calculation the no of open market shares = 1800826558

So the % of free float will be 55% and the free float factor according to the slabs is 0.55 (see below)

So now we know what is sensex and free float market capitalization, so what are you waiting for? lets calculate today’s sensex. 

To calculate sensex the formula is : (Free float market cap/ base market capital)*100   
           
Free float market cap: sum of all the free float market cap of top 30 listings under BSE;

 Base market capital: To find out this I am recording free float market cap for last two days in BSE, on feb 18^th the free float market cap is 1657414.24 with sensex 19501.08, by this 1657414.24/19501.08 = 84.99089

Today’s free float market cap i.e on 19 th feb 2013 is 1668865.61, then the sensex value will be 1668865.61/84.99089 = 19635.817 (apx) check with 19 th feb sensex value in BSE India.

Well… I am tired….

In next blog posts we will see some more basics like, how companies will choose under top 30 listings in BSE and how to read Sensex or Index charts etc, after that we will go for the fundamental analysis and technical analysis nothing but stock investing strategies.

Contact:- lalikrishna@outlook.com

 

Stock Investing strategies - Part 0

Dear Readers,

Hope you all are fine and doing good...!!

Took a long time to come back here...  of-course i am really busy with couple of deadlines..  and with increasing responsibilities.

this post is just to inform you all that i am going to start a new section in management vision 2020. i.e. STOCK INVESTING STRATEGIES. You all have to agree with me that maximum number of employees will find an alternative source of income for better way of leading life with changing life styles. for this many of us will look for a good investment options where they will get maximum return of investment. isn't it ?

I am not saying to look for making quick money or to become millionaires in one night. look for an option where you can develop your percentage rate of return by investing very small amount in long term perspective. one basic thing to remember is, when you are investing in any option where you are getting maximum percentage of return that is equals to the percentage of risk factor.

coming to the point, here we are talking about investing in stocks, there is no guarantee given to pick a particular stock, It is all about the guesses made by understanding from theory. 

To understand the theory we need to follow few strategies which will really help to pick a particular stock even the market is running low. here you may ask a question that ever one will follow the strategies, then what makes difference ? these all strategies and analysis is just to bring one strong guess to be made according to the individual investing strategy. To have your own investing strategy is very much important. this makes difference. 

Stay tune for - Stock investing strategies - PART 1

How to Expand Business Globally ?

Hope everyone is fine & doing well with your busy Schedules and i am sure that many of you are busy in planning new year parties. Isn't it !

Okey..

Today, let me give a brief about an important business tool to expand any business, globally. Most of the people might have heard about WEBINAR s. Yes, Today's topic is on Webinar which is an effective tool to knock the doors of International markets. 

Webinar is similar to Seminar. Basic difference is, In webinar we will give presentations on web but not in seminar. Choosing a topic and presenting in web is not so easy as preparing a topic and giving seminar with power point presentations. We have to practice and work on it and if it is necessary  we have to make some rehearsals before you go in to a  LIVE seminar which we called it as WEBINAR.

Yes, Giving presentations on web and attracting audience from different parts of the world is all one part of thing to make aware of your business internationally. To build up Audience across the world is quiet easy if you are giving a power full and interesting topic. But, let us all awake and realize that our primary motto is to understand international markets and different entry strategies to expand our business. It is necessary to understand respective government regulations & tax laws instead of to get caught up later.

Understanding the sources and Potential of man power availability is much more important than just simply presenting in web. Identifying the like minded people from your audience and getting more information for the scope your business plays a major part of business solution :-)

"A Picture is worth than a thousand words"

I never tried of presenting in live i.e Webinar, but i wish one day i should get a chance to present. I have seen companies getting clients due to webinars and later on planning their expansion strategies in international markets. Now a days webinar become one of the latest marketing tool for many of the CEO's to knock hidden potential markets. so, to all my dear readers please do keep an Eye on this.

For to get more updates on this latest marketing tool, please subscribe to my blog lalikrishna.blogspot.com

As you know that i always love your feedback, so make some noise in comment section.

Thank you

-L a L i-

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Hai Readers,

I hope every one is fine and doing great !! and I would like to say thanks to god for giving this wonderful life and making me happy with what i am having. In last couple of weeks faced some tough times and come across few odd days, which makes me to write this post today. Instead of sharing my tough times with you all, let me tell you a story which helps me to overcome it.

Recently I read a story in one of the blog. which really inspires, Motivates and always keeps me strong when facing hurdles and road blocks in the way of my journey. Today i would like to share with you all the same story and expecting you all got inspire and motivates you as well. 

Coming straight away to the story :

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Hai,

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