Wednesday, July 04, 2007
A credit derivative is a contract that allows the credit risk (or the risk of default) of a loan or bond to be separated and transferred to another entity, independently of the asset. The simplest and most popular type of credit derivative is a credit default swap (CDS), in which the protection buyer pays a fixed periodic fee to the protection seller in return for a payment in the event of default on the loan or bond which is the underlying.
NSE recently informed its brokers that they cannot henceforth place Good Till Cancelled (GTC) order in the futures and options (F&O) market. GTC means that your sell order will be carried forward every day till you cancel the order or the contract reaches the particular value. Because of the GTC orders, volatility will be very high.
FMCG (Fast moving consumer good) industry like Marico, Britannia, Godrej, HLL, Nestle.
Indiabulls, a registered non-banking finance company. Farallon Capital, the US-based hedge fund.
NPA (non-performing assets) any asset that is not effectively producing income. For example, an overdue load would be considered non-performing.
Ramesh Gelli, promoter director, GTB.
India Post's products Postal Life Insurance(PLI) and Rural Postal Life Insurance(RPLI) are life insurance products. But unlike others, these do not come under the purview of the Insurance Regulatory and Development Authority (IRDA).
Sysarc Infomatix has made inroads into the Indian Banking sector with its Lending Automation Processing System(LAPS), which enables quick and assured reduction in non-performing assets(NPAs).
Indiabulls, a registered non-banking finance company. Farallon Capital, the US-based hedge fund.
NPA (non-performing assets) any asset that is not effectively producing income. For example, an overdue load would be considered non-performing.
Ramesh Gelli, promoter director, GTB.
India Post's products Postal Life Insurance(PLI) and Rural Postal Life Insurance(RPLI) are life insurance products. But unlike others, these do not come under the purview of the Insurance Regulatory and Development Authority (IRDA).
Sysarc Infomatix has made inroads into the Indian Banking sector with its Lending Automation Processing System(LAPS), which enables quick and assured reduction in non-performing assets(NPAs).
now i hv 3 investors website. investopedia.com, investorsedge.com, investorwords.com
Call money rate. Interest rate that banks charge to brokers to Finance margin loans to investors. Also called Broker loan rate.
increasing returns to scale:Reduction in cost per unit resulting from increased production, realized through operational efficiencies. Economies of scale can be accomplished because as production increases, the cost of producing each additional unit falls. also called economy of scale.
Call money rate. Interest rate that banks charge to brokers to Finance margin loans to investors. Also called Broker loan rate.
increasing returns to scale:Reduction in cost per unit resulting from increased production, realized through operational efficiencies. Economies of scale can be accomplished because as production increases, the cost of producing each additional unit falls. also called economy of scale.
India Unbound -- Author Gurucharn Das
Nikkei is Japan's most widely used stock index made up of 225 companies.
NSC has 6 years of maturity period
Television Eighteen India is the content provider for CNBC
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UTI was partitioned into UTI-1 and UTI-2. all the protected schemes like US-64 for which an assured repurchase price has been announced and assured return schemes hv been placed under UTI-1. Government will meet its obligations annually to cover any deficit in UTI-1. UTI-2 is comprised of all net asset value (NAV)-based schemes. Since UTI-2 portfolio is NAV based, no Government financial support is envisaged for it.
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Aashish Makawana
1/5; Gayatri Nagar,
Nr. Patarkar Colony no-2
Nr. Adarsh Nagar,
Naranpura,
Ahmedabad
Nikkei is Japan's most widely used stock index made up of 225 companies.
NSC has 6 years of maturity period
Television Eighteen India is the content provider for CNBC
-----------------------------------
UTI was partitioned into UTI-1 and UTI-2. all the protected schemes like US-64 for which an assured repurchase price has been announced and assured return schemes hv been placed under UTI-1. Government will meet its obligations annually to cover any deficit in UTI-1. UTI-2 is comprised of all net asset value (NAV)-based schemes. Since UTI-2 portfolio is NAV based, no Government financial support is envisaged for it.
-----------------------------------
Aashish Makawana
1/5; Gayatri Nagar,
Nr. Patarkar Colony no-2
Nr. Adarsh Nagar,
Naranpura,
Ahmedabad
Money market (alternative to stock market) - a place for large institutions and gov. to manage their short-term cash needs. Bidding process is done at auctions to determine the prices.
cash investments - money market investments are called cash investments because of their short term maturitites.
IOU - Invester owned Utilities - I owe u - is a legally binding agreement.
T-Bills (Treasury Bills)
CD ( Certificate of Deposit)
Commercial Paper
Banker's acceptance (BA)
Repo ( Repurchase agreement)
Money funds: Money funds are mutual funds that invest in short-term debt instruments.
cash investments - money market investments are called cash investments because of their short term maturitites.
IOU - Invester owned Utilities - I owe u - is a legally binding agreement.
T-Bills (Treasury Bills)
CD ( Certificate of Deposit)
Commercial Paper
Banker's acceptance (BA)
Repo ( Repurchase agreement)
Money funds: Money funds are mutual funds that invest in short-term debt instruments.
Changes in transaction tax
The Finance Minister has announced the following changes to the transaction tax proposed in the Budget on trades on a recognised stock exchange:
# For non-delivery based equity trades, the transaction tax has been slashed to 0.015 per cent (against the earlier 0.15 per cent).
# For delivery-based trade in equities, the tax rate remains unchanged at 0.15 per cent. The tax, however, would be equally split between the buyer and seller. Under the original proposal, the buyer was to bear the burden
# Transaction tax for trades in the futures and options market has been cut to 0.01 per cent (0.15 per cent).
# Bonds have been exempted from transaction tax.
The Finance Minister has announced the following changes to the transaction tax proposed in the Budget on trades on a recognised stock exchange:
# For non-delivery based equity trades, the transaction tax has been slashed to 0.015 per cent (against the earlier 0.15 per cent).
# For delivery-based trade in equities, the tax rate remains unchanged at 0.15 per cent. The tax, however, would be equally split between the buyer and seller. Under the original proposal, the buyer was to bear the burden
# Transaction tax for trades in the futures and options market has been cut to 0.01 per cent (0.15 per cent).
# Bonds have been exempted from transaction tax.
ZZZZ Best Inc, 1986. owner Barry Minkow carpet clearing company. He created over 10,000 phony documents and sales receipts. Barry Minkow was only a teenager at the time when he was sentenced to 25 years in prison.
Dollar Cost Averaging(DCA) is the process of buying, regardless of share price, a fixed dollar amount of a particular investment on a regular schedule. More shares are purchased when the prices are low and fewer shares are purchased when prices are high.
Random Walk theory gained popularity in 1973 when Burton Malkiel wrote "A random walk down wall street", a book that now regarded as an investment classic. Random walk theory states that the past movement or direction of the price of a stock or overall market cannot be used to predict its future movement.
Optimal portforlia theory: investors will act rationally, always makeing decisions aimed at maximizing their return for their acceptable level of risk. Efficient frontier
Capital Asset pricing model(CAPM): Required Return = RF (Risk free) Return + (Market return - RF Rate) * Beta
Risk is the chance that an investment's actual return will be different than expected.
Diffenet types of Risk: Fundamental types; Systematic risk. Unsystematic risk. More specific types of risk: Credit or Default Risk, Country Risk, Foreign exchange Risk, Interest rate risk, Political Risk, Market risk,
EBITDA- earnings before interest, taxes, depreciation and amortization
Peter Lynch, started managing the Fidelity Magellan Fund.
Book: Seyhun book Investment Intelligence from Insider Trading
Dollar Cost Averaging(DCA) is the process of buying, regardless of share price, a fixed dollar amount of a particular investment on a regular schedule. More shares are purchased when the prices are low and fewer shares are purchased when prices are high.
Random Walk theory gained popularity in 1973 when Burton Malkiel wrote "A random walk down wall street", a book that now regarded as an investment classic. Random walk theory states that the past movement or direction of the price of a stock or overall market cannot be used to predict its future movement.
Optimal portforlia theory: investors will act rationally, always makeing decisions aimed at maximizing their return for their acceptable level of risk. Efficient frontier
Capital Asset pricing model(CAPM): Required Return = RF (Risk free) Return + (Market return - RF Rate) * Beta
Risk is the chance that an investment's actual return will be different than expected.
Diffenet types of Risk: Fundamental types; Systematic risk. Unsystematic risk. More specific types of risk: Credit or Default Risk, Country Risk, Foreign exchange Risk, Interest rate risk, Political Risk, Market risk,
EBITDA- earnings before interest, taxes, depreciation and amortization
Peter Lynch, started managing the Fidelity Magellan Fund.
Book: Seyhun book Investment Intelligence from Insider Trading
supply-side economics, trickle-down effect. ( Economics)
Standard & Poors (MC GrowHill's) company dealing with investment management.
One up on Wall Street (book) Author - Mr. Peter Lynch
SLEC has 100 years telecast rights for F1 race.
Rough Trader . Author - Nick Leeson (a book on greatest scandal that crashed UK's Barring bank only by 1 man Nick Leeson.)
A random Walk Down the wall street
Standard & Poors (MC GrowHill's) company dealing with investment management.
One up on Wall Street (book) Author - Mr. Peter Lynch
SLEC has 100 years telecast rights for F1 race.
Rough Trader . Author - Nick Leeson (a book on greatest scandal that crashed UK's Barring bank only by 1 man Nick Leeson.)
A random Walk Down the wall street
The Parmalat scandal(2004) Italy's eighth-largest industrial empire, the food giant Parmalat (headquartered in the central Italian city of Parma), the flagship Italian producer of some of the most popular dairy products, cookies and beverages collapsed and its founder Calisto Tanzi been jailed. Several major players from the world of international finance are also under scrutiny. According to the charges, numerous shell companies were set up to generate fake profits for Parmalat and subsidiaries. In addition, Parmalat’s finance director, Fausto Tonna, has told interrogators that he participated in a “cut and paste” forgery, in which a document with Bank of America letterhead was scanned and then added to a document verifying a deposit account with that bank holding over $4.98 billion. The document was then passed through a fax machine several times in order to appear authentic.
In any large business under global capitalism there is an enormous pressure to “perform” in the global market, to bring favorable returns that meet investors’ expectations. Not surprisingly, the details that have surfaced thus far indicate that Parmalat’s fraudulent activities really “took off” when its stock went public in 1990.
In any large business under global capitalism there is an enormous pressure to “perform” in the global market, to bring favorable returns that meet investors’ expectations. Not surprisingly, the details that have surfaced thus far indicate that Parmalat’s fraudulent activities really “took off” when its stock went public in 1990.
One up on Wall Street (book) Author - Mr. Peter Lynch, the great Fidelity Magellan fund manager
Philip A Fisher: Author of 'Common Stocks and Uncommon profits'. Kenneth L Fisher has introduced Price to Sales Ratio.
Warren Buffet: company name: Berkshire Hathaway Inc. (BRK/A)
Rich Dad, Poor Dad - Author Robert T. Kiyosaki
Sir John Templeton was born in 1912 in Tennessee, won a scholarship to Yale and went to Oxford as a Rhodes scholar. He started his own investment firm in the depths of the Depression, like Fisher. In 1939, with Hitler gaining in Europe, he bought every stock trading below $1 on the New York and American stock exchanges and quadrupled his money in four years. "Invest at the point of maximum pessimism," he says. He launched Templeton Growth Fund (TEPLX) in 1954. The fund is still going strong as part of the Franklin Templeton Group, although Templeton no longer manages it.
Philip A Fisher: Author of 'Common Stocks and Uncommon profits'. Kenneth L Fisher has introduced Price to Sales Ratio.
Warren Buffet: company name: Berkshire Hathaway Inc. (BRK/A)
Rich Dad, Poor Dad - Author Robert T. Kiyosaki
Sir John Templeton was born in 1912 in Tennessee, won a scholarship to Yale and went to Oxford as a Rhodes scholar. He started his own investment firm in the depths of the Depression, like Fisher. In 1939, with Hitler gaining in Europe, he bought every stock trading below $1 on the New York and American stock exchanges and quadrupled his money in four years. "Invest at the point of maximum pessimism," he says. He launched Templeton Growth Fund (TEPLX) in 1954. The fund is still going strong as part of the Franklin Templeton Group, although Templeton no longer manages it.
FMC
Forward Market Commission (FMC)(www.fmc.gov.in) regulates commodity exchanges in India. Currently, there are three demutualised commodity exchanges in the country — The National Multi-Commodity Exchange, the Multi-Commodity Exchange of India and the National Commodity & Derivatives Exchange. The total volumes on these three online exchanges are close to Rs 250 crore.
Commercial Paper: An unsecured, short-term loan issued by a corporation, typically for financing accounts receivable and inventories. It is usually issued at a discount reflecting prevailing market interest rates. Maturities on commercial paper rarely range any longer than 270 days.
Credit Analysis & Research Ltd (CARE), incorporated in 1983, is a credit rating, information and advisory services company promoted by Industrial Development Bank of India (IDBI), Canara Bank, Unit Trust of India (UTI) and other leading banks and financial services companies. In all CARE has 15 shareholders.
Credit Analysis & Research Ltd (CARE), incorporated in 1983, is a credit rating, information and advisory services company promoted by Industrial Development Bank of India (IDBI), Canara Bank, Unit Trust of India (UTI) and other leading banks and financial services companies. In all CARE has 15 shareholders.
Mumbai office is at:
Havoc Consultants Private Ltd.,
Office No. 13, 1st Floor,
Satnam Mansion, Besides Hotel Aroma,
Near Chitra Cinema, Dadar (East),
Mumbai-400 014.
Telefax nos.: 022-24115700/800.
Registered office is at:
Havoc Consultants Private Ltd.,
6th Floor, Abhijeet-2,
Above Standard Chartered Bank,
Mithakhali Six Road,
Ahmedabad-380 006.
Telefax nos.: 079-26470025/6.
Your resume is matching with a requirement of a reputed company. Incase if you want to forward your resume to them, please submit 2 hard copies of your resumes, 2 passport sized coloured photographs and any one identity proof out of driving licence, passport, election card or income tax PAN card xerox personally at any of the above mentioned offices between 10 to 6 on any week-days(2nd & 4th Saturday of any month is closed in Mumbai) and on Sunday between 11 to 1 in Ahmedabad only (please bring soft copy of your resume in word format on a floppy without which we will not accept your resume, floppy will be returned back).
Havoc Consultants Private Ltd.,
Office No. 13, 1st Floor,
Satnam Mansion, Besides Hotel Aroma,
Near Chitra Cinema, Dadar (East),
Mumbai-400 014.
Telefax nos.: 022-24115700/800.
Registered office is at:
Havoc Consultants Private Ltd.,
6th Floor, Abhijeet-2,
Above Standard Chartered Bank,
Mithakhali Six Road,
Ahmedabad-380 006.
Telefax nos.: 079-26470025/6.
Your resume is matching with a requirement of a reputed company. Incase if you want to forward your resume to them, please submit 2 hard copies of your resumes, 2 passport sized coloured photographs and any one identity proof out of driving licence, passport, election card or income tax PAN card xerox personally at any of the above mentioned offices between 10 to 6 on any week-days(2nd & 4th Saturday of any month is closed in Mumbai) and on Sunday between 11 to 1 in Ahmedabad only (please bring soft copy of your resume in word format on a floppy without which we will not accept your resume, floppy will be returned back).
Relative Strength Index; This is an indicator that compares the days that a stock finishes higher as compared to the days it closes lower.
Posted by Dhaval Chokshi on 04:42 AM 0 Comments
EDGAR Electronic Data Gathering, Analysis, and Retrieval system of the Securities and Exchange Commission of the US.
Posted by Dhaval Chokshi on 04:34 AM 0 Comments
"Regular readers of our annual reports know of his incredible contributions to Berkshire's prosperity over the past 18 years. He continued to pour it on in 2003. With a staff of only 23, he runs one of the world's largest reinsurance operations, specialising in mammoth and unusual risks. Often, these involve assuming catastrophe risks - say, the threat of a large California earthquake - of a size far greater than any other reinsurer will accept. You should, therefore, expect his operation to have an occasional horrible year. Over time, however, you can be confident of a terrific result from this one-of-a-kind manager." Warren Buffett in his 2003 letter to the shareholders of Berkshire Hathaway. Who is the fund manager of Indian origin that he refers to?
Mr Ajit Jain.
Posted by Dhaval Chokshi on 04:42 AM 0 Comments
EDGAR Electronic Data Gathering, Analysis, and Retrieval system of the Securities and Exchange Commission of the US.
Posted by Dhaval Chokshi on 04:34 AM 0 Comments
"Regular readers of our annual reports know of his incredible contributions to Berkshire's prosperity over the past 18 years. He continued to pour it on in 2003. With a staff of only 23, he runs one of the world's largest reinsurance operations, specialising in mammoth and unusual risks. Often, these involve assuming catastrophe risks - say, the threat of a large California earthquake - of a size far greater than any other reinsurer will accept. You should, therefore, expect his operation to have an occasional horrible year. Over time, however, you can be confident of a terrific result from this one-of-a-kind manager." Warren Buffett in his 2003 letter to the shareholders of Berkshire Hathaway. Who is the fund manager of Indian origin that he refers to?
Mr Ajit Jain.
G-secs?
THE Reserve Bank of India has decided to allow small investors to bid at the auction for government securities (G-secs). This means that you and I can now buy G-secs in the primary market. Till now, we could invest in G-secs only through mutual funds. How can you buy G-secs and at what price?
You submit an application to one of the banks or primary dealers (PDs) in your city. Your application should state the amount to be invested, subject to a minimum of Rs 10,000. How much will you pay for the investment? Here, the RBI has made it very clear that you cannot quote the price at which you wish to buy G-secs, and not without reason! Why?
The RBI sells G-secs through auctions, where banks and PDs bid for the amount and the price at which they intend to buy. Suppose the auction is for a 10-year G-sec, and the RBI intends to collect Rs 5,000 crore (called the notified amount). A bank can make a bid for, say, Rs 400 crore at a price of Rs 103 (the face value of all G-sec is Rs 100). This is called a competitive bid as it contains the amount as well as the price at which the investor is interested in buying the G-sec.
Now, the problem is that small investors are not fully equipped to quote a price at which they want to buy the G-secs.
This is because quoting G-sec prices requires understanding how interest rates are likely to move in the future and whole lot of other things about the yield curve.
The RBI, therefore, allows you to make a non-competitive bid. That is, you can buy G-secs at the weighted-average price decided at the auction. Suppose the RBI collects 2,500 crore at Rs 102, Rs 1,000 crore at Rs 102.50, and Rs 1,500 crore at Rs 103, the weighted price is 102.4 (that is, 102 x 2500 + 1000 x 102.50 + 1500 x 103/5000). Your cost will, thus, be Rs 102.4 plus commission.
“It ain't over 'til it's over.”
"Let me tell you something you already know. The world ain't all sunshine and rainbows. It is a very mean and nasty place and it will beat you to your knees and keep you there permanently if you let it.
You, me, or nobody is gonna hit as hard as life. But it ain't how hard you hit; it's about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That's how winning is done.
Now, if you know what you're worth, then go out and get what you're worth.
But you gotta be willing to take the hit, and not pointing fingers saying you ain't where you are because of him, or her, or anybody.
Cowards do that and that ain't you. You're better than that!”
-- Rocky Balboa
You, me, or nobody is gonna hit as hard as life. But it ain't how hard you hit; it's about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That's how winning is done.
Now, if you know what you're worth, then go out and get what you're worth.
But you gotta be willing to take the hit, and not pointing fingers saying you ain't where you are because of him, or her, or anybody.
Cowards do that and that ain't you. You're better than that!”
-- Rocky Balboa
Wednesday, July 21, 2004
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