Engineer's Finance

I received a message from my broker telling me to purchase a certain stock at Rs. X price and the target price as per his advice is Rs. X+2 in a day for intra-day trading obviously with the disclaimer.

I was just pondering over the message. On what basis did they come up with such a conclusion? There must be many great pundits who would have worked out such a math. Anyway I was wondering what if that was not sure and they cooked up the entire story. It is possible, isn’t it? Assume that they did some analysis on the company, worked out a huge set of calculations to find out the price variation. But this does not make any sense to me. Continue reading →

Have you wondered what are Hot tips? A Hot tip is a insider information which is not publicly disclosed by the company and the information is leaked by someone who has such a information. This is illegal. Being an insider, you are not supposed to disclose the information; such an act can put you behind the bars. Some publicly listed companies don’t allow the employees to trade in a particular time frame. They have the trading window open during a certain period of time and then they close it. If you abide by the rules and regulations of the company I am sure you will be not doing anything against the company or its policies. Continue reading →

Why are we investing in stock market? The answer is very simple. To trade and earn enormous profits on the investment.

The following is my thoughts that I have collected over the last couple of years.

From BSE India Site : Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage, now spanning three centuries in its 134 years of existence. What is now popularly known as BSE was established as “The Native Share & Stock Brokers’ Association” in 1875. BSE is the first stock exchange in the country which obtained permanent recognition (in 1956) from the Government of India under the Securities Contracts (Regulation) Act 1956. Continue reading →