OPEN SESAME

PEOPLE KEEP ON LOOKING FOR TREASURES ALL OVER WHEN ONE IS RIGHT IN FRONT OF THEM . MANY OF US HAVE TURNED THEIR BACK ON ONE OF THE MOST PROFITABLE INVESTMENTS IN OUR TIMES "STOCKS".
HERES AN ATTEMPT TO CREATE AWARENESS ABOUT SHARES IN THE COMMON INVESTOR'S MIND , AND SHOW HIM THE PATH TOWARDS HIS OWN TREASURE.

Sunday 22 April, 2007

how and what to read in the news paper

AS MENTIONED IN THE PRIOR POSTS ,I AM GOING TO EXPLAIN ALL I MENTIONED WITH EXAMPLE FROM HERE ONWARDS.
STARTING FROM HOW TO READ THE NEWSPAPER.

YOU MIGHT HAVE MANY A TIMES JUST OVERLOOKED THE BUSINESS SECTION OF THE NEWSPAPER,NORMALLY IT CARRIES NEWS REGARDING VARIOUS BUSINESS RELATED DEVELOPMENTS.BUT FOR US THE MOST IMPORTANT THING IS THE STOCKS LISTING CARRIED IN THE NEWSPAPER IN RATHER SMALL PRINT.THEY ARE MERELY NUMBERS UNTIL YOU KNOW WHAT TO MAKE OUT FROM THEM.

HERES AN EXAMPLE TO MAKE THINGS CLEARER.NUMBERS HAVE BEEN ACTUALLY PICKED FROM TIMES OF INDIAS 30TH MARCH 2007 EDITION, PAGE 20 (ACTUALLY ANY DAY'S EDITION EXCEPT SUNDAY AND MONDAY WILL CARRY THIS LIST,JUST THE NUMBERS WILL CHANGE.
IT MUST BE NOTED THAT EVEN THOUGH THE LIST IS PRINTED ON 30TH MARCH IT CARRIES ALL THE NUMBERS OF THE PREVIOUS DAY (29TH MARCH)

UNDER THE HEADING STOCKS THE FOLLOWING LIST IS CARRIED.

BSE A GROUP/NSE

CO,PRICES,[VOL]; PE 52-WK H/L
ABB 3550,3589,3475,3507.20[10932] 43.7 4000/1920
3645,3645,3485.05,3505[118471] 43.6 3999/1900

NOW LETS TRY AND MAKE OUT WHAT THE ABOVE LIST TELLS US.

BSE A GROUP/NSE:
THIS MEANS THAT THE BELOW LISTED SHARES BELONG TO THE A-LIST (REPUTED,TRUSTED,GOOD PERFORMING) OF COMPANIES IN INDIA.
THE FIRST LINE INDICTES THE PRICE OF THE SHARE ; IN BSE WHILE THE SECOND LINE INDIACTES THE PRICE OF THE SAME SHARE IN NSE.

CO,PRICES,[VOL]:
THE ABOVE LINE CARRIES COMPANY'S NAME ,PRICE OF THE SHARE AT VARIOUS POINTS IN THE MARKET,AND VOLUME OR QUANTITY OF SHARES SOLD .

PE 52Wk H/L:
P/E HERE MEANS THE RATIO OF CLOSING SHARE PRICE TO THE EARNING PER SHARE(EPS),I WILL EXPLAIN YOU THIS TERM IN DETAIL A BIT LATER.
52Wk H/L MEANS THE HIGHEST AND LOWEST PRICE OF THE SHARE IN THE PAST 52 WEEKS.

SO
CO,PRICES,[VOL] PE 52-WK H/L
ABB 3550,3589,3475,3507.20[10932] 43.7 4000/1920

MEANS
1.THE COMPANIES NAME IS ABB
2.ITS OPENING PRICE FOR YESTERDAY (29TH MARCH) IS Rs 3550/- (IT IS SAME AS CLOSING PRICE OF THE LAST DAY 28TH MARCH) AT BSE.
3.ITS HIGHEST VALUE FOR THE DAY WAS Rs 3589/- AT BSE.
4.ITS LOWEST VALUE FOR THE DAY WAS Rs 3475/- AT BSE.
5.ITS CLOSING PRICE FOR THE DAY WAS Rs 3507.20 AT BSE.
6.THE PE FOR THIS PARTICULAR SHARE WAS 43.7
7.ITS HIGHEST AND LOWEST PRICE FOR THE PAST 52 WEEKS (1 YEAR) HAS BEEN
Rs 4000/- AND Rs 1920/- RESPECTIVELY.
SIMILARLY THE SECOND LINE GIVES YOU THE SAME INFORMATION OF THE SHARES FOR NSE RATHER THAN BSE.

NOW IT SEEMS PRETTY SIMPLER TO GRASP.YOU MIGHT HAVE NOTICED THE VARIATION IN SHARE'S PRICE THROUGHOUT THE DAY AND THEN THROUGH THE YEAR AS WELL.WE WILL SLOWLY LEARN TO MAKE USE OF THIS VARIATION FOR OUR PROFIT.

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