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Stock Market Animals

The Bulls A bull market is when everything in the economy is great, people are finding jobs, gross domestic product (GDP) is growing, and stocks are rising. Things are just plain rosy! Picking stocks during a bull market is easier because everything is going up. Bull markets cannot last forever though, and sometimes they can lead to dangerous situations if stocks become overvalued. If a person is optimistic and believes that stocks will go up, he or she is called a "bull" and is said to have a "bullish outlook". The Bears A bear market is when the economy is bad, recession is looming and stock prices are falling. Bear markets make it tough for investors to pick profitable stocks. One solution to this is to make money when stocks are falling using a technique called short selling. Another strategy is to wait on the sidelines until you feel that the bear market is nearing its end, only starting to buy in anticipation of a bull market. If a person is pessimistic

Share market for Beginners

What is the Colombo Stock Exchange (CSE)? The Colombo Stock Exchange (CSE) is the organization responsible for the operation of the stock market in Sri Lanka. The CSE is a company limited by guarantee duly established in Sri Lanka and licensed by the Securities and Exchange Commission of Sri Lanka (SEC) to operate as a stock exchange in Sri Lanka. How do I purchase shares? There are two ways to purchase shares From a new issue of shares (Primary Market) - The primary market is the market for new shares or debenture issues. In the primary market, the security is purchased directly from the issuer (company). In a primary issue, the company offering the share/debenture issue publishes a document known as the prospectus. It is an invitation to the generalpublic to buy shares or debentures of that company. On the Secondary Market through a stock broker - A market in which an investor could either buy or sell shares, debentures and Government Securities from or to another invest

Risk of Share Market

"Take a chance! All life is a chance. The man who goes the furthest is generally the one who is willing to do and dare. The 'sure thing' boat never gets far from shore." Dale Carnegie (1888 - 1955) You might think we can buy shares and keep until its waiting and get the profit, if you are thinking like this you must be wrong. Investing on shares means good way of income as long as you do lots of dedication. Because share price may varies in a second.at can make you lost. What happen if the company closed. All your money is in fire :( DON'T FEAR I will tell you step by step how we can recover or minimize the stock market risk. This is kind of a game. 1. Before buying a share you should know about the little bit of a company(what they are doing?, how long they running?) 2. If you are new always get the help from your stock broker. 3. KEEP IN TOUCH with business world. 4. Technical and Fundamental Analyse.(This is the best way of a buying shares) -

What is a XD date

As I said earlier you can get an idea about what is XD Date. A stock trades ex-dividend on or after the ex-dividend date (ex-date). At this point, the person who owns the security on the ex-dividend date will be awarded the payment, regardless of who currently holds the stock. After the ex-date has been declared, the stock will usually drop in price by the amount of the expected dividend.

RAL (Renuka Agri Foods)

Good performance has been recorded by Renuka Agri Foods PLC. It has recorded a Revenue of Rs. 465.86 Million. NPAT attributable to the parent shareholders of Rs. 67.53 Million. Profit margin of 14.50%. Total equity of Rs. 955.25 M. So ROE of above 28% (67.53 x4 x 100/955.25) if the company continue with the same level of performance for the year. Net assets of Rs. 2.38 per share which gives a PBR of 2.39 for the current price of Rs. 5.70. Also PER of 8.38 since EPS for the quarter is 0.17 (annual 0.17x4) Cash flow of the business has improved with increase of cash at the end of the period compared to the initial cash position at the beginning of the year, which is a good sign. Compared to the size of other assets available in the balance sheet the company is having a substantial amount of assets in the form of cash with them, which is approximately 23% of the total assets as at 30.06.2011.

Profit

There two major ways of getting profit from the Share Market. We can easily use this ways to earn money 1. Capital Gain This are the mostly use method in share market to make the profit. We buy some share and when its increase we sell the shares and get the profit. Ex: Donald buy 1000 share from a company which price per share is Rs 10. So he have to spend 1000 x 10 = 10,000 to get this lot. Then the share price will increase to 12. Then Donald can sell those shares 1000 x 12 = 12 000. so his profit is 2000. 2. Dividend In the above sample Donald hold his share until the XD Date(will discuss this later). and the company decide to pay .50 to per share as dividend. so his profit is .50 x 1000 = 500 Note: Company management will decide to pay divdend and its a not must.

What is a Stock Exchange?

A stock exchange provide shares buying and selling debentures of companies. People can buy or sell share as they need and get profit from it. Share : Share is a unit which messieurs the capital of a company.Share price will decide by the company director board and it is subject to going up or down because of several reason.