MUTUAL FUNDS

You must have heard of mutual funds on TV Advertisements but ever wondered what are they?

Mutual funds are a remarkably good way to invest in stocks,Bonds & other securities. These are a accumulation of stocks and bonds.
Investors can make money from DIVIDENDS on stocks and INTEREST on bonds and capital gains on selling securities (if price has increased thereof).

ALSO READ: ACCOUNTING STANDARD 1

ADVANTAGES:
1.) Mutual funds facilitates professional management of one's hard dough.
2.) Investor's risk diverges due to owning shares in a mutual fund instead of owning individual stocks/bonds.
3.) Mutual funds let investor to convert it into liquid any time.
4.) Acquiring mutual funds is as simple as ABC, almost all banks and even some companies have their own stream of mutual funds.

DISADVANTAGES:
1.) Mutual funds are at times thought out to be a pricey affair as selling of securities, provokes capital gains tax.
2.) Shareholder transaction costs and advisory fees involved are sky-high.

POSTED BY,

GARV AHLUWALIA

EDITOR AT CHARTERED BLOOD

STOCK MARKET ANATOMY-3

STOCK MARKETS
{3rd post}

Hello friends!!!!!

So this is it ,finally today we are sharing a really good video
with you on the working of stock markets ,its importance for a nation , how it encourages industry and efficient utilization of resources.

As we said in our first post that industry ,commerce and trade drives every invention on earth because new inventions are done for better utilization of present resources so that maximum utility is obtained from them.This reduces cost ,resulting in increased profits, better dividends,more wealth.

Therefore any kind of utility created in any form whether virtual or physical, whether it is in form of goods or service has a potential earning power.

If anybody has any question ,doubts or suggestions post in the comments

With due credit to its makers,here it is !!!!

STOCK MARKET ANATOMY-2

{2nd POST IN STOCK MARKET SERIES}
HELLO FRIENDS

Thank you for your response on our last post about stock markets
Today we’ll see how it all started ? why?

we are posting a video that will be helpful in understanding the origin of these markets

THE STORY GOES LIKE THIS

In the 1600s, the Dutch, British, and French governments all gave charters {grants} to companies with East India in their names. On the cusp of imperialism’s high point, it seems like everyone had a stake in the profits from the East Indies and Asia except the people living there. These countries used to set up colonies in the east and brought valuable goods with them in ships ,thus making a huge profit on every voyage. Sea voyages that brought back goods from the East were extremely risky – on top of Barbary pirates, there were the more common risks of weather and poor navigation.

In order to lessen the risk of a lost ship ruining their fortunes, ship owners had long been in the practice of seeking investors who would put up money for the voyage – outfitting the ship and crew in return for a percentage of the proceeds if the voyage was successful. It was diversification of risk i.e. instead of one man bearing all the cost of the voyage , many investors used to put money , who would reap profits if the ship returned or bear losses if it doesn’t. These early limited liability companies often lasted for only a single voyage. They were then dissolved, and a new one was created for the next voyage. Investors spread their risk by investing in several different ventures at the same time, thereby playing the odds against all of them ending in disaster.When the East India companies formed, they changed the way business was done. These companies had stocks that would pay dividends on all the proceeds from all the voyages the companies undertook, rather than going voyage by voyage.Basically east india company acted like a link between investors and the main business of getting valuable goods from east. They acted like managers. People gave money to them i.e. investors and they organised voyages to the east for goods and when ships returned or after certain period they gave dividends to the investors. In this way the risk was spread between many voyages rather than relying on one ship .These were the first modern joint stock companies.They are called modern because this is how business is today also. This allowed the companies to demand more for their shares and build larger fleets of ships . The size of the companies, combined with royal charters{grants} forbidding competition, meant huge profits for investors

HOPE YOU LIKE IT

STOCK MARKET ANATOMY-1

Hello friends!!!
from today we are starting off with our series about
“STOCK MARKET”
See guys/gals this is a very vast oceanic subject but we’ll be starting from scratch to where it takes us
So today let us first take a look at some of the basic terms that will be used daily in our series
1. STOCK – the capital raised by a company or corporation through the issue and subscription of shares.

2. STOCK MARKET – Stock Market is a market where the trading of company stock, both listed securities and unlisted takes place. It is different from stock exchange because it includes all the national stock exchanges of the country.

3. STOCK EXCHANGE – Stock Exchanges are an organized marketplace, either corporation or mutual organization, where members of the organization gather to trade company stocks or other securities. The members may act either as agents for their customers, or as principals for their own accounts. Stock exchanges also facilitates for the issue and redemption of securities and other financial instruments including the payment of income and dividends. The record keeping is central but trade is linked to such physical place because modern markets are computerized. The trade on an exchange is only
by members and stock broker do have a seat on the exchange

4. CAPITAL – wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.

5 TRADING – the action or activity of buying and selling goods and services.

“”””After reading these a question should strike your mind that is their any difference between stock and capital?”””””

THINK ABOUT IT !!!!!