Sunday, December 26, 2010
Share market basics primer beginner's guide
Share market basics primer beginner's guide
Introduction to share market
P/E the less the better. Usually those less than 15 are good company share. Be wary about above 20. When it goes above 40,the company's share becomes very risky.
EPS the more the better.
Right is declared on a given date. 1R:2 means if you have 2 share you will get 1 right(extra) share. Say the face value of the share is 10 tk. For the right share the company is asking for 10tk premium on each share. Thus if you have 2 share on the record date, you need to pay the price of 1 share+premium for 1 share. It is not optional,money will be taken from you. However you will get the original share after two or more months later though moeny is to be paid immediately. Usually price goes up before the issuing of right share. On the day and after a days of issuing right share, share price falls to adjust for the extra shares come in as right share.
Year ending of the company is usually in December. However dividend or bonus will be declared after two months of the end of year. Usually price goes after two months of the year ending. Dividen is cash profit given, whereas bonus means some extra share is given against original shares. Share price goes up when bonus given. If no bonus given and dividend is low, share price goes down. Generally higher cash dividend comes with bonsu share.
Earning per quareter. Earning third quarter shows the average earning value from month 1 to month 9, not just month 7 to month 9. Usually banks perform well during fourth quarter.
Net asset value higher the better.
Different categories of share. A category means AGM is held regularly and good profit is given. B category means AGM is held regularly though moderate profit is given. Z category shares do not give profit for last three or five years.
Circuit breaker: Stock exchange every day put some upper limit and lower limit for shares of each company. Usually it is 20 percent up and low.
Special thanks to Nihat,my cousin, for providing the above info in a crash course of 30 minutes!!!
Introduction to share market
P/E the less the better. Usually those less than 15 are good company share. Be wary about above 20. When it goes above 40,the company's share becomes very risky.
EPS the more the better.
Right is declared on a given date. 1R:2 means if you have 2 share you will get 1 right(extra) share. Say the face value of the share is 10 tk. For the right share the company is asking for 10tk premium on each share. Thus if you have 2 share on the record date, you need to pay the price of 1 share+premium for 1 share. It is not optional,money will be taken from you. However you will get the original share after two or more months later though moeny is to be paid immediately. Usually price goes up before the issuing of right share. On the day and after a days of issuing right share, share price falls to adjust for the extra shares come in as right share.
Year ending of the company is usually in December. However dividend or bonus will be declared after two months of the end of year. Usually price goes after two months of the year ending. Dividen is cash profit given, whereas bonus means some extra share is given against original shares. Share price goes up when bonus given. If no bonus given and dividend is low, share price goes down. Generally higher cash dividend comes with bonsu share.
Earning per quareter. Earning third quarter shows the average earning value from month 1 to month 9, not just month 7 to month 9. Usually banks perform well during fourth quarter.
Net asset value higher the better.
Different categories of share. A category means AGM is held regularly and good profit is given. B category means AGM is held regularly though moderate profit is given. Z category shares do not give profit for last three or five years.
Circuit breaker: Stock exchange every day put some upper limit and lower limit for shares of each company. Usually it is 20 percent up and low.
Special thanks to Nihat,my cousin, for providing the above info in a crash course of 30 minutes!!!
Labels: primer, share, share market
# posted by Abu Rashid @ 5:49 AM 
