Investment planning in Stock Exchange

How to make Investment planning in Stock Exchange:

In the stock exchange there is highly probability of loss rather than profit if your investment plan is random & aimless. To ensure the safety of invested fund in the stock market some investment planning techniques should be kept in mind:

• The foremost thing is that you must have idle money if you want to invest in the stock market. If you think you will earn your livelihood through the profit earned from stock market then stock market is not for you. You must have your own idle money better not from bank loan.
• You must have your aim to invest in the stock exchange. What do you expect from the stock market? Monthly profit? half yearly profit? Yearly profit?. You must make you mind prepared how much loss you are going to accept yourself. Share market is not the place to run your your family member due to its fluctuations.What will you do with the earned profit should be noted.
• To be honest share market is not the place for short term investment. You may gain temporary gain from short term investment, but there is high probability of risk. So you should consider moderate short term investment (less than 3 years), Mid term investment (approximately 3-10 years), longer term investment ( over 10 years). The more the term the more the profit.
• It is very crucial to estimate the level of risks you are going to take. Finance says the more risk the more profit. Risk taker usually not interested to Govt. treasury bond which are free, rather they buy some high value, fascinating & potential growth share where they can earn twice or more profit than the treasury bond. So keep this point in mind.
• keep your sharp eyes on the percentage of profit or loss you can bear. You can target 10%-20% profit from your share. When your target price comes then quickly sell the stock. On the other hand don't forget to set Stop-loss. If your share price falls below 10% or 20% then you can follow the stop loss tactics. 

Technique to find growth share
Technique to find out Growth less shares  

Saudi Aramco released prospectus for inititial public offering

 Prospectus of Saudi Aramco published:

The Saudi Giant Aramco eventually released its prospectus where it mentioned only .5 percent of Aramco shares will be available for the individual investor. But the company didn't mention the total number of shares to be offered, price range, listing date & company's selling percentage.

From a neutral news source it is expected that the company is set to raise $60-$80 billion dollar by selling 1-3% of its share. Experts expected the total valuation of the company to be $1.5-$2 trillion.

Individual investors will get 1 billion shares from the company.

The book building valuation period will continue from 17 November, 2019 to 4 December 2019. The final price for the share is expected to be disclosed on 5th December, 2019. Aramco authority confirmed to pay dividend at least $75 billion to its shareholder & the dividend policy can be changed upon any special circumstances. New York Stock Exchange, the London Stock Exchange the stock exchange from Tokyo may get significant dual listing shares from Aramco not confirmed in the prospectus but reliable sources said.The bankers of the issuers will be Goldman Sachs, HSBC,Bank of America, Citigroup & JP Morgan etc.

Like other shares there are vulnerability factors regarding Aramco shares.Political unrest, economy shutdown, social anarchy & terrorism can cause significant fluctuation in the share price of Aramco share mentioned in the prospectus.

More updates coming

Saudi Giant Aramco is knocking door in the Stock Exchange

Saudi Giant Aramco in the Stock Exchange

Saudi giant Aramco is knocking door in the Stock Exchange. From the authority of Aramco it is confirmed that the giant Oil company will issue first phase of its 2% share issuance in December,2019. In the year 2020 the company is expecting to issue more 3% share in the Riyadh Stock Exchange. By issuing 5% of the total share in the stock exchange the Govt is expecting to collect $100000 billion from the market. Saudi Government will issue the Aramco Share in the NYSE, London Stock Exchange, Tokyo Stock Exchange & in Hong Kong gradually

The IPO of Aramco will be the biggest in the world stock exchange history after Alibaba. The net worth of Aramco is $2 Trillion which was established in the year 1933 by Saudi Arabia in association with California standard oil company. The total reserve of Aramco is 261 billion barrel oil. Which is the second in the oil industry. 

How to avoid Bad shares in Stock Excahne

Technique to find out Growth less  shares:

There are some techniques to follow in order to find out the Growth less  shares in the share market

• The decreasing volumes of trading in the stock exchange
• Continuous bad EPS in the past years.
•  Net profit margin is decreasing in every Quarter.
• Practice of insider selling in the company
• Worse financial ratios to be found from the Financial Statements
• Bad rumor about the company
• Bad reputation of the Board of Directors.
• Bad Dividend policy
• Overvalued shares
•  Decreasing demands of the products.

How to find a Growth Share in Stock Excahange 

 

How to find a Growth Share in Stock Excahange

Technique to find growth share:

Investors want to take profit from stock or share investment. But only buying shares randomly can not guarantee profit for the investors.For this, the shares which have present & future potential should be bought. The emerging company's shares having good future prospects are the growth shares.

The question is how anyone can buy a Growth share.There are some technique from the experts about how to identify a growth share.

Shares having low P/E ratio but good dividend yield.How will you calculate your dividend yield? Simple, Suppose
Company's Dividend- 20%
Face value -  $20
Market price $30
So the dividend yield in this regard will be 13.33%
which is very much better than the existing bank interest rate

The main feature of growth share is that the share price will be double or triple in the future So some common factors to follow in a growth company.

• The business of the company is increasing day by day
• There is significant increase in the EPS of the company
• Increase in the Net profit
• Well management & Board of Directors
• Company has a significant reputation than its competitors 

Facebook entrance into the Share Market, offering IPO

The popular social networking media Facebook after a long time cherishing time has come to the share market providing IPO to the people.The starting day is 1st February.Facebook expects to raise $100 bn stock flotation.


Morgan Stanley has got the prestigious 'Lead left' position for the handling of the deal of the Facebook beating its longtime rival Goldman Sacks(which initially thought would be in that position.).So Morgan Stanley will be the Underwriter for the IPO process  of Facebook.


Facebook's IPO seems to be the largest investment IPO on record greater   than the Google.
It is expected that in the stock market Facebook will be among the top 10 IT public limited company.Facebook will be in the position like the McDonald, Amazon.com, VISA incorporated,Bank of America.


In the stock market the total value of the Facebook's share is expected between 7 thousand crore Dollar to 10 crore Dollar.

Officials expect Facebook will have a strong influence in the share market.

IPO PROCESS INFO

Advantages got by the shareholders from the companies

In some ways shareholder got advantage:

1. The Company may declare a Dividend:
Usually companies provide a part of its profit to the existing shareholders by the way of dividend.The normal level of dividend ranges from 5-100%. Loss making,marginal profit making companies may not declare dividend.

2.Rise in the Share price :
As the EPS or earning per share increases the share prices also increase and the investors benefited from the stock markets.


3.The Company may issue Bonus share:
A bonus share is a gift of shares to the shareholders.If a company makes better profit in some years it provides Bonus share to the existing shareholder.The number of shares gifted is proportionate to the number of shares held.The usual ratios in which bonus is issued are 1:5,2:5,3:5 (1:2 bonus implies one share gift for every two shares held)


4.Providing Right Shares:
If a company wants to raise more funds it is obliged to offer these instruments first to the existing shareholders.This offer is called an offer on right basis.