[raj_chopada2001]

Hi,

I am starting thread for the discussion on Finance related topic. Although there is going to be overlaping between finance and eco. term wecan discuss in this thread.

Hare Most of the topic we will discuss is Related to finance like Stock market related.

Even direct Q asked in PI related to Fiance term can also be discuss.

[raj_chopada2001]

Hi catdils

Answer to your Q

4)Does securities market means stock exchange only?

No, Securities market is a market where securites are traded. Securities are financial preoduct like shares, derivative product, bond etc. Derivatives In finance, a security whose price is derived from underlying assets. it means value of derivative will fluctuate acc. to value of base asset. it may be stock, commodity, currency, etc.

Futures contracts, forward contracts, options are the most common types of derivatives.

5)can you explain Derivative in layman’s terms?
PLZ refer to prv. Q


6) what do u mean by hedging? What r hedging devices?

Hedging is an strategy used to minimise the risk of loss due to price fluctuation.

this can i explain in detail with the help of eg.
let's u Buy gold 1kg @ 10000 per 10gr for sell in future. Now u have risk that price may fall below 10000 so you will sell future contract of GOLD in commodity market to avaid risk of price reducing below 10000Rs.

Now you have hedge your risk and increase and decr. in price will not cause you to incure a loss.

[raj_chopada2001]

Hi,
I will first start with simple terms of finance

Demat trading
Demat trading is trading of shares that are in the electronic form
or dematerialised shares. Dematerialisation is the process by
which shares in the physical form are cancelled and credit in the
form of electronic balances are maintained on highly secure
systems at the depository

[andy_jaan]

Well nice initiative, but am afraid to mention the bleak future of this thread being a bit toooo specific to B school syllabus in terms of content and objective..................Let's hope to get some experts and then puys in particular B schoolers can go for a mutual helping kinda exercise, towards solving their doubts.

Regards
Andy

P.S. I don't no whether this thread will survive but a similar contemporary stuff is going on here:-
http://www.pagalguy.com/forum/career...ms-people.html (Discussion on finance concepts/problems for people interested in finance)

P.P.S. BTW the derivatives explanation above can be elaborated I guess????:

[raj_chopada2001]

Originally Posted by andy_jaan

Well nice initiative, but am afraid to mention the bleak future of this thread being a bit toooo specific to B school syllabus in terms of content and objective..................Let's hope to get some experts and then puys in particular B schoolers can go for a mutual helping kinda exercise, towards solving their doubts.

Regards
Andy

P.S. I don't no whether this thread will survive but a similar contemporary stuff is going on here:-
http://www.pagalguy.com/forum/career...ms-people.html (Discussion on finance concepts/problems for people interested in finance)

P.P.S. BTW the derivatives explanation above can be elaborated I guess????:

Hi,
i have seen this thread but the term i found over there is not known to me
this thread is for beginner and where as finance-concepts-problems is high level funda and terms from CFA books
in this thread we will discuss terms which u r using in daily life but may not knowing exact meaning.

[raj_chopada2001]

Hi,
Where is prof_calculus plz contribute to this thraed

[raj_chopada2001]

Hi,

Capitalization
The total value of the company in the stockmarket.This value
is arrived at by multiplying the number of shares in issue by
the company's share price. This market capitalization
obviously fluctuates as the share price moves up and down.

Market capitalization
Market capitalization is the market value of the equity of a
company. Simply put, it is the number of outstanding shares
multiplied by the market price of the company

[raj_chopada2001]

Hi
All Pagal Janto are requested to contribute to this thread.

[raj_chopada2001]

..,,,.......

[raj_chopada2001]

Hi,
i am starting GD on Impact of WTO on India.
PLZ contribute