Wednesday, February 28, 2007
Tuesday, February 20, 2007
DEMAT ..Get it Now
Bonky’s PDA ringed long enough to wake up everyone else in the room except Bonky.
All his roommates bemoaned about the heavy decibel alarams Bonky used to have in his PDA.Meanwhile there was an incoming call on his mobile.
“Am I speaking to Mr.Honky “, came a very slender and cute voice from the other end.
“Ya Its Honky..May I know whom I am speaking with”
“This is Hrithish from UCUCY Brokerage services, Mr.Bonky has referred you”
“For what!!!”,exclaimed Honky.
“He told us that you were looking to start demat account and hope that we can help you to get one”
“Oh that’s fine .But you need to explain me what a demat account is first”.
“Can I fix an appointment with you sometime so that we could fill in the application “
“Ya Hrithish you can meet me at any time in my office between nine to five” ,and winded up the call.
Back at office Honky thanked Bonky for the referral,meanwhile the security informed Honky that he had some visitor.
“Whats a demat account” was the first question thrown to our visitor.
“Dear Honky Demat stands for dematerialsation and this account dematerializes all the securities you own. You can make transactions as if you do with other banking accounts.The only difference is that instead of money here you will be having shares”
“How much should I pay for it” came the most imperative question.
“Since you have your salary account with us its enough if you can give us a cheque for one rupee”
“One Rupee!!!??”
“Ya that’s the unique offer for corporates from UCUCY”
Bonky was very happy on hearing it and decided to start the account right now since its not going to cost him much without knowing the hidden trap in it.
All that about one rupee was enough for the bank person to convince Honky to start a account.
The bank person asked for a Xerox copy of his compay id,pan card,one rupee cheque.
Honky asked him to meet after two days.
When he got back to the seat Bonky started “hope now you got to know about Demat”
“Ya Bonky but not completely”
“The Demat account serves to manage your shares.The firm in which you hold your account acts as a broker for your transactions.They communicate with the ECNs of the stock exchange and complete your trading”
“ECN!!??”
“Hope I told you about that yesterday Electronic communication networks..We are the techies behind it..Do you know the entire infrastructure of the BSE was created and supported by our concern”
“WOW !”
“When your application is processed you will get a username and password with which you can trade online as you do other online transactions” said Bonky.
He promised further that he would teach Honky about how to make a trade when he gets his first account.
“Tell me Bonky I don’t have any huge savings..i spent all I had to the sumptuous dinners and the multiplexes! How much should I save to start trading atleast a lakh!!??”
“Save to trade?? That’s poor boy..never mix your savings and investments especially stocks.Always I make sure 20% of salary goes to savings.I play with the rest only.”Probably we can continue this later in the day otherwise our mangers wont find us fit to pay”breaked Bokny
Ya its time to return to work for us too.If you have raised your eyes on how to get a HLL share in NYSE, you can shout EUREKA because that was the flaw in yesterdays mumbles.
Hey folks build up some discussions on the blog so that we can accrue our knowledge better and eliminate this mails.
NUCH CORNER:DEMAT is to dematerialize your money to shares in electronic form(What will happen if the server gets corrupted@!!!)
PS:If you hold your salary account in ICICI and waiting to start a demat account you can contact me.
All his roommates bemoaned about the heavy decibel alarams Bonky used to have in his PDA.Meanwhile there was an incoming call on his mobile.
“Am I speaking to Mr.Honky “, came a very slender and cute voice from the other end.
“Ya Its Honky..May I know whom I am speaking with”
“This is Hrithish from UCUCY Brokerage services, Mr.Bonky has referred you”
“For what!!!”,exclaimed Honky.
“He told us that you were looking to start demat account and hope that we can help you to get one”
“Oh that’s fine .But you need to explain me what a demat account is first”.
“Can I fix an appointment with you sometime so that we could fill in the application “
“Ya Hrithish you can meet me at any time in my office between nine to five” ,and winded up the call.
Back at office Honky thanked Bonky for the referral,meanwhile the security informed Honky that he had some visitor.
“Whats a demat account” was the first question thrown to our visitor.
“Dear Honky Demat stands for dematerialsation and this account dematerializes all the securities you own. You can make transactions as if you do with other banking accounts.The only difference is that instead of money here you will be having shares”
“How much should I pay for it” came the most imperative question.
“Since you have your salary account with us its enough if you can give us a cheque for one rupee”
“One Rupee!!!??”
“Ya that’s the unique offer for corporates from UCUCY”
Bonky was very happy on hearing it and decided to start the account right now since its not going to cost him much without knowing the hidden trap in it.
All that about one rupee was enough for the bank person to convince Honky to start a account.
The bank person asked for a Xerox copy of his compay id,pan card,one rupee cheque.
Honky asked him to meet after two days.
When he got back to the seat Bonky started “hope now you got to know about Demat”
“Ya Bonky but not completely”
“The Demat account serves to manage your shares.The firm in which you hold your account acts as a broker for your transactions.They communicate with the ECNs of the stock exchange and complete your trading”
“ECN!!??”
“Hope I told you about that yesterday Electronic communication networks..We are the techies behind it..Do you know the entire infrastructure of the BSE was created and supported by our concern”
“WOW !”
“When your application is processed you will get a username and password with which you can trade online as you do other online transactions” said Bonky.
He promised further that he would teach Honky about how to make a trade when he gets his first account.
“Tell me Bonky I don’t have any huge savings..i spent all I had to the sumptuous dinners and the multiplexes! How much should I save to start trading atleast a lakh!!??”
“Save to trade?? That’s poor boy..never mix your savings and investments especially stocks.Always I make sure 20% of salary goes to savings.I play with the rest only.”Probably we can continue this later in the day otherwise our mangers wont find us fit to pay”breaked Bokny
Ya its time to return to work for us too.If you have raised your eyes on how to get a HLL share in NYSE, you can shout EUREKA because that was the flaw in yesterdays mumbles.
Hey folks build up some discussions on the blog so that we can accrue our knowledge better and eliminate this mails.
NUCH CORNER:DEMAT is to dematerialize your money to shares in electronic form(What will happen if the server gets corrupted@!!!)
PS:If you hold your salary account in ICICI and waiting to start a demat account you can contact me.
Stocks by Sectors
“Bonky!!!!!!” squalled honky on seeing him after two days.
“Hi Honky! How is your trade going on!!”
“Its fine bonky!! This simulator is enthralling! I lost 1200 dollars in last two days trade .”
“oh! That’s fine what are all the stocks you hold”
“GOOGLE,YAHOO,INTEL…”So went the Honkys list.
“Cool!! This is what first time investors often do” said Bonky.
“Are they good stocks!!Those are the names I have heard good enough and hence bought those”
“No can given a solid discernment when it comes to stocks.But yet your portfolio is not good”
“Why do you say like that.I hold all the big names in NYSE”
“Might be but what counts at the end of the day is the earning you get while you sell those.But see what happened to you!! Inspite of holding the bignames you lost 1200 dollars” ,Bonky appeared as if he is going to give a big lecture on this today.
“Oh!!Ya why did it happened like that! What do you mean by portfolio!!How should it be”
“Portfolio is the total holdings of your securites. Yours is not good because its not diversified”
“Diversified!!??” Interrupted Honky.
“You should have invested in different places!”
“What only NYSE is available in that game”
“Hey hold on! I meant your investment should be across all the sectors.Stocks can be classified by several types.Hope I had already told you about the classification based on size of the stock.Now let me tell you the division of stocks by sectors which is the most important thing for an investor”
“why?”
“Because in order to minimize the risk its always better to spread your investment in various sectors. For instance as you made its wise to invest in IT and blue chip industries as their growth rate is massive now.But what will happen when the industry goes down all of a sudden.You will have to lose your whole bag.Instead if you had split your investments in various sectors you could breathe a bit!” narrated the master.
The student was still nebulous “Make it litlle more clear Bonky”,
“Ya let me take some examples related to current scenario. As you know IT is accrues faster than other industry.Hence you can have 30 % of your bet there.The construction industry is also on growth pace and place 20% of your money there.The media is having the best of its times, So pick some shares from their profit also.This is attacking part of your portfolio.Since those pieces come from the most traded part they may give higher returns at the expense of higher risk”
“mm..So what should I do the remaining.??Have it safe in my pocket??”questioned Honky.
“Ha ha !1 having it in your pocket is worth not having it at all after inflation has beaten it!”
“Then what to do”
“Invest it in stable stocks man..Common try to find the stable stocks.” Bonky ended up giving an assignment to Honky and all of us.
NUCH CORNER: One lakh rupees invested in BSE in 1979 would have now accrued to 14 Crores.
“Hi Honky! How is your trade going on!!”
“Its fine bonky!! This simulator is enthralling! I lost 1200 dollars in last two days trade .”
“oh! That’s fine what are all the stocks you hold”
“GOOGLE,YAHOO,INTEL…”So went the Honkys list.
“Cool!! This is what first time investors often do” said Bonky.
“Are they good stocks!!Those are the names I have heard good enough and hence bought those”
“No can given a solid discernment when it comes to stocks.But yet your portfolio is not good”
“Why do you say like that.I hold all the big names in NYSE”
“Might be but what counts at the end of the day is the earning you get while you sell those.But see what happened to you!! Inspite of holding the bignames you lost 1200 dollars” ,Bonky appeared as if he is going to give a big lecture on this today.
“Oh!!Ya why did it happened like that! What do you mean by portfolio!!How should it be”
“Portfolio is the total holdings of your securites. Yours is not good because its not diversified”
“Diversified!!??” Interrupted Honky.
“You should have invested in different places!”
“What only NYSE is available in that game”
“Hey hold on! I meant your investment should be across all the sectors.Stocks can be classified by several types.Hope I had already told you about the classification based on size of the stock.Now let me tell you the division of stocks by sectors which is the most important thing for an investor”
“why?”
“Because in order to minimize the risk its always better to spread your investment in various sectors. For instance as you made its wise to invest in IT and blue chip industries as their growth rate is massive now.But what will happen when the industry goes down all of a sudden.You will have to lose your whole bag.Instead if you had split your investments in various sectors you could breathe a bit!” narrated the master.
The student was still nebulous “Make it litlle more clear Bonky”,
“Ya let me take some examples related to current scenario. As you know IT is accrues faster than other industry.Hence you can have 30 % of your bet there.The construction industry is also on growth pace and place 20% of your money there.The media is having the best of its times, So pick some shares from their profit also.This is attacking part of your portfolio.Since those pieces come from the most traded part they may give higher returns at the expense of higher risk”
“mm..So what should I do the remaining.??Have it safe in my pocket??”questioned Honky.
“Ha ha !1 having it in your pocket is worth not having it at all after inflation has beaten it!”
“Then what to do”
“Invest it in stable stocks man..Common try to find the stable stocks.” Bonky ended up giving an assignment to Honky and all of us.
NUCH CORNER: One lakh rupees invested in BSE in 1979 would have now accrued to 14 Crores.
Stocks By size
Hope you guys would have enquired about your company modus operandi of ESOP.
Now lets get back to our prodigious trader Honky.He was looking for Bonky the whole day yesterday but he didn’t turn up.
But today he found him bit earlier than usual.Dropping his back Honky went straight to Bonkys seat.
“Hi Honky Why didn’t you come yesterday”
“Bonky I went out with my valentine last night and was bit held up with some personal works,Hence I applied for leave yesterday.Today too I got to leave bit early that’s why came early too”
“Oh ..Actually This INFOSYS is rocking na!! Priced above 2000 s…I have heard that even the car driver who received ESOPs during 90s are millionaires now there..I am going to buy it once my DEMAT gets activated”
“Hold Down my boy..All that glitters are not shinning really!!”
“That’s abstruse!! Tell it in my language”
“Don’t make your discerns according to the market price of a share.If at all you want to judge a company do it with the capital amount”
“How can I calculate that”,said Honky.
“Just multiply the total number of outstanding shares by its market price per share!”
Bonky stopped for a while and questioned,”You are buying 100 shares worth Rs 10 of some ABC and one share of INFY worth 2100..Which will fetch you more returns my boy”
“mm…Infy is a leading company which is told to perform well” quibbled Honky.
“Do you think a Big company like that can double in a month!!??But a small company like ABC can double in a month and so as your 2000”
Honky was bewildered.
Looking at his strange look bonky told him that he has got to learn a lot before making his first trade and ended the chat .
“Look at this link! http://money.cnn.com/magazines/moneymag/money101/lesson5/index3.htm”
Gt hed honkys messeger.
“Thanks Bonky”
“One more thing Be ready for todays Night show..Pachai Killi Muthu Charam”
“Tickets Bonky!!””
“Common ya I have it ..i took leave yesterday because I was stuck in a long queue while reserving for that stylish movie”(True to an extent!!!)
“Oh that’s fantastic.Already the album his rocking with his new cameraman hope Gautam would have made a big treat!! Leave away the story which is also revolutionary!”
Honky was very much happy for having a lead like Bonky.
NUCHCORNER:Small Stocks can double at the same time it can crumble too.
Now lets get back to our prodigious trader Honky.He was looking for Bonky the whole day yesterday but he didn’t turn up.
But today he found him bit earlier than usual.Dropping his back Honky went straight to Bonkys seat.
“Hi Honky Why didn’t you come yesterday”
“Bonky I went out with my valentine last night and was bit held up with some personal works,Hence I applied for leave yesterday.Today too I got to leave bit early that’s why came early too”
“Oh ..Actually This INFOSYS is rocking na!! Priced above 2000 s…I have heard that even the car driver who received ESOPs during 90s are millionaires now there..I am going to buy it once my DEMAT gets activated”
“Hold Down my boy..All that glitters are not shinning really!!”
“That’s abstruse!! Tell it in my language”
“Don’t make your discerns according to the market price of a share.If at all you want to judge a company do it with the capital amount”
“How can I calculate that”,said Honky.
“Just multiply the total number of outstanding shares by its market price per share!”
Bonky stopped for a while and questioned,”You are buying 100 shares worth Rs 10 of some ABC and one share of INFY worth 2100..Which will fetch you more returns my boy”
“mm…Infy is a leading company which is told to perform well” quibbled Honky.
“Do you think a Big company like that can double in a month!!??But a small company like ABC can double in a month and so as your 2000”
Honky was bewildered.
Looking at his strange look bonky told him that he has got to learn a lot before making his first trade and ended the chat .
“Look at this link! http://money.cnn.com/magazines/moneymag/money101/lesson5/index3.htm”
Gt hed honkys messeger.
“Thanks Bonky”
“One more thing Be ready for todays Night show..Pachai Killi Muthu Charam”
“Tickets Bonky!!””
“Common ya I have it ..i took leave yesterday because I was stuck in a long queue while reserving for that stylish movie”(True to an extent!!!)
“Oh that’s fantastic.Already the album his rocking with his new cameraman hope Gautam would have made a big treat!! Leave away the story which is also revolutionary!”
Honky was very much happy for having a lead like Bonky.
NUCHCORNER:Small Stocks can double at the same time it can crumble too.
Sunday, February 11, 2007
BROKERS -THE MARKET MAKERS
Honky tried to figure out who the mighty market makers were.He had heard the term brokerage during his maths classes in his school days.He cursed the education bigheads of his days for not including even a single descriptive chapter about STOCK markets in his 16 years of formal education.
Bonky too accrued his views on poor education system and its guys like Bonky who fill this lacunas.So Honky caught back Bonky in his tennis court.
“Bonky! Whether broker is a kind of middle man like my house broker who take a months rent as commission to for finding a useless room at exorbitant price” questioned Honky!
“Exactly Honky..If you are not careful enough you will be inveigled by such middle mans here tooo..” said Honky.
“Let me tack you back few years in history to make you understand this broker”.Bonky and Honky hired a TIME TAXI(as if we hire an autoJ) and went back to the eighties).The driver charged them Fifty Thousand rupees for taking them back twenty years at the rate of 2500 per year.(Common guys I am attempting an ECONOMIC FICTION J).
“Bonky!! Where are we??” Shouted Honky.
Meanwhile cool and composed Bonky asked Honky to be calm and just to observe whats going on there.”Honky we are in 1986!This is the big big Wallstreet..similar to DALAL in MUMBAI..They trade shares here as if our aunties trade sarees in USMAN ROAD”
“Oh!!Who are those nerds..Holding phone and watching capriciously changing computer scenes? Bonky!” fired Honky.(I Recommend you to watch WALL STREET an oscar winning movie on STOCK MARKET).
“They are our heroes for this episode.They are the brokers…Let me just show you how it works”Bonky pulled up his grandfathers wallet(for dumb guysàHonky is trying to get a phone number of a broker in 1987?? L)and made a call”
“Hello! Ravi Today I plan to trade for 400 RS(Huge investment then!)Can you buy for me 100 shares of HINDUSTAN LEVER” ordered Bonky.
“Hello Saab!! I tell you a better option ..But Tata steels its really creeping high in recent days! You can almost double your money in three months!!” roared the other end in a flattery tone.
“Naai! Naai! Please get me what I want! I want this shares immediately in my portfolio” said Bonky in a strenuous tone.
“Honky!! This how brokers work..they are the guys who do the trading for us.Its not possible for us to trade directly.When you need to buy something all you want to do is just ring them up and place the orders and they will execute the trade for you.For doing so they will charge you some commissions.You got to be careful with this brokers.They are termed as Market makers because they advise people on what to buy and what to drop!” explained Bonky.
“Thanks Bonky I Understood the role of a broker now but I have never seen you calling those brokers!”Honky again ended up with a question .At the same time Honkys PDA warned him that its time to start for the CAT coaching classes.
Hence Honky and BONKY hired back the TIMETAXI and started traveling back to the present.
“Nowadays we do trading using ECN(Electronic Communication Networks).Those brokers are replaced by brokerage firms.Hope you would have heard of Demat accounts!!” added Bonky.
“No Bonky!! But I can guess why MBA is most sought of these days let me hear more about DEMAT and how to start trading from you tomorrow! I really thank the non-existent god for placing me near a wonderful guy like you! Bye Bonky!” exclaimed Honky.
PS:If you found it hard to read and decipher who a broker is from a big vague writing here s the NUCH CORNER where the days essence will be captured in a sentence or two,.
NUCH CORNER: A BROKER IS A PERSON WHO MAKES YOU INVEST UNTIL YOU ARE DONE WITH YOUR LAST RUPEE!!!
OPEN CHALLENGE:Find out the flaw in the above article!!(I am sure its there since I am the guy who made it JDo write to me and earn 20 points if you could detect it!)
Bonky too accrued his views on poor education system and its guys like Bonky who fill this lacunas.So Honky caught back Bonky in his tennis court.
“Bonky! Whether broker is a kind of middle man like my house broker who take a months rent as commission to for finding a useless room at exorbitant price” questioned Honky!
“Exactly Honky..If you are not careful enough you will be inveigled by such middle mans here tooo..” said Honky.
“Let me tack you back few years in history to make you understand this broker”.Bonky and Honky hired a TIME TAXI(as if we hire an autoJ) and went back to the eighties).The driver charged them Fifty Thousand rupees for taking them back twenty years at the rate of 2500 per year.(Common guys I am attempting an ECONOMIC FICTION J).
“Bonky!! Where are we??” Shouted Honky.
Meanwhile cool and composed Bonky asked Honky to be calm and just to observe whats going on there.”Honky we are in 1986!This is the big big Wallstreet..similar to DALAL in MUMBAI..They trade shares here as if our aunties trade sarees in USMAN ROAD”
“Oh!!Who are those nerds..Holding phone and watching capriciously changing computer scenes? Bonky!” fired Honky.(I Recommend you to watch WALL STREET an oscar winning movie on STOCK MARKET).
“They are our heroes for this episode.They are the brokers…Let me just show you how it works”Bonky pulled up his grandfathers wallet(for dumb guysàHonky is trying to get a phone number of a broker in 1987?? L)and made a call”
“Hello! Ravi Today I plan to trade for 400 RS(Huge investment then!)Can you buy for me 100 shares of HINDUSTAN LEVER” ordered Bonky.
“Hello Saab!! I tell you a better option ..But Tata steels its really creeping high in recent days! You can almost double your money in three months!!” roared the other end in a flattery tone.
“Naai! Naai! Please get me what I want! I want this shares immediately in my portfolio” said Bonky in a strenuous tone.
“Honky!! This how brokers work..they are the guys who do the trading for us.Its not possible for us to trade directly.When you need to buy something all you want to do is just ring them up and place the orders and they will execute the trade for you.For doing so they will charge you some commissions.You got to be careful with this brokers.They are termed as Market makers because they advise people on what to buy and what to drop!” explained Bonky.
“Thanks Bonky I Understood the role of a broker now but I have never seen you calling those brokers!”Honky again ended up with a question .At the same time Honkys PDA warned him that its time to start for the CAT coaching classes.
Hence Honky and BONKY hired back the TIMETAXI and started traveling back to the present.
“Nowadays we do trading using ECN(Electronic Communication Networks).Those brokers are replaced by brokerage firms.Hope you would have heard of Demat accounts!!” added Bonky.
“No Bonky!! But I can guess why MBA is most sought of these days let me hear more about DEMAT and how to start trading from you tomorrow! I really thank the non-existent god for placing me near a wonderful guy like you! Bye Bonky!” exclaimed Honky.
PS:If you found it hard to read and decipher who a broker is from a big vague writing here s the NUCH CORNER where the days essence will be captured in a sentence or two,.
NUCH CORNER: A BROKER IS A PERSON WHO MAKES YOU INVEST UNTIL YOU ARE DONE WITH YOUR LAST RUPEE!!!
OPEN CHALLENGE:Find out the flaw in the above article!!(I am sure its there since I am the guy who made it JDo write to me and earn 20 points if you could detect it!)
Thursday, February 8, 2007
BID and ASK
Honky was astounded when we had a look at the current price of Infy share.This is what honky was to look at
Currency : Rupees
Code : 500209
View Chart
Price
2,368.25
Day High
2,375.00
Bid
2,360.10
Day Low
2,333.00
Offer
2,368.00
52 Week High
2,401.00
Change On Day
9.50
52 Week Low
1,225.00
Percentage Change
0.40%
Last Trade
08-02-2007 4:02PM
Opening Price
2,360.00
Daily Volume
92,789
Prev. Closing
2,358.75
Though there were too many numbers to muddle him he could winnow that the price is somewhere in 2300s..Isnt Bonky?
Meanwhile bonky was also free for a while after he a peer review.
“Exactly honky! Today infy sells around 2300, my Dad got it for 300Rs and imagine that has almost grown eight times in a period of 15 years”
“Wow” said Honky with a wide grin.
“Beware at the same time you are not devoid of risks “ warned Bonky.
The grin in his face now turned to a grimace,Notifying it Bonky added “All you can lose is all what you have invested but the gains have no limits”.
“Bonky who is supposed to give price for the shares” wondered Honky.
“Common yaar!! No one can even predict its price!Its just a marked where you go out offer your share for the highest possible price.It works on the same bid auction method you would have come across in your vegetable markets”.
“Oh..How is that possible !”
“Havent you heard that the world is flat now!! Everything is digitized and the network of computers does the trick for you.It consolidates all the bids and gives you the highest bid and the lowest ask price”
“Bids and ask!!!” interrupted the little boy.
“I am here to service all your interrupt routines” continued Bonky “Bid is the price which a buyer would like to give away to fetch a stock and ask is the price for which the seller would be happy to sell his stock at the current time”.
“Oh! That’s clear now! When I need to buy a stock I need to watch the BID and after doing that my eyes should be on Ask .Am I right??”
“That’s it my boy”
“Bonky!!But still I am confused..Who is it monitoring the trade?Are there any contractors as shown in “GURU”!!”
“No Honky no single contractors!!but there are many!! They are called market makers. Hope you would have heard them by the name brokers!”
“Ya Bonky..Brokers and brokerage!!Whats that” shouted honky in a bewildered tone.
“Honky seems you are so much enthusiastic!! It seems you might start piling up shares as soon as I leave you now!! That’s not that simple..Let me continue this later,For now get back to your work”
Honky went back to his seat and screamed that he had earned 5000 by just holding some 50000 worth of share for a dayJ
PS:Wondering how come honky earned that much? And how else I could hold Intel shares??? Go and check out investopedia.com.Answers are there in their stock market simulator.
Currency : Rupees
Code : 500209
View Chart
Price
2,368.25
Day High
2,375.00
Bid
2,360.10
Day Low
2,333.00
Offer
2,368.00
52 Week High
2,401.00
Change On Day
9.50
52 Week Low
1,225.00
Percentage Change
0.40%
Last Trade
08-02-2007 4:02PM
Opening Price
2,360.00
Daily Volume
92,789
Prev. Closing
2,358.75
Though there were too many numbers to muddle him he could winnow that the price is somewhere in 2300s..Isnt Bonky?
Meanwhile bonky was also free for a while after he a peer review.
“Exactly honky! Today infy sells around 2300, my Dad got it for 300Rs and imagine that has almost grown eight times in a period of 15 years”
“Wow” said Honky with a wide grin.
“Beware at the same time you are not devoid of risks “ warned Bonky.
The grin in his face now turned to a grimace,Notifying it Bonky added “All you can lose is all what you have invested but the gains have no limits”.
“Bonky who is supposed to give price for the shares” wondered Honky.
“Common yaar!! No one can even predict its price!Its just a marked where you go out offer your share for the highest possible price.It works on the same bid auction method you would have come across in your vegetable markets”.
“Oh..How is that possible !”
“Havent you heard that the world is flat now!! Everything is digitized and the network of computers does the trick for you.It consolidates all the bids and gives you the highest bid and the lowest ask price”
“Bids and ask!!!” interrupted the little boy.
“I am here to service all your interrupt routines” continued Bonky “Bid is the price which a buyer would like to give away to fetch a stock and ask is the price for which the seller would be happy to sell his stock at the current time”.
“Oh! That’s clear now! When I need to buy a stock I need to watch the BID and after doing that my eyes should be on Ask .Am I right??”
“That’s it my boy”
“Bonky!!But still I am confused..Who is it monitoring the trade?Are there any contractors as shown in “GURU”!!”
“No Honky no single contractors!!but there are many!! They are called market makers. Hope you would have heard them by the name brokers!”
“Ya Bonky..Brokers and brokerage!!Whats that” shouted honky in a bewildered tone.
“Honky seems you are so much enthusiastic!! It seems you might start piling up shares as soon as I leave you now!! That’s not that simple..Let me continue this later,For now get back to your work”
Honky went back to his seat and screamed that he had earned 5000 by just holding some 50000 worth of share for a dayJ
PS:Wondering how come honky earned that much? And how else I could hold Intel shares??? Go and check out investopedia.com.Answers are there in their stock market simulator.
Monday, February 5, 2007
Good morning to you all
Here goes Honky and BunkyJ
H: Good morning Bonky.
B:Hi Honky..So what did you do during the weekend!
H:It’s a boring week end bonky..No tickets left in theatres..city buses were jampacked.Left with nothing to do we all slept well within the walls.
B:Oh!! you got to plan ahead my boy..Book your tickets on Monday morning for the Saturday noon show.. Get yourself a table in Le Merdien for your lunch..Why don’t you get a bike so that you can freak out with mobility.
H:You get paid four times than I get..so all those might be possible ..I give a big lump of money to my DAD bonky..
B:Wow..Good boy!! That’s how others might call you but not me..Dont ever make money rest in banks.Thats tantamount to not having it.
H: What else I can do?
B:There are lot of avenues like stocks,bonds,Mutual funds,PPF,.let me tell just one at a time.
H:mm..Great Bonky…Lets start with stocks ..That has been the greatest buzz around me.
B:Instead of me starting it why fire up your questions on this.
H:Bonky.. L I don’t even know what a stock is?
B:kk….Let me tell you that …S stock is a part of company available for sale..By getting that stock you become the owner of that piece of company,
H:Will I be given the profits of the company then..What if the company ends up with loss?Is it wise to invest on stocks?
B:Ya that’s the divedend..My dad got infosys shares some ten years ago at 58 per share.Do you know how much it costs now?
H: No I Idont know..some 300 Rs?500 Rs?
B:But I got to review the code within today.,better you log on to your system and find that first! And lets continue this in our messenger.
H: Good morning Bonky.
B:Hi Honky..So what did you do during the weekend!
H:It’s a boring week end bonky..No tickets left in theatres..city buses were jampacked.Left with nothing to do we all slept well within the walls.
B:Oh!! you got to plan ahead my boy..Book your tickets on Monday morning for the Saturday noon show.. Get yourself a table in Le Merdien for your lunch..Why don’t you get a bike so that you can freak out with mobility.
H:You get paid four times than I get..so all those might be possible ..I give a big lump of money to my DAD bonky..
B:Wow..Good boy!! That’s how others might call you but not me..Dont ever make money rest in banks.Thats tantamount to not having it.
H: What else I can do?
B:There are lot of avenues like stocks,bonds,Mutual funds,PPF,.let me tell just one at a time.
H:mm..Great Bonky…Lets start with stocks ..That has been the greatest buzz around me.
B:Instead of me starting it why fire up your questions on this.
H:Bonky.. L I don’t even know what a stock is?
B:kk….Let me tell you that …S stock is a part of company available for sale..By getting that stock you become the owner of that piece of company,
H:Will I be given the profits of the company then..What if the company ends up with loss?Is it wise to invest on stocks?
B:Ya that’s the divedend..My dad got infosys shares some ten years ago at 58 per share.Do you know how much it costs now?
H: No I Idont know..some 300 Rs?500 Rs?
B:But I got to review the code within today.,better you log on to your system and find that first! And lets continue this in our messenger.
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