Tuesday, February 20, 2007

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.

No comments: