Indian Stock Market

Indian Share market is known for the volatility and this only makes it the place for interest of masses. The movement in the market is due to several reasons it can be the result of economic variations or crisis, ups and downs in the political scenario, relationship of India with other neighboring countries or may be due to some natural disaster that has shook the world. Our stock market works under the rules and regulations of SEBI that is securities and exchange board of India.

There are various guidelines and rules and regulations being formed by SEBI which are regulated in order to protect the rights of the investors. The directives of SEBI are very effective as they help in promoting and regulating the stock market. There are two stock exchanges in Indian stock market which are NSE and BSE. National Stock Exchange includes all the blue chip companies which are known as large caps. Bombay Stock Exchange is also known as the SENSEX which means sensitive index, and include about 30companies in 1986 but with the consistent performance it has jumped to about 4000 by 1992. Both the stock exchange has their headquarters in Bombay.

Indian share market is considered to be the safest place for investment as it is becoming the most demanding market nowadays. It has all the substance to encounter the factors responsible for financial crisis. Indian share market deals with a variety of shares that are considered to be the potential shares from the trading point of view. The market include blue chip companies or organizations which are having regular growth record and work with the huge amount of capital for paying off the dividends.

Indian Share Market also includes defensive stocks which are considered to be the best running stock amongst all the stocks. These stocks have the prices which are stable even in the conditions of recession. Thus avoid the risk of less liquidity.

Due to so many advantages of Indian Share Market people are getting attracted towards investment in it. There are people who invest daily in share market and making good money by analyzing the market through various software and analysis techniques. The market is divided into Equity and Commodity market. This also includes Future and options. There are various myths that are related to Share Market but all these are things that should not be followed but instead those who are investing the market should go through the deep analysis or should take the help of experts or of some the advisory companies who are working in this direction.

What is stop loss in trading

Stop Loss is a buy or sell order which gets triggered automatically, once the stock reaches a certain price. The aim here is to limit the loss on a security (buy or sell) position.

A stop order to sell becomes a market order when the item is offered at or below the specified price. E.g.: If you have bought 1 share of RIL at Rs. 1,050, you will enter stoploss order at a price below Rs. 1,050, say Rs. 1,020. If RIL share price falls to Rs. 1,020, a sell stoploss order will get triggered, which limits your loss on account of purchase to Rs. 30. 

Similarly, a stop order to buy becomes a market order when the item is bid at or above the specified price. E.g.: If you have short-sold 1 share of RIL at Rs. 1,050, you will enter stoploss order at a price above Rs. 1,050, say Rs. 1,070. If RIL share price rises to Rs. 1,070, a buy stoploss order will get triggered, which will limit your loss on account of sale to Rs. 20. 

There are no set rules for stop loss orders. Traders deploy very tight stop loss orders, while investors may not need it also. Advantage of stop loss is it avoids the need for constant monitoring of share price. Its disadvantage is that short-term price fluctuations could trigger stop loss orders very frequently. Also, setting very narrow stop loss for shares historically having wide price fluctuations could lead to unnecessary triggers of stop loss. 

E.g.: If you bought 1 share of RIL at Rs. 1050 with stoploss of Rs. 1020. This means that if the stock falls below 1020, your stoploss order will automatically become a market order and share will be sold at the then prevailing market price, not necessarily the stop loss price. Thus setting a stoploss order below the purchase price will limit the loss, but in a very fast-moving market, losses may be higher than expected.

source : internet

how does a student loans work in canada

how does a student loans work in canada

There are three primary types of school loans: private loans, parent loans, and federal student loans. Every type of loan has a particular application process and claims a special eligibility. Normally, school loans come in students' mind when they have exhausted other resources such as scholarships and financial help. Most of them will apply federal school loans as they intend to apply for financial help. The questions may look as what the features of federal student loan consolidation are and how this type of loan works.

Every student applying for school loans will be asked to fill out the application at the same time in order that those ineligible for financial aid will still have the choice of taking money through a government-funded loan. Federal school loans are treated by the Department of Education.

In addition, federal student loans are provided to help students on a demand basis from the government. It is better for them to fill out a Federal application for student financial aid form, which automatically puts a student in consolidation for federal assistance.

If you require a student loan through the government, you are eligible for the very well-known Stafford loan. This loan has two different types. There is a bit difference in these sub-types as subsidized loans do not charge or build any interest until the time you begin to repay them. This sub-type of federal loan often begins assembling interest from the time the school loan is demanded. Provided that students are going to an eligible school on a part or full-time ground, they are eligible for this sort of loan. A subsidized Stafford loan is underwritten by the government and gets on a need basis. It does not have to be paid back. On the other hand, a non subsidized Stafford loan is underwritten by the government, but it must be paid off when the student completes school.

Then what are the advantages and disadvantages of consolidating your federal student loans? This question depends partly on how much you owe, how much you have already repaid, and other personal financial variables.

As a matter of fact, consolidating the loans offers you the low student loan consolidation interest rates and variable repayment options. When you consolidate, you also possess the opportunity to pay the loans back over an increased period of time, which will lead to lower monthly payments. More productively, there is no fee and no credit check when you consolidate your government student loans. To add on, there is no punishment for paying the loan off early and the loan application process is much simpler than it is for other kinds of loans.

Despite of the advantages indicated above, there are some cons that you should take in consideration on consolidating this kind of loan. If you get an extended payment plan, you will pay more interest in the end. If your loan is large, this could cost you thousands of dollars and have a negative impact on your financial future. Furthermore, it is possible that the student loan consolidation rate will be higher than the interest rates on your other loans. Thence in this case, consolidation is not to your advantage.

Also, you should remember the fact that if you consolidate your loans during the six month grace period after graduation, you miss the remainder of the grace period. If you've already paid off a large amount of your student loans, consolidation may not be worth the money or effort.

In short, both private loaners and the government similar are wishing to ensure that students get the chance to take advantage of the chance to receive a college education. With the low student loan consolidation interest rates and government protection on these loans, there is not a superior way to consolidate than through a federal student loan.