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shares and stocks 3

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2 . Stock price movement : Instantaneous stock price just tells us whether we are at profit or loss . It does not help us to understand how the stock is performing . The stock price vs time (in days /months / years) is drawn as a graph . From this graph we come to know how the stock is performing over time . Is there a continuous appreciation / ups and downs over time can be seen from such a graph . If the stock is appreciating steadily over a period of time we can expect the stock to perform well in future . This is only one factor . For a stock to do well many other factors need to be taken into account . Normally the stock is tracked for a period of one year or 52 weeks and looked into to check its highest price and lowest price .  3. Volume : This tells us how many shares are transacted in a day or a given time . If the number of shares transacted is high (or volumes are high ) we can either purchase or sell the shares without any difficulty as there will be ready sellers...
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Introduction to shares and stocks 2

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Today we will look at certain important parameters on which decisions will be made whether to purchase stocks or not . These parameters help us in understanding the financial viability , the profitability now and over the years , Share price : Share price is the price of a single share . The share price depends on the highest amount of money one is willing to pay for the particular stock . A company will have a number of stocks which they can sell . If there are number of buyers vying to purchase and there are less number of shares being sold , the share its price will go up .  It varies from moment to moment , day to day and over years . It can go up or down depending on company's health . It should appreciate for you to make profit . You will lose money , if the price of the share is less than its price when you purchased the stock .  For example say you have purchased an ITC share for Rs 250 three months ago and today its value is Rs 360 . Then on each s...
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shares

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Introduction  The aim of this blog is to understand the fundamentals and nuances of shares and stocks and express my thoughts on this subject . Here individual stocks will be discussed to form an opinion on how they are expected to do in future . Some times these may be speculative in nature ,and some times based on various parameters . We should not forget that share market moves on sentiments in short term and  on growth factors and profitability in the long run . There are hundreds of sites dealing with the subject but this study is to purely aid me personally in investment in stocks . What is the difference between a share and a stock ? Share : The part allotted to or belonging one of a number owning together a property or interest . Stock : Stock is a type of security that signifies ownership of a corporation . Having a stock implies a claim on the company's assets and earnings . In our parlance we use these terms interchangeably . The stocks can be div...
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