shares

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 divided into common stocks or preferred stocks .

The common stock holders are entitled to vote at share holders meetings and also entitled to get dividends from profits as decided in these meetings .  While Preferred stock holders are generally promoters , they have higher claim on assets and receive dividends before common share holders .
In case of liquidity of the company they have priority .


The parameters or metrics of stocks :

The metrics are a set of statistics or figures which enable us to measure and analyse results of a company's performance . The parameters are technical  , numerical or other measurable factors forming one of a set that defines a system or sets the conditions of its operation. The stocks are predicted to perform according to the factual information collected over years and extrapolated . Changing political scenario , international relations , wars etc ., need to be considered when dealing with stocks . These are the things which makes the study of stocks interesting and dynamic . A person well versed in these dynamics can make millions in stocks . He needs to look into probability theory /bayes theorem . Incidentally The computers of today base their learning to predict future using baye's theorem to a large extent . This is AI (artificial intelligence ) or machine learning-- which is becoming popular . Incidentally machine learning programs are able to predict stock movements based on big data to certain extent . We need understand basics of these computer programs and use them effectively as and when they become available . 

Machine learning is the state of art technology on which predictions are based . This subject will be discussed in a separate blog at a later stage .