Business Trends

This time frame will give the investor a good glimpse of the opportunities and the risks that could present themselves over both the short and the intermediate term. In addition, because this is an open-ended question (and not a simple yes/no or one-word answer question), it allows the manager to give a broad response and perhaps touch on a variety of issues that could prove valuable to the investor’s decision-making process.

Keep in mind that identifying problem areas is just one part of the equation. It is far more important to hear what the company plans to do to resolve the problem area(s) in both the short and long term.

Knowing if and when management plans to promote the stock to individual and/or institutional investors is invaluable because the savvy investor (assuming he/she likes the company’s fundamentals) can buy into the stock ahead of what could be a large amount of buying pressure. Individuals looking to time an entry or an exit point in the stock may also find this particular question to be valuable.

Again, this is an open-ended question, so the manager is likely to give the investor a wealth of information. In some cases the manager might highlight the potential for new analyst coverage, the possibility that the company may have a stronger year than most are expecting, or plans to promote the stock. Conversely, he/she might yield information about negative catalysts that could adversely impact the share price.

Corporates are allowed to participate as clients in the interest rate futures market. They can use interest rate futures contracts for hedging their interest rate risk on both assets as well as liabilities side.

In India we call it shares. In America people call it stocks.

A share represent a part-ownership of a company. Suppose one share of Company ABC represent 0.00000001% ownership in that company. A person who has 1 million number shares of ABC will have 1% ownership in ABC.

Companies subdivided the total value of company into several shares. Suppose valuation of company ABC is $1,000 million. One share of ABC will be worth $10.

A common man cannot dream of buying company ABC worth $1,000 million. But he can surely buy shares of ABC which trading at $10/share.

This is what makes shares trading so exciting. Here people are not just buying anything, they are actually buying part ownership in companies.

Imagine yourself possessing 100,000 number share of Google (Alphabet). In Total Google has 296 million shares in market. Possessing 100,000 shares means you have 0.034% ownership in Google Inc. Suppose Google pays $0.3/share as dividend every year. In this case you will earn $30,000/year only from dividends.

People can earn dividend income just by holding on to shares. When people sell their share-holdings thy collect money equivalent to the selling price. Ten number shares of company ABC sold at $10.5/share will collect $105 for the seller.

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