22-09-2012, 11:00 AM
Price Behavior of Equity Share
Price Behaviour of Equity Shares.doc (Size: 1.99 MB / Downloads: 116)
INTRODUCTION
Objectives of Study
1. The purpose of doing study is to analyze the factor that affect the company’s performance
2. To examine the internal and external factors affecting the future price of company
3. The purpose includes assessing the future market strength of company
4. The purpose also serves the investors to decide whether to invest in company shares to gain returns
Stock Exchange Meaning:
Stock Exchange is a market for the purchase and sale of second hand securities. I t is the central place where industrial and financial securities are bought and sold. It is the place where a buyer of a security can find a seller, or a seller can find a buyer. Thus, an important problem of an investor namely, marketability of securities is removed. It provides capital to industry and commerce, it provides finances to government .It provides an opportunity for the utilization of the savings of the individuals. The securities dealt in at a stock exchange include the shares and debentures of public companies, government securities, and the bonds issued by municipal bodies or port rusts.
A stock exchange is organized by a body or an association of individuals. The association may or may not be incorporated as a company. It is established for the purpose of assisting, regulating and controlling business in securities. Thus, the securities contract(regulation) act, 1956 defines a Stock Exchange as “an association , organization or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling business in buying, selling and dealing in securities”. Today Stock exchange constitutes a vital organ of a free modern society.
COMPANY PROFILE
Established in 1992, as one of the first corporate brokerages in India, The Doha Brokerage & Financial Services Ltd (formerly Select Securities Ltd), is the flagship company of the DBFS group.
Doha Brokerage & Financial Services Ltd is focused on creating utmost value for its customers, consistently by drawing on our collective expertise, resources and global exposure.
To serve our customers better, the company has gone beyond the traditional brokerage business, and offers a wide range of services, which include total wealth management and investment solutions.
With a pan Indian presence, which comprises over 180 branches across major cities, as well as in Dubai and Doha in the Middle East, DBFS is always closer to its customers.
Services
Internet Trading
DBFS has a state-or-the-art internet trading platform with cutting-edge technological excellence. TRADEeasy, the internet trading platform of the group has almost all the features of a Broker’s terminal.
Commodities & Forex Trading
As a trading member of DGCX, Dubai, Select Commodities DMCC offers trading in commodities and forex for its customers.
The group has membership in all premier commodity exchanges in India, namely NCDEX, NMCE and MCX. The company facilitates futures trading for various agricultural commodities and other commodities including gold, silver, rubber, cardamom, pepper etc. which are actively traded.
Custodial - Depository Services
Select Stock Brokers Ltd. is a Depository Participant with Central Depository Services Ltd. (CDSL). CDSL is one of only two depositories in India for electronic holding of securities. The Company extends depository services to its trading clients as well as non-trading clients. The custodial services include electronic holding of securities, Demat, Remat, pledge, unpledge etc. and market and off-market transfers, transmission, transposition etc.
Mutual Funds & Insurance Products
DBFS, being a total solutions provider for the varied investment needs of the retail investors, distributes Mutual Fund products of almost all major AMCs. Application Forms of NFOs are available with the branches.
Portfolio Management
DBFL Ltd. is a SEBI registered Portfolio Manager with an excellent track record of performance. The group has a highly professional, experienced and result-oriented research team which analyzes the markets and manages the customers’ funds accordingly in order to ensure optimum results. DBFS Portfolio Managers have been able to consistently out-perform the bench-mark indices.
Trading in Equities & Derivatives
DBFS has membership in both NSE and BSE. The group has been permitted to operate in the cash as well as derivative segments of NSE and BSE. Online trading in Cash Market and FAO are available at all the branches. Connectivity is provided at the Branches by way of V-Sat or VPN / Broad Band. The group services both retail and institutional customers.
Fundamental analysis
Fundamental analysis is a stock valuation method that uses financial analysis - that is, an analysis of a company's financial data - to predict the movement of that company's stock price. A potential (or current) investor uses fundamental analysis to examine a company's operations and the market in which the company is operating to understand half the stability and growth potential of that company. Company factors to examine include the dividends that company issues, the way a company manages its cash, the amount of debt a company has, and the growth of a company's costs and income.
The theory underpinning fundamental analysis is that, to truly make money in the long run, an investor must focus on the company itself rather than merely on the movement of its stock price. As Benjamin Graham and David Dodd say in their classic work "Security Analysis", in the short run, the market is a voting machine, not a weighing machine. An investor uses fundamental analysis to find the companies that are built to last .Fundamental analysis adherents believe a company's "intrinsic value" will be eventually be reflected in the stock price through market forces, but that, while the market is efficient, some stocks (for any number of reasons) are either over- or under-valued in the short run.
Therefore, the use of fundamental analysis can be viewed as a type of arbitrage. To this end, earnings multiples, such as the P/E ratio, are used to determine value, where cash flows are relatively stable and predictable.Theobvious caveat hereis that the P/E ratio is ultimately not an objective. measure, because it must be interpreted. A high P/E ratio might be an overvalued stock, or it might be a company with high potential for growth. Other techniques include discounted cash flow, book value, and dividend yield analysis