STOCKS, MARKETS AND YOU
By: Subhekshan Anand
Shares one of the equal parts into which a company’s capital is divided, entitling the holder to a proportion of the profits.
The biggest world economies are built upon the foundations of a variety of advancements they’ve made. These are in fields that range from language, expression, culture, economy amongst others. A nation’s standing on the world map is stated fore mostly with how financially profound it is. More and more concentration is being laid on educational systems around the globe to ensure a more productive future that would root out of the generations to come.
Internationally, we identify with brands in accordance to their brand value. For Example: Apple, a company which began from a tiny garage in California, gave birth to new needs amongst probable clientele and then efficiently catered to all. Next in line we can speak of the Indian giant TATA, which has made its mark on the world business platform.
These companies hold with in themselves, what we refer to as, shares/stocks. The value of these shares rise and fall in tangent with market trends and the success of the said company.
Introduced here is the stock market which is essentially a market in which securities are bought and sold; a stock exchange.
As complex as the web of these sensibilities seems, it can be mastered with an academic and practice/experience based approach garnered in this stream via hands on work.
The education system world over, carefully educates its pupils with a basic skill set to understand integrated and detailed stream based education. There are a multitude of ways in which we can apply the knowledge and skills we have learnt as young students, to aid the work we may do now in our respective core streams.
For example: Computer classes are mandatory for all students in schools and these are introduced in curriculums as early as grade 1. Students eventually end up learning basic official software like the Microsoft Office Suit which can be used to greatly aid workings related to stocks. Making a presentation becomes an easy task, fundamental analysis of stocks and prediction of future prices and tasks related to accounting can also be done in excel, we can use tally to handle routine accounts amongst other things. Application of the correct formulae in Microsoft excel can allow us to efficiently carry through a fundamental analysis of any firm.
With a strong knowledge base built, further exploration is a smooth drive.
Interpretation of stocks is a vital part of being efficient in the stream. A daily tab should be maintained around stocks and the news related to the market prices etcetera for being updated and thus, better informed and wise while investing. For investing, you should know in detail about the firm’s area of business and trade, history, customer reviews, completion of the targets, employee reviews and other details through the company’s website. This plays a key role in differentiating right investment decisions from damaging ones.
Through excel, predicting the future price of every stock before investing can be done.
Integrated software and webpages dedicated solely to the stock market and apps that update us on market news have now made it very convenient to understand and study stock markets and analyse the same.
After doing fundamental analysis we can further educate ourselves by reading up on the company. We may check material like their annual reports, financial investors relations, balance sheets, profit and loss statement and other economic and market details.
The stock market is an interesting and invigorating space to invest yourself and the more you know, the smoother the ride becomes. The several nooks and crannies and the shift of the market trends can all be understood by a religiously intent mind and the right education.