Tag: Stock Market

5Dec

Why stock market trader use stock warrants?

Stock warrants are derivatives that provide the right but not the obligation to buy a particular security before a pre-decided time. It is in many ways just like the stock option only a difference that varies it from options is that an option is an instrument of stock-exchange while the warrants are issued by the company which often associated with a bond. An investor can not write warrants as they can write options. There are so many types of securities to invest, an investor can take advice from stock tips provider in order to clear various investment related confusion.

The price at which a security can be purchased or sold is considered as a exercise price or strike price.

Types of Warrants –

There are number of warrants issued by company, following is the explanation about few types of warrants –

1. Covered warrants – Generally, covered warrants are issued by financial institution just like the bank or similar institution but not by the company. Covered warrants allow a person to buy and sell any equity stock from the issuer. It is slightly different from normal warrants as they only issued by financial institutions. Also, it allows the holder to buy and sell underlying stocks at a particular time. It is not limited to the equity only, a trader can buy currencies, commodities and any other financial securities.

2. Traditional or normal warrants – Traditional warrant are issued by the company and it is based on bonds. Traditional warrants are issued in coexistence with a Bond, it is just like warrant- linked bond and it represents the right to acquire shares in the particular entity. Warrants are just like incentives offering by a company to investors in the way that can make the issue of warrant more attractive by providing different advantages.

3. Call warrant – These are the financial instruments that give a person the right to buy the underlying security at a specific price, on or before a mentioned date. Call warrants are generally included in an equity offering from a company, in order to provide an encouragement to potential investors. Call warrants are generally free from any stock or bond and it trades separately in the major stock exchanges.

4. Put warrant – A put warrants have an exercise price at which an investor sell the warrant. It is just opposite to put warrants, it provides the right to sell an underlying security at a specific value. Put warrants are uncommon as warrants provide right to buy and it is just opposite to other warrants.

Investment in the market needs expert suggestions, trading tips and strong profit earning strategies. Many traders look for profit earning stock trading tips for a better return. Few traders also take a chance by trading in forex and binary options. Binary option is a kind of trading in which a trader makes a bet on the future price of a security and get profit according to result. It is very hard to maintain loss in binary option, for this a trader can refer binary option trading tips to make the right decision.

23Sep

Nifty Outlook For Monday By Epic Research

 

Nifty slides with second biggest loss of the year as geo political tensions turns sentiments bearish for traders across globe. A week that started with a smaller consolidations and a tight range of trading finally paved the way for bears as it breached below 10K mark. A bearish engulfing pattern clearly indicates the strength as it engulfed the previous week gains as well and mandates the short term trend to be weaker.

Nifty inched higher making a new all time high at 10178 with a positive open while it consolidated for two broad days due to exhaustion of breadth of the market. The much needed breadth turned negative as there was a turn in negative sentiment due to lackluster participation by heavyweights like Bankex, metals and Infra.
The short term trend suggest writers are active at 9800 and 9900 while on the higher side 10200 proves to be a resistance. A sudden shift in overall trading range also suggest that in coming week it will be hard to see a rebound which may last longer given the change in OI.
As global tensions mount with North Korea pushing to a next level of tests with H bomb, it will be hard for bulls to have a comeback which was as swift as before. Also we dont see any cues that can lead us to a decline in volatility.
We suggest to be cautious with a sell on rise approach while it will be prudent to watch few levels. Support on immediate basis is seen at 9900 9860 while if breached on closing basis we may see further correction towards 9700. Resistance is now placed at 10040 10090 and will be very hard for bulls to sustain above it.
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28Jun

What will be the impact of GST on the stock market

 

Any changes in government policy create an effect on the Indian economy as well. It affects global market and business sector also.Our government initiated a bill called GST, taxes such as VAT, excise duty, octroi tax, service tax and other indirect tax will be replaced by a single tax which is GST.

Let’s take a short overview what is GST –

GST- full form is Goods and Service Tax which is scheduled to launch in July 2017.It is an indirect tax levied by central and state government. GST will be levied on every transaction such as sale, purchase, transfer, and import of any goods and services.It will replace all other indirect tax such as VAT, service tax, and excise duty etc.It is a value added tax, It will be levied on the taxable amount of transaction.

To know more about how it will effect on the stock market, traders can get suggestions from stock tips experts, they have better knowledge about market conditions and they can provide the best guidance to people interested in share market.

What is the benefit of GST

1.GST will improve the way of doing business in India because various entry barriers will eliminate after GST bill.This new system will also improve the revenue of central and state government of India.

2.It will remove corruption from the country as everyone has to pay a specific taxable amount while doing a transaction of any goods and service.

3.It will remove paper burden because all system will go to convert digital.It will also improve work efficiency and performance of people.

4.It will bring uniformity as tax rate will be same in everywhere.It will provide a single identity to Indian country.

5.It will simplify the process of levying tax because the previous tax will be replaced by GST.

Disadvantages –

1.It will increase prices because of higher interest rates.Expected interest rate is 5%, 12%, 18% and 28%.

2.The Higher tax burden on small manufacture unit, under GST manufacturer having turnover more than 20 Lakh will have to pay tax.

3.Change in tax calculation structure – Initially, we will have to face the struggle in calculating GST as all process will change after implementation.

4.It will increase operating cost for business as new Gst system requires professional assistance.It will affect to small traders.

Effect on the Stock market?

Implementations of GST is expected to reduce the cost of logistics as govt will not take octroi tax separately it will reduce the cost of transportation as well. GST will improve the way of trading in stock market, it will simplify tax structure and make the supply chain more efficient and convenient.GST will boost earning of companies logistic, manufacturing and transportation sectors.It will boost transportation process as GST eliminate various checkpoints.It is best of companies facing multiple levies on transactions.

If GST bill passed in India successfully, it will be beneficial for the stock market as it will send a positive message to the foreign investor. Our country will represent as a better policy maker in front of the foreign market, and then it will lead foreign investor to make an investment in the Indian stock market.It will boost our economy as well as the reputation of the Indian country.

28Jun
indian economy

Indian Economy Is Ready For A Strong Comeback Under New Government

Not long ago when the new government was formed, and now all its positive effects are reflected all over the country in every sector. People appears to be more confident and optimistic for the growth of India in near future than before. This behavior of consumers are seen after a long duration of time. People are investing, purchasing goods and using their money to borrow new things now-days not like in the previous government. Read More »

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