Investing Questions and Answers

Best DP surrounded by south India..? Help Me...?

Which is the best depository partner for trading in south india can any one suggest me beside few guidelines?


Answers: none other then STOCK HOLDING CORPORATION OF INDIA


AND FOR DP & SHARE TREADING BOTH-
GEOJIT SECURITIES
I am next to HDFC Bank and am happy.

How do you use the P/E ratio in evaluating the stocks?




Answers: P/E ratio (price to earnings ratio) is fairly simple to use. Generally speaking, it is used to judge the relative safety of a stock. Different investors use it for different things however.

The number that is generated is called a "multiple".

The Multiple tells you how many times above earnings is the stock trading at.

As a safety guide, the higher the multiple, the more risk the stock carries. On the flip side, the lower the Multiple, the less risk the stock carries.

Why? High Multiples means that investors are putting a lot of expectations on the stock and bidding up the price. The risk comes in if those expectations are broken. The stock tends to fall hard and fast.

I hope that this answers your question.

Christian Nago
CEO & Chief Investment Officer
www.intrepidtradings.com
Lower is better. It indicates a better valuation. I like the P/E of a stock I am buying to be less than the industry average.

Some pros say 15 or less. But P/E can vary considerably between industries. An arbitrary number doesn't seem to make much sense if applied across the board.

Sometimes P/E can be very high for a growth stock. They can be very profitable. But also dangerous. Because when the share price falls it may fall hard and fast.
It's better not to. There's no correlation between P/E and the performance of a stock.

http://commonsensetrading.G00GLEpages.co...

mike

Buying and selling shares?

wat will be taxes for buying and selling shares,Can you tel me pl.
thanks .


Answers: That largely depends on two things.

First, are you discussion about long permanent status (more than a year) or short term (less than a year) trades/investments?

Second, your current excise bracket level (and if you enjoy gains, what height will that will put you in).

Long Term trades carry a no more than 15% taxation on them.

Short possession trades, have a much difficult taxation, which is usually what your current tax bracket even is.

So if you are taxed at 28%, later that is what your short occupancy gains rates will be.

I hope this answers your question.

Christian Nago
CEO & Chief Investment Officer
www.intrepidtadings.com

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