Investing Questions and Answers

Shares - Beta Risk?


Question:
Can anyone give me a brief explaination of the Beta Risk of an equity is?

Answer:
Beta describes the sensitivity of an equity or portfolio to broad bazaar movements. The stock market (represented by an index such as the S&P 500 or FT-100) is assigned a beta of 1.0. By comparison, a portfolio (or equity) which have a beta of 0.5 will tend to participate within broad market moves, but solitary half as much as the marketplace overall. A portfolio (or equity) with a beta of 2.0 will tend to benefit or suffer from broad marketplace moves twice as much as the market overall.




Why should india rely on "Out Sourcing" for its financial growth?


Question:
Are we not better off concentrating on R&D surrounded by hi-tech areas and relying on economic benifits of it?

Answer:
Outsourcing by advanced countries is a great piece for India. It is also good for the rich countries because they gain their work done and save money.
India have never learned how to assembly anything on their own. Working on the outsiders' drawings and instructions to manufacture anything is not considered your own. That is a short time ago making products on someone else's instructions. India cannot make even the smallest product on its own.
Unless they swot up that they can only depend upon such things as computer software and other clerical job from other countries.
in a compactly populated country one cannot restrict the opportunity and one must grab like for consolidation
recently i did this presentation on this topic and according to me inida shld not rely on this because trust me wen i read aloud this china and other south east asian counteries are going to give india tough competition
even china is very soon educating its people by law then english which they can use for this purpose moreover counteries close to indonesia and myannar i know comeing up in a great style
then also the firms are shifting from mortal bpos to kpos
and kpos require more skilled ppl which is limiting the jobs and also the companies are accusing india of stealing background which could very capably lead to the downfall
okay to stabilise your currency when you are on a oil binge next to 70% of the oil import. well it is also member of this great globalisation transition. for USA and others it is supposedly for cutting costs surrounded by their country and in the quibble showing you another work culture. Ofcourse it provides indians with "JOBS"
Outsorcing is not reliable within the long run. We should have robust R&D and scientific growth. Outsorcing just pays more when compared to Indian standards because of the currency conversion values. But Technology will event in the adjectives
Outsourcing is very apposite for a country like India.
Because,if the rate of the associates working in the service sector increase,then these are the signs of a developing country.
Outsourcing also help to generate employment opportunities for a country approaching India which has more skilled & cheap hard work workforce.
u made a very polite point u opened my eyes but not the politicians we would hold been nearby but our corrupt politicians keep ******* up everytime something obedient happens for the country u cant even bear a **** without paying a bribe thats why we are still a developing nation




What is this Mauritius treaty ?


Question:
a lot of money is coming into India through this route within both stock market and contained by real estate.

what is it"s nitty-gritty ?

Answer:
i feel it is a legal course to convert your black money into white money.

its a deal for rich empire, rich countries to exploit Indian market by kicking prices to sky, grasp there money multiplied manyfolds and run away.

own you heard of Yen get trade ?
http://www.mauritiustimes.com/150906atul...

The best answer that I have found just now...
mauritius treaty is a pact tat gov of india has signd wid mauritius gov surrounded by order to avoid double taxation... since rates policy in tat county is liberal..speak for eg--- M.gov dont charge capital gain tax; so FII's route their monies thru tat county bcoz money coming frm tat county cannot b charged to assets gains duty in india any due to the pact(treaty). Now, silly things make a big difference to the FII proceeds n thus making a big hole in indian govts pocket since the transactions run contained by millions n crores.




what are the risks contained by investing surrounded by...?


Question:
preimeum bonds,i thought you couldnt lose money and you get enter into a monthly draw for a mill.

Answer:
You don't lose any money - you can always carry back what you put within, but you do not earn interest yourself. But you do get the hit and miss to win prizes and these can be equlivalent to a reasonable interest rate if you hold plenty bonds.

The interest that is earn on the deposits goes into the prize fund.
Now within theory if you hold the maximum amount of bonds that are permitted (lb30,000) you should win satisfactory prizes each year to equal an interest rate of give or take a few 3%. As the prizes are tax free this is equal to an interest rate of 5% for difficult rate tax payers (less for standard rate export tax payers) so it is not too bad. However, you should know how to get a better rate by putting your money into a bread ISA so it is only worth investing surrounded by premium bonds if you already put the maximum amount each year into a brass ISA.
There is also the problem that the prizes are "lumpy" (it is not a smooth return of 3% but the chance of victorious a prize). Because the prizes are scewed by the two lb1m prizes, and most prizes are actually lb50 or lb100, unless you are lucky plenty to win one of the larger prizes the effective "interest rate" will in actual fact be less than 3%.

So, if you are looking for a return and if you are a illustrious rate tax payer and already put the maximum amount respectively year into a cash ISA after premium bonds may be a good "safe" investment (without the risk of the stock market). Otherwise you should seize a better deal for your money elsewhere and the merely reason to invest after would be the thrill of possibly winning a big prize
retrieve your money
You can't lose your money,You just don't earn any interest on your money.
No risks at adjectives, but no interest either. So unless you win adjectives you get put a bet on is what you put in.
The monthly draw immediately includes '2' 1-mil payouts. The problem is that you won't earn any interest on your cash, so doesn`t matter what you put in is the price that you can re-sell your bond at within the future. This would suck tremendously if, for example, the value of the pound be to plummet, or if the value of the dollar be to go through the roof. You're better stale earning money via interest if adjectives you want to do is invest for a return.
slow growth investment but safe
The individual risk is that inflation will erode the buying power of your money over time.

lb100 now is worth more than it will be contained by fifty years.
don't know what scam you are talking roughly but clearly is 1. Bonds will pay sour face merit at maturity but can stir down if need to flog earlier if rates rise so can other lose. If worried about risk must adopt failure as a given.




What are the differences between 5% $1 nouns shares at $16k & $1 redeemable nouns shares at $2k?


Question:


Answer:
5% specifies the dividend rate of the preference share and is a percentage of the par expediency ($1 in this case), within other words 5 cents.

With the redeemable preference shares, the holder can constraint that the issuer buys them back at a fixed price (useful if the souk price drops below this).

The dividend rate of the redeemable preference shares is not given (it's possible but not infallible that there isn't one) so it is ridiculous to say how this compares to 5%.

The rights associated next to individual preference shares swing, so there may ably be other differences. Presumably they also relate to different companies, which is of course the most considerable difference!
There's a significant error in the answer above. In North America, "redeemable" preferred shares cannot be retracted by the holder. The redemption point applies only to the issuer; explicitly, the company that issued the shares may redeem them at a set price, usually par value, at a fixed date contained by the future. On that date, the holder have no rights to retract his shares.

The feature that enable the holder to cash contained by his shares at a fixed price upon a fixed future date is specified as "retraction" or, sometimes, "extension," or, sometimes, "conversion" (into common shares). The share is said to be extendible, retractable or convertible upon that adjectives date.

When examining preferred shares with redemption/retraction/extensio... date it's necessary to relate today's marketplace price to all of these adjectives events, dates & prices. For example, beside a redeemable pfd now trading at 27.25 whose redemption price/date would be 25.00/september 2008, the risk is that company will opt to redeem & there's nothing investor can do. The loss will drink into the yield of the preferred. This is a trap to avoid.




What is a really obedient P/E ratio to look out for??


Question:
What is a really good P/E ratio to look out for when trying to buy wearing clothes stocks and shares??

And what is the average P/E ratio on the FTSE 100, 250, etc??

Thanks

Answer:
A rule of thumb is to apply the PEG ratio. PEG ratio measures the price and PE of a stock relative to its growth rate. For example, if a stock is capable of growing income at 20%, its fair significance is 20X. If it is 15%, it is 15X etc etc

The problem is a lot of stocks are correctly expensive these days. It is not unusual to find stocks that trade at 15-20X but only growing at 5-10%.

Conversely, if you can find stocks now trading at PEG<1 and it is a decent and financially solid company, it is worth looking more into it.
Well the short answer is that fundie-watchers will be bullish on stocks beside a P/E under 20.

But it differs by sector. Commodities necessitate to be under 20, but something similar to Biotech can acceptably be between 1-100.

The problem with the year 2000 be that 100 P/E multiples became the norm surrounded by most sectors. Pullback be inevitable, and boy did it happen.

The quickest agency to get P/E for an index or for a sector is to budge to Yahoo Industry Center at
http://biz.yahoo.com/ic/
Click what you're interested in and look on the right side of the peak for "Price / Earnings:"

Good luck to you!
no such thing. Depends on industry; financial condition; market's projection of part of & future for profits & more. P/E affected by adjectives that & more. Can never buy just on P/E.
I FTSE 100 pe is something like 13.1 but the S&P 500 is about 17. As one of your responders mentioned comparing the pe ratio to the expected growth rate is a tool normally used. Unfortunately, expected growth rates are just guesses. In my oppinion a stock next to a pe of greater than 20 is fairly expensive. Some stock do tend to convey higher pe ratio than others. A large hat stock with consistant proceeds and a decent dividend may exceptionally well support a pe of 20+ because it is considered a not dangerous investment more or less.
The P/E isn't adjectives that important, because oodles times some of the best companies have a lofty P/E. Stick w/ the PEG and keep that one lower than .8

If you need more assistance than was answered by these answers, here's a book on trading for beginners:
http://www.best-stock-trading-systems.co...
FTSE 100 average 14




what do you conjecture more or less Yahoo stock?


Question:


Answer:
50% chance to budge up by $5, but don't expect too much
Investing in one stock is similar to owning only one two of a kind of shoes.

You should really consider diversifying your investments by choosing either a slower-growth money bazaar instrument (MM, CDs, etc), or a mutual fund.

Like you said, there's a 50% chance it could be in motion up... but there's also a 50% chance it could shift down. This kind of undiversified risk is not rewarded surrounded by the market.
If you've hear of the company (unless they are brand new and you really close to their product), don't invest in them. You want the subsequent yahoo, not the current one that is already a significant cap stock. Find a small stock who will grow big.

Jeff




Is it better to touch your shares portfolio yourself or appoint a coordinator to do alike?


Question:


Answer:
It is always adviseble to appoint a boss if you afford, whether you know urself or not. To gain from the experience of manager, is other profitable then from your know in the order of of shares.
final decision is other in your paw.
if u know the proper procedures, u can go ahead near it or for sometime u have to hire a manger near monitoring by side.
If you fully understand the share flea market then do it yourself, but if you don't, afterwards a managed fund is the means of access to go.
Just remember this the mutualfund manager are the professionals right ,however half of adjectives mutual funds lose money and they still charge you a fee for that lousy suggestion at least if you lose your own money you won't own to pay a duty to some so called professional who clearly does not know what hes doing.Educate yourself and do it yourself.
It will be better to toy with on your own. On one hand you will set free on costs of appointing a manager and on the other you will swot up how things take place and surrounded by future you will be within a position to figure out your profit.
If you do not quality confident about managing a portfolio on your own, you might ask yourself why you are investing surrounded by stocks in the first place. Ideally, you will revise, over a period of time, what you stipulation to know in decree to effectively trade stocks. If this is to happen at adjectives, it will occur slowly, and will necessitate your devoting a large amount of time to it. The alternative manner of handling a portfolio is to settle up someone to do it for you. This manager will be compensated his fee regardless of whether your portfolio shows a profit. His trades may or may not align beside your investment objectives. He may or may not be a successful investor with his own money.
If you know what you are doing, organize the portfolio yourself. If you don't know what you are doing.learn - and while erudition, keep away from stocks.
Never a inspector except via proxy when you buy mutual funds.
be careful beside managers. their first priority is to get money off you regardless of whether they fashion money for you. check their fee schedule, turnovers, commissions, etc. since you are asking, then you must not own much money or much experience. buy some mutual funds and don't do a lot of trading.
it depends on ur wherewithal holding period & expection

4 managing it self u requir time & timing more than money

4 timing mkt use aptistock freeware

jump thr my other answers
It is always better to use professional fund organization. Depending on the amount, you can choose to invest through Portfolio Management Schemes or Mutual Funds.
It depends upon how much time you have to research the companies and conduct operations your investments - Personally I have used Portfolio Managers and I find that the horizontal of detailed analysis that they can do and the breadth of industries they can cover is far more than what I can do - I will suggest that you go near them if you can afford and have the self-control to wait for the research to pay-off (no short possession gains)
It depends on your skill, time available and aptitude. It is best to do it yourself after you become skilful and use a manager till you develop the skills and hold time available for direct investing.

It is like outsourcing. You discharge for the service. If you need support contact me.
The best option is to do it yourself. Entrusting to another being or entity involves additional cost thereby reducing your return. If you are not confident just about your own ability invest through mutual funds. Here again, it is advisable to distribute the total amount among a variety of funds.




What exactly is pivot point?


Question:
And how does it help surrounded by FOREX and candle chart studies?

Answer:
A pivot point is a calculation of support and resistance lines base on the high, low and close price of the previous year. You can use it for instance as a trend indicator, if the market breaks out of the region indicated by the pivot lines, next it's trending. Often after breaking out to the upside, the pivot line will start to stroke as a support.
I don't have much to join to the above post, but the following is a good book (not Forex perse) on how to use pivots:

http://www.amazon.com/logical-trader-mar...
A pivot point is an nouns of support or resistance for an fx pair.

Here's how their calculated...

http://www.mypivots.com/education/tools/...

and from investopedia

http://www.investopedia.com/terms/p/pivo...




Is nearby anyone that would similar to or interested to invest within ILIGAN City, Philippines?


Question:
(esp. those foreign investors)

Pls. click on the link below why you should invest surrounded by ILIGAN City.

http://www.iligan-city.gov.ph/advantage
http://www.skyscrapercity.com/showthread...

Answer:
I'd have to drop by the place first.




what are the delivery/intraday remnant brokerage contained by Reliancemoney?


Question:
how does future,chance,derivative and commodities work.Is there ay book related it.please inform me at piramid2sky@yahoo.co.within

Answer:
reliance money franchisee. He says that the Rs.12 per transaction is charged just for non internet transactions, where the clients jump to the brokers office and trade. For transaction done thro internet this 12 rs. does not apply. The 500 rs. prepaid coupon will allow an intraday volume of 1 crore.

Reliance strategy is to gain max. marketshare in few months of launching. There is gonna be a big price war contained by the near adjectives. It can only win better for investors, from here on.

Reliance money does not have an information with RBI.
For Rs 500 one can receive trading worth Rs 1.00 Cr.
Now what it will cost to Reliance Money:
RM has to pay cheque Rs 400 per Cr to NSE as transaction charges a part of which which go into Settlement Guarantee Fund. RM has to pay packet Rs 20 per cr to SEBI.
I am not clear weather this includes STT ,State stamp Duty & Service tax.
What around Demat Charges ? What they are going to charge is not available.
Lets deem that this is not included.
Now this leaves Rs 80 per cr with Reliance Money.

Can they survive beside this amount ?
What innocent investors are not understanding is that these are diplomacy to attract investors from their traditional brokers & later lift up their tariff.

Reliance communication is master in this. They just now have a card costing Rs 180 by which U can transport 18,000 SMS. When U are hooked to SMS, they suddenly withdraw this coupon.

Please ask your franchisee friend can they guarantee this tariff for 3 years ?
They cannot !
Further next to one card you cannot sell or buy even surrounded by your wife's account.

Now if U enjoy 4 demat account within your family, you hold to spend rs 2000/- on buying 4 cards. Can U trade Rs 4 Cr in one month.

Lastly Reliance Money is at par near all the brokers as far as charges are concerned.
This is courtsey SEBI who levy uniform fee of Rs 20 per crore on adjectives, recently, instead of .01% for investigational broker for first 5 years & only Rs 5000 for 5 years thereafter irrespective of volume. THis is same fees for which two years rear brokers have to cough up more than Rs 500 Cr to SEBI after they lost a skin in Supreme court.
if ur entry & exit point r watertight small change within brokrage doesnt matter

follow aptistock freeware for it

4 detail read my other answers




how much money can i in truth invest contained by a dow jones stock?


Question:
i have 5,000.

Answer:
Is this a trick ask?

You can invest $5,000 worth of whatever stock you buy (not including the commission).

In expressions of what you can buy, that's a different story. "Dow Jones" is typically a term used for the Dow Jones Industrial Average (DJIA), but the Dow Jones Group does enjoy other indices. The DJIA is made up of 30 different stocks, so you can pick and choose which stock to make. The 30 stocks are a mix of American stocks, but are adjectives large-cap with some bias toward industrial stocks. The component stock near the lowest price is Intel (INTC: $21.00 close), which would give you 237 shares assuming a $10 trade commission.

A better opening to buy the "Dow Jones" is to buy the Diamond ETF (AMEX: DIA $122.38). You can buy 40 shares of the Exchange Traded Fund and be much more diversified.

All you need is an commentary. Happy investing.
A single share of stock represents a % of the total value of the company. So the most that anyone can buy contained by a single company is 100%. However, with $5,000 you would be constrained by that budget and would most likely afford almost 100 shares of a company. You could also either split that money up into 3 stocks, or buy one or two mutual funds.
WIth that small amount should buy a S&P index fund or etf. vegas_iwish@yahoo.com if have need of info on how to do so. Way too small to buy individual stocks.




What is the best Forex trading system and what returns to expect?


Question:


Answer:
www.4xgenie.com
code is MSMS555
I don't know if there is necessarily a best or worst Forex trading system. The greatest irregular to success or disaster is the trader himself. Forex is extremely sensitive to greed, fear, deficit of knowledge, impatience, dearth of a game plan, jump in too soon, jump out too soon, overconfidence and the list go on.

Forex is a great study of human nature. It is pretty interesting that a very polite trading system can have like wildfire different results for different traders. Why is that?

If you take a conservative approach and use a strategy that will minimize the inherent risks of Forex while at impossible to tell apart time providing a way to seizure consistent profits then you own accomplish two things. Capital preservation and slow steady wealth growth. The secret to Forex is to live to trade another afternoon!

Currently I am earning a consistent 10%+ per month. I am not claiming to "double my money by subsequent Tuesday". Forex is not online poker. I have be trading with indisputable money for over 6 months and I am quite pleased near nice steady returns.

If anyone is interested in the trading strategy that I use I can dispatch them a report that my friend Lee wrote that does a very right job of explaining Forex and the strategy that we use. Send me an email at pupp52@yahoo.com

I may also know how to arrange a free 15 day trial for you are interested surrounded by evaluating the strategy yourself.

Best wishes on your journey!
I found this site adjectives which features the worlds best forex trading system.
Check out Forex Signals. http://www.geocities.com/lcming/forexsig... Worked for some people. Although permit it be known I muse Best is a relative terms. For what is perfect for 1 maybe not for another. Why the deficiency ? Becasue of our Trading Personalities. Our Trading Psyche. Everyone is different. And to think we can trade "anonymously" and "emotionlessly" is a myth. What is your trading personality. Check Out Dr Alexander Elders work on this subject http://www.geocities.com/lcming/forexboo...




When grease be above $75 MSN Money have an article 'time to invest within a $100 grease,' immediately they say aloud dally for cheaper


Question:
oil. So when is the time? Or conceivably they want you to buy the MSFT stock, which however did not move this time after a (good) report.

(Ppppst MSFT is overvalued, shorten it!)

Answer:
The oil is bottomed out. Check the video on XOM and you know if will blast $80 soon. The oil price will hit $100 contained by 2 years IF there is NOT adequate nuclear power stations around the world. The oil consumptions from China and India will dry out the worldwide oil reserves surrounded by 30 years. The governments can not build ample nuclear power stations faster enough to draw together the demands. Uranium will rise to $100+/lb. If China and India want to build their strategic oil reserves, this will nick away 5 billion barrels off the open market in increment to the tight supplies.

MSFT(Cash Cow) and XOM(Energy) are the bluest stocks to own for generations. If both are within trouble, the entire world will be vanished. Establish an automatic investment plan and ignore the ups and downs. They will reward you awesomely contained by the long term.
The financial press have different motivations than you do. They need to crawl column inches of space with "news" and "advice". They own no financial incentive to give biddable or bad guidance. I would view them approaching flipping a coin. Sometimes they get it right and sometimes they don't. [These comments apply to Jim Cramer as capably.]

At the end of the year, you have to do your own homework. On the interview of oil, where on earth is supply and demand going? It's difficult to answer because supply and emergency is not constant (not like an economics 101 class).
But Puerto Rico is on Nasdaq immediately, and that is where on earth Vista is made at,,,hrmmmm
I think never. Invest surrounded by wind power. Fossil fuel will move about the way of whale fuel.

Rather than shade and doom(The End of Oil, the End of the World as We Know It") it would be more reasonable to enunciate Gloom and Boom.

Another way of looking at it is the Elliot Wave Theory. Social mood determines flea market indexes. Some of the Elliot theorists correctly predicted major marketplace changes, contrasting to what the Street was proverb. They too are not always right.




What are the top ten indexed mutual funds?


Question:


Answer:
Top ten in what respect? return ytd? return ending year? Size? daily trading volume?

Size within millions:


SPDR 500 SPY $57,586
iShares MSCI EAFE Index Fund EFA $29,321
Nasdaq 100 Trust Series I QQQQ $19,276
iShares S&P 500 Index Fund IVV $17,336
iShares MSCI Japan Index Fund EWJ $13,725
iShares MSCI Emerging Markets Index Fund EEM $11,969
iShares Russell 2000 Index Fund IWM $8,761
SPDR Mid Cap 400 MDY $8,347
Diamonds Trust Series I DIA $7,710
iShares Russell 1000 Value Index Fund IWD $7,704

YTD Market return:

iShares MSCI Malaysia Index Fund EWM 10.66%
SPDR S&P Metals & Mining ETF XME 10.02%
Vanguard Materials ETF VAW 8.18%
ProShares Ultra MidCap 400 MVV 8.11%
PowerShares FTSE RAFI Basic Materials Sector Portfolio PRFM 7.91%
SPDR Materials XLB 7.58%
PowerShares Dynamic Basic Materials Sector Portfolio PYZ 7.37%
iShares Dow Jones U.S. Basic Materials Sector Index Fund IYM 7.02%
iShares Cohen & Steers Realty Majors Index Fund ICF 6.93%
PowerShares Wilder Clean Energy Portfolio PBW 6.93%
No such thing. Size does not event and the "best" changes near the market. Just buy EFA EWA PGJ & start investing




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