The best thing about this forum is that we get quick answers here. This forum really solves specific financial queries. I will always recommend this channel to anyone who wants to increase their financial knowledge.
Discuss about stock market investments, upcoming IPOs, stock performance and how to invest in stocks
@Ishu Yes, Zerodha is one of the topmost stock brokers in India. It is the largest discount broker and offers impeccable services to its customers. The company keeps on making changes like waiving off certain fees, DP charges on Zerodha Coin redemption etc. All these to build a better relation with its clients.
So, I don't think there's any doubt in safety of transactions through Zerodha.
Moreover, SEBI is the regulating body that has set norms in favour of customers. So, there isn't any concern regarding reliability or performance.
@Smart2Investor These 2 credit cards give cashback linked to their respective wallets i.e. Paytm wallet and Ola Money. For Ola Money I think we can choose bank account also to get cashback credits instead of Ola Money.
So, if you already have an account with them, I think getting the credit card is much easier. Am I right in saying so? As far as features are concerned, I feel Ola SBI credit card is much better in terms of cashback and offers.
All the discussions and options for NRI investments in India. Also discuss NRI Taxation.
Have you ever wondered, how share prices are determined? Do you wish to know the factors influencing stocks prices of different companies? What;s the share price formula? If yes, let's analyse how is share price actually calculated?
How is Share price determined?
There was an ancient time wherein we used to exchange goods for goods (barter system). But, today’s world believes and works on price tags. For every goods or products or services, we now determine the exchange policy in “price” or “cost”.
So, speaking of “Price”, as per English dictionary is defined as “an amount of money expected, required, or given in payment for something.”
Nowadays, “Price” forms the base of every financial or social transaction.
How is this “PRICE” determined?
In a free market model, price is determined on the basis of two important factors: SUPPLY & DEMAND.
Let me get my economics boots on: to try and explain you the law of supply & demand and the resulting price determination.
What is Demand?
Demand originates with the consumers i.e. they show a desire to purchase a product. On a general basis, the users are willing to pay a particular price for a product depending on their income capability and need to own the product. This relationship in the economic term is expressed as a “demand curve”.
What is Supply?
On the other hand, Producers/manufacture arrange to supply product or services to meet this demand. The higher the demand the company tries to increase its production. This relationship is called a "supply curve".
The point at which the demand and supply curve intersect is called the “equilibrium price”. And this is how my friend pricing of every goods, commodity, service, is determined in the same way.
Got too much economics, let’s try and understand with a daily example:
Everyone loves “Mango” I am sure of it. So, we all know the demand for mangoes is an all-time high. Thus, if you see the pricing trend, at the beginning of the summer when the supply is low: the price is high Rs.100 per kg.
But, during the mid-summer period the, when more mango has come into market and supply is high: the price reduces to as low as Rs.40 per kg. But, after the summer is over and mangoes are disappearing from the market, the price resets to Rs.100 or even Rs.200 per kg.
Similarly, stock or share price are determined by the play in between demand and supply. Thus, higher the demand for a share, the higher is the price and vice versa.
Share Price Determination: Example:
Let’s take a hypothetical example of opening a new company with no market presence and new offering.
When this organization is opting for their first Initial Public offering (IPO), the demand for the share is lower, but the supply is huge. Thus, price here in this scenario would be low.
Now, once the company starts to progress and shows better returns, the request for company shares starts piling up. Therefore, the share price of the company starts showing an upward trend.
Talking about actuals, we all would have seen the success story through and through for companies like Reliance Ltd., MRF tyres, Rasoi and many many more.
I wouldn’t go in further details. but let me take you through a few important factors which don’t affect share price directly, but affect the demand side of the formula.
How Share Price is determined? Factors to Influence
The below factors which can create an upward trend for higher demand shares, if:
The company has a scalable market shares and is making a profit.
Its shareholders are happy, that simply means they get dividends issued and payments.
The company has a great future due to their prospective future plans.
Company shares form basis of any company value. Thus, pricing is a highly delicate matter. These simple details about share price determination above is a humble attempt to help you understand the price trending philosophy.
What is share price? How share price is determined? The answers to these rest in the market fluctuations altogether. To conclude, in the simplest terms and frankly speaking, share price is just a battle play between “supply” and “demand”. What would you say about it? Any other crucial points you wish to add here, feel free to do so.
All about investments and personal finance in India.
Equity Linked Savings Schemes (ELSS) are a category of diversified equity mutual funds that qualify for tax exemption under Section 80C of the Income Tax Act. Over the past three-years, top ELSSs have generated a return between 12%-20% compounded, which is better than any other tax-saving investment product.
@Harleen Small Finance banks primary objective is to promote financial inclusion in the country. The main objectives include:
Offering Basic banking activities like accepting deposits.
Lending low cost credit to small business units, unorganised sector, farmers and micro and small industries.
However, a Small Finance Bank cannot extend larger amount of loans. In fact, SFBs have to face challenges to compete with public sector banks. Overall, Small Finance banks are a good initiative to further strengthen the credit arena.
General Queries not covered in any of the above topics.
@Anmol Very interesting business ideas. Have confidence and try the one you like.
My favourite business ideas are:
Making chocolates and candies.
Making designer candles.
These 2 are tried and tested traditional home business ideas. My cousin tried this for sometime and got good results. For some reasons, she had to quit. But, if you can grab a good customer base these business ideas can really work well in the festival season in India.
@anjalisingh I feel if one doesn't have the surplus money to afford education in a good institute, then availing an education loan can be a good idea. But, be careful to go for only renowned loan providers.
Education Loan: Important points to consider
An education loan covers your basic course fee and some other expenses as well.
As a student you become the main borrower. Your parent, spouse or sibling can be your co-applicant. You need to confirm this from bank/institution.
You can take an education loan for full-time, part-time or even a vocational course.
This can be for graduation or post graduation course in India or abroad.
There may not be an upper age limit for applying an education loan. However, some banks may pose certain restrictions in this regard.
You or your parents (as applicable) also get tax benefits under Section 80E of The Income Tax Act subject to certain conditions.
Remember, there are many fake companies also luring students with attractive loan offers. So, be cautious and do thorough research before taking an education loan.
@Punkeirang Yes, mobile food court seems to be a good idea. Some initial investment may be involved. But, you need to test this idea at a small level initially. This idea can especially click near busy office places wherein office staff looks for good lunch or food items at an affordable price. What do you think?
Also, some points that come to my mind are:
Offering good quality of food material: If the taste and quality is great, you can grab returning customers.
At a fairly reasonable price: To survive in the competitive area.
Testing in office lunch hours: The best time to attract working individuals to your mobile food court.
And yes, hard work is required in every business So, that shouldn't be a point of concern.
Disclaimer: Any views/recommendations expressed in the forum, of the individuals are their own only. Fintrakk doesn't endorse or recommend any financial product or views by the users of the forum. The information/comments on the forum should not be considered as a financial advise. Please do your own due diligence before investing. Fintrakk is not responsible for any financial loss to any of its visitor/user.