Stock Market Fundamentals

This post is for those who have curiosity in the stock Market (which today reached 15K), yet are unable to follow the terms and jargons used.
For our Calculations lets talk about Tata Motors.

Open Price 709.00
High Price 718.00
Low Price 695.65
Close Price 711.20
Number of Trades 20,002.00
Traded Quantity 1,425,392.00
Traded Value 1,014,805,055.65
52 Week High 988.40
52 Week Low 575.00

Based on the demand and supply of the stocks, the traded price fluctuates. The Open Price denotes the price at the start of the day, close at the end of the day. The High and low, as the name suggests are the highest and the lowest prices of the trade that happened during that given period. These 4 points give an idea about the direction of the stock movement and the sentiments on that day.

No of trades signifies how many times did the stock change hands, and Quantity/Volumes denotes the number of shares traded. Typically you would like liquidity. i.e. You should be able to sell/buy whenever you want and whatever quantity you want without influencing the price too much. For you would not like to be in a situation where the stock might be at its highest, but you cannot sell it for there are no takers. As a thumb of rule, a stock which has more than 10,000 average daily trades is liquid. Also a spur/fall in the volumes trend gives us a rough idea about the stability of the prices. Typically when the stock price is stable, the volumes go down, but during an movement (both bear or bull), these volumes will shoot up.

Then there are some Fundamental data:
Market Capitalization ( Rs cr ) 27,384.67
Book Value 177.59
Debt / Equity 0.58
P/E 14.31
Dividend Yield % 2.11
EPS 49.65

Market Capitalization is the Enterprise worth. It is basically the number of issued stocks multiplied by the last traded price of the stock.
Book Value is the book value of he assets (as per the accounting books) divided by the number of stocks.
Debt/ Equity is the measure of leverage used by the company. Higher the ratio, riskier your investments would be.
P/E is Price to Earning Ratio
Dividend Yield: Last Annual Dividend / Price of the stock.
EPS: Earnings Per share. It is the profit which the company divided by the number of shares.

If I have missed anything, please let me know


The fairy

The fairy

A married couple in their early 60s was out celebrating their 35th wedding anniversary in a quiet, romantic little restaurant.

Suddenly, a tiny yet beautiful fairy appeared on their table and said, “For being such an exemplary married couple and for being faithful to each other for all this time, I will grant you each a wish.”

“Oh, I want to travel around the world with my darling husband” said the wife.

The fairy waved her magic wand and poof! – two tickets for the Queen Mary II luxury liner appeared in her hands.

Then it was the husband’s turn.

He thought for a moment and said: “Well, this is all very romantic, but an opportunity like this will never come again. I’m sorry my love, but my wish is to have a wife 30 years younger than me.”

The wife, and the fairy, were deeply disappointed, but a wish is a wish…So the fairy waved her magic wand and – poof! The husband became 92 years old.

The moral of the story: Men who are ungrateful bastards should remember fairies are female.


some pictures


Godmen-ungodly business

The most lucrative business in India today would either be producing a TV serial or to become a ‘Godman’ with a bunch of trusted buddies posing as devoted disciples. In the first all that the producer, usually an ex-actor needs is some money and contacts with popular channels. The rest of the work is simple; catch hold of some actors who are not in demand and make them weep to their hearts content and let the camera roll.

While in the latter the added advantage is , it requires zero investment. The ‘Saadhu’ just needs outlandish garbs, a deceptive smile and repulsive looks with a hairdo that would put Medusa to shame.
If P.C.Sorkar had used his skills in magic to produce a ‘crystal lingam’ or ‘silver efigy’ from air, he could have done away with advertisements for his magic show and his ‘ashram’ ( an inevitable byproduct of having mad disciples) would be a sought after one.
Most of the Godmen are nothing but soothsayers who cash in on the vulnerability of the people seeking solace.
Some claim to be able to perform miracles and solve just about any problem under the sun — from helping jilted lovers and solving marriage problems, to comforting those with job worries and healing the sick.The list is endless and the main target of these people are the ones from the movie world. They gain the confidence of the famous and slowly spread their influence with the powerful but superstitious politicians. And the atrocities they commit after that , is anyone’s guess.
These public figures are hardly alone in seeking answers from the stars and soothsayers; the persistence and popularity of such beliefs attracts even laymen to these characters like moth to fire. When one has lost all hopes or is not able to draw sympathy from close ones , he/she feels these pseudosciences can help. As for celebrities they are fueled by greed .
Even psychologists agree that all belief systems–astrology, Objectivism, religion–ease anxiety about the human condition, and provide the illusion of security, predictability, control, and hope in an otherwise chaotic world.
As long as fear exists among people such godmen will thrive and as long as there is ignorance , there would be cheats.


Uncomfortable chart

economic growth

an indepth analysis on the subject of why politically repressed economies do better than politically free economies.

Puzzle Thoughts

The Adultery Puzzle

I saw this puzzle on economist and thought to ask it.

Why hasn’t the lemons problem killed adultery? To be more specific, why would any women want to steal a man who lies to, cheats on, and then dumps his wife? This is particularly clear in Woody Allen’s Match Point – the mistress angrily insists that her boyfriend leave his wife, even though he’s shown her in a hundred ways that he’s a lying, cheating parasite.

In the actual market for used cars, of course, the markets has largely solved the lemons problems using reputation, inspection, and warrantees. You don’t want to sell low-quality products if it will ruin your firm’s reputation, if they have to pass inspection first, or if a dissatisfied customer can return the product and get his money back. But it’s hard to see that mistresses can rely on any of these mechanisms. Few adulterers build up a reputation for standing by their mistresses. Most adulterers wouldn’t pass inspection. And I’ve never heard of an adulterer giving a credible money-back guarantee (“If I don’t leave my wife within a year, you get a full year of your life back!”). So what’s the point of stealing another woman’s man, if you can only steal the bad ones?



Ever wondered what the Police officers do with the drugs and Marijuana they confiscate?
watch this short video