Basic Understanding About Stock And Share Market


One should inculcate the habit of investing in order to have enough funds for future contingencies. You have to be well prepared for the retirement years. Only earning and saving that money is not enough. The inflation makes the price rise and affects the value of money. In order to avoid the loss of money through inflation, one should invest the money so that it grows. One such investment avenue is the stock market.

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Share market in detail

Share market is the place where the shares get issued and traded on. The share market is quite similar to the stock market. The main difference between the stock market and share market is that in stock marker one can trade in different financial instruments like mutual funds, bonds, derivatives and also the company’s shares. But in the case of the share market, only the shares can be traded.

The stock exchange plays the important role here. It is the basic platform which offers the facilities to trade in the stocks and securities of the companies. Only those stocks can be sold or bought that has been listed on the exchange. It is considered the meeting place for the buyers and sellers.

The share market is broadly classified into two types- Primary market and the secondary market.

Primary market- In this market, the organization’s gets registered so that they can issue shares in order to raise money for their business activities. An organization basically enters this market to raise funds or capital. Whenever the organization sells its shares for the first time, it called an Initial Public Offering. Then the organization becomes a public company.

Secondary market- The shares after getting sold in the primary market, gets traded in the secondary market. It gives an opportunity to the investors to sell those shares and exit the market. It is the market where the traders buy or sells the shares of the organization at the current market price or else at a price that is agreed upon by both the parties. Usually, the traders conduct these transactions with the help of an intermediary like a broker.

Instruments traded in the stock market

The different financial instruments that are traded in the stock market are:

Bonds- Organizations require funds to undertake projects. When the organization borrows them money from a bank, it is called a loan. But when they borrow money from different investors, it called as bonds. In both the cases, they need to pay an interest to the lender. Hence, the bond is also known as a debt instrument.

Mutual funds- It helps you invest directly in bonds or stocks. It helps in pooling the money from different investors and then invests the amount in financial instruments. It is done by the professional fund manager.

Derivatives- The share value keeps fluctuating and it becomes tough to fix a price. In derivatives, the instruments help the trader to fix a future price today. One enters into an agreement either to sell or buy the financial instrument at a future date at a particular price.

Stock Market Correction – What Is It?

Pick up any stock chart and you will notice that the stock does not go up in a straight line. In fact, this applies to every market that can be traded in. They will rise in price and then fall in price as they keep going up. This is something that will not bother the professional traders. There could also be times when you will notice a huge dip in the stock prices on the way up. You need to know when the price fall is a correction and when it is reversing the trend. Not knowing this can be a big trouble for you. Visit cybermentors scam reviews

A steep rise

When the market rises very fast and steeply, like almost a vertical movement then the professional traders will wait for a correction. This correction has to happen because the people are entering the stock, not because they think that it is fundamentally strong, but because they want to participate in this strong up move. At some point after the up move, the investors will start to sell off their stocks. This will cause a fall in the price. Once the speculators are off the market the investors can buy into the market and expect a long period of growth.

There are less number of buyers

Once the market has been rising for a very long time then this means that those who wanted to buy into the market have already brought. Here there are no more buyers and the sellers will find it difficult to sell to someone and this will cause the seller to lower their price to attract buyers. This results in a correction. The buyers who were reluctant to buy at the high prices will now buy because they see that the price is at a discount.

Buying into the dips

Some of the investors and traders will look to buy when the stock enters into a correction. These investors look to buy when the others are selling in the market. This lets them get a discounted price when the price is close to the bottom. This is a risky method of buying in the market because one does not know with surety if the dip is a correction or a reversal. The investors who enter the dips should be confident in their trades and know that the dips are a correction and not a trend reversal.

Hype in the market

Sometimes you will see that the stock prices have zoomed because there is a lot of good news that is being published about the company. Itmakestheinvestors flock in to get hold of the stock. This causes the stock to rise up very fast which is unnatural. Everyone thinks that this is the place where they need to be in. This is where the experienced traders will wait because they know that when the crowd is keen to buy and no one is skeptical then this means that a correction is most likely due.

Stockmarket moves in peaks and troughs and this is caused by optimistic and pessimistic traders at each stage. It is these views that are conflicting that prevents the market to move up in a straight line.

What Is Risk Assessment And How Can It Help You Make An Informed Investment Decision?

To know what risk assessment is and why it is done, it is first important to know what investment risk is. Investment risk is the likelihood of a loss occurring which is relative to an expected return on the same investment.

In simple words, it is a measure of the level of uncertainty of getting a return on an investment as per the investor expectations. It is basically the extent to which the unexpected result could be realized.

The risk is important and it helps to assess the investment prospects.Most of the investors when making an investment want the less amount of risk. When the risk is less the investment is seen to be more beneficial. However in reality when the risk is higher so is the return.

Risk assessment is very important in financial planning and you need to define and document what the risk is in order to get a better outcome. Knowing what the risks are will not make the future certain but instead, it will give you some amount of comfort when you see that a systematic method has been applied to help you manage your risks.

Risk assessment is explained

The risk and financial planning are basically divided into three broad headings. They are:

  • The investor’s attitude to risk – This is basically a measure of the clients understanding of the risk concepts and how it will apply to their finances.

  • The investor’s tolerance to risk – This seeks to explain how much volatility the investor is comfortable with. This is based on his past experiences and also what his future expectations are.

  • The investor’s capacity to take the risk – This is basically the client’s ability to take losses or how they would be impacted if there was a huge gain or a huge loss on their investment

The firms do a risk assessment and risk rating by using a psychometric risk tolerance test.

Risk assessment and how it helps in investments

There is a methodical approach that is followed in investing. When an investor is assessed for his risk-taking ability then he would be asked to answer some questions like if he is ready for a yearly return of say 10% yearly or a return of 30% in a year and is comfortable losing 20% in a year. Based on what the assessment score is an investor is recommended a particular asset class to save money into.

Analysing The Online Shopping Payment Mode


Shopping Customers have increasingly started using the available online options, as their mode of technology access and comfort zone is growing. To sustain in this competitive world, it has become a necessity to set up online stores allowing customers to shop quickly and securely in addition to the available physical factory.The ultimate success of your online business lies in making smart choices in the payment mode.

The moment you start receiving the credit or debit e-card from customers, you have to come across the various payment landscapes that can assist you to make payments to the organization that handles them.

A basic intro to the current payment providers

  • Merchant bank: Also known as the merchant acquirer is the entity who set you with a merchant account. Further, this connects you with your payment processor enabling to collect funds. On customer shopping, payment is processed by using an e-card and funds are debited from your customer’s account by the issuer and the last step to taking money to your account is the duty of an acquirer.
  • The Payment by Technology scheme: This includes a payment gateway connecting you to a website to the payment processor. Additionally, helping you with effectively transferring money from customer’s account via an issuer into merchant’s account.You also have the option of physically entering the card information on a virtual terminal or just wiping a card if you wish to make the payment personally. The whole process is authorized.
  • Customer’s view: This is the simplest and quick mode of electronic payment with respect to customers’ view. They can choose to shop with the credit card and step out easily.

About the payments

The journey of payment series is completely invisible to both the customers and the businesses. Once the card is keyed-into the swiping machine and the ‘buy now’is hit, it goes through many in-between stages operated by various players before they reach your account. The players also charge an amount for processing these transactions.

Know about the basic types of intermediate fees

  • Interchange fee: This is the payment fee to the issuer and it varies depending on the industry, purchase amount and even on the card-type used. This fee has calculated the sum of 2% of the volume and 0.10$ per every transaction made.
  • Assessment fee: This is the fee charged by the credit card associations and can be tallied as the sum of 10% of volume and 0.02$ per transaction.
  • Markup fee: This is the only negotiable fee charged by the merchant bank, the gateway and the payment processors. It is the sum total of 0.25% of volume and $0.10 per processing.
  • Extra fees: These are the ones charged for hardware set up, monthly usage and even include account cancellation.

In general, a better understanding of the pricing models and fees can really help you with wisely choose your payment service.


The Mechanism of Digital currencies

Before we start using any tool or technique we need to understand its mechanism. Digital currencies are fairly new and there are many questions in the minds of people about how it is useful and how it actually works etc. Though most people do not understand the mechanism of a refrigerator or a car and do not even try to understand the complicated process that a computer goes through while transmitting data, but they do not want to use the digital currencies without understanding everything as there is a huge monetary value attached to these coins.

The mechanism

This technology works using all the computers in the network, the world over. All the people together manage the transactions happening anywhere in the world. In other words, we can say that the currency is controlled by the network of people and not by any one person or country. It is completely decentralized and the network is used between two parties and yet in the open domain.

We can try to explain it further

  1. A person needs to transact and requests for the same.
  2. The need is transmitted across computer networks, each connected computer in the network is known as a node.
  3. Through algorithms, the requesting computer is validated for use.
  4. The transaction takes place and the information is recorded in every node. It will have the stamp of execution of the order, time and the monetary value in terms of the currency of the network. The currency can be Bitcoin, Ethereum or any other coin that is used by the particular network.
  5. The entire transaction is recorded as another piece of information and this increases the size of the blockchain and is again recorded in every node.
  6. The entire blockchain record is permanent and cannot be changed or erased.
  7. The transaction is completed.

The security aspects

The information about each transaction is not only recorded in the nodes of the participants, but it is recorded in the nodes across the world and each node has the same information. These pieces of data keep increasing in size and need super powerful computers for keeping so much data. The servers and nodes all follow security protocols to ensure that no one can breach and see the private details or transactions.


Once you know the working mechanism of any technique then all the doubts can be cleared easily. Once you understand then only you can trust the program and the way it works. The Bitcoin has been working successfully now for almost ten years without any major disruption due to the advanced algorithm. We can see the mechanisms improving in the coming years and making these cryptocurrencies more popular and easily accessible.

Brief information about CSR


The definition of CSR, in short, is if a particular company applies rules and regulations for the welfare of its investors and society as their duty. In the fast growing and globally competitive world companies must present them to be socially responsible and this is one of their best strategies to gain an advantage in reaching their goals. From many past decades, there was a lot of pressure on corporate companies to get involved in CSR for which most of the firms were not ready as many firms thought it as a waste of time and money. But some companies used their strategies to gain support from the public to strengthen their existence in national and global markets.

CSR involves various activities like charity, fund donations, educating children, women empowerment and doing some social contributions. CSR and financial performance are related to each other if a firm is interested in CSR and doing activities related to it form the profits gained, if the results are positive from those activities then the companies will be more interested to do activities and get profit maximization. If the social activities done by them effect negatively then they will not show any interest in CSR and adopt stable approach related to these activities.

CSR is not only related to social activities but it also focuses on stakeholders and their lifestyle improvement. As already known an act was passed by law in 2013 in which the companies with turnover more than 1000 crore should participate in CSR without fail, if they fail to do so then they will be charged according to law. Companies can implement the CSR activities according to the local conditions after seeking the approval from the CSR board of the company. Every corporate company should have CSR committee. And the role of the board in building CSR is:

  • Form CSR committee
  • Study and approve the policies of CSR
  • The board should make sure that members of CSR are implementing the rules listed
  • Make sure that 2% of net profits is pent for the purpose of social activities and wellness of stakeholders
  • If the members of CSR fail to spend so, then the committee should make an inquiry about it.
  • The committee of CSR consists of more than three directors of which one should be an independent director
  • They should recommend the activities and expenditure related to CSR
  • They should be up to date with changes done in policy from time to time.


Does stock market fluctuations affect small and medium businesses at all?

It is only ten years since the most recent depression passed over our heads and while a lot of businesses were affected because of the poor economic conditions to the extent that 60 percent of them closed shop, a lot of other business owners still thought that it was no major event for them.

I am dead sure that the small businesses that were caught unaware during the most recent recession would not have thought in their wildest dreams that they would be affected. The idea generally is that I am only a small enterprise and how can a market fluctuation affect me when I don’t even have a stake there or when I myself am so small to become listed there.

This is the mistake that most small entrepreneurs do. There is no doubt whatsoever that the fluctuations in the stock market however small have an impact on the small enterprises. It has an impact on everyone. So, while these small businesses may think that they are immune from any such changes and marker fluctuations is only kidding himself into believing something that is well nigh impossible.

No one is actually immune from fluctuations, not even individuals. With regard to the small businesses the following are the reasons why staying in business and not getting affected by market fluctuations is utopian.

  1. The entire economy works on credit:

The economy is almost entirely working on the credit system. Businesses across the industry do not want to put their own money in their enterprise. They rather borrow and raise the capital as a loan and then pay the principal along with an interest.

Say A owns a departmental store and he wants to operate it. He rushes to the bank and finds them ready to give him a loan at a stipulated rate of interest. He takes the loan and furnishes stock in the store. Similarly, we all buy gadgets even grocery with a credit card and then pay it at a later date failing which interest on the late payment also becomes due.

  1. Consumer behavior

Market fluctuations definitely affect the psyche of the common public. When the stock prices touch the sky people are seen buying things not only that they like but also the ones they like but don’t really need. When the market plummets the people start behaving cautiously and start saving money instead of buying goods.

  1. Competitions:

Small businesses sometimes do not feel so threatened by bigger enterprises in fact what they must be afraid of is competitions from other companies their own size.


The tools that are available to assess and analyze risks in an organization

Whoever said that risks can be totally eliminated has never been disillusioned ever. Risks are imminent whether we are talking about our personal lives or professional ones. It is easy to say that a life without risks would even be boring because then we would have no fun in conquering our weaknesses and proving ourselves each time.

There are a lot of tools that are devised to assess risks in management as well as the personal setting. The most popular one is called the SWOT test. The acronym stands for Strength, Weaknesses, Opportunities, and threats.

A detailed analysis of your corporate status according to the SWOT matrix can tell you a lot about your company. It is a real test but a lot depends on the way the test is approached. Because the test is a self-approached, there are chances that some of the strengths and opportunities are overbearingly given importance and the weaknesses and the threats are not properly addressed. With time and practice, the skill to assess according to the SWOT format also improves.

It is important to be realistic rather than be an escapist:

There is no point really in having a flattering SWOT analysis because it defeats the purpose of actually taking this exercise. The test is to determine not just how good the strength of the company is but also to determine its weaknesses and the threats.

Albert S Humphrey is universally believed to be the father of this test. The test is also widely used as an ice-breaking tool in any organization or meeting and is a way to warm up the members of a group. At the corporate level, this is a serious strategizing tool to assess the risks that are prevalent in a particular industry.

SWOT can also help become better than competitors:

Identifying the company’s strengths and weaknesses is a natural progression towards self-awareness and can help in eliminating competitors. It is a powerful tool to distinguish yourself from other competitors and helping you gain a foothold in the areas where they lack.

Apart from this test, there is also another test called the PEST analysis which stands for the political, economic, social and technological analysis. This is more analytical than SWOT however it has not surpassed the former in popularity.

The SWOT test is sometimes referred to as the internal-external test also because the strength and the weaknesses are more often the internal factors whereas the opportunities and threats are mostly the external ones. For this reason, the SWOT matrix is also referred to as the IE matrix.



Payment Platform And Its Business Implications

When we are associated with a business and we have taken it to the online level there are many challenges we may face every day. One important such challenge can be the way we regulate the payment dealings. Making them safe and authorized is the best way to deal in online cash transfers.

But, how do we choose the best such company which can be our secure and convenient financial partner? There are a number of financial services which are readily available as these days this feature has become very popular. We can closely take a look at the functionalities of a payment gateway and choose from it.

The considerations to choose the best payment gateway are:

  1. Encryption standards: when a customer uses your online cash transfer method, he will have to disclose his bank credentials without any problem, and your payment mode should ensure encryption of data so that this information is not breached out at any time. The first important thing to be considered is the safety of the customer.
  2. Modern or classic. You need to decide if you need a modern or classic payment gateway. The classic one requires you to have a direct merchant account but a modern one doesn’t require this method. Both are beneficial and you can choose upon your need.
  3. Speed: different options of payment gateways have different speed of operation. Some follow many steps to get the transaction complete and take up to 2 days, but some are quicker. So choose the one which best suits your business the best way
  4. Compatibility: some payment gateways require some unique technology improvement to your entire website but some may be easily compatible, choose the one which is more economical and suits your business dealings.
  5. Fraud detection and security: there is a basic check of authenticity required which is very crucial in any business contract. Go to the providers with this facility.
  6. Reporting features: getting a clear and detailed review of your transaction history when required by the merchants should be possible. A payment gateway in such manner is essential for our business to be clear in all ways.
  7. Costs and fees: a feature which suits our business well and also doesn’t involve huge fees and costs can be considered a very effective and helpful one. And most importantly they should have a free set up options and complete trial run facility so that we can be assured of an easy service throughout the use of such systems.

The above guidelines can be very easy to follow and to be kept in mind while choosing the best payment gateway as required by you.