Monday, November 29, 2010

Question & Answers on Finance.

Re: How the BSE Sensex & Nifty Index Calculate & on wht basis?


Sensex is calculated based on free float market capitalization method

Market cap= total no.of shares*share price

Free float market cap= Market cap of all the openly traded shares

Free float market cap= Market cap * proportion of the shares freely traded

Once the free float market cap of all the 30 stocks is calculated, it should be summed up and the value of sensed can be calculated based on the sensex base

Thus the value of sensex is obtained
     Whats Dollex 30?


DOLLEX-30 is the dollar version of BSE Sensex, the
benchmark index of equity markets in India. Similar to
Sensex, the base year for the DOLLEX-30 is fixed as 1978-79
and base value at 100 points. BSE has computed historical
index values of DOLLEX-30 since 1979. The scope for DOLLEX-
30 emerged from the background of Indian equity markets
increasingly getting integrated with global capital markets
and the need to assess the market movements in terms of
international benchmarks. While Sensex reflects growth in
market value of constituent stocks over the base period in
rupee terms, the DOLLEX-30 would reflect the changes in
both the stock prices as well as currency values. DOLLEX-30
could be found useful by foreign investors to enable them
to measure the equity returns in real terms both in respect
of domestic and international currencies. DOLLEX-30 is the
second dollar denominated index designed by the BSE. In
1994 BSE had launched DOLLEX-200, a dollar version of BSE-
200 Index.
 Types of Merging?


group merging
orderwise merging
higherarchial merging
 



 
Types of Merging?


vertical merger
Horizontal merger
Conglomerate merger
 
What is Bonus Dividends?


A non-recurring distribution of company assets,usually in the form of cash, to shareholders which is of unusually large size or different date of issue compared to normal dividends paid out by the given company. Also referred to as a "special dividend".
 


 
What is Bonus Dividends?


If the companey reserves gradually incresing, the directores Decided to issuig a bonus by a dividend nothing but a Reserves and surplus
 
 What are mutual funds and what are the best funds to buy at this time. Why??


mutual funds means pooling of investments from small
investors and investing un stock exchange is called mutual funds.The best fund to buy at this is the funds which gives low risk and high return
 
Types of Lease?

There are 2 types:
1. Operating lease
  In this type you only get to use the asset for a
particular period of time, after that you have to return the asset. this type is preferred when  the asset we hire has a high degree of obsolescence.
2. Financial lease
 In this type you get  to use the asset for a
particular period of time and at the end of the period you become the owner of that asset. the lease charge is
substantially higher as it includes the principal value
along with the usage charges.
 
 On what basis we take 30 scrips in BSE Index For calculating BSE sensex Index ???


Based on high market cap of that particular industry.
 


 
On what basis we take 30 scrips in BSE Index For calculating BSE sensex Index ???


On the basis of value of market capitalisation of the
company
 
What is NP?


It is Net Profit.From Gross Profit deduction are to be made for indirect expenses. than we can derive the np
 
nikkie stock exchange belongs to which country


japan stock exchange
 
   What is GDR?


global depositary receipt.
 
What is the difference between debt and equity?


debt means an amount borrowed by the company and need to be repaid. equity investments are brought in by the investors who like to share the ownership.
 
 What is the difference between debt and equity?


debt and equity bith are types of borrowings that companies make from general public.
Debt holders are like money lenders, companies are obliged to pay back the money to debt holders even if its making loses. They are the first ones who are paid back money even before equity holders.
Equity holders on the other hand are the owners of a
company. They dont just share profits but also loses that a company make.

 What do you know about the historical background of Development Financial     Institutions   (DFIs)?


A Community Development Financial Institution, or CDFI, is
a unique entity established to provide credit, financial
services, and other services to underserved markets or
populations. Under the general definition of a community
development financial institution as set forth by the
Community Development Financial Institutions Fund at the
U.S. Department of the Treasury, a CDFI has a primary
mission of community development, serves a target market,
is a financing entity, also provides development services,
remains accountable to its community, and is a
nongovernment entity.

 Which is the Biggest Stock Exchange in India?

NSE (National Stock Exchange)
 
 Which is the Biggest Stock Exchange in India?

National Stock Exchange of India(NSE
 what are the first 30 companies in bse and what r the first 50 companies in nse

NAME OF BSE 30 COMPANIES
 
ACC, BHARTI AIRTEL, BHEL, DLF, GRASIM, HDFC, HDFC BANK, 
HINDALCO, HUL, ICICI BANK, INFOSYS, ITC, JAIPRAKASH 
ASSOCIATES, L&T, MAHINDRA & MAHINDRA, MARUTI SUZUKI, ONGC, 
NTPC, RANABAXY LAB, RELIENCE, RELIENCE COMM, RELIENCE 
INFRASTRUCTURE, SATYAM, SBI, STERLITE INDUSTRY, TATA 
MOTORS, TATA POWER, TATA STEEL. TCS, WIPRO.
 
NAME OF NSE 50 COMPANIES
 
RELIANCE INDUSTRIES LTD., OIL AND NATURAL GAS CORPORATION 
LTD., BHARTI AIRTEL LIMITED, NTPC LTD, RELIANCE 
COMMUNICATIONS LTD., ICICI BANK LTD., INFOSYS TECHNOLOGIES 
LTD., TATA CONSULTANCY SERVICES LTD,BHEL, STATE BANK OF 
INDIA, STEEL AUTHORITY OF INDIA, LARSEN & TOUBRO LTD., HERO 
HONDA MOTORS LTD, ZEE ENTERTAINMENT LTD, INDIAN 
PETROCHEMICALS CORPORATION LTD., CIPLA LTD, BHARAT 
PETROLEUM CORPORATION LTD., VIDESH SANCHAR NIGAM LTD, DR. 
REDDY'S LABORATORIES, MAHANAGAR TELEPHONE NIGAM LTD, 
GLAXOSMITHKLINE PHARMA LTD., ABB LTD. ,POWER GRID 
CORPORATION OF INDIA, RELIANCE ENERGY LTD,SIEMENS LTD,ACC 
LIMITED,AMBUJA CEMENTS LTD,HCL TECHNOLOGIES LTD,HINDALCO 
INDUSTRIES LTD,NATIONAL ALUMINIUM CO LTD,SUN 
PHARMACEUTICALS IND.,MAHINDRA & MAHINDRA LTD,TATA POWER CO 
LTD,PUNJAB NATIONAL BANK,RANBAXY LABS LTD,ITC LTD,RELIANCE 
PETROLEUM LTD.,HDFC LTD,WIPRO LTD,STERLITE INDUSTRIES 
LTD.,HDFC BANK LTD,TATA STEEL LIMITED,HINDUSTAN UNILEVER 
LTD.,SUZLON ENERGY LIMITED,GAIL (INDIA) LTD,GRASIM 
INDUSTRIES LTD,SATYAM COMPUTER SERVICES,TATA MOTORS 
LIMITED,MARUTI UDYOG LIMITED
 
what is the difference between debenture and preference share

Preference share holders have the highest preference of 
getting their investment bank when the company goes 
bankrupt. The company has fulfill its obligation by selling 
its assets. Here the preference first comes to preference 
share holders and then debenture holders and then equity 
holders.
 


 
what is the difference between debenture and preference share

preference shares has minimum risk where as equity has more 
risk. Another difference is that equity shareholder have 
right to participate & vice versa
 

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