Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

When Delhi-based Shyam Sundar was hospitalised this year, his wife received several calls from the relationship manager of his <keyword id="45252" type="POSITION" weightage="40" keywordseo="stock-broker">stock broker</keyword>. He wasn’t calling to ask how her husband was doing, but for permission to transact in the futures and options (F&amp;O) segment on Sundar’s behalf. Though she told him to wait till her husband had recovered, the relationship manager went ahead and executed the transactions. When Sundar got home from hospital, he discovered that the unauthorised transactions had led to a loss for him. 
 This horror story has a somewhat happy ending. Sundar complained to the broking house, but they claimed he had authorised the transactions. An adamant Sundar demanded proof and threatened to complain to the Securities and Exchange Board of India (<keyword id="35210" type="ORGANIZATION" weightage="40" keywordseo="sebi">Sebi</keyword>). That’s when the broking house gave in and made good the loss he had incurred due to the rogue deals. 
 Sundar won because he had an airtight case. The <keyword id="49221" type="POSITION" weightage="80" keywordseo="Broker">broker</keyword> had no evidence that the deals had been authorised. Sebi rules make it mandatory for brokers to maintain records of telephone calls with clients. However, not all investors are so lucky. Brokers manage to get away by exploiting loopholes in the law. They are able to do so because few investors are aware of the rules or their rights. In our cover story this week, we look at the tricks that brokers deploy to take investors for a ride, and how you can avoid falling into these traps. 
 
DON’T SIGN AWAY YOUR RIGHTS 
 
The first pitfall comes at the time of opening a trading account with a broker. You are given a lengthy application form and a voluminous agreement booklet with clauses in small print. Very few investors have the patience to go through the fine print or the ability to decipher the legalese. The relationship manager helpfully puts crosses at the places you need to sign on the agreement. Do so without reading the clauses and you could be headed for disaster. 
 
What should you do? 
 Take time to go through the form and the agreement. In particular, pay attention to the power of <keyword id="46551" type="POSITION" weightage="40" keywordseo="attorney">attorney</keyword> (PoA) section. The PoA allows the broker to transact on your behalf. When you sign on the dotted line on the PoA pages, you basically sign your rights away. In 2010, Sebi issued new guidelines for PoA to intermediaries following large-scale complaints of misuse. 
 These new rules curtailed some of the actions that a broker could take on your behalf. Even so, a broker can transfer shares sold by you to the stock exchange, pledge <keyword id="6354298" type="ORGANIZATION" weightage="40" keywordseo="stocks">stocks</keyword> to meet your margin requirements, and apply for <keyword id="6357979" type="ORGANIZATION" weightage="40" keywordseo="mutual-funds">mutual funds</keyword>, IPOs, rights, and offer of shares based on your instructions. He can also transfer funds from your bank account for your settlement obligations and margin requirements, as well as recover dues of your trading activity or other charges. 
 Some investors blindly sign on the form with a brokerage firm and give PoA for moving funds from their bank accounts, whenever required. They do so because it is very convenient. When they place orders on phone, the money automatically moves from their <keyword id="25450" type="UNKNOWN" weightage="40" keywordseo="savings">savings</keyword> accounts to their trading accounts. However, this convenience can cost them dearly if their brokerage firm executes unauthorised trades from their accounts. Ideally, the investor should transfer money from his savings account to the brokerage account whenever needed. 
 
The broker cannot execute trades without the client’s consent or transfer funds from his bank account to conduct transactions with another broker. He cannot also transfer stocks for offmarket trades or merge the balance from other accounts to nullify debit in any other trading account. 
 
DON’T CHURN AND BURN 
 
Once you sign up as a customer, the stock broker will start bombarding you with phone calls, stock recommendations and SMSes, all of which will urge you to buy this stock or sell that one. The tempo rises when the markets are on the upswing. “If you don’t buy now, you could miss out on a multi-bagger opportunity,” your broker will tell you. 
 
<div style="page-break-after: always;">
	&#xa0;</div>
Before you fall for the bait, remember that the broker makes money every time you transact. His goal is to get you to buy and sell at a furious pace. When you do so too often, it’s certain that your costs will go up. What is not so certain is whether you will make profits. However, your broker may not care. Whether you make or lose money, he will earn his brokerage fee. 
 
What should you do? 
 When you buy a mutual fund, your money is invested across a basket of well-chosen stocks. You can be sure the <keyword id="109711" type="POSITION" weightage="40" keywordseo="Fund-manager">fund manager</keyword> and his team have researched the stocks threadbare before including them in the portfolio. Investing on the basis of tips from your broker is a different ball game. The risk is considerably higher and avoidable. Do not blindly accept the broker’s recommendations. Instead, for each suggestion, conduct your own checks. Are the company’s fundamentals sound? Is the valuation attractive? 
 
Similarly, when the broker recommends a sale, find out whether the company’s fundamentals have been irreparably damaged. Or has the stock become over-valued? Don’t let your broker force you to take buy and sell decisions. 
 It’s often said that if your stock portfolio can beat a mutual fund or the broader market, you are in the wrong profession. Check the returns from your stock investment. “If, after a year or so, you find that your direct investment portfolio has underperformed a broader index, such as the <keyword id="6484188" type="CITY" weightage="40" keywordseo="Sensex">Sensex</keyword> or the <keyword id="6354813" type="COMPANY" weightage="40" keywordseo="nifty">Nifty</keyword>, quit direct investing and put your money in actively managed funds or low-cost index funds,” suggests Vishal Dhawan, head of Mumbaibased <keyword id="25456" type="ORGANIZATION" weightage="40" keywordseo="financial-planning">financial planning</keyword> firm <keyword id="1978973" type="COMPANY" weightage="40" keywordseo="Plan-Ahead-Wealth">Plan Ahead Wealth</keyword> Advisors. 
 
DON’T BE LURED INTO THE F&amp;O TRAP 
 <keyword id="6358963" type="PERSON" weightage="40" keywordseo="Warren-Buffett">Warren Buffett</keyword> calls them the financial weapons of mass destruction. Though derivatives have their uses, these leveraged instruments can become very dangerous in the hands of retail investors. Still, the F&amp;O segment has a very high retail participation. This is also the area where the maximum cases of unauthorised trading take place. 
 
It’s easy to lure clients into this financial equivalent of a minefield. Relationship managers of brokerage houses tell stories of how they have made fabulous sums of money for clients by trading in F&amp;O. Customers often give consent to the relationship manager to trade on their behalf. More often than not, losses follow and the customer is left holding the can. 
 
What should you do? 
 
Derivatives are essentially meant for hedging and should have no place in the small investor’s portfolio. Nip the problem in the bud and don’t opt for trading in the derivative segment when you fill up the account opening form. Says Kunal Pawaskar, head of Capital Orbit, a Mumbai-based investor education firm: “Novice investors who don’t understand derivatives should not opt for this segment at all.” 
 
If you have already signed up for investing in the F&amp;O segment, avoid the temptation to trade in it. While you can indeed make lots of money in this space, you can also incur steep losses. Don’t get swayed by the relationship manager’s promises to earn big money. Under no circumstance should you give him the authorisation to trade in F&amp;Os on your behalf. Keep a close eye on all the SMSes and e-mails from your broker (alerts to customers after every transaction have become mandatory). 
 
Besides the brokerage commissions, another source from which brokers make money is by getting you to engage in margin trading. Under this arrangement, the broker lends you money to trade against the stocks lying in your account. Like F&amp;O, margin trading is also a leveraged position and should be avoided by retail investors. If the stock drops, you lose on two counts: on the value and the interest that you will have to pay. 
 
<div style="page-break-after: always;">
	&#xa0;</div>
DON’T BELIEVE ALL BROKERAGE REPORTS 
 Brokerage houses regularly come out with reports on stocks. Before you base your decision on these reports, keep in mind that the <keyword id="6354241" type="COMPANY" weightage="40" keywordseo="Financial-Services">financial services</keyword> industry is facing a crunch. With commission rates on the decline, most brokerage firms are not making much money from this source. The larger slice of their earnings comes from <keyword id="48051" type="ORGANIZATION" weightage="40" keywordseo="investment-banking">investment banking</keyword>: helping companies raise capital through public issues of shares and bonds. A firm that wants to get the investment banking mandate from a company would hardly issue a negative report on it. Not surprisingly, the number of ‘buy’ reports exceeds ‘sell’ reports. 
 
What should you do? 
 
Should you then rely on brokerage house reports? Yes, but with a few caveats. Gathering information on a company is difficult. You may read its annual reports and track reports on it in the business media. Nonetheless, you may miss out on crucial information because the management only reveals such information to analysts. 
 
Read brokerage reports, but not from just one brokerage house. See what different analysts have to say about a company’s fundamentals. When it comes to assessment of forward earnings, valuation and target price, make your own judgement. 
 
Dhawan says one should not consider only the firm’s growth prospects highlighted in the report. “Pay equal attention to the risk factors,” he adds. Many reports also carry a history of past recommendations. See how you would have fared if you had acted upon them. 
 
Do not blindly follow the broking house’s buy and sell calls. In fact, if you decide to be a buyand-hold investor, who holds stocks for at least three years, you will cut out much of the noise that emanates from brokerages. 
 <keyword id="109296" type="POSITION" weightage="40" keywordseo="Investment-Analyst">Investment analyst</keyword> R Balakrishnan says your only chance of getting unbiased reports is from independent research firms that make their money by selling their research reports and don’t have investment banking arms. 
 
“There are very few such firms because research is costly and most investors are reluctant to pay for it,” he adds. Canadabased Veritas is one example of an independent research firm. 
 
ENSURE TRADING AND BROKING ARE SEPARATE 
 
Brokerage houses employ traders, who use the firm’s capital to trade in the stock markets. This is called proprietary trading. Firms also trade on their clients’ behalf. Typically, brokerage firms are required to maintain separate books for their proprietary trades and the ones they conduct on their clients’ behalf. Sometimes, however, the firewall breaks down. Traders use clients’ money to trade. When they sustain losses, not only does their firm suffer, but the clients, who never authorised these trades, also take a hit. 
 
What should you do? 
 
You may make enquiries at the brokerage house. In all likelihood, the firm will fob you off with replies to the effect that the separation of proprietary trading and client trading is treated as sacrosanct at their firm. 
 
A better way of avoiding falling prey to this misuse is not to keep excess money in your brokerage account. Transfer money from your savings account to your brokerage account just before a purchase. If you have sold stocks and don’t intend to use the money to buy another set, don’t leave the money lying in the account. Have it transferred to your savings account. 
 
<div style="page-break-after: always;">
	&#xa0;</div>
Guarding against misuse of your trading account 
 
Step 1: You place order to buy or sell stocks. 
 
Step 2: Order executed. 
 
Step 3: Stocks or cash credited to trading account. (Could be misused by broker for unauthorised trading.) 
 
Step 4: Transfer from trading account to demat or bank account. 
 
How to seek redressal 
 Stock exchanges offer a grievance redressal mechanism. An Investment Protection Committee looks into complaints from investors, and if the charges are proved correct, investors are reimbursed from an <keyword id="1975059" type="UNKNOWN" weightage="40" keywordseo="Investment-Protection-Fund">Investment Protection Fund</keyword>. There may also be disgorging of profits. 
 
However, you need to be aware of a few things. “Investors often lose out because ignorance is not really protected under the law. If you have signed off your rights, and subsequently get cheated, you may not get protection. Only if you can establish that there has been a fraud or malpractice will you get protection,” says Uma Shashikant, managing director, Centre for Investment Education and Learning. 
 
Find out who the grievance redressal authority at the stock exchange is. Meet the person and explain your case. Submit all the documentary evidence you have. If he thinks that prima facie there is a case, he will admit it. 
 
On the flip side, the adjudication and grievance redressal process can be long drawn. If the stock exchange does not give you redressal, you can escalate the matter to Sebi. 
 
Do you have a complaint against a broker? 
 
Visit Sebi’s Scores (Sebi Complaints Redress System) website to file your complaint online. 
 
1) Apprise your broker of your grievance. 
 
2) If the response is not satisfactory, tell him you will complain to Sebi. 
 
3) The Sebi threat usually works. If he doesn’t agree, lodge a complaint online on the Scores at www. scores.gov.in. 
 
4) Scan the relevant documents and upload them on this website. 
 
5) Sebi forwards your complaint to the concerned brokerage firm. 
 
6) The firm must reply to your complaint within 30 days. 
 
7) You can track the progress on your complaint on the website (click on ‘View Complaint Status’ button on the main page). 
 8) If the brokerage firm does not reply to your complaint within 30 days, the matter gets passed on to a <keyword id="1978974" type="POSITION" weightage="40" keywordseo="dealing-officer">dealing officer</keyword> at Sebi. 
 
9) Scores also has a helpline: 18002667575.

Is your stock broker cheating you? Here's how you can avoid being duped

The numbers on the screens of the <keyword id="45476" type="PERSON" weightage="20" keywordseo="Brokers">brokers</keyword> seem confusing. But don't worry! If you have planned to invest in the <keyword id="6357440" type="ENTERTAINMENT" weightage="20" keywordseo="stock-market">stock market</keyword>, here are a few tips that you must remember before pouring in your hard earned money. 
	 
	Make small investments 
	 
	Don’t go for the bull’s eye in the beginning. It is always better to invest smaller quantum of money in the stock market in order to keep the offsets minimal. Make tiny investments and learn the tricks of the trade rather than investing a huge amount and risk losing it all. 
	 
	Invest the excesses 
	 
	It’s wise to invest your additional wealth in the stock market rather than disrupting your budgets. If the stocks don’t do well, at least you won’t be in a complete loss. 
	 
	Take second opinions 
	 
	Don’t rely on only one broker for your stock market investments. Talk to other brokers and existing investors to better understand your options. Do you research well and then invest. 
	 
	Diversify the portfolio 
	 Its always wise to invest in different kind of stocks as it provides a cushion to any kind of losses. For instance, if you have bought stocks of both infrastructure and <keyword id="34523" type="CITY" weightage="20" keywordseo="fmcg">FMCG</keyword> companies and one of them is not doing well, you at least have the other to bank on. 
	 
	Invest for long term 
	 
	Stock markets are unpredictable and hence you cannot preplan. Always invest for the long run as every stock generally follows a pattern.

Investor guide: These simple
tips will help a first time investor make better decisions in the stock market

New Delhi, Mar 30 () Markets regulator Sebi on Monday cancelled the registration of Crecer Financial Services as a stock broker for violating brokers' regulations. The regulator started investigation on the basis of the complaints received by the Reserve Bank of India, the NSE and the BSE stating that the broker was indulged in unauthorised acceptance of public deposits by promising to provide returns of 18-24 per cent per annum by investing in the some funds and the company was not registered with the RBI as a non-banking financial company. The National Stock Exchange (NSE) in 2017 informed that on account of non-receipt of admission fee from the Crecer Financial, its membership rights on capital markets, futures and options and currency derivatives segments were revoked on September 1, 2015. The BSE informed that Crecer Financial was not traceable at its registered office and correspondence office addresses as available with the exchange along with its directors and it could not be ascertained whether the broker was raising funds from investors and promising assured returns to them. Pursuant to the investigation, Sebi found that Crecer Financial failed to maintain the requisite standards to be maintained as a stock broker stipulated in the brokers regulations. Also, it had failed to provide any explanation with regard to the serious wrongdoing of collection of deposits from the public and failed to adhere to the principles of the code of conduct prescribed under the brokers' norms, which raised serious issues of probity, diligence, reputation and character of the member as a stock broker, it added. Accordingly, the regulator directed that the membership right of Crecer Financial be withdrawn with immediate effect. Thus, the broker ceased to be a member of the BSE from February 19, 2018. Sebi in its order stated that the acts and conduct of Crecer Financial and its directors have clearly rendered the broker to be not a 'fit and proper person'. By doing so, it has violated the stock broker regulation and is liable for the cancellation of its stock broking registration, it said in an order. In a separate order on Monday, Sebi has imposed a penalty of Rs 11 lakh on Adarsh Credit Co-operative Society Ltd for indulging in fraudulent trading in illiquid stock options on the BSE. After observing large-scale reversal of trades in the illiquid stock options segment of the BSE, the Securities and Exchange Board of India (Sebi) conducted a probe in the segment between April 2014 and September 2015. By indulging in such activities, it has violated the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, the regulator said. AST SP HRS

Sebi cancels registration of Crecer Financial Services as stock broker

New Delhi, Dec 9 () The National Stock Exchange on Monday advised investors to be careful while executing Power of Attorney (PoA) with stock brokers and specify all the rights that brokers can exercise on their behalf.
 The latest communication comes against the backdrop of Karvy Stock Broking Ltd unauthorisedly transferring securities worth Rs 2,300 crore of more than 95,000 clients, into its account, by misusing the PoA given by its clients.
 On November 22, Sebi barred Karvy from taking new clients in respect of its stock broking activities and also prevented it from using the PoA given by clients after the broker was found to have allegedly misused clients' securities.
 The leading bourse has asked investors "to be careful while executing the PoA (Power of Attorney) - specify all the rights that the stock broker can exercise and time frame for which PoA is valid".
 Further, investors have been asked to register for online applications provided by depositories for online delivery of securities as an alternative to PoA.
 PoA is not a mandatory requirement as per markets regulator Sebi or the exchanges, it noted.
 According to the NSE, investors need to ensure that contract notes are received within 24 hours of trades and statement of account at least once in a quarter from the brokers.
 Cautioning investors against keeping funds and securities idle with a broker, the exchange said securities provided by them towards margin should not be permitted to be pledged by the brokers for raising funds.
 "If investors have opted for running account, please ensure that the stock broker settles your account regularly and in any case not later than 90 days (or 30 days if you have opted for 30 days settlement)," the bourse said.
 Also, investors have been asked to regularly login into their accounts to verify balances and demat statements received from depositories as well as check messages sent by bourses on a monthly basis regarding funds and securities balances reported by the trading member.
 In case of any discrepancy, investors have to immediately raise concerns about the same, the bourse said.
 Further, investors have to keep contact details -- mobile number and e-mail id --- updated with the broker and take up the matter with broker or exchanges in case they do not receive messages regularly from exchanges or depositories, it added. SP RAM

Be careful in executing PoA with stock brokers: NSE tells investors

New Delhi, Jan 14 () Markets regulator Sebi has cancelled the registration of Click2Trade Capital as it "grossly" failed in performing its duties as a stock broker and made serious lapses in maintaining infrastructure and did not redress investor grievances.
 The regulator, which initiated enquiry proceedings against Click2Trade in respect of alleged violation of stock brokers norms, found that the entity failed to segregate its own transactions from that of its clients, reported incorrect margin and used client bank accounts for other than specified purposes.
 "The noticee (Click2Trade) grossly failed in performing its duties as a registered stock broker and failed to comply with the conditions of certificate of registration. It was also observed that by making serious lapses in maintaining infrastructure and by failing to redress the investor grievances, the noticee has acted against the integrity of the securities market," the regulator said in an order passed on Monday.
 Further, the Securities and Exchange Board of India (Sebi) noted that Click2Trade has been declared a defaulter and expelled from the memberships of BSE, National Stock Exchange and Metropolitan Stock Exchange and hence, does not satisfy the condition of registration under the broker regulation.
 Accordingly, the regulator said, "the certificates of registration of the noticee i.e. Click2Trade Capital Ltd, as a stock broker, shall be cancelled with immediate effect". SP
RVK

Sebi cancels registration of stock broker Click2Trade Capital

New Delhi, Mar 25 () Stock brokers and other personnel related to capital markets continued to face difficulties in commuting to their workplaces on Wednesday amid a 21-day nationwide lockdown to contain the spread of coronavirus outbreak. This comes despite Sebi's last evening notification that stock brokers and other capitals, debt market related entities will be exempted from such closures. Stock brokers association Anmi and Commodity market Participants Association of India (CPAI) on Wednesday said brokers are still facing problem while commuting to their respective offices as police are not allowing any movement. Further, Anmi has said it is receiving request to suspend broking services and it will take up the matter with Sebi. CPAI has requested the regulator to curtail trading hours. Prime Minister Narendra Modi on Tuesday announced a 21-day nationwide lockdown as part of efforts to curb spreading of coronavirus infections. However, the government has said that capital market and debt market entities notified by Sebi will be exempted from such closure. Anmi President Vijay Bhushan said the law enforcement agencies at grass-root level are still not sensitised about such a directive. This has lead to several instances of manhandling the staff of broking firms to travel to/from offices. "We have also received several requests to suspend broking services on humanitarian grounds considering the growing instances of spreading COVID-19. We will be taking up these concerns with Sebi today," he added. Narinder Wadhwa, President, CPAI said that brokerage companies and staff are facing huge difficulties to reach their offices as police not allowing any movement. "These are exceptional and unprecedented circumstances when the regulators need to take into consideration the safety of the people engaged in these services and their families and take bold unprecedented steps to at least curtail times of market,"he added. CPAI, in a letter written to Sebi on March 23, urged the regulator to close down all exchanges' operations till March 31, in case broking services cannot be classified as essentials by all the state governments. Besides, Association of National Exchanges Members of India (Anmi) had also requested Sebi to close stock exchanges for at least two days, which will give brokerage firms time to close their entire outstanding positions, in case all states do not declare stock broking as an essential service. SP DRRDRR

Lockdowns: Stock brokers continue to face problems to reach offices

New Delhi, Feb 28 () Regulator Sebi on Friday cancelled the registration of stock broker Royal International Shares Pvt Ltd for violating broker regulations. The Securities and Exchange Board of India noted that the broker failed to fulfil the eligibility criteria to be a member of the NSE on account of vacant position of one designated director and did not cooperate in the inspection carried out by the regulator and the NSE. In addition, the broker failed to submit net worth certificates and audited annual accounts to the BSE for the period ended March 31, 2013 and also failed to take adequate steps to redress the grievances of investors within the stipulated time. Sebi noted that the BSE and NSE have taken action against the broker and have also declared the broker a defaulter with effect from April 2017. "The Noticee has violated the rules, regulations and bye-laws of the stock exchanges, failed to take adequate steps for redressal of investor grievances, and failed to abide by the code of conduct prescribed under Schedule II of the Broker Regulations...the Noticee has failed to abide by the provisions of securities laws and thereby failed to meet the conditions of the certificate of registration prescribed under the Intermediaries Regulations," Sebi said. SRS SHWSHW

Sebi cancels registration of stock broker Royal International Shares

<div class="image-container float_right" style="width:403px"><div class="image"></div><a href="http://www.flickr.com/photos/marchnwe/119793080/in/photostream/">Flickr via marchnwe</a></div>Professional wealth managers have long been criticized for charging <a href="http://www.businessinsider.com/terry-odean-on-stock-picking-2012-12" target="_blank">more than their services are actually worth</a>.
But getting routed by an animal that spends 20 hours a day either asleep or scratching itself is a new low. 
In a recent <a href="http://www.guardian.co.uk/money/2013/jan/13/investments-stock-picking" target="_blank">stock-picking challenge</a>, the UK Observer pitted a trio of investment managers against two groups of amateurs: a handful of high school students, and a house cat named Orlando. 
The cat won. 
Each team started the year with £5,000 in capital to invest in five companies from the FTSE All-Share index. After each quarter, they could swap out whatever <keyword id="6354298" type="ORGANIZATION" weightage="60" keywordseo="stocks">stocks</keyword> they chose, if any.
While the two-legged participants picked stocks the old-fashioned way, Orlando chose by tossing a toy mouse onto a grid of numbers that designated different companies. 
Things were looking up for the pros by September, when they showed a profit of £497 compared to the cat's £292.
But Orlando really turned up the heat in the last quarter of 2012, increasing his profit to an impressive £5,542.60 and beating the professionals by £366. The students fell in third place. 
Here was the cat's winning strategy, per the Observer: 
"All but one of Orlando's stocks (Morrisons) rose during the last three months of the year, including specialist plastics and foam company Filtrona, which Orlando had hastily swapped for under-performing Scottish American Investment Trust in September.
By contrast, the professionals refused to swap any stocks at the end of the third quarter and paid the price. British Gas fell by 19% and Imagination Technologies dropped by 16.8%, dragging their portfolio down by an average 7.1%."
This isn't the first time professionals have been beaten by "lesser than" competitors. In <a href="http://www.businessinsider.com/terry-odean-on-stock-picking-2012-12" target="_blank">a study by UC Berkeley's Terry Odean</a>, he found stocks that professional fund managers sold off actually performed 3.2 percent better annually than the ones they purchased for their clients. Taking into consideration the average 3 percent fund managers charge clients in fees, it's a pretty significant finding.
The cat's victory ought to make Economist Burton Malkiel smile, too. It was in his controversial book <a href="http://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393315290">"A Random Walk Down Wall Street,"</a> that he claimed a "blindfolded monkey" could put together an investment portfolio better than a paid professional.
See Also: <a href="http://www.businessinsider.com/10-common-investing-mistakes-2012-12">10 mistakes that turn investors into their own worst enemy &gt;</a>

This Cat Can Pick Stocks Better Than Most Investment Managers

<a href="https://markets.businessinsider.com/stocks/ibkr-stock"></a><ul class="summary-list"><li><keyword id="341581" type="COMPANY" weightage="60" keywordseo="Interactive-Brokers">Interactive Brokers</keyword> CEO Thomas Peterffy says his company will offer <keyword id="2721952" type="PERSON" weightage="60" keywordseo="crypto">crypto</keyword> trading by the end of summer.</li><li>Interactive Brokers saw its revenue jump 67.9% year-over-year to $893 million in the first quarter.</li><li>The company is now set to compete with <keyword id="1972612" type="PERSON" weightage="60" keywordseo="Coinbase">Coinbase</keyword> Global, Binance, and others for a slice of crypto trading market share.</li></ul><a href="https://markets.businessinsider.com/stocks/ibkr-stock">Interactive Brokers</a> CEO Thomas Peterffy said his company will offer cryptocurrency trading by the end of the summer on Wednesday.Speaking at Piper Sandler's Global Exchange &amp; FinTech Conference, Peterffy said, "customers certainly are asking for [crypto trading] and we expect to be ready to offer it to them by the end of the summer," CNBC <a href="https://www.cnbc.com/2021/06/09/interactive-brokers-will-offer-crypto-trading-by-the-end-of-the-summer.html">reported</a>.Peterffy said that the greatest hurdle his company will face in starting cryptocurrency trading is keeping customers "100% safe.""As for hurdles, the greatest hurdle is how do you keep you customers 100% safe. How do you make it 100% sure that no one will steal their coins in spite of the fact that they are untraceable? We will find out more about this when we open for business at the end of the summer," the CEO said.As of the end of May, <a href="https://www.businessinsider.com/personal-finance/interactive-brokers-review">Interactive Brokers</a> had 1.39 million client accounts and $348.3 billion in client equity.In the first quarter, the American multinational brokerage saw its revenue jump 67.9% year-over-year to $893 million.<a href="https://markets.businessinsider.com/stocks/coin-stock?utm_source=markets&amp;utm_medium=ingestgest">Coinbase Global</a> and Binance, the two <a href="https://coinmarketcap.com/rankings/exchanges/">largest crypto exchanges in the world</a> by volume, will be Interactive Brokers' main competition in the crypto trading space.Raymond James analyst Patrick O'Shaughnessy recently tagged Coinbase with an "underperform" rating arguing the company lacks a moat to protect from competition."Over and over again history has shown that brokerages and exchanges see excess profits competed away unless there is a structural barrier to entry," O'Shaughnessy wrote in a note to clients.Now, the analyst's predictions may be coming to fruition as companies like Interactive Brokers begin to enter the crypto <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword>.

Interactive Brokers will offer cryptocurrency trading by the end of the summer, report says

New Delhi, Mar 17 () Market regulator Sebi on Tuesday imposed a penalty of Rs 15 lakh on MBL &amp; Company Ltd for indulging in fraudulent trading in the scrip of Gujarat NRE Coke and violating stock broker norms.The regulator conducted an investigation between December 2011 and October 2014 and found that MBL was indulged in self trades."The trading pattern adopted by MBL is of a manipulative and unfair nature with the intention to inflate the scrip price, which had mislead the investor in taking an informed decision while dealing in the scrip of Gujarat NRE Coke," Sebi said.By doing so, the noticee has violated the PFUTP (Fraudulent and Unfair Trade Practices) Regulations.Sebi also said that MBL in its capacity of a stock broker failed to exercise necessary skill, care and due diligence while trading in the scrip of Gujarat Coke, and hence violated stock broker norms.Accordingly, the Securities and Exchange Board of India (Sebi) has levied the fine of Rs 15 lakh on the broker. AST SP MKJ

Sebi fines Rs 15 lakh on MBL & Company for fraudulent trade, stock broker norms violation

<a href="https://www.businessinsider.com/masteryourmoney"></a><div type="image" title="Above angle view of a young man using a trading app." height="1250" width="2500" msid="84869695" hostid="261"></div><ul class="summary-list"><li>In the world of investing, a <keyword id="49221" type="POSITION" weightage="60" keywordseo="Broker">broker</keyword> is a company or individual that acts as an intermediary between you and a securities exchange.</li><li>There are three main types of investment brokers: full-service brokers, online brokers, and robo-advisors.</li><li>Beyond investing, brokers are used in other industries, including real estate and insurance.</li></ul>In the broadest sense, a broker is a licensed mediator between a buyer and a seller. Broker services are used across a range of industries, including real estate, insurance, and of course, investing. Investment brokers, or stockbrokers, act as an intermediary between investors and <a href="https://www.businessinsider.com/stock-exchange" target="_blank" rel="noopener">security exchanges</a>, or marketplaces where <a href="https://www.businessinsider.com/what-is-stock" target="_blank" rel="noopener">stocks</a> are bought and sold. Historically, investment brokers held the keys to Wall Street and were the only way for everyday individuals to buy and sell stocks. But with the rise of discount brokers, the need for brokers by <a href="https://www.nasdaq.com/articles/the-death-of-a-stockbroker-2019-10-07" target="_blank" rel="nofollow noopener sponsored">their traditional definition have declined</a>. Here's what you need to know about the investment <keyword id="54273" type="ORGANIZATION" weightage="60" keywordseo="Brokerage">brokerage</keyword> industry, and how online brokers have changed the landscape of investing as we know it.<h2>Understanding brokers</h2>A stockbroker is a type of broker that allows you to buy and sell stocks, bonds, and other securities. When you choose a broker, you open a <a href="https://www.businessinsider.com/what-is-a-brokerage-account" target="_blank" rel="noopener">brokerage account</a>, which is a fundamental step to becoming an investor. Securities are bought and sold on stock exchanges, like the <a href="https://www.businessinsider.com/new-york-stock-exchange" target="_blank" rel="noopener">New York Stock Exchange </a>and <a href="https://www.businessinsider.com/what-is-nasdaq" target="_blank" rel="noopener">Nasdaq</a>. Because these exchanges require special access or membership to trade, investors need brokers to facilitate transactions. Broker firms and individuals become members of specific exchanges by meeting certain regulatory standards set by the Financial Industry Regulatory Authority (FINRA). In addition to executing orders, brokers also provide a range of educational resources and investing advice. There are three main types of brokers:<ul><li>Full-service brokers: Traditional full-service brokers offer managed accounts that are overseen by a professional advisor. With a managed account, you agree to give the broker authority to make decisions on your behalf. Full-service brokers also offer a variety of perks including specialized market research and personalized advice. All of that, however, comes with fees, which is why they typically cater to well-heeled individuals. </li><li>Discount brokers: Discount brokers execute trades on your behalf but do not offer tailored advice. While they once were the exception, they're now the norm, preferred by investors because they're more affordable and charge zero commission fees. What they lack in specialized advice, they usually make up with a vast array of tools and educational resources. </li><li>Robo-advisors: <a href="https://www.businessinsider.com/what-is-a-robo-advisor" target="_blank" rel="noopener">Robo-advisors</a> are automated investing platforms that select and manage investments on your behalf, typically in the form of <a href="https://www.businessinsider.com/personal-finance/what-is-an-etf-exchange-traded-fund" target="_blank" rel="noopener">ETFs</a> or <a href="https://www.businessinsider.com/what-is-an-index-fund" target="_blank" rel="noopener">index funds</a>. Robo-advisors appeal to those new to investing or those who prefer to be hands-off. </li></ul>"In my experience, everybody wants full-service advice, but they just don't want to pay for it," says Winnie Sun, managing director at Sun Group Wealth Partners. "If all things were equal, if both costs were the same, without a doubt, people prefer full-service."<h2>A brief history of brokers</h2>What do you picture when you think of an investment broker? Chances are, you might imagine a person in a suit, making frantic phone calls on the floor of a bustling stock exchange - which isn't too far off from how things used to be.In the past, only <a href="https://www.businessinsider.com/accredited-investor" target="_blank" rel="noopener">affluent investors</a> could afford access to stock exchanges. Why? Because only high-net worth individuals - people with at least $1 million in liquid assets - were able to afford the service.But with advancements in technology and the growth of the internet came the rise of online brokerages, which paved the way for a new kind of investor: the self-directed investor, or those who are willing to manage their own investing portfolios.Today, the brokers most people are familiar with are discount brokers, which include names like <a href="https://www.businessinsider.com/personal-finance/robinhood-investing-review" target="_blank" rel="noopener">Robinhood</a>, <a href="https://www.businessinsider.com/personal-finance/sofi-invest-review" target="_blank" rel="noopener">SoFi</a>, and <a href="https://www.businessinsider.com/personal-finance/webull-investing-review" target="_blank" rel="noopener">WeBull</a>. Many of these smaller firms offer online platforms that have made investing and trading more accessible than ever before.The overall shift has led to larger <keyword id="173013" type="PERSON" weightage="60" keywordseo="brokerage-firms">brokerage firms</keyword> - including <a href="https://www.businessinsider.com/personal-finance/charles-schwab-brokerage-account-review" target="_blank" rel="noopener">Charles Schwab</a>, <a href="https://www.businessinsider.com/personal-finance/etrade-investing-review" target="_blank" rel="noopener">E-Trade</a>, <a href="https://www.businessinsider.com/personal-finance/td-ameritrade-brokerage-review" target="_blank" rel="noopener">TD Ameritrade</a>, and <a href="https://www.businessinsider.com/personal-finance/fidelity-investments-review" target="_blank" rel="noopener">Fidelity </a>- to slash commission fees in recent years in the hopes of capturing a greater market share of self-directed investors.<h3>Full-service brokers vs. discount brokers</h3>Keep in mind that just because you can manage your own portfolio, doesn't necessarily mean you should. There remain instances in which an investor, specifically a high-net worth individual or one with advanced financial needs (who doesn't mind paying for the extra perks), may still wish to work directly with a full-service broker. Deciding whether to work with a discount or full-service broker depends on factors like an individual's investment knowledge and financial status. Most discount brokers who specialize in the stock market are able to charge low commission fees by operating through online platforms with low overhead costs. "I don't think one [strategy] is necessarily better than another, it's just where you are in your life," says Sun.Though the lower cost is the major lure to working with a discount broker, it should be noted that they don't offer investment advice, tax planning, or personal consultations on their clients' behalf. Discount brokers simply execute orders for clients, offering lower fees by sidestepping the money otherwise spent closing deals for clients with a high <a href="https://www.businessinsider.com/what-is-net-worth">net worth</a>. <h2>Broker regulation: What you need to know</h2>Entrusting another individual or firm with your investment proceedings is a major responsibility, so it's important that your broker meets certain criteria. If you ultimately decide on an individual broker, be sure the professional you work with is a <a href="https://www.businessinsider.com/what-is-a-registered-investment-advisor-ria" target="_blank" rel="noopener">registered investment advisor </a>(RIA). RIAs are bound by SEC regulations and are held to a <a href="https://www.businessinsider.com/fiduciary" target="_blank" rel="noopener">fiduciary standard</a>. Sun advises those seeking to work with an investment professional to work with someone with this fiduciary designation. "It's so important because you know that when someone's giving you advice, they're doing [with] your best interest [in mind], and they're required to based on the licenses that they have," she says.In the US, registered brokers are required by the FINRA to pass the General Securities Representative Exam, a 125-question, multiple-choice test which comes with FINRA Series 7 certification when completed. The Series 7 gives a broker the authority to buy and sell most securities, but it doesn't necessarily end there.The Series 63 and Series 66 exams are also required by the FINRA to become a registered broker in various states, and the Series 53 exam permits brokers to buy and sell <a href="https://www.businessinsider.com/municipal-bonds" target="_blank" rel="noopener">municipal bonds</a>.Quick tip: If you're deciding between different professionals or want to make sure an individual is properly certified, <a href="https://brokercheck.finra.org/" target="_blank" rel="nofollow noopener sponsored">FINRA BrokerCheck</a> is a tool that shows you a broker's full license and employment history.<h2>The financial takeaway</h2>A broker is an individual or firm that buys and sells stocks on behalf of clients. Stockbrokers, in particular, have evolved considerably with time, and now most commonly come in the form of online discount brokers.<a data-type="5fc809a6f45c2344c12b9ab6">Trading and investing are two approaches to playing the stock market that bring their own benefits and risks</a><a data-type="6001ce12c645d70cca75252c">A growth stock is a company expected to rise faster than the overall market, offering bigger gains for investors who don't mind risk</a><a data-type="60011bbb0a996d3d50754f25">Where to invest when interest rates are low - 6 fixed-rate vehicles that offer the best returns</a><a data-type="5fda2ac936173573b4327052">Capital gains tax rates: How to calculate them and tips on how to minimize what you owe</a>

What is a broker? What to know about the intermediary that helps investors buy stocks

<div class="image-container float_right" style="width:400px"><div class="image"></div><a href="http://www.flickr.com/photos/andrewmalone/5162647077/in/photostream/">Flickr / andrewmalone</a></div>One of the most common pitfalls of everyday <keyword id="6359051" type="COMPANY" weightage="60" keywordseo="investors">investors</keyword> is slipping into a "set it and forget it" mentality. 
You might sit down with your broker or financial advisor or review your employer-provided 401(k) once a year, but for for the most part, you put your faith in someone else's hands. 
That's when seemingly harmless fees are free to fester.
"It's not like you can try calling (brokerage firms) and ask them what they charge. They don't publish a fee schedule," Mike Sha, CEO of portfolio tracking site <a href="http://www.sigfig.com" target="_blank">SigFig</a> told us. "We've talked to people who work with <keyword id="45476" type="PERSON" weightage="60" keywordseo="Brokers">brokers</keyword> or advisors and they have no idea what the fee structure is in other firms."
With no other fees to compare your own to, you could wind up paying for far more than you should – especially if your broker's working on commission. 
Among SigFig's users, more than 60 percent of investors working with <a href="http://blog.sigfig.com/taxes-and-fees/top-10-worst-brokerage-fees-2011/" target="_blank">high-fee brokerage firms</a> are paying a staggering $25 per trade – with some as high as $400 per trade.
In fact, a new study by Woodbine Associate estimates broker fees could be sucking as much a $5 billion from <keyword id="6357979" type="ORGANIZATION" weightage="60" keywordseo="mutual-funds">mutual funds</keyword>, pension funds and regular investors each year, <a href="http://www.nytimes.com/2012/05/07/business/rebates-to-brokers-are-seen-as-a-conflict-of-interest.html?pagewanted=all" target="_blank">according to the NYT</a>. 
Front load or back load fees, for example, are like cutting a check to your broker for 5 percent for simply selling you a certain fund (front load). Or, imagine cutting them a check if you decide to exit a fund later (back load). These commission-based fees are the reason the broker model is so loathed by consumer advocates and ex-Wall Streeters.
But we're not just talking about commission fees charged by brokers. Everyday workers stowing funds in a 401(k) or IRA could lose up to $150,000 in fees over their lifetime.
The hard part is figuring out which funds are working more in your broker's favor than yours.
You could take the indirect approach and do a little homework, which is easier than ever thanks to a crop of new tools online. <a href="https://www.sigfig.com/" target="_blank">SigFig</a>, <a href="http://www.jemstep.com" target="_blank">Jemstep</a>, and <a href="http://www.futureadvisor.com" target="_blank">FutureAdvisor</a> can each show you exactly how your funds are performing and lay out how much you're paying in fees. 
"There's no reason you shouldn't as an investor sit down with your broker and say, 'I want to talk about the services I'm getting from brokerage firm X and you," Roy says. "Tell them, 'Before you invest in a fund on my behalf, please contact me to explain why that fund is so superior that I should pay for the privilege of giving you my money." 
If you put the onus back on them, chances are they won't put up a fight and risk losing a client. 
Opting for a fee-based advisor could be your best bet, as don't work on commission. Find one with the <a href="http://www.napfa.org/index.asp" target="_blank" title="Opens in new window: http://www.napfa.org/index.asp" class="external">National Association of Personal Financial Advisors</a>, which has a great <a href="http://findanadvisor.napfa.org/Home.aspx" target="_blank" title="Opens in new window: http://findanadvisor.napfa.org/Home.aspx" class="external">search tool</a> to track advisors in your area. All of their advisors are under fiduciary duty to work in your best interest.

SMART INVESTOR: Here's The Most Common Pit Fall Of Casual Investors

New Delhi, Feb 14 () The <keyword id="53581" type="COMPANY" weightage="20" keywordseo="NATIONAL-STOCK-EXCHANGE">National Stock Exchange</keyword> (NSE) has declared three stock brokers -- <keyword id="8544578" type="COMPANY" weightage="20" keywordseo="Vrise-Securities">Vrise Securities</keyword>, <keyword id="8777701" type="COMPANY" weightage="20" keywordseo="kaynet-finance">Kaynet Finance</keyword> and BMA Wealth Creators -- as defaulters for non-compliance with the regulatory provisions of the bourse. In addition, they have been expelled from the membership of the exchange, the NSE said in three separate circulars. The move effective from February 13 has been taken as these brokers failed to comply with the NSE guidelines, they added. Under the guidelines, stock brokers are required to fulfill their obligations and should not involve in any misconduct, or unprofessional conduct among others. In January, the markets regulator Sebi had prohibited Vrise Securities from registering any new client for six months for violating broker norms and in the same month, Sebi imposed a fine of Rs 3 lakh on the broker for not complying with Securities Contract Regulation Act (SCRA). Separately, Sebi last month confirmed its interim order that restrained BMA Wealth Creators (now known as BRH Wealth Kreators) from the securities market for its failure to segregate securities of clients, failure to unpledge and return the securities to the clients upon fulfilment of pay-in obligation and making unauthorised transfer of shares from the client's demat accounts. The Securities and <keyword id="191497" type="COMPANY" weightage="20" keywordseo="Exchange-Board-of-India">Exchange Board of India</keyword> (Sebi) on Thursday said it has developed an online system to timely detect misuse of clients' securities by stock brokers and alert exchanges in case of diversion of investors funds. This came after the regulator observed that some brokers have misused clients' securities received as collateral to meet their own settlement obligation or obligations of other clients. SP SHWSHW

NSE expels three brokers - Vrise, Kaynet and BMA for misusing clients' securities

<div type="image" msid="45714302" hostid="261"></div>

Young individuals who have the interest and the enthusiasm for stock trading usually lack the basic domain knowledge of the market. Although trading doesn’t require a lot of time and money, it is still essential to equip oneself with some <a href="http://www.iamwire.com/2014/11/handy-tools-investing-stock-market/104284">basic tools</a> and <a href="http://www.traderscockpit.com/?pageView=technical-analysis-training">necessary training</a> to take the right decisions. Before you go out into too many technicalities, here is a little glossary with few key terminologies that you should know before you start investing in the trade market. 
 
Basic Terminologies Of Stock Market 
1. Agent: A brokerage firm is said to be an agent when it acts on behalf of the client in buying or purchasing of shares. At no point of time in the entire transaction the agent will own the shares. 
2. Ask/Offer: The lowest price an owner is willing to sell the <keyword id="6354298" type="ORGANIZATION" weightage="20" keywordseo="Stocks">stocks</keyword>. 
3. Assets: Everything the company owns on its name, including the cash, equipments, land, technology etc. which shows the total wealth of the company. 
4. At the money: A situation at which an options strike price is identical to the price of the underlying securities. Options trading activity tends to be high when options are at the money. 
5. <keyword id="111974" type="ORGANIZATION" weightage="20" keywordseo="bear-market">Bear Market</keyword>: A market in which stock prices are falling consistently. 
6. Beta: It is a measurement of relationship between stock price of any particular stock and the movement of whole market. 
7. Bid: It is the highest price a buyer is willing to pay for a stock. It is opposite of ask/offer. 
8. Blue Chip Stock: Stocks of large, well-established and financially-sound companies which hold a record of consistently increasing rate of paying the dividends over decades to its stock holders. Blue chip stocks typically have a market capitalization in thousands of crores. 
9. Board Lot: A standard trading unit as defined by the particular exchange board. Board lot size usually depends on the per share price. Common board lot size are 50, 100, 500, 1000 units. 
10. Bonds: It is promissory note issued by companies or government to its buyers. It speaks about the specified amount held for a specified time period by the buyer. 
11. Book: An electronic record of managing all the pending buy and sell orders of particular stocks. 
12. <keyword id="2665448" type="PERSON" weightage="20" keywordseo="Broker/Brokerage-Firm">Broker/Brokerage Firm</keyword>:A registered securities firm are called <keyword id="49221" type="POSITION" weightage="20" keywordseo="Broker">broker</keyword>/brokerage firm. Broker’s acts as an advisor for purchase and sell of listed stocks, they do not own the securities at any point of the time. But they charge a commission for their service. 
13. Bull Market: A market in which the stock price are increasing consistently. 
14. Business Day: Monday to Friday, excluding public holidays. 
15. Call Option: An option that is given to investor the right but not obligation to buy a particular stock at a specified price within a specified time period. 
16. Close Price: The final price at which the stock is traded on a given particular trading day. 
17. Commodities: Product used for commerce that are traded on a separate, authorized commodities platform. Commodities include agricultural products and natural resources. 
18. Convertible Securities: A security (bonds, debentures, preferred stocks) by an issuer that can be converted into other securities of that issuer are known as convertible securities. The conversion usually occurs at the option of the holder, but it may occur at the option of the issuer. 
19. Debentures: A type of debt instrument that is not secured by physical assets or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuer.A debenture is an unsecured form of investment. 
20. Defensive Stock: A stock that provides a constant dividends and stable earnings even in the periods of economic downturn i.e. even in the extreme critical situations of the stock market these companies continue to pay the dividends at a constant rate. 
21. Delta: The ratio that compares the change in the price of the underlying asset to the corresponding change in the price of a derivative. Sometimes referred to as the hedge ratio. It has a range from 0 to 1. 
22. Derivatives: A security whose price is derived from one or more underlying assets. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. 
23. Diversification: Reducing the investment risk by purchasing shares of different companies operating in different sectors. 
24. Dividend: A portion of the company’s earnings decided to pay to its shareholders in return to their <keyword id="6362476" type="ORGANIZATION" weightage="20" keywordseo="investments">investments</keyword>. It is usually declared as a percentage of current share price or some specified INR value, usually decided by the board of directors of the company. 
25. Equity: Common and preferred stocks, which represents shares in the ownership of a company. 
26. Face value: It is the cash denomination or the amount of money the holder of the individual security going to earn from the issuer of the security at the time of maturity. It is also known as par value. 
27. Hedge: A strategy or an attempt in reducing the risk of adverse price movements of assets. 
28. Income Stock: A security which has a solid record of dividend payments and offers the dividend higher than the common stocks. 
29. Index: A statistical measurement of change in the economy or security market. Indices have their own calculation methodology and are usually measured as a percentage change in the base value over the time. 
30. Initial Public Offering (IPO): A company’s first issue of shares to general public. IPOs are issued by smaller, younger companies seeking funds for expansion and growth, but large companies also practice this to become publicly traded companies. 
31. Internet Trading: Internet Trading is a platform with Internet as a medium. Internet trading execution takes place through order routing system, which will rout traders order to exchange trading system. Thus traders sitting in any part of the world can be able to trade using their brokers Internet Trading System. <keyword id="139797" type="ORGANIZATION" weightage="20" keywordseo="The-Securities-and-Exchange-Board-of-India">The Securities and Exchange Board of India</keyword> (SEBI) approved Internet Trading in January 2000. 
32. Limit Order: An order to buy or sell a share at a specified price. The order will be executed only at the specified limit price or even better. A limit order sets a minimum price the seller is willing to accept and maximum price the buyer is willing to pay for it. 
33. Listed Stocks: The shares of an issuer that are traded on the stock exchange. The issuer has to pay fees to be listed in the stock exchange and abide by the regulations of the stock exchange to maintain listing privilege. 
34. Market Capitalization: The total value in INR of all of a company’s outstanding shares. It is calculated by multiplying all the outstanding shares with the current market price of one share. It determines the company’s size in terms of its wealth. 
35. Mutual Fund: A pool of money managed by experts by investing in stocks, bonds and other securities with the objective of improving their savings. These experts will create a diversified portfolio from these funds. 
36. Odd Lot: A number of shares which are less than or greater than but not equal to the board lot size. For example, if the board lot size is 100 shares, an odd lot would be 95 or 102 shares. Usually odd lots are difficult for trading and it is not accepted easily in the market. 
37. One-sided Market: A market that has only potential sellers or only potential buyers but not both. 
38. Out-of-The-Money (OTM): For call options, this means the stock price is below the strike price. For put options, this means the stock price is above the strike price. The price of out-of-the-money options consists entirely of “time value.” 
39. Portfolio: Holding of any individual or institution. A portfolio may include various type of securities of different companies operating in different sectors. 
40. Positions Limit: Maximum number of futures and options contract that any individual investor can hold at any given point of time. 
41. Pre-opening Session: The pre-open session is for duration of 15 minutes i.e. from 9:00 AM to 9:15 AM. In pre-open session order entry, modification and cancelation takes place. 
42. Price Earnings (P/E) Ratio: A valuation of companies last traded share price to its latest reported 12 months earnings per share. For example, if the last traded share price of any X company is INR 40 and earnings over a last 12 months per share is INR 2, then the P/E ratio of that X company is INR 20 (40/2) 
43. Put Option: An option that is given to investor the right to sell a particular stock at a stated price within a specified time period. Put option is purchased by those who believe that particular stock price is going to fall down than the stated price. 
44. Risk:A probable chances of investments actual returns will be reduced then as calculated. Risk is usually measured by calculating the standard deviation of the historical price returns. Standard deviation is directly proportional to the degree of risk associated. 
45. Securities: A transferable certificate of ownership of investment in products such as stocks, bonds, future contracts and options which an individual holds. 
46. Strike Price: The price at which the holder of an option can buy (in case of call option) or sell (in case of put option) the securities they hold when the option is executed. 
47. Stock Split: An attempt to increase the number of outstanding shares of a company by splitting the existing shares. It is usually done to increase the availability of shares in the market. The usual split ratio is 2:1 or 3:1, i.e. one share is split into two or three. 
48. Thin Market: A market in which there are comparatively low number of bids to buy and offers to sell. Since the number of transactions is low the prices are very volatile. 
49. Trading session: The period of time from 9:15 AM to 3:30 PM is open for trading for both sellers and buyers, within this time frame all the orders of the day must be placed. Here all the orders placed in pre-opening sessions are matched and executed. 
50. Yield: It is the measure of return on investments in terms of percentage. Stock yield is calculated by dividing the current price of the share by the annual dividend paid by the company for that share. For example, if the current price of the share is INR 100 and the dividend paid is INR 5 per share annually, then the stock yield is 5%. 
 
(About the author: The article is written by Amit sharda, Co-Founder and Head of Products at <a href="http://www.traderscockpit.com/?pageView=technical-analysis-training">TradersCockpit.com</a>.) 
(Image: www.pareshsharma.in)

You Searched For "stock broker" and got 14 results

Is your stock broker cheating you? Here's how you can avoid being duped

Economic Times

Investor guide: These simple tips will help a first time investor make better decisions in the stock market

Purba Das

Sebi cancels registration of Crecer Financial Services as stock broker

PTI

Be careful in executing PoA with stock brokers: NSE tells investors

PTI

Sebi cancels registration of stock broker Click2Trade Capital

PTI

Lockdowns: Stock brokers continue to face problems to reach offices

PTI

Sebi cancels registration of stock broker Royal International Shares

PTI

This Cat Can Pick Stocks Better Than Most Investment Managers

Mandi Woodruff

Interactive Brokers will offer cryptocurrency trading by the end of the summer, report says

Will Daniel

Sebi fines Rs 15 lakh on MBL & Company for fraudulent trade, stock broker norms violation

PTI

What is a broker? What to know about the intermediary that helps investors buy stocks

Amena Saad

SMART INVESTOR: Here's The Most Common Pit Fall Of Casual Investors

Mandi Woodruff

NSE expels three brokers - Vrise, Kaynet and BMA for misusing clients' securities

PTI

Stock Market Terminology: A Beginner’s Guide To Stock Trading

Guest Author

Popular Keywords

Buying Guides