Stock Market For Beginners - 2

Hey Buddies..!! I am back with a new blog with the continuation of the stock market series.. Before reading this blog please go through the blog "Stock Market for beginners." which gives you the basics of the stock market.. This blog contains details about IPO, how the share prices are fixed.?, SENSEX, NIFTY in a simplified way..Let's know what happens behind the scene..

Basically, We have 17 stock exchanges across India..Among them, the oldest & most trustable stock exchanges in India are Bombay Stock Exchange(BSE) & National Stock Exchange(NSE). Any Firm/individual to be listed in the stock market..There are certain protocols to be followed even by Ambani too.. There is no exception to any individual..

Firstly, the companies that are in need of finance, estimates its required budget, and approaches the stock exchanges for finance.. The proprietor/owner holds some percentage of shares in their company and issues the remaining shares to the stock market.. Before listing the stocks in the market, the documents of the company are to be verified by the investment bank to determine its value of the share, based on demand, profit to debt ratio, rented(or)owned building, manufacturing cost, growth prospects,etc..Once the verification is done,  shares will be issued in the share market with the price fixed by the investment bank. Issuance of shares at the budding stage of a company is known as "Initial Public Offering(IPO)."

SENSEX: 

Sensex can be defined as the "Sensitive Index" which indicates the values of a share along with profit/loss in the BOMBAY STOCK EXCHANGE(BSE). There are around 1400 companies that are listed in the BSE. But the active trading will be done among the 30 top companies SBI, Infosys, Tata Group, etc.. The trading between the investors & buyers is framed under certain rules & regulations.. Securities & Exchanges Board of India(SEBI) acts as a governing body for all the trading issues in stock markets.

NIFTY:

Nifty refers to National and Fifty which consists of 50 actively traded shares. Nifty is an indicator of all the shares listed on the National Stock Exchange(NSE).

In a stock market, only the IPO(Initial Public Offering) provides the fresh stocks..All the existing stocks are not the new ones.. Existing ones are not sold by the investor, they are sold by some shareholder who is not interested in that particular share anymore.. The sellers & buyers have a certain platform, the sellers announce a particular amount(bid) & the buyer says his buyable amount..By the common understanding, they buy/sell at a comfortable price which fits for both. In this way, the selling/buying takes place in the stock. In this way, the trading goes on in the stock market.. Things related to opening/closing prices, profits/losses in the stock market will be explained in coming blogs.. please do follow my next blog..Stay Tuned..!!

                                                                                  ---- By Mounika Perumalla

Stock Market For Beginners...

Feeling low with insufficient salary.?? Looking for alternatives to make money.?? Wanna witness huge profits with less investment.?? Interested in short-run earning.?? Then, the perfect choice is to invest in Stock Market.. The Stock Market may also be referred as the Share market (or) Equity Market. Let us learn about the basics stock market & also what happens behind the scenes in a simple way..

STOCK MARKET :

Generally, we define "market" as a place where buying & selling of different items in a regular practice.. If the vegetables are bought & sold in a place it is known as "Vegetable Market", if the flowers are brought & sold in a place then it is known as "Flower Market." In the same way, the place where stocks are being bought (or) sold is known as "Stock Market."

WHAT DO STOCKS MEAN.??

This can be explained with an example..For example, a company-ABC wanted to extend its business in another city, now this company-ABC need some money/investment..Of course, it can approach a bank for the loan, but no one can predict the business of Company-ABC in another city..If it runs well, they can able to pay their loans, else their company has to face huge losses..So, many of the entrepreneurs will not be interested in bank loans..They estimate the value of their business and they hold some percent of the business stock/share and leave the rest to be available for an individual who can buy/maintain/sell it..

HOW TO BUY STOCKS/SHARES.??

Certain rules had been framed to buy a stock/share from a company.. The first thing is the individual who is interested to invest in the stock market should have a "Trading Account" & "DEMAT account" which means "DEMATERIALISED ACCOUNT". DEMAT account shows your physical money in the form of electronic means.. Opening of this account is very simple.. The things needed are PAN card, Aadhar card, bank statement for the last 3 months, Address proof, Income tax returns, KYC, Bank crossed Cheque & 2 color passport size photographs.. This can be done through online too.. Trading Account is provided by the stock broker where buying & selling takes place..This trading account is linked to the investor's bank account..

Now, we are ready to trade the business..But how to trade.? where to trade.? How can we analyze its profit (or) loss.??

There are many online apps like Zerodha, HDFC securities, Share Khan app, IIFL Markets, Angel Broking, ICICI direct & many more.. The above apps are the most trusted ones by its customers.. Now, select your sector in which you are going to invest based on your financial status & risk management.. As a beginner, I suggest you to invest in highly profitable & least fall sectors like banking & software.. The shares which are purchased are credited to your DEMAT account and you can sell them as per the profit ratio.. The money will be credited to DEMAT account, with an option named "Withdrawl" the amount will be directly transferred to bank account..

The profits & loss will be displayed in SENSEX which is an indicator for all the stocks that are listed in the "Bombay Stock Exchange." If a company you invested in, goes in profits then you will have a share of its profits..In the same way, with the loss too.. So, before you invest enquire about the company in its long run..Know the entire details and start investing in them..There are many things like free-float market capitalization, Sensex, Nifty, NSE, Stockbrokers, Calculation of shares, debentures, derivatives, IPO, bonds, mutual funds,etc.. will be explained in my further blogs..Till then stay tuned.. Also, share your views about the blog in the comment section below.. HAPPY INVESTING..!!!!!!

                                                                                      ---- By Mounika Perumalla

Look at "VLOOKUP" in MS Excel..

Is life running with MS Excel on week days..?? Having a big mess to sync 2 excel workbooks.?? Looking for the best option to reduce your work & save your time.?? The perfect solution for this is "VLOOKUP".. VLOOKUP is something easy to understand & difficult to implement.. Here are the tips that can simplify your work with the magical function "VLOOKUP".. Let us get into more details..

VLOOKUP :

This simplified meaning of this function "VLOOKUP" is to match the data that exists between two Excel Workbooks.. In VLOOKUP function V stands for Vertical.. VLOOKUP is all about to retrieve the data that you are searching between 2 Excel Workbooks in a vertical manner (Column Wise).. Here the term EXCEL SHEET is different from EXCEL WORKBOOK.. A workbook consists of Excel sheets.. All sheets combine and form an EXCEL WORKBOOK..We have many types of VLOOKUP function in EXCEL like matching the values in the same Excel sheet, matching the values between two Excel sheets & matching the values between two Excel Workbooks..In this blog, I have given a detailed explanation of "Matching the values between two Excel Workbooks."

SYNTAX:

The syntax for this function is =VLOOKUP(Lookup value, Table array, Col index num, Range lookup)

Lookup Value: Enter the value that you are looking for a match in another workbook (or) select the values in a column that you need to match with the data present in another Excel Workbook.

Table Array: Select the data in the second Excel workbook with 2(or)more columns.

Col index num: Column index number is to represent the number of columns that you have selected in the second Excel Workbook..

Range Lookup: This term is to define the find out the EXACT MATCH (or) APPROPRIATE MATCH. If you represent Range Lookup = FALSE --- It shows the exact match of your search

                                                Range Lookup = TRUE --- It shows the appropriate match of your search.

Yes..The formula is very clear now & it was a bit confusing while we implement..Here are the tips to follow and to implement in a perfect manner with a pictorial representation..

I had data of 2 companies with 7 employees and now I wanted to check how many employees in Company A have the same employee codes & with their different/same qualifications as the employees in Company B with the help of VLOOKUP function.

•  Firstly, open the excel workbooks of Company A & Company B.

• Now, I wanted to match employee codes with their qualification. So, I started opening the Excel of Company A, selected the output column to be displayed & continued to write the function. Then I have selected the entire Employee code column and the value of the column automatically will be represented in the function after your selection.

• The second step is to select the file/workbook that you need to match these details..In this case, the other file/workbook is Company B & details to be matched are "The same employee codes are to be matched with their qualification." So that I have selected both the columns of employee code & qualification and the value of these columns is automatically shown in the formula bar.

 

• The third step is to enter the col index number, this indicates the number of columns that we have selected in the Company B file/workbook. As we have selected 2 columns the value will be "2". Remember that every value should be separated with a comma(,)

• Now, enter the fourth value..If you are looking for an Exact Match then type FALSE, else type TRUE for an appropriate match and press enter button.

• Now, we are ready with the formula, and let's see whether our required output i.e., Matched Values of Employees Codes with their Qualification between both the companies are to be displayed.

The above output says there are 4 employee codes in Company A that have matched with other Company B and it represented the qualification of those matched employee codes as its output. The unmatched outputs are left with #N/A which meant No Match Applicable.. Initially, the output will be displayed for the first one, then drag and stop where you need output. Then output for all the selected ones will appear.. If the formula is executed in a perfect way we get these outputs.. If there is any error in the Syntax, then it results in #Ref (or) #Value.. This might be difficult for 2 times, but this gives the best results if you practice well. Do practice this exercise & get better results for your work.. 

I have taken an example with less data to keep it in a crystal clear manner..We can execute this to huge data so that we can save our time..Also, comment about your experience when you have practiced this function in Excel in the blog below.. HAPPY LEARNING..!!!!!!

                                                                                              ------- By Mounika Perumalla

Indian Education System..(IES)

Lakhs of unemployed.. Highly educated yet applies for clerk level.. Topper in the public examination but ranks least in the competitive exams.. Some students who can even top in IIT exams do not know where the railway station in their city.. Able to by-heart 100 pages of a textbook but anything questioned beyond that gives a muted response..These are things we commonly observe in the students from the past 10 years.. Yet we never focussed on the solutions.. I have researched many articles to know the reasons behind this.. Let us go through it in a detailed manner and fix the issues in a simplified manner..

Whenever you travel to south India, just cross-question a student "what is your aim..??" Undoubtedly, the reply would be from the parent with the answer Software Engineer.. Because parents feel his son/daughter would get settled in a faster manner, can earn handsome salary, can get a pretty bride with good dowry..With this point of view, they start sowing seeds from their SSC.. So, the student who do not have much knowledge about his career starts blindly following them.. In this scenario, do you think its the mistake of parents.? (or) student.? (or) any other factor.?

The main problem comes with their education system, students do not have practical exposure they blindly follow whatever the teacher says.. They run after the grades.. They don't even try to know the meaning of what they read.. Also, the teachers do encourage the bookish knowledged students..Students who can memorize like a robot always tops in the class.. If we ask a student about the Nacl..He/she can able to write & speak well about its chemical properties.. But they cannot simply express it as "SALT" we use in our daily life.. This is the case in many schools so far..

If any student found with good memory power, the organization does not leave them to fly with their own wings..They burden their back with IIT, JEE, SPACE SCIENCES, IAS, IPS, and with many unfamiliar courses.. There is a student who can crack all the toughest problems in competitive exams but he says, give me 5litres of Wheat flour and 3 kilometers of shirt bit.. Such a comic..Where all the integration & differentiation theories had gone.?! Its the part of the parents to inbuilt the skills which are not there in books.. Parents should assign tasks like going out, habituating to talk with elders, inducing helping nature, and make them travel on their own often..

Some students with the pressure from their parents & teachers, by hearts the entire theory, somehow manages the good score in the public examinations.. As the theory does not relate with any practical examples they loose in the competitive exams.. They can by-heart 2+3 and 221987 *17893 as well..They loose in exams when they change the numbers.. Because they do not know the concept.. Even I used to study in the same manner, but there is my maths teacher who re-defined the teaching and made me think about the logic behind the scene.. He explains as if we are kids, ready to re-explain "n" number of times.. So teaching with concept and ensuring that every student left with no doubts is an art and not every teacher is an artist..

There are some scenarios we apply the job with over qualification..This is because a group of students limited to certain courses.. This creates the competition but not the employment.. This is what now that made students with double PG's and UG's..Even with dual degrees many of them cannot match their job with what they study.. Because they lack clarity about their future and moves on with what was left over..Do not bound your self with specific ones..Go through the various options which have a huge placement with less competition so that you can lead an easy life..

In order to reduce the unemployment rate, its the duty of our Ministry of Education to revise the syllabus and include more practical sessions from secondary schools itself, arranging coding classes from class 5 is ok but do include things related to agriculture, take the students to orphanage & old age homes, making an industrial tour is fine but make them more aware about our law.. so that they can able to understand that life is not all about career.. Impart at least a dance, sport, music class twice a week.. If P.T.Usha  & P.V.Sindhu are restricted only to their studies, the world would not know them and they end up with depression matters.. Even parents do not pressurize the students 24/7 with the books instead develop creativity, analytical & problem-solving skills.. They too had a life..Let us give them the freedom they want at least in a limited version..

GDP Vs GNP

Wanna know about your country's economy.?? Eager to know about how the economy is measured.?? The terms  GDP, GNP related to economy make us much confusing..Of course, we all have read these in our 9th, 10th standard economics..But it is only for marks not much knowledge had been developed at that stage.. Let us know about these terms in a simplified & well- understandable language..

What is GDP.??

Length is measured in centimeters, meters, etc.. In the same way, the economy of a country will be measured in GDP(Gross Domestic Product) & GNP(Gross National Product). In simpler terms, the GDP can be defined as the value of goods & services sold in a country in a period of one year is known as GDP.. The goods here refers to the finished goods.. Services can be banking services, educational services, medicare services, etc..

To manufacture a laptop we need a motherboard, processor, ICs, inbuilt mouse, keyboard & many more.. All these combine together and give us a finished product called laptop..The value of the sold laptop is only considered in the GDP..The individual goods cannot be included in GDP as they are not the finished ones..

The GDP can be calculated according to the value it is sold in the market.. For example, a product manufactured in India sells it at a cost of Rs.150 in India, then this Rs.150 is added to India's GDP.. Suppose the same Indian company had an outlet in any other country & the same product will be sold for Rs.250 and this value will also be added to India's GDP..

What is GNP.??

GNP(Gross National Product) can be simply defined as the value of goods & services that are manufactured & produced in India only..

Suppose a Pepe jeans outlet which is an England company has opened in India..The value of the sold goods will be included in the GDP of both Indian & England countries and excluded in the GNP.. In this context, profits go to England company itself.. We don't get benefitted too.. But why do our country allows other countries outlets here.?? The only reason for this is, it increases the employability among the citizens and improves the standard of the living..

The main reason behind India's lowest GDP is the citizens of India mostly use the videshi products rather than swadeshi ones.. Yes, we use outer products because we find better quality, competitive prices, and durability.. Firstly, to raise India's economy & growth manufacturing units to be established in our country and then promoting them wisely with competitive prices & best quality, finally opening outlets in other countries.. In this way, we can raise India's GDP.. This creates employability, worldwide recognition, and finally leads to an increment of Indian rupee.. I hope the swadeshi movement be repeated again and may our country be stable financially soon..

          

                                                                           -- By Mounika Perumalla

Missing Mona Lisa..

 The beautiful city where everyone dreams to travel at least once in a lifetime.. Best place to witness the global fashion, arts & sculpture.. Amazing city with lights..Have you guessed the city which I am talking to.?? Do you guess it's Singapore.?? No.. Malaysia.?? No.. Paris..?? Yes.. It is the place where everyone feels excited to visit & witness its glory..

The things that strike about Paris are World's famous Eifel Tower, Royal Catholic Churches, best art culture,etc..Besides these, there is another interesting thing about Paris it's the louvre Museum..This oldest museum is the treasure of the finest arts and it has 400 rooms inside it..Very populous museum with the highest footfall per day..This is the place the portrait of Mona Lisa was placed now..

Who is Mona Lisa.??

Mona Lisa's portrait is a picture of a woman named Lisa del Giocondo, wife of the great silk merchant in Florence in France named Francesco del Giocondo and they belong to the Gherardini family.. This portrait was drawn by Leonardo Di Vinci a famous Italian artist, sculpture, engineer, etc.. Lisa del Giocondo(Mona Lisa) commissioned this Italian artist to draw her portrait for their new home and for the birthday of her second son named Andrea..

There are many portraits around the world, but this art always lists first even in this 21st Century.. This portrait was drawn with oil on a wooden cardboard.. There are many secrets behind its fame.. Let us know about them in a detailed manner..

Can you guess the age of this portrait.?? May be 100.?! No.. 250.?? No..! But yes it is 500 years.. This art was started in 1503 by Leonardo de Vinci..It took many years to have its complete look.. Before completing it, he had traveled to France with King Francis -I and finished in late 1516..That was the time no one had a good concentration on it..After the french revolution, this portrait was their with Napolean in his bedroom & later on it was moved to Louvre Museum in France..

In 1911, Mona Lisa painting was stolen by a person..It became a huge sensation in those days.. All the national, regional newspapers had covered this news and left everyone with suspense..Everyone used to discuss about this painting itself.. Many visitors used to visit this Louvre Museum just to see the empty place of the missing portrait and even they stand in queues also wait for hours only just to see the missing place.. This is where the popularity of Mona Lisa had grown..This led to more pressure on the police officials..Sadly, the head police officer of Paris had retired in shame..Yet there is no clue left over.

After two years, One day, a person called the art dealer in France to sell the Mona Lisa portrait and to make money.. The art dealer somehow engaged a meet with the thief and intelligently handed-over him to cops.. In the investigation, amazingly it was found that he was the cleaning staff of louvre museum who used to clean the portraits of Mona Lisa & other few.. As he belongs to Italy and the great painter of the Mona Lisa, Leonardo De Vinci also belongs to the same place.. He thought it should be placed in Italy and not in Paris.. Soon he was sentenced to 7 months in jail for his foolish thing..

And now people had started standing in a queue for the recovered Mona Lisa portrait.. This theft had made it popular for 50% and the rest lies in the beauty of Leonardo de Vinci's art..Whenever a painter describes a girl (or) lady, the painting should definitely comprise of beautiful structure, lengthy eyebrows, Dark Eyelashes, rosy lips, and fantastic skin tone with thick hair..

But the case here is entirely different Mona Lisa art does not have any eyebrows (or) eyelashes, it also does not have any thick hair too, also the structure is not perfect.. Guess..What may have grabbed her attention.?!! The beauty lies in her beautiful & purest smile..This portrait is designed in a manner, it seems like the Mona Lisa follows you till you leave the room.. Perhaps, this is not any ghost art..He had drawn the eyes of her in a 15-degree view and so you experience this effect..Some believers say Leonardo de Vinci's face also had been hidden in this art.. Due to all these speculations, Mona Lisa is the wonderful Portrait to date..Finally, I can proudly say at least there is one painter who can bring beauty to a portrait by the smile of a lady, not by any other specifications.. Thank you Leonardo De Vinci sir for your best painting to the world..

                                                                  

                                                                                 --- By Mounika Perumalla

Is Indian Economy Stable (or) Unstable ?!!

The series of lockdown has come to an end finally.. Day-by-day the number of cases are increasing rapidly..The monsoon is very near..Soon we may create new records by the month-end..The government had lifted the lockdown eventually.. The reason behind lifting up before the situation comes under control is to "Stabilize the Indian Economy."

U.S.A has created 2.5 million jobs only in the month of MAY.. But, the people in India still holds the heart very tight, when we hear the word job security..Many of the government employees received their half salaries in this pandemic..Some of the private companies innovatively removed the high salaried employees from their jobs and some of them had removed the unnecessary ones.. But how this USA  able to create new jobs instead of cutting the salaries.?!

The secret here lies in their economy & the way of implementing it..Undoubtedly, India too has the best economic policies, but we fail in implementing them..In the states like USA, whenever a person wanted to run a business (or) to be appointed in a job even as a cleaner, they need to apply for SSN(Social Security Number) and link it to their bank accounts.. The tax will be automatically deducted by the government according to the respective slabs they belong to..So the people able to use only the money which is left over..There is no exemption for any citizen even for the unskilled labor too..

But the scenario here is entirely different. The street vendors like samosa, panipuri vendors earn more money than an average middle-class citizen..The sad truth behind this they do not need to pay any tax, they do not need to pay any rent, and they are eligible for all the government welfare schemes.. If a citizen in India is earning above 2.5lakh & more in an year.. They are the taxpayers, they are responsible for their EMI's and he/she is not eligible for any government welfare schemes..Some times, I feel to live in a middle-class family in India is like living in a danger zone.. Everything runs by them yet no one is ready to help..

The genuine tax Payers in India will be only 20%..The rest 80% escape intelligently.. Of course, it is an intelligent move according to them till income tax approaches them.. If all these 80% too paid their taxes according to their slabs, leave about the job creation now at least we would be in a position to run your country even in crisis..We do not face any such type of salary cuts too.. All this money can be used for the welfare schemes and they can reach every individual who is in need..I hope the rules should be revised in our country too and these rules should attract every escapist to pay their taxes so that one day India might be a developed one and our economy be stabilized..

                                                                                         ---- By Mounika Perumalla