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What is Commodity trading account?

Who buy and sell equities, commodity trader’s focus on investing in commodities. These traders either takes positions based on forecasted economic trends or arbitrage opportunities in the commodity markets. Oil and gold are two of the most common traded commodities, but markets exist for cotton, wheat, sugar, cattle, pork bellies, lumber, silver and other precious metals.

Commodity Market:

A commodity market is a physical or virtual marketplace for buying, selling and trading raw or primary products, and there are currently about 50 major commodity markets worldwide that facilitate investment trade in approximately 100 primary commodities.

Commodities are split into two types: hard and soft commodities. Hard commodities are typically natural resources that must be mined or extracted (such as gold, rubber and oil), whereas soft commodities are agricultural products or livestock (such as corn, wheat, coffee, sugar, soybeans and pork).

Types of Commodities

Today, tradable commodities fall into four categories. They include:

  • Metals (including gold, silver, platinum and copper)
  • Energy (including crude oil, heating oil, natural gas and gasoline)
  • Livestock and Meat (including lean hogs, pork bellies, live cattle and feeder cattle)
  • Agricultural (including corn, soybeans, wheat, rice, cocoa, coffee, cotton and sugar)

How to Invest in Commodities Futures

A popular way to invest in commodities is through a futures contract, which is an agreement to buy or sell, in the future, a specific quantity of a commodity at a specific price. Futures are available on every category of commodity.

Two types of investors participate in the futures markets:

  • commercial or institutional users of the commodities
  • speculators

Advantages invest in commodities:

  • It’s a pure play on the underlying commodity.
  • Leverage allows for big profits if you are on the right side of the trade.
  • Minimum-deposit accounts control full-size contracts that you would normally not be able to afford.
  • You can go long or short easily.

Disadvantages invest in commodities:

  • The futures markets can be very volatile and direct investment in these markets can be very risky, especially for inexperienced investors.
  • Leverage magnifies both gains and losses.
  • A trade can go against you quickly and you could lose your initial deposit (and more) before you are able to close your position.

Why investing in commodities:

 💡 A Safe Refuge during Crisis

Often investors do not feel confident about investing in commodities but think about precious metals like silver, gold, and platinum; they offer a clear protection during inflation and times of economic uncertainty. They are a good source of investment even during tough times.

💡 Diversified Investment Portfolio

An ideal asset allocation plan means having a diversified portfolio. Commodities are an important component of having a diversified investment portfolio. If you are already investing in stocks and bonds, it is suggested that you consider investing in raw materials simultaneously. This way, whenever there is a stock market crash, you are not putting all your eggs in a single basket.

💡 Transparency in the Process

Trading in commodity futures is a transparent process. The course of action leads you to fair price discovery which is controlled by large-scale participation. Such a huge participation also reflects different perspectives and outlook of a wider section of people who are dealing with that commodity.

💡 Profitable Returns

Commodities are riskier form of investments with huge swings in prices. Companies either hit it right on a resource discovery or experience heavy losses. This opens up opportunities for you to make profits in the commodity market provided you plan your investments right.

💡 Hedging

Whenever the rupee becomes less valuable, you need more money to buy commodity goods from different parts of the world. Especially during inflation, the prices of commodity goods go up as other investors sell off their stocks and bonds to invest in commodities. Therefore, you can be benefit from some commodities in your portfolio that act as a potential hedge against risks.

💡 Protection against Inflation

When the economy is dipping, money is worth less – inflation occurs. The prices for commodities usually go up during high inflation; accordingly the price of raw materials also sees an upward trend. Therefore, a few commodities in your portfolio will help you benefit from this upswing.

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What is travel insurance?

An insurance product designed to cover the costs and losses, and reduce the risk associated with, unexpected events you might incur while traveling. It’s often pitched as the best protection for those traveling domestically or abroad. Many online companies selling airplane tickets or travel packages allow consumers to purchase travel insurance (also known as travellers insurance) as an added service. Some travel insurance policies cover damage to personal property; rented equipment, such as a rental cars; or even the cost of paying a ransom in the case of a kidnapping.

Why travel insurance is important?

If you are travelling overseas, or even domestically, taking out travel insurance is highly recommended by the Australian government and smartraveller.gov.au.

  1. Getting help overseas

Thousands of travellers experience some kind of trouble when holidaying overseas each year.

Having the right level of travel insurance cover is critical when travelling. If you fall ill or have an accident while overseas, travel insurance can ensure that you get the best quality of care and you can be moved, either back home or to a better medical facility, if needed.

  1. Travel insurance provides you with protection from medical costs

If you require medical attention while travelling, you may be liable for the cost of your treatment if you don’t have travel insurance.

Medicare will not pay or reimburse you for any medical expenses you incur overseas.

  1. Travel insurance can cover disruptions to your trip

It’s no secret that when you travel, there is much that’s out of your control. Flights can be delayed or you might need to return home if an emergency occurs.

Without travel insurance, disruptions to your trip can end up costing you a fortune. In many cases, you lose the money you’ve already paid, and have to pay for new bookings too.

Many travel insurance packages will cover you for incidents that are out of your control, so that you don’t have to spend your own money if something goes wrong.

  1. You can be reimbursed for your losses and expenses

If your luggage is stolen, lost or damaged overseas, you can end up significantly out of pocket – and if you don’t have travel insurance, you will be responsible for replacing your items.

If you take out the right insurance, however, you can be reimbursed for your losses and expenses, meaning that you won’t lose money due to an airline or hotel blunder, or a thief’s wrongdoings.

Types of travel insurance:

 ➡  Travel Accident Insurance

The purpose of this insurance is to provide term life and accidental death and dismemberment protection for you and your family. This covers unexpected and sudden losses that occur because of travel or flight accidents. Some other emergency assistance benefits might cover baggage loss, evacuations, medical and dental expenses, pre-existing medical conditions and repatriation. The benefits apply while you are on a trip that is insured or during the coverage period. This type of trip insurance is ideal for frequent world travellers, particularly those who visit risky regions.

➡  Travel Medical Insurance

General health insurance doesn’t protect you when you travel abroad, but travel medical insurance acts as a sort of extension to cover medical, dental and evacuation costs during your travels. This trip insurance is very affordable because it doesn’t cover a host of other incidentals such as trip cancellations. However, some plans include benefits for delayed or lost baggage or delayed trips. You can usually purchase travel medical plans for a single trip or multiple trips over a certain period.

➡  Medical Evacuation Insurance

This type of plan focuses on covering the cost of evacuations and repatriation. If you are hospitalized while traveling with your family, it may cover the cost of an emergency medical reunion and the return of any minor children home. Some plans may also provide term life and AD&D benefits to protect your family as well as coverage for lost luggage, adventure sports and trip interruptions.

➡  Package Travel Insurance

Compared to travel accident, evacuation and medical insurance plans, package travel insurance is much more comprehensive, which is why it’s the most commonly purchased? Package plans are customized according to the different needs of various travellers. A typical plan includes coverage for evacuations, luggage problems, medical and dental costs, returning minors home, and trip cancellations, delays and interruptions. Some plans also cover adventure activities, credit card and passport services, identity theft assistance, pet care, pre-existing medical conditions, rental car collisions, roadside assistance and sports equipment.

➡  Annual and Specialty Travel Insurance

Annual travel insurance is similar to package travel coverage, but instead of covering a single trip, it covers all of your trips for an entire year. Some of these plans are renewable. Specialty travel insurance provides coverage for certain aspects of a trip, such as car rentals and term life, to supplement the benefits that you already receive. This type of plan is ideal when you are concerned about a specific risk.

Factors affecting Travel Insurance:

  1. What a travel insurance plan has to offer?

One of the most vital offerings of a travel plan is it covers the evacuation cost if needed. If the insured traveller falls ill during the trip the travel plan provide cashless hospitalization. Aside from health issues, travellers also come across a number of hazards while on vacation. Risks like loss of passport or checked-in baggage, interruption or cancellation are well protected by a travel policy. Furthermore, travel plans also pay for the legal assistance that travellers need in time of a monetary emergency.

All these safeguards are available if you opt for a travel policy. You can never predict what will happen to you during your vacation so it is wiser to prepare for the worst. And, the best form of protection is a travel insurance. You will not only be insured by spending some money but will also get best assistance in an unknown place, if required.

  1. Finding a suitable travel plan in India

There is no dearth of travel policy in India. There are scores of insurers who are ready to offer you a myriad of plans. The tricky part is finding the best travel policy that looks perfect in all aspects. To locate the best policy you need to understand your needs and budget. The premium rate is one of the most crucial factors and here is a detailed discussion on those aspects that have an effect on premium of travel insurance plans in India.

  1. Sum insured amount influence premium rates

At the time of availing a travel cover, you need to select a particular sum insured amount. The amount of sum insured chiefly depends upon the geographical area where you are supposed to fly to. Typically, if you want to visit countries with expensive medical services you should opt for a higher sum insured. A higher sum insured also triggers higher premium amount as well.

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MoneyMindz.com India's First Free Online / On-call Financial Advisory / Best Free Financial Advice

MoneyMindz.com India’s First Free Online / On-call Financial Advisory / Best Free Financial Advice 

What is home insurance:

Home Insurance: Choose the best home insurance policy and safeguard your house from natural and man-made disasters. A Shield against Loss/Damage

  • Compare Home Insurance from Top Insurers
  • Lowest Premium on Home Insurance
  • Instant Home Insurance Online

A house is made of walls and beams; a home is made with love and dreams.”

Why Do We Need Homeowners Insurance?

 💡 Hazard Insurance

Hazard insurance protects you against unintentional damage or destruction to your house or its contents, including fire, storm, theft, vandalism and similar threats. It can cover the cash value of the damages or the replacement value; replacement value pays enough to replace what you lost, but cash value only pays what a property is worth.

💡 Liability

Liability insurance covers personal liability for accidents on your property. If your neighbour trips on a hose in your yard and breaks his ankle, for example, liability insurance will pay for his medical expenses, up to the policy limit.

💡 Mortgage Requirement

One reason homeowners need insurance is that mortgage companies require it. If you take out a mortgage, your house is the lender’s collateral, so your lender will require you to buy a minimum level of hazard insurance. That doesn’t prevent you from buying a greater amount than the minimum, No states, if you think it necessary.

💡 Special Property

Homeowners insurance covers most of the property in your home, but there are limits to what the insurer will pay for certain items, such as cash or jewellery, the “This Old House” website states. If you have a home office, hazard insurance doesn’t cover business equipment either. If you have personal or business property that isn’t covered, consider paying more money for a supplemental policy that will protect you if they’re damaged.

Types of Home insurance:

💡 Home Structure/Building Insurance

This type of home insurance covers the structure of your house from any kinds of dangers and risks. In addition to this, the policy also protects any permanent fixtures within the house. This includes your kitchen and bathroom fittings, and also the ceiling/roof of the insured house. Some houses have garages, an outdoor room/house or sheds. This type of insurance usually extends to these structures as well.

💡 Public Liability Coverage

If any guests or third party experience damage caused to them or their property inside the insured’s home, then this type of home insurance policy provides coverage against the same.

💡 Personal Accident

This type of home insurance covers you and your family. A compensation is given in case of permanent disablement or death of the insured person due to accidental or physical injury, even if it has happened anywhere is the world.

💡 Burglary & Theft

In case of an occurrence of burglary or theft in the insured house, if any valuable contents are stolen or damaged, the policy covers you for it.

💡 Contents Insurance

It is not just the house, that you have insured, but also the contents inside the house on which you would have spent a lot of time and money deserve equal protection. This type of home insurance policy protects the goods inside your house from damages and loss owing to theft, fire, flood and other such mishaps. Your documents, portable equipment, jewellery, TV, refrigerator, etc. are covered. It does help you when you have to replace the interiors of house if your house is flooded, or has been burnt to ashes by break out of fire.

💡 Tenants’ Insurance

As a tenant you would have obviously rented a house or flat. In that case, it is the wisest option to not opt for a buildings cover, instead you need to focus entirely on protecting your contents. This type of insurance is a must have for every tenant. Though you live in a rented house, it is very much yours, at least, till the time you reside in it.

💡 Landlords’ insurance

As a landlord, the maintenance and upkeep of the building/apartment/structure of the house (that you are renting out) are clearly your responsibility. A standard buildings insurance policy usually aren’t exclusively designed for the need of landlords, because there are also other residents who live in the building. As a landlord you need something specifically designed for landlords. Hence, a landlords’ insurance policy is ideal for you and it also covers things like loss of rent and public liability.

Factors affecting Home insurance:

💡 Replacement cost of your home

What’s perhaps the biggest mistake most homeowners make when insuring their homes? Industry experts say that it’s under-insuring the value, which can lead to much financial pain if the worst happens.

“If you under-insure your place, you’ll likely be in for a bad shock,” warns William F. Harris, an independent insurance agent in Los Angeles. “Nobody wants that kind of surprise.”

The estimated replacement cost is the amount of money to build the exact same home where it stands now. This is different than the market value of the home, which includes other things such as the value of the plot of land. 

💡 Deductibles you choose for your policy

A deductible is the amount you have to pay toward a loss before your insurance company pays a claim. Choosing the right deductible amount is a significant decision because the higher the deductible, the more money you can save on your premiums. 

💡 Type of dog you own

You love your dog, but insurers may not be quite as enamored.

The liability portion of your insurance helps to protect you if you’re sued by someone who is attacked or bitten by your dog. But the III warns that some insurers will not insure homeowners who own certain breeds of dogs considered dangerous, such as pit bulls and Rottweilers. Others decide on a case-by-case basis, depending on whether an individual dog, regardless of its breed, is seen as vicious. 

💡 Wood-burning stoves

A wood-burning stove can be very atmospheric and reduce energy costs. But they can also raise your homeowner’s insurance premiums.

💡 Home-based business

Barry says it’s probably a good idea to take steps to protect equipment, supplies and anything else that is attached to you home-based business.

💡 Remodelling

Any remodelling, whether it’s a bathroom, kitchen or whatever, will likely raise the value of your home. With that in mind, the III says you need to have the increased value reflected in your policy. Keep your insurance agent well aware of the status of any improvements.

At its personal finance website, Wells Fargo notes that “it’s expensive for you to build, and it’s expensive for the insurance company to rebuild in case of a loss. Materials and construction costs will be taken into consideration and it may increase your premium, but at least your coverage will be up to date.”

💡 Home liability limits

Personal liability limits should be carefully considered. Insurers say that most people buy policies with 100,000 in personal liability insurance, which tends to be inadequate. The amount could easily be used up due to medical expenses and possible lawsuits if someone was seriously injured in your home.

💡 Insurance score

Your insurance score, which is similar to your credit score, can significantly affect your premiums, even the ability to secure a policy. People with low insurance scores may be seen as a financial risk by insurers, much the same way lenders look at those with poor credit numbers.

To better ensure a good insurance score, the III and most insurers suggest three steps, which are similar to maintaining good credit:

  • Avoid having debt that is in default.
  • Carry modest balances on your credit cards. Be sure to pay them in full each month.
  • Never have a tax lien, court judgment, your salary garnished or a bankruptcy on your record.

💡 Marital status

Insurers tend to smile on married homeowners. This is because married couples historically file fewer claims than singles and are seen as, possibly, more mature and definitely less of an actuarial risk by

💡 Age and construction of your home

The age of your home and how it was constructed are big factors in your home insurance rates. Even your home’s previous claims history can play a part in setting rates.

“Size, location and new-ness of the construction can all affect the cost to rebuild a home; and that affects the coverage needed.

💡 Having a swimming pool, hot tub or outdoor spa

These nice-to-have features are each going to increase your home insurance rates because you will need additional liability coverage in case someone is injured.

A swimming pool or other special feature could affect your liability insurance.

💡 Condition of the roof

How good a shape a home’s roof is in will play a factor in your homeowner’s insurance. 

How close your home is to a fire department:

If you live near a fire station, you’ll pay less of your home insurance. Homes that are located near permanently staffed fire departments usually cost less to insure, according to the Insurance Information Institute. And that’s also true for homes located near fire hydrants.

Urban and suburban homes usually get better ratings for fire protection than rural areas.

Having the fire department nearby will help to keep your home safe in case of fire. And it will also help to lower your home insurance rates, a win-win.

💡  How close your home is to coastline or body of water

According to the Insurance Information Institute, homes located near the coast or coastline are generally more expensive to insure than those that are inland. And homeowners who live near the coastline may have a separate deductible for hurricanes or need a separate windstorm insurance policy for their homes.

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India is a nation consisting of people from the poor/middle class and hence will be careful in spending their hard earned money. Simply earning is not good enough; you must also know to effectively channelize your savings in a logical fashion.  

Financial Advisors @ Moneymindz is unique, as it is India’s top financial advisory company assisting people of India in offering financial freedom and advisory mobile applications. Moneymindz is India’s largest financial search engine offering free advices. Many people have been educated @ Moneymindz, regarding financial concepts and financial products under one roof.

An unbelievable financial advice can make a vast difference in your life. Pick up your mobile and give a missed call at 022-62116588.

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Insurance is the major component of any financial market. Everybody likes to make quick money. Hence, insurance agents, having greed for incentives, will try to get more customers at any cost.

Ways  A Good Insurance Advisor Can Mislead You:

Some of the ways in which a good insurance advisor can mislead you are as follows:

Insurance Policy Do Not Match:  You will call the insurance company and person visits your house. You will take up policy, after being mesmerised by the advisor. Later you feel that policies do not match your requirement, and can be very disgusting at times. You will become a victim of Mis-selling.

Hiding Facts: The insurance agent, like to hide negative aspect of the insurance. This will put the customer in a fix and will not get full info on insurance.

I have an Insurance, Hence I’m Safe:

Many people in India think that, since I am having the insurance, I am safe. However, that is not the situation, because various insurance is available for various situations. Hence as a smart customer you must be alert, and choose your insurance smartly.

Sweet Thieves: Insurance companies, where the agents are working will have a bad reputation. At this juncture, company forces the agents to sell products/services using various tricks in the books.

Misleading Advertisements:  You should be on guard against bad advertisements/pamphlets and banner ads. Bad advertisements can destroy reputation of the company, your work.

Bogus Company: Company, where the insurance agent belongs will not be present in India. They will try to attract the customer with extra- customer service. Fraud deals can happen at any situations.

Fake Agents: Most of the agents are very corrupt and will pull up customer’s database and sell the insurance policies. The agents will not have proper license to even take up the position of Insurance advisor.

Super Commissions:   To get extra commission, insurance agent takes multiple applications from a single person. You will have serious problem looking and analysing statements of the policies and will get confused.

Hence you can give us a missed call at 022-62116588 and we will guide you

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MoneyMindz.com India's First Free Online Financial Advisors Financial Advisors
MoneyMindz.com India’s First Free Online Financial Advisors

Education makes a nation strong and more than 90% of Indians are literate. Demand for skilled/educated people for any executive position and beyond has increased and nothing better than quality education. Moneymindz.com is India’s largest financial search engine offering guidance in giving the education loans.

Vitality Of Educational Loans:

A good education loan is the need of the hour in India. Students, not able to pay for higher end courses can get the loans from various banks like State Bank Of India, Indian Bank, Bank Of Baroda, Corporation Bank, Vysya Bank, HDFC Bank, Punjab And Sindh Bank, Andhra Bank, Syndicate Bank, IDBI, ICICI Bank, Bank Of India and other financial institutions in India. Moneymindz is assisting the students in India, to get quality educational loans, without any hassles.

Document Required In Detail For Taking Up Educational Loans in India:

You need the complete documents for taking up the educational loan like:

  • Driving License.
  • PAN Card.
  • Passport
  • Bank Account Statement.
  • Latest Electricity Bills.
  • Latest Mobile Bills.
  • House Rental Agreement.
  • Copy of Admission letter of the college/universities.
  • Xerox of Mark Sheets of SSLC, PUC and Degree Courses.

Conditions To Be Full-filled While Taking Up Education Loan

Some of the conditions to be full filled while taking up educational loans are:

  • Must be a citizen of India
  • Copy of admission letter
  • Must be a recognized course from recognized university
  • Expenses for the course
  • 4 Passport size photographs
  • Statement of bank account for last six months
  • Details of expense of the courses

Duration To Complete Educational Loans:

Maximum tenure to complete educational loans is given below:

Loans up to 8 Lakhs—–Repayment will be up to 10 Years

Loans above 8 Lakhs—- Repayment will be up to 15 Years

Why Choose The Educational Loans In India?

Education is the ideal foundation to have a complete and successful life. Reason behind choosing the successful educational loans in India would be:

Expensive Education:  Cost of education has increased considerably. Due to inflation cost of your son/daughter’s education is challenging to bear. Good education loan helps in overcoming any hurdles.

Easily Available:  Most of the education loans are easily available in India. All public sector banks are offering education loans in India. Your ability to repay will also be taken into consideration.

Advantages of

Good Educational Loans In India:

Some of the advantages of a good educational loan in India are as follows:

  • Anybody having burning desire to study can apply for educational loan
  • Females, and disabled persons are offered concessions in educational loans
  • Loan amount will vary from approx 10 Lakhs to the maximum 20 Lakhs
  • Loans below 4 Lakhs does not require the role of guarantor
  • Loans above 7 lakhs will require security
  • Educational loans are offered to people, willing to take up academic courses in India and foreign nations.
  • Government is sponsoring their unique scheme “Central Scheme Interest Subsidy”, to assist economically backward sections
  • Applicant can repay loan after studies, and locking period is approx 5 or 7 years.
  • Students taking up educational loan will understand value of money.
  • Student will develop excellent credit history, if he/she repays loan on time.

So, indirectly one can have a good financial planning, if one is able to clear a education loan on time.

A missed call will do on the number 022—62116588 / 08049202111 and Moneymindz financial experts will call you immediately.

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MoneyMindz.com India's First Free Online Financial Advisors Initial Public offering (IPO)
MoneyMindz.com India’s First Free Online Financial Advisors

Process of offering the shares/stocks to the people of India is     known as IPO. A unique situation, in which owner of a firm, will offer the ownership to its shareholders.

Who Can Offer The IPO:

Any company cannot offer the IPO. Only some companies in India are following the requirements as per SEBI (Securities And Exchange Board Of India) and companies act can issue the IPO. Some of the conditions are as follows:

  • Good track record of the distributable profits for three years.
  • Company is having a net-worth of approx 1 Crores in the last 3 years.
  • Company and its associate must clear The SEBI guidelines.
  • You must have distributable profit for at-least three years.
  • Net tangible assets must be INR 3 Crores for the next three years
  • You must obtain grading of the IPO from one or more credit rating agencies.
  • Make sure that the paid up equity shares of the companies has been full paid.
  • Company must have a website
  • Post paid up capital of the firm must be at least INR 5 Crores.

Advantages of IPO in India:

Some of the advantages of the IPO in India are given below as follows:

  • Access to the evergreen capital markets in India.
  • Helps the small business founders and capitalists with the chance to take out early investment.
  • Helps the business house to have good public awareness.
  • Company gets recognized and can go for mergers and new acquisitions.
  • Encourages company to be transparent on various issues, by showing all information in the newspapers across India.
  • Helps the company, big/small to have good relationship with customers, suppliers and lenders, to enhance the credibility.
  • Assists companies to have very good/energetic incentive packages for the employees and the management.
  • Public can assess the growth and development of the individual.

DISADVANTAGES OF GOING PUBLIC WITH THE IPO (INITIAL PUBLIC OFFERING)
Some of the negative points, relating to the IPO are mentioned below as follows:

  • Launching an IPO is said to be very expensive.
  • Company will lose all critical information and hence lose control over its resources.
  • Working style of the firm and business tactics will come to the fore.
  • Shareholders will ask for a major share in the company business. Refusing to do it lead to takeovers.
  • The Company loses its flexibility and management will become weak.
  • Marketing strategy and cost will be very heavy on small and average enterprises.

How Initial Public Offering (IPO)Works:

IPO is a very challenging process and procedure is mentioned below as follow:

  • Companies hire an investment bank to do underwriting, a way of raising money, using debt or equity.
  • Underwriters acts as mediators between the public and companies.
  • Company and Investment bank will negotiate regarding security issues and other management related issues.
  • After finalizing the deal, investment bank set up registration statement, submitting the details to the Securities and Exchange Commission (SEC).
  • Registration details consist of company details like core policies, management, financial statements, vision, mission, core issues.
  • Securities and Exchange Commission takes some time to study documents and examine all the documents.
  • After the approval, a date is finalized in which, company will offer the stock to the public.
  • People get appointed like the underwriters, who get commission of 2.5% on underwritten amount.
  • Registers process the application form calculate amount and initiate allotment process.
  • An experienced member of the Stock Exchange is appointed as brokers for marketing purpose. They receive max brokerage charge of 1.5%.
  • Company appoint lawyers to make sure all regulations are complied with.
  • A draft prospectus is created giving info about the company, founders, partners, terms and conditions, modes of financing, profit and loss statements and others.
  • Senior Manager verifies claims and details are filed with SEBI.
  • Prospectus along with the copies of the agreement entered into with underwriter, lawyer, managers, registrars and brokers is filed with the register of companies, where the firm is located.
  • Application form and prospectus are circulated to CEO, MD, Board of Directors, Bankers, Underwriters, and Brokers as well.

Companies in India, big or small, would like to go in for the Initial Public Offering (IPO).

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MoneyMindz.com India's First Free Online Financial Advisors Stock Market Information
MoneyMindz.com India’s First Free Online Financial Advisors

You will not like to work in a company for your entire life. Trust me, after some years you will feel like controlling your finances by establishing your business. Nothing better than Stocks, will give you a clear picture of the business in India.

Stock : A unique kind of security / share of an organization that is held by a person or a group is known as the Stock.

Kinds of Stocks:

There are two kinds of stocks, that are available in India namely the

Common Stock: A unique kind of stock,that encourages the owner to vote at meeting of the shareholders, and receive the dividends is known as the Common Stock.

Preferred  Stock:  A unique kind of stock, encouraging the shareholder to a fixed amount of dividend, where payment takes over other share of the dividends is known as the Preferred Stock.

Major Things To Know Before You Go In For Stocks:

Some of the criterions to be followed before one goes ahead and purchases the stocks are as follows:

  • You must have a proper Pan Card.
  • You must be an Indian Citizen.
  • One must apply for a Demat Account.
  • You must check for the way stock prices are set.
  • One must buy shares when cost is low, and sell the share, at the time when cost is very high.
  • You must understand the bidding in stock market and check for the actual prices of shares.
  • Be careful relating to the trading scams/fraudulent activities.
  • Must do technical analysis like doing deep study of charts, bar graphs, index graphs and pie charts in a logical fashion.
  • Do not make huge investments.
  • Choose the correct stock market broker.
  • Select the share, that has profit in the coming years.

Most of the investors are sticking to the traditional companies offering good stocks/shares in the financial markets.

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MoneyMindz.com India's First Free Online Financial Advisors Trading account details

MoneyMindz.com India’s First Free Online Financial Advisors

Various types of account are present in India and trading account is said to be one of them. Account prepared to determine the gross profit/gross loss of a business enterprise is known as the trading account.

Need For Trading Account:

Trading account is fast creating waves in the ever changing financial market in India. Growth of small and big business has led to the increasing need for the trading accounts in India. Some of the major reasons would be as follows:

  • Gross Profit is major factor and must meet the expense of the company.
  • Helps in obtaining the amount of net sales of a company.
  • Gross profit from the net sales can be utilized from the trading accounts.
  • Percentage of gross profits on net sales could be easily ascertained from trading accounts.
  • Stock turnover ratio can be easily ascertained by trading account.

Major Advantages Of Trading Account:

Some of the advantages of trading accounts are as follows:

  • Shows relationship between gross profit and gross sales to measure profit.
  • Helps to show ratio between the goods sold and gross profits.
  • Helps to avoid direct expenses, and takes the expenses dealing with making products.
  • Helps you to analyse new platforms and understand your trade/markets.
  • Gives details about various trading activities in the markets.
  • Details about the over-stocking/under-stocking can be known in order to act in a rational manner.
  • Progress can be analysed relating to gross profit ration, year after year.
  • Excellent stock turnover ratio can be determined from trading account.

Disadvantages of Trading Account:

Trading account is the major factor of our economy and some of the negative points are:

  • You require huge brokerage charges in setting up the trading account.
  • Loss one incurs will be a huge one and difficult to come back.
  • Less control on your investment.
  • Less knowhow, resources and the lack of professional knowledge can hamper your investments.
  • Markets are very unpredictable and hence experienced traders will find themselves in troubled waters.

Hence I would recommend everybody to have the complete financial knowledge on their fingertips, before venturing into trading account.

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Managing large amount of money, by the large companies and government is known as finance. Various kinds of account are present in the financial market and Demat account is the major one.

What Is Demat Account?

A unique kind of deposit where in one can store and maintain investors details in an electronic format are known as the Demat Account.

India is having depositories like the NSDL (National Securities Depository Limited) and CSDL (Central Depository Services Limited) to have proper transfer of the securities.

Need For Demat Account:

Opening the Demat account is the major component of the online trading. After recession in 2009, Indian economy is having an upward movement to a great extent. Income of the people, standard of living of the people has increased considerably. Due to high salaries, people like to venture into the stock and share markets. Demat account is a unique form where in, investment can be handled by small investors in a logical manner.

How to Open A Demat Account:

In order to open a Demat Account, you must follow certain steps given below as follows:

  • You need to get in-touch with the registered Depository Participant.
  • Please fill up the account opening form.
  • Submit all the relevant documents with 4 passport size photographs.
  • Carry the original documents for verification.
  • One must pay some annual maintenance fees for maintaining the account.
  • You can open the Demat account with limited balance of the shares.
  • You need not have any balance in your account to open a Demat Account

Why Demat Account With Banks?

A good Demat account can be opened with various banks in India and features will be:

  • Low Fees.
  • Email Statement.
  • Accessing Demat Accounts through mobiles and internet.
  • Valuation of Account Statements.
  • Online Execution of Various Transactions.
  • Free charges for any transactions done.
  • Free alerts on your mobiles phone through SMS.

Various Documents Required For Opening A Demat Account:

Various documents are required to open a Demat account and they are:

Proof Of Identity:  Various documents are required for opening Demat Account. Documents like the PAN card, Passport, Driver’s License, Income Tax Returns, Mobile and telephone bills and the ID card where one works, whether government and private establishments are working must be produced.

Address Proof:  You would require various kinds of address like the Voter ID, Ration Card, Bank Passbooks/Statements, Xerox copies of electricity bills; House rental agreements must be deposited.

Components Of The Demat Accounts:

Some of the major components of Demat Accounts are as follows:

  • Investors
  • Depository
  • NSDL (National Securities Depository Ltd)
  • CDSIL (Central Depository Of Security India Limited)
  • Depository Participant
  • Issuing Company

Benefits of Demat Accounts in India:

Some of the benefits of Demat Accounts in India are given below as follows:

  • Easy and Convenient.
  • Transfer of Securities is very easy.
  • No stamp duty involved in the transfer of securities.
  • Zero restrictions on various transactions.
  • You will receive bonus share and it gets divided automatically.
  • Ideal for gold exchange traded fund, mutual fund, shares, and debentures as well.
  • Good for people to keep track of their investments.
  • Reduces the cost.
  • Interest on loans against Demat shares are lesser compared to physical shares.
  • Reduces the risk of the bad deliveries.

Disadvantages of Demat Accounts In India:

Some of the major disadvantages of the Demat Accounts in India are as follows:

  • You need to be expert in various financial products.
  • Trading in securities will become uncontrolled.
  • Investors will find the process too complicated, creating great fear of investment.
  • You need to be too sharp to monitor market fluctuations and make sure that trading does not affect investors.
  • Various rules/acts need to be adhered to in using Demat Accounts like the Depository Acts, Regulations Acts and others.

So, one can say that Demat Account are fast picking up in India and people are slowly getting interested in this form of account.

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