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  • What is an IPO?

    NIWS 19 Oct 2022

    2021 was a beneficial year for primary markets. More than 60 companies went public with their IPOs, and approximately 1 million investors participated in this IPO rally, raising more than 1 Lakh Crore. 

     

    One97 Communications (PAYTM) was the largest IPO for Rs 18,300 crore. 2022 also lists upcoming IPOs, including LIC, Delhivery, and Adani Wilmar. Some of them are doing well, and some are not, mainly the LIC IPO, which is listed at over an 8% discount and has already hit all-time lows multiple times. 

     

    The performance of the other much-awaited IPOs, such as Zomato's and Paytm's performance, has also been disappointing post their IPOs. Even though previous IPOs have had ups and downs, there are many exciting offerings in 2022 and 2023 that look promising.

     

    But, before investing in any such initial public offering, an investor should know about the company's business model. Otherwise, it would push them into a blunder pit of mistakes that investors make in the stock market, resulting in increasing losses. 

    An investor or trader needs to consider investment goals and horizons to grab the best opportunities in the stock exchange market. NIWS (National Institute of Wall Street) offers a comprehensive list of Stock Market Course In Jaipur from SEBI, NSE, BSE, and other market modules. Our experts train investors with advanced data analysis and research techniques, facilitating smart investment strategies for maximum profits. 

     

    A list of courses for investors include: 

     

     

    We also have an expert faculty to help you with the best trading courses. These include:

    • NIWS Certified Technical Analyst

    • NIWS Certified Options Strategy Professional

    • NIWS Certified Smart Investment & Trading Professional

    • Technical Analysis Crash Course

     

     

    What is an IPO?

     

    In IPO, aka initial public offering refers to the process in which a private company offer their shares to the public in a new stock issuance initially. An IPO is a part of the primary market that allows a company obtains equity capital from public investors from both preference and equity shares. 


     

    A company's transition from private to the public involves a share premium for current private investors, allowing them to perceive their entire investment gains. In the meantime, it also lets public investors partake in the offering.

     


     

    How are Shares Allocated in an IPO?

     

    According to the Primary Market Regulations, bids for the shares are registered online after a company introduces an IPO to the common people. All the bids are then analyzed through an online method, and the bids that were erroneously submitted will be considered null and terminated from the total number of bids. A conclusive number of approved bids for the IPO is now available.

     

    The situation of the company may fall among these two cases:

     

    1. Total count of bids is lower than or equal to the number of shares issued- 

     

    A complete allotment of shares will occur if the number of bids made by participants is lower than or equal to the number of issued shares. Therefore, everyone who has applied will be allotted shares.

     

    2. Total count of bids is greater than the number of shares issued- 

     

    When the number of bids submitted by applicants exceeds the number of shares offered, the allocation process needs to be planned more carefully. For every individual who applies, SEBI, or the Securities and Exchange Board of India, has mandated that every applicant should get at least one lot allocated.

     

    Let's understand case 2 with an example:

     

    Suppose that there are 20 lakh shares are issued in the market, and the minimum lot size is 100. Then the maximum number of applicants who will get at least one lot is = 20 lakh/100 = 20,000

    Thus, 20000 people can get one lot allocated.

     

     

    There are two types of the allotment procedure for case 2: 

    1. Small Oversubscription

    After distributing the minimum lot among all the participants, the remaining shares will be allocated proportionally among investors who have bid for more than one lot.

     

     

    2. Large Oversubscription

    When there is such an oversubscription when it is impossible even to allot one share to every applicant, allotment occurs via a lucky draw. The random draw process is computerized to avoid any partiality. Therefore, the applicants whose names are not drawn in the lucky draw during large oversubscription do not get any shares assigned. 

     

     

    Reason for No Allotment of Shares:

     

     The reasons why you didn't get any shares allocated could be:

     

    1. Due to an inaccurate Demat account number, wrong PAN number, or numerous applications for the IPO, your bid was deemed invalid.

     

    2. Because of high oversubscription, your name didn't get picked in the lucky draw

     

    Why Does A Company Decide To Go Public?

     

     

    Making a company public has many benefits. Some of those are:

     

    Raise Funds:

     

    The main motive for listing the company is to raise funds. A company needs a lot of funds for raising and expanding, so they can issue fresh share capital to achieve that.

     

    An influx of substantial capital from the market occurs when the shares are subscribed, allowing the corporation to fulfill a significant part of its financial requirements. They can use funds for anything they want, from reducing the company's debt to expanding business.

     

    Leaving Route for Existing Investors:

     

    Listing the company is an excellent solution if stakeholders (like the private investors or promoters of the company) wish to dissolve their stake partly or entirely. Via an Offer for Sale (OFS), the company's existing investors can offer their shares to the public and sell off shares to the public. Thus, it can act as an exit route for existing shareholders.

     

    Easily Marketable and Liquidable 

     

    A listed company's shares can be readily traded, thus motivating investors to own a stake in the corporation. Investors can quickly market and liquidate the shares. Listing on the stock exchange lets the company's shares engage in the exchange's turmoil of buying and selling.


     

    Increase Trust of Stakeholders:

     

    A listed company must comply with the SEBI's rules and regulations, keeping close control over the company's financial disclosures, corporate practices, and trading activities, leaving little room for malpractice or fraud. It increases the conviction of the corporation's shareholders in its operations and administration. 

     

    Possibility of Takeovers:

     

    As mentioned earlier, the main reason behind listing is raising funds. They can use that fund to acquire smaller companies in the same industry to advance their growth. The massive funding volume also expands the company, directly impacting its profitability. 

     

    Employee Motivation through ESOPs:

     

    A listed company can offer ESOPs (Employee Stock Ownership Plans), which can help a company attract talented employees. It decreases an employee's monetary compensation and retention cost and advances the chances of recruiting a proper fit.

     

    Enhanced Visibility:

     

    Listing creates brand awareness. Many people get to know about companies when their IPOs are out. Listing can create a public image for the firm and increase its market stature.

     

    As a result of listing securities, companies become more competitive as their share prices reflect market perceptions. The company's shares would be in demand if it performed well, thus boosting its prices, raising its market capitalization, and helping it become a reputable company.

     

    How are IPOs Issued?

     

    Issuing an IPO has two primary parts— the pre-marketing phase and the initial public offering. For an IPO, a company will solicit private bids from underwriters, or it can make a public statement to develop interest. 

     

    The company chooses the underwriters that lead the IPO process. For managing different parts of the IPO process, a company may select several underwriters to work collaboratively. As part of the IPO process, the underwriters assist with due diligence, document preparation, filing, marketing, and issuing the shares.


     

    Phases to an IPO:

     

    • Proposals: 

     

    There is a bid presentation by underwriters that discusses their services, the most suitable type of security to issue, the offering price, the number of shares, and the timeline for the IPO.


     

    • Underwriter: 

     

    The firm finalizes the underwriters they like, and orderly accepts to underwrite terms via an underwriting agreement.

     

    • Team: 

     

    Companies form an IPO team that comprises underwriters, lawyers, certified public accountants (CPAs), and Securities and Exchange Commission (SEC) experts.

     

    • Documentation: 

     

    The IPO team compiles the data regarding the company for required documentation. The introductory filing document for the IPO is the S-1 Registration Statement which contains preliminary details about the anticipated filing date. Continuous revisions are made to the prospectus.

     

    • Marketing & Updates: 

     

    They create marketing materials to pre-market the new stock issuance. Underwriters can revise their financial analysis in the course of the marketing process. Corporations take the essential steps to comply with particular requirements of the public share offering.


     

    • Board & Processes: 

     

    Set up a board of directors to ensure quarterly financial and accounting reporting is auditable.

     

    • Shares Issued: 

     

    The company's shares are issued on its initial public offering date. Upon issuance to stockholders, the funds are acquired in cash and documented as equity of the shareholders on the balance sheet. The corporation's shareholders' equity value per share determines the balance sheet share value. 

     

    • Post-IPO: 

     

    A few post-IPO provisions may be implemented. There may be a timeframe in which underwriters can buy more shares after the initial public offering (IPO). Meanwhile, a quiet period may apply to confident investors.

     

    Why is an IPO Beneficial for Investors?

     

     

    There are the following benefits of investing in an IPO:

     

    1. Catch on the Action Early

    IPO can be your entry gate to a company with high growth prospects. It can yield high profits in a short period and is also a good investment opportunity for the long run. Investing in a company that could shake the market and raises profits will give you great returns on your investments.

     

    2. Meet Long-Term Goals

    Investing in an IPO means you are investing in equity which has the potential to give huge returns in the long run. It could be your savings for your future which you could use for anything you want. 

     

    3. Better Price Transparency

    The IPO order document clearly states the rate per security issued. The information is available to more prominent investors, which would change post-IPO. After the IPO, the share prices would hinge on fluctuating market rates and the stockbroker's best rate.

     

    4: Buy Cheaper, Get High Returns

     

    IPO prices are often the lowest when investing in a start-up with tremendous growth potential because the company might offer a low rate. Missing the IPO window might make investing in that promising company difficult since the stock price may rise quickly.

     

    Conclusion

     

    IPOs are a great way to invest for an extended and short period. It could generate good profits if you invest in a company with the prospect of growth. IPOs are beneficial for investors as well as for companies. They help the company to raise funds for growth and for investors to make profits from their growth.


    But investing in IPO demands extensive research, which helps investors know the company's model, base, working, and financial reports. Technical and Fundamental analysis would facilitate the investigation. Connect with our experts now to learn more about courses from the best  Stock Market Institute in Jaipur for more details.

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  • Stock Market Basics: 10 Pro Tips for Beginners

    NIWS 3 Oct 2022

    Stock Market Basics: 10 Pro Tips for Beginners

    The stock market is a great way to multiply your investment. 

     

    Premchand Roychand established Asia's first organized stock exchange in Mumbai, India, in 1875. To provide a market for shares of textile mills in Ahmedabad, a Stock Exchange was started there in 1894. 

     

    A Stock Exchange was formed in Calcutta to facilitate dealings in plantations and jute mill shares in 1908. India has 24 stock exchanges, of which 21 are regional with allotted areas. In 1957, BSE was recognized as the first stock exchange by the Indian Government under the Securities Contracts Regulation Act, and later in 1986, SENSEX was established. 

     

    Securities and Exchange Board of India (SEBI) was further founded in 1988 to monitor and regulate the securities industry and stock exchanges.SEBI became an autonomous body with complete independent powers in 1992. 

     

    The NSE was formed as the country's first demutualized electronic exchange to ensure market transparency. Stock Exchanges are associated with the Capitalistic System of the economy

     

    If you want to enter the stock market web as an investor or trader, you must be well-versed with the basics of the stock market.  NIWS (National Institute of Wall Street) is the best Stock Market Institute in Jaipur, offering a wide range of courses from SEBI, NSE, BSE, and other financial market modules. We aim to teach the best technical analysis and fundamental analysis tricks, helping investors yield high returns from their investments. If you are among the people who want to know how one can invest in lucrative shares and want to learn stock market basics, then this blog is for you. Here we will give some expert tips that will help you invest insightfully.

     

    Tips to Make Money from the Stock Market:

     

     

    The only thing that differentiates between beginners and stock market experts is the knowledge of the basics of stock market India if you have expertise in stock market basics, then you can easily sideline profits from your investments. 

     

    1. Understand the Stock Markets

     

    You should know the trade's stock market basics to become successful in the stock market. It is thereby important to understand the process of stock trading. You can quickly learn stock market basics and all the details about trading and the related technical terms from NIWS Technical Analysis Concepts.

     

    2. Understand your Risk profile and Investment Goals

     

    Identifying your investment goals is very crucial before stepping into the market. You should have clear goals before entering the market. Whether it is to buy an asset, fund a personal affair, or grow your money, you need to have details about investments and financial planning concepts. 

     

    Now you have to decide on a timeline according to your plan. It could be short-term, medium-term, or long-term. Higher risk generates higher rewards, so if you want higher returns in less time, you have to take higher risks.

     

    3. Choose Stocks of Established Companies

     

    Companies with robust businesses and a great brand value are a good investment for the long term as the probability for them to suffer huge losses is very low. But they might not provide high returns in a short time. 

     

    You can find the data of companies that give regular dividends and bonuses online if you are familiar with the basics of the stock market. You can analyze the historical returns and market standing of the company. Most investors tend to keep long-term positions in such companies. All these records are fetched from company profiles, and you need to know the basics of stock market India to fetch these details. 

     

    4. Buy and Hold

     

    It is always better to adopt a buy-and-hold strategy for solid annual returns. In this strategy, you hold stocks or other securities for a long time instead of trading frequently with them. 

     

    Being out of the market on its most profitable days translates to vastly lower returns. You can't predict when these days will be, and days of solid performance are sometimes followed by days of significant declines. While investing on those days might seem the easiest solution, it's difficult to predict their timing.

     

    That means you must stay invested for the long haul to ensure you capture the stock market at its best. Adopting a buy-and-hold strategy can help you attain this goal, and NIWS courses will help you with the best courses of stock market basics for beginners. 

     

    5. Opt for Funds Over Individual Stocks

     

    Diversification is one of the great ways to reduce risk. There are two types of investment such as mutual funds and exchange-traded funds. It is better to invest in funds to maximize your diversification. If you want to replicate the diversification, you can buy a wide range of individual stocks, but it takes time, savvy, and a significant cash commitment to succeed. 

     

    In contrast, funds offer access to hundreds of individual investments with a single share of ownership. While everyone wants to invest in major companies like Apple (AAPL) or Tesla (TSLA) in the hope of profit, the truth is no one has a strong track record of predicting which companies will deliver outsize returns. 

     

    For this reason, most experts suggest investing in funds that passively track significant indexes, such as the S&P 500 or Nasdaq. By doing this, you can reap the benefits of the stock market's approximate 10% average annual returns as quickly (and cheaply) possible.

     

    6. Reinvest Your Dividends

     

    Many businesses pay a periodic payment based on their earnings to their shareholders, known as a dividend. When you first start investing, the amounts may seem negligible. But when you reinvest them, it helps your earnings compound even faster.

     

    Because of that enhanced compounding, many financial advisors recommend that long-term investors reinvest dividends instead of spending them when receiving them. Most brokerage companies have a dividend reinvestment program, or DRIP, which lets you automatically reinvest your dividend. 

     

    7. Start Analyzing Yourself

     

    If you want to grow in a share market, do not always follow the suggestions of market experts blindly. Do your research and analyze the market movements regularly. NISM Certification Course can be the best option for your learning. 

     

    It will let you make informed decisions and lower the risk of losses. You might not get a hold of the market initially, but once you start analyzing regularly, you will get a knack for correctly identifying the movements.

     

    8. Avoid Derivatives

     

    You need stock market expertise to invest in derivatives like futures and options. Because the margin money required is meager and usually for a specified short-term duration, you might buy much more stakes in derivatives than in stocks.

     

    Do not get blinded by this; remember that these are complicated instruments. It is better not to trade in them until you get hold of the trade. Learn more about the role of investment advisors in financial markets to know how they can help multiply your returns. 

     

    9. Identify Potential Sectors

     

    The corporate Sector of the stock market is booming in the Indian economy. Identify the sectors that are more likely to grow compared to other industries. For example, while most other sectors moved south in the pandemic, the pharma industry was working at full capacity and growing. Similarly, you can identify and focus on sectors with high growth potential.

     

    10. Build a Diversified Portfolio and Reduce Your Risk

     

    Having a diversified portfolio is best for investing. You can reduce your risk by investing in stocks from different sectors as all the sectors of an economy never go down simultaneously. Other sectors can cover losses if one sector doesn't perform well. 

     

    Conclusion

    You can make huge profits in the stock market. The only condition is that you should have the proper knowledge about stock market basics. You can get that knowledge by opting for courses from NIWS. 

     

    NIWS is the predominant Stock Market Course in Jaipur. They offer a comprehensive list of Stock Market courses of NSE, BSE, SEBI, NCFM, and NISM modules for smart investment, trading, data analysis, and research.

     

    NIWS also has online courses to learn from anywhere in the world. We provide professional level courses, which could help you get the best jobs in Stock Market broking firms as an Investment Advisor, Technical and Fundamental Analyst.

     

    Book Your Free Online Demo with our experts now to know more

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  • Stock Market Course in Jaipur

    NIWS 27 Sep 2022

     

    Stock Market Course in Jaipur

     

    Many individuals worldwide are enticed to the stock market since it is an excellent choice to earn and grow while spending less time. However, it is crucial to possess a comprehensive understanding of any profession to succeed and thrive in it. 

    When choosing a career in financing, the stock market has a wide variety of professional options for students. Its marketplace is expanding and growing with time, leading to a growth in employment opportunities.  

    If you're searching for an excellent stock market training centre, NIWS Jaipur will assist you in making many improved and significant earnings and succeeding in the trading business. The choice of Stock Market Course in Jaipur you foresee will impact your decision about the most appropriate approach. 

    Located on the 5th Floor, Electronic Market, Riddhi Siddhi, Gopalpura Bypass Road, NIWS is among the top-rated stock market course providers and shares market training institutes that satisfy your demands. The institute is ideal for professionals, beginners, or school pass outs who are looking for career opportunities in the financial sector.

    We offer different courses for Investors, Traders, and other Career-Oriented Options, making it easier for the students or trainees to select as per their eligibility and convenience. 

    Connect with our experts at +91 9261623456 or book your Free Online Demo to know more. 

     

    Best Stock Market Courses in Jaipur:

     

     

    Career Oriented Stock Market Courses: 

     

     

    Competing financial markets cannot compare to the elegance and allure the stock market has often retained. Whether Wall Street, Dalal Street, or Capital Market, they are all the same thing: financing. This course is an excellent choice for people looking for employment in the following categories:

     

    • Financial Institutes

    • Economic Institutes

    • International Broking Houses

    • Mutual Fund House

    • Research House

    • NFBC

    • KPO's

    • Wealth Management

    • Credit Rating Agency

    • Asset Management Company

    • PE Funds

    • Hedge Funds

     

    This twelve-module course involves role-playing, case studies, live stock market trading software's functional and academic training, and SEBI and NESI certificates. Job coaching or internship is done in the 12th module.

    The fee for this course is INR 1,20,000 with six NISM modules certificates and five NCFM modules certificates, excluding SEBI and NSE certifications. This Stock Market Course in Jaipur assures 100% job placement. 

    After completing this course, candidates can avail employment opportunities in 

     

    • Banks

    • Research Houses

    • Wealth Management

    • Broking Houses

     

    After graduation, candidates are hired directly on the payroll by research institutions and by large corporations, while 12th graders are placed in the offices of sub-brokers or smaller companies.

     

     

    When looking for a Stock Market Course in Jaipur, NIWS has many programs that assist you in leading to the successful and right path in the financial sector. The six-month Program in Financial Management or PFMM is the best short-term stock market course for people looking to understand financial market management or want to pursue their profession as an investor or trader. Candidates will get job opportunities in the following sectors:

     

    • Depository Businesses,

    • Financial Institutes

    • Stock Market Broking Companies

     

    This six-module program covers specific areas. The capital market includes trading in equity or cash; the derivatives module covers trading in futures (options and futures); and the commodity module gives insight into bullions training and trading, agro, energy, metals, etc.

    The fee for this course is 60,000 INR. Candidates receive six certifications with 100% employment placement in brokerage houses. Upon completion of the stock market course, candidates will have opportunities in 

     

    • Asset Management Companies,

    • Banks,

    • International and Indian broking houses,

    • Hedge Funds

    • Kpos,

    • Nbfc,

    • Pe Funds

     

    After completing school (12th grade), candidates receive direct payroll job placement in sub-brokerage offices or small organizations, while candidates who complete graduation get hired in larger organizations on direct payroll. 

     

     

    The two-month, dual-certified NIWS Investment Analysis and Portfolio Management curriculum is designed to help candidates qualify for the NSE NCFM Investment Analysis and Portfolio Management module.

    The course fee is INR 25,000 and covers the investment analysis and portfolio management module. Candidates will receive SEBI certified Research Analyst Certification. 

    The ideal candidate for this program is 

     

    • People willing to pursue financial service careers, 

    • Bankers, 

    • Working professionals, or

    • Getting employed as a portfolio or fund manager

      

    Stock Market Courses for Investors in Jaipur: 

     

    This course caters to beginners and newcomers who want to learn and comprehend the-.

     

    • Stock Market, 

    • Its Operations, 

    • Investment In Forex Markets/ Currency, 

    • Commodities,

    • Futures And Options, 

    • Shares. 

     

    It also provides in-depth knowledge about dos and don'ts for traders and investors, risk management and laws they must adhere to when trading online.

    The course fee for this seven-module program is INR 40,000, and candidates will receive NIWS certification with an option of enrolling at NSE SEBI/NISM for options strategy, fundamental analysis, and technical NCFM examination.

    Students must be HSC/12th grade to start a brokerage firm or for employment. After completing this course, candidates are qualified to handle their trading and investments.

     

    Before beginning to trade in the currency market, commodities, futures, or stocks, candidates must have explicit guidance and training. This short-term course is ideal for a student pursuing graduation, first-time traders and investors, people willing to invest in the stock market or working professionals requiring financial planning for investments.

     

    The fee for this short-term one-month course is INR 10,000. Students completing their 10th grade can enroll for this four-module course. Candidates will also receive certification from NIWS in Smart Investment and Reading Professional.

     

    Candidates looking for a career in the stock market or the financial market must pass NCFM modules since NSE necessitates it for capital market and broking organizations. NIWS provides preparatory and coaching classes for certification courses in NSE NCFM, with practical and theoretical education.

     

    The course fee for this one-month crash course is between INR 10,000 and INR 18,000. The program covers the certification module for NCFM preparation. Candidates completing the course will get

     

    • Employment assistance

    • New opportunities and market updates

    • Practicing through online mock tests

     

    Stock Market Courses for Traders in Jaipur: 

     

     

    This four-month program covers seven modules, including capital, futures and options, commodity and currency (forex), tools and rules for trading and investment, technical analysis, fundamental analysis, and options strategies. HSC/10+2 is a minimum requirement for employment or opening a broking company.

     

    The course fee is INR 40,000 with certification from NIWS.

     

    Being a technical analyst will assist you in identifying the financial targets and makes you knowledgeable of the trade's associated risk. This one-month course fee is INR 15,000. 

    The minimum eligibility criterion is HSC or 10+2, and the candidates receive certifications and assistance for employment as a research or technical analyst.

     

    NIWS provides preparation and coaching sessions for derivatives valuation, including strategies for hedging and trading, future and forward pricing, futures and forwards, the Black-Scholes formula, etc.

     

    The fee for this one-month crash course is INR 15, 000. Candidates must be 12th pass for self-trading, and graduation is a must for placement in larger organizations.

    This one-month course introduces candidates to the financial markets, stakeholders, and participants, with knowledge of investment, risks involved, online trading, etc. The fee for this short-term course is INR 10,000. 

    Candidates opting for this course must be a 10th pass.

     

    This program's benefit is that it allows candidates to create long-term, short-term, and intraday calls. After completion, candidates would quickly identify the market trends using price action assistance.

     

    With no set eligibility limitation, this five-day crash course fee is INR 7,500.  

    Conclusion:

     

     

    The constantly expanding Indian economy has increased the demand for qualified and trained financial market experts. With the Stock Market Course in Jaipur from NIWS, candidates will completely grasp the needs and specifications of the sector. The tailored offline courses of NIWS cater to the demands of the financial market and accounting taxes sectors.

     

    NIWS pioneers short-term, online courses and career-oriented courses to offer cutting-edge technologies in the financial market sector. So, book an offline demo to learn more about the courses, programs, and certifications. 

     

    Frequently Asked Questions:

     

    Which share market courses are available at institutions in Jaipur?

    Many Stock Market Institute In Jaipur are available in Jaipur at NIWS, including the Global Program in Financial Market Management (GPFMM), NIWS Certified Diploma in Research Analyst, 6 Months Program in Financial Market Management (PFMM), etc.

    Are there any Jaipur-based institutions that offer practical training in the share market?

    NIWS is among Jaipur's best stock market institutes that offers practical share market training.

    What is the average price for investment and stock trading courses in Jaipur?

    Jaipur's average stock market course fee ranges from INR 5,000 to INR 50,000.

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  • Stock Trader 101: Essential Skills to Know to Build a Career in Stock Market

    NIWS 23 Sep 2022

    Stock Trader 101: Essential Skills to Know to Build a Career in Stock Market

    According to Consumer Spending Outlook Report, more than 30% of Indian invest in mutual funds and around 10% in equities. Therefore, more than 300 stock traders are registered under SEBI, and about 300 Indian brokers are registered in NSE, facilitating investment schemes for the investors. 

    With the high rise in investment funds, being a stock market trader is one of the most popular career choices. But it is also not everyone’s cup of tea to earn lakhs of capital within a few minutes, with the risk of losing all at once. One needs to have proper knowledge and experience to build a career in the stock market. 

    If you’re also planning to be a stock trader or looking forward to build your career in stock market, then the stock market institute in Jaipur will help you with desired strategies. 

     

    Skills to Build Excellent Career in Stock Market:

     

     

    1. Analytical Skills-

     

    One of the essential skills that you need to have to start your career in stock market in India is excellent analytical skills to know the market. Developing data analysis skills and learning to read stock charts can help you with an efficient beginning as a stock trader. 

    You also have to be highly knowledgeable to make the right decision at the right time to gain the maximum profit. And it is only possible if you have strong analytical skills for a sound research base. 

     

    • Research Skills- 

    Excellent research skills are critical if you want deep knowledge about the share market. You can get ahead in stock markets if you keep yourself updated on the current market prices, political scenarios, and analysis of stock will let you go a long way. 

    Having the ability to have excellent market research will highly benefit you in the long term and will also help you keep away from losing money.

     

    • Adaptability- 

    As the stock market changes continuously within a blink of an eye, being adaptable is a required quality a trader must have to begin his career in the stock market. You need to have a strong research base to have all the details of the company model. Therefore, you must revise your trading strategy in response to the fluctuating share market. 

     

    • Risk management- 

    Risk management capabilities are a must for stock traders and will help them avoid wrong decisions. These long-term skills help stock traders to develop a strong backup plan which helps recover or minimize the losses during inflation. 

     

    • Record Keeping- 

    stoc2.png

     

    Record keeping is one of the most essential keys in the stock market. It is tough to see your actual progress without keeping detailed records. If you can record the trades nicely, then you can build a strategy that can be highly successful in the future. 

    • Fundamental Skills- 

    To be a great stock trader or to boost a career in the stock market, the trader must be well versed in fundamental analysis like future growth, profit margins, revenues, and other data to get the company's future growth potential. This helps in investing in the firm and gaining maximum profit from trading.

     

    • Keep Self-Control- 

    Self-control and focus go hand in hand, as keeping control of your emotions and sticking to trading plans are essential. Managing losses and setting profit points for future trades are very important. 

    Many strategy designs make the trader lose bad trades, which helps gain some good ones. But if the trader gets emotional during their good or bad trades, the trading window goes out of their hands.

     

    • Be Patient and have Discipline- 

    The stock market is highly volatile, and a stock trader must know how to grab opportunities from the fluctuating stock charts. So, if you wish to begin your career in stock market, then you must deal patiently with the system to avoid making a wrong decision in a hurry. 

    A lot of people get disheartened and lose all hope after they lose money after spending a hefty amount on stocks. But the sad news is that is not the way stocks work. 

    One needs a lot of patience and consistency to become a good stock trader. Only after seeing highs and lows in the market will you know the adjustments you need to make to remain long-term in the market. 

    Continuously building analytical skills, maintaining records, and discipline will make you a great trader. Being a master in one day is almost impossible, but by your hard work and skills, you can become a great stock trader someday.  

     

    Conclusion: 

    Whether you are a professional looking to enhance your stock market skills or an entrant planning to build a career in stock market, then you must have the basic knowledge to penetrate the volatile surroundings. 

    Suppose you wish to learn some professional courses to help you become a professional stock marketer, then NIWS can help be your ideal answer. 

     

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    NIWS is one of the best platforms with detailed courses for all the people who want to learn about the stock market. All the modules in NIWS are Finance, Portfolio, wealth management, and technical analysis of the Share market. 

    So, for your better future, enroll in a professional course on the stock market with the best stock market institute in Jaipur, and get 100 percent assistance in building your career.

    Book your Free Demo now to know more. 

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  • Difference Between Savings & Investment: Things You Should Know Before Retirement

    NIWS National Institute Of Wall Street 19 Sep 2022

     

    Difference Between Savings & Investment: Things You Should Know Before Retirement

    Financial planning for future days starts once you start earning. It is collective measures that help you to manage and achieve your life goals. Not only for the working life, streamlined and systematic financial planning is also essential for the post-retirement days. 

    You can lead a settled and peaceful life after retirement with a seamless flow of funds from investments and savings. Though both assures the flow of income, there is a difference between savings and investment, which everyone must know. 

    As this involves a lot of knowledge, skill, expertise, and experience, it is always recommended to go through any structured stock market Institute in Jaipur for a better and in-depth understanding.

    Savings and Investments for Strengthening Financial Base: 

    Savings and investments are important concepts for building a rock-solid financial base. Savings is the money left in hand after spending all the expenses from the disposable income. It is usually kept in bank accounts, added to the pension fund, or mostly held as cash. 

    Whereas, Investment is the dedication of an asset to achieve a higher value or worth over a certain period. You can expect a decent return if the investment is made with proper knowledge. If you are curious about what is the difference between savings and investment, take a sneak peek to know the various forms of investments and savings.

     

    Types of Savings Accounts:

     

     

    Ideally, you save for quite a few situations. The first thing that we could relate to savings is emergencies. You need to keep aside a portion of your disposable income for emergencies, from professional and personal to medical. 

    Maybe a 3-monthly or a 6-monthly event requires a lot of expenses, and shelling out that money from the monthly income seems a significant challenge. So, saving systematically every month is a good practice.

    Moreover, savings for retirement is quite popular and mainly in practice. You must also know about various accounts where you can deposit your saved disposable income.

    •  Regular Savings Account- 

    The regular savings account is the most common form used by everyone. We all need to maintain a minimum balance in our savings account to operate it and use it for our daily banking transactions. 

    • Zero-Balance Account-

    If you feel challenging to maintain a balance in the account, go for a zero balance account. As the name suggests, you have no minimum limit to be deposited into the account. Both these accounts come with a debit card and ATM card to make transactions hassle-free and seamless. 

    • Savings Account for Women-

    There is a particular type of savings accounts for women. Though you have to maintain a certain balance here, the bank offers various facilities to the account holders. 

    • Savings Account for Kids-

    Kids can also inculcate the habit of savings with kids’ special savings accounts. Primarily operated by the parents, this account makes the kid independent and helps develop financial management skills. 

    • Savings Account for Senior Citizens-

    Senior citizens can enjoy unique benefits with their savings accounts. Most banks provide this type of senior citizen savings account which comes with a range of medical benefits. 

    • Salary Account-

    Moreover, your salary account is always a savings account opened when the company collaborates with the bank. Usually, salary accounts are zero-balance and come with debit cards and accessible withdrawal facilities. 

    If you are keen to distinguish between savings and investment, take a glance to learn about this aspect. 

    Short-term investments are not successful and sometimes not profitable. For short-term goals, savings is the best option. Along with savings, you need to invest for a secured and steady life. Do you know the various facets of investments?

     It is interesting to know various types of investments and how they help secure the future. There are multiple investment options, from stocks, bonds, mutual funds, bank products, and annuities to education plans and insurances. 

    Diverse Forms of Investments 

     

     

    Stock:

    Investing in stocks is common amongst working and retired professionals. It is buying the percentage of ownership of a corporation. You can either purchase common or preferred stock. 

    Bond:

    Another prevalent form of investment is the bond. Bonds are loans a person makes to a corporation, federal agency, or government in exchange for interest payments over time. Even a mutual fund is a type of bond.

    Mutual Funds: 

    Mutual funds draw money from various investors and invest as per diverse strategies. Companies offering publicly offered exchange-traded and mutual funds are listed with the Securities and Exchange Commission as investing companies. Some companies are not listed with SEBI and provide private investment variants under hedge funds. 

    Bank Products: 

    Bank products like a certificate of deposits, federal insurance policies, and fixed and recurring deposits are some of the forms of investments that every nationalized and personalized bank offers.

    Annuity: 

    An annuity is also a significant investment where the insurance company contracts to pay back a fixed amount of money to investors. You can buy annuities with a one-time or periodic payment called premiums. These are mainly used as investment forms for post-retirement life.
     

    Difference Between Savings and Investments: 

     

    You must state that savings are made through money in a bank account or fixed and recurring deposits. You can invest in land, gold, real estate, stocks, and bonds.

     

    • The objective of savings is short-term goals, while investments are for the long term and future days.

    • The value of cash falls with inflation, but investments are super effective in combatting inflation.

    • Savings have low risk and low return, while investment comes with higher risk and much higher return value.

    • Savings have high liquidity and can have immediate access to money. Investments have low liquidity and a low chance of accessing the money immediately.

     

    Conclusion: 

    Now that you can explain the difference between savings and investment and know the various forms plan your future and save and invest for a financially steady and secured future. Both help you to develop and grow funds, but the level of risk and benefits varies. 

     

    If you want to save for short-time or necessities, savings are the best choice. But enjoying an increase in the net value of money and better gains is nothing like an investment.

     

    NIWS offers the best stock market course in Jaipur to help investors and traders analyze their requirements and liabilities and facilitate smart investments with the least possible risks. Book your online free demo now to get profitable returns. 

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  • Definition Types & 5 Stages of Economic Bubble

    NIWS 13 Sep 2022

    Definition Types & 5 Stages of Economic Bubble

    Our economy has experienced several Economic Bubbles throughout history due to some basic human principles. Constantly, the perceived value or price people are willing to pay outweighs the intrinsic value of goods. It usually shorts after a fall, followed by an economic crisis that leads to depression and recession. 

    John Maynard Keynes, regarded as one of the most prominent economists of the 20th century, once said that economic cycles are inevitable and that spontaneous optimism drives the economy in many ways more than mathematical rules. 

    Since Economic Bubbles are unpredictable and deceptive, investors or traders should be familiar with their fundamentals and strategies before investing.

    NIWS: National Institute of Wall Street is a top-ranked Stock Market Institute In Jaipur with highly trained, certified, and experienced expert stock traders. Our goal is to prepare our students with the best course for economic bubbles and modules approved by the NSE, NCFM, BSE, SEBI, and NISM. In addition, we offer promising career opportunities with a 100% job placement guarantee.

    Hence, let us discuss in detail what Economic Bubbles in the share market are, how they usually develop, their stages, and their types.

    What is the Economic Bubble?

    The term bubble in economics refers to a situation in which the price of individual stocks, assets, entire sectors, and asset classes substantially exceeds their intrinsic value. Often, these rapid increases are followed by rapid declines in value, or contractions, called "crash burst" or "bubble burst." 

    And to protect your investment from sudden price fluctuations, an investor must have a thorough knowledge of powerful stock trading strategies. These help investors with a backup plan to balance their losses from market volatility. 

    Types of Economic Bubble 

    1) Stock Market Bubble

    This type of bubble forms when the price of a private company's equities, shares, and EFTs rise beyond its fundamental or intrinsic value. A good example is the dotcom bubble in the late 1990s, fueled by internet-based businesses.

    2) Asset Market Bubble

    Generally, this type of bubble occurs in industries outside the equities market. Real estate is an excellent example of this. Cryptocurrencies like Bitcoin or Litecoin, or even traditional currencies like the US dollar or euro, also fall into the Asset Market Bubble.

    3)Credit Bubbles

    A credit bubble involves a sudden surge in consumer loans, debts like debentures, bonds & other forms of credit. 

    For example, credit bubbles occur when interest rates decrease or debt instruments offer higher interest rates.

    4)Commodity Bubbles

    Commodity bubbles involve a rise in the prices of commodities, i.e., hard commodities and soft commodities.  Some examples are gold, soybean, gas, oil, crops, and metals.

     

    5 Stages of Economic Bubble

     

     

    Bubbles are usually observed after they have occurred since their signs are not always obvious. Since Hyman P. Minsky- rewarded American Economist and Professor, discovered these stages, let's discuss them briefly.

    1) Displacement

    It occurs only when a paradigm enraptures an investor or trader or when investors/traders get distracted by new technology or trend. Let's understand this stage with a classic example: If the lending percentage rate on home loans falls, people will take more home loans for their property, but this high demand will eventually increase property prices. 

    2) Boom

    During this stage, prices rise slowly at first, gaining momentum over time as more and more participants could enter the market, setting up a boom. At this stage, the asset being questioned receives media attention along with growing fear that one might miss out on what could be a once-in-a-lifetime chance, causing more investors to join in the fold.

    3) Euphoria

    This stage is the phase where all your family members, friends, and neighbors will admonish you to get in the game. It's the phase where caution is tossed to the wind. Everyone simulates that they can become wealthy quickly. Risk is taken without hesitation, and nobody worries about the morning hangover. 

    The feeling of Euphoria is what causes people to believe that good times will never end - just as when people thought they could earn more money trading Ipos rather than going to work during the dot-com bubble.

    4) Profit Taking

    As soon as investors realize that the euphoria bubble is about to burst, they sell their assets and make a good profit.

    5) Panic

    Upon realizing that everyone is selling, panic sets in. As rapidly as asset prices had risen, they decreased as well.

    Example of Economic Bubble 

    Tulip Mania

    • It is believed that tulip mania was one of the first economic bubbles in history. 

    • Tulips were introduced to Holland, with the bubble occurring mainly between 1634 and 1637. 

    • Due to their bright and varied colors, tulips were highly priced and were a sign of success. 

    • Generally speaking, the more colorful and rare a bulb was, its value was more remarkable. 

    • Because of their dark line patterns, the most expensive varieties of tulips were called flame tulips. 

    • This variety was supremely coveted. 

    • Unfortunately, their spectacular colors were not caused by genetics but by a virus named Mosaic that infected them. 

    • During the peak of the mania, bulbs were sold for six times the average salary of that time.

    • To make more money from this madness, merchants created a secondary futures market where people could buy and sell tulips without owning them.

    • For the first time, an auction of tulips failed to draw enough buyers causing the tulip craze to end. 

    • Many people suffered losses during the 1637 bubble burst.

    • These people had mortgaged their houses, lands, and savings to buy a few tulip bulbs.

    Dot-Com Bubble

     

     

    • A few bubbles in history can match the dot-com bubble in terms of sheer size and scale. 

    • With the passing 1990’s second half, internet stocks began to rise rapidly. 

    • In the aftermath, hundreds of dot-com companies became publicly traded and achieved multibillion-dollar valuations.

    • The NASDAQ index increased from 743 points in 1995 to a peak of 5,048 by March 2000. It was more than doubling its value in just six months.

    •  The NASDAQ lost 78% of its value in 2002 due to the bubble burst. Most shares in internet companies also saw their prices plummet.

    • The tech-heavy S&P500 saw its value nearly reduced by half, and shockwaves were felt all over the globe.

         US Housing Bubble

     

     

     

    • A rapid increase in home prices in the US housing market by the mid-2000s caused a bubble.

    • In the hope of making a profit from their homes, speculators started to flip them.

    • During the period 2000-2006, the price of a home in the United States increased by almost 80%.

    • However, people who couldn't afford homes started buying them, and eventually, the bubble burst.

    • Housing prices took about ten years to recover fully.

     

    Conclusion

     

    Identifying an economic bubble in real-time is impossible, so investors should be cautious when investing in upward trends. Check the assets' fundamental values if prices rise before investing in them. Ensure the price you pay for a particular stock is worth the investment.

    One should also understand financial ratios like price-to-equity or price-to-book ratios to determine whether a stock is overvalued or undervalued. All these things are only possible when an investor knows the basics of the stock market and the company's stock they are dealing with. NIWS offers the best stock market course in Jaipur, where an investor or trader can learn all the stock market strategies and facilitate intelligent investments.

    Book your Free Demo with our experts to clear your queries and discover how our expert tips will help you with promising career opportunities in the stock market.

     

    FAQ

    In what ways can you tell if there is an economic bubble?

    • An insufficient amount of research is done before purchasing securities (purchased based on belief).

    • Financial results become less critical than company stories.

    • There is a far-fetched vision of a bright future portrayed by charismatic leaders that are far away from current reality.

    • For many years, doubters have been portrayed wrong and disregarded as people who "just don't understand."


     

    Is the stock market in a bubble in 2022?

    We can't predict whether the stock market will be a bubble in 2022. However, it appears that the underlying economy is growing despite some concerns. Wise investors need to stay committed to their overall finances and keep investing for the long term.

     

    When a bubble bursts, what happens?

    The price of an asset or stock drops to its intrinsic value or even lower when a financial bubble bursts—an abrupt drop in price results in a crash in the stock market. Investors can incur massive losses, as well as the economy, to undergo a recession.
     

    What causes an economic bubble?

    The economic bubble occurs when an item's price rises far beyond its fundamental or intrinsic value. Some of the economic bubble examples are 

    • Tulip

    • Dot-com 

    • Gold

    • Baseball cards

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