Saturday, November 13, 2010

EQUITY- THE SECONDARY MARKET

Quote

Getting fired is nature's way of telling you that you had the wrong job in the first place.”

Hal Lancaste

The relation with the above quote is a subjective one.Equity the financial instrument precisely means holding.To be simple you own certain percent shares of a company.how did this equity became one of powerful financial instruments which made the people crazily go behind this even with such high volatile conditions.The reason might be just one that is money.There might be a question in your mind seeing the title,why it is a secondary market? Why cant it be the primary market?yes ,you are right equity(shares) before being used in stock exchange for trading, it is ipo-initial public offering (primary market).when equity comes to retail trading it is secondary market.

Demand & Supply determines any trade, same for the equity.The mantra of equity is buy low sell high.it has made people from rags to riches,but always the moral of the equity story is “BE PROACTIVE”.

A person who works on equity and analysis the data , trends of the business is a equity analyst.He must be looking after the financial analysis & budgeting of business to help the company ,if it is in debt situation,they are also called as financial analyst.These financial analyst previously got financial data’s of the company by meeting the managers of departments but now based on fair disclosure laws he can only access only through web.A Equity analyst works with a securities firm ,bank, investment market, mutual funds and also in insurance companies

Equity analyst must be a observant on business and its trends.And for pursuing a career in equity MBA or MSF would do it or a experience gained in broking,trading and securities analysis would help the individual and reading wall street journals,barrons for international markets ,and certain Indian journals for our market.

The e(quity)nding note perfectly suits the market is.

“MAKE HAY WHILE SUN SHINES.......”

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