After knowing what the index is, then we also need to know the benefits of the index, in particular stock index. Here are the stock index benefits.
Index as a benchmark of investment evaluation
the Capital and financial market index are indicators of changes that give you an idea of what is happening in the market. Thus we can answer the critical questions posed at the beginning of this post. Armed with the index, which is an objective measure as a reference or comparison of investment results have been obtained, then the success or failure of an investment strategy can be measured objectively.
We can see each issuer's stock price. From there it will look stock which has increased or decreased within a specified period. If we have stock that rose above the composite stock index, then we have a great success in our stock investment.
Index as a Tool for Investment Monitor
Investors should not wait until the end of the year to evaluate its investment activities. Because index is also an effective indicator to help investors in monitoring the investment. If an investor diligently observe the stock index every month and always compare the price of the shares was holding in the period, then he will know whether the growth of investment in shares which he held down continuously below the average stock price traded at the exchange or actually rose.
On the other hand, if in one period of the composite stock price index continued to rise consistently seen, a rise in the index was show how many other stocks whose prices rose sharply and the number of gains. Armed with the information presented by the composite stock index so that investors may start looking for other stocks that caused the stock price index rises. The trick is to find a list of stocks that were included in the calculation of the composite stock index movements and observe stocks that have a big impact on the movement of the composite stock index.
From the analysis of stocks that are members of the calculation of composite stock price index, the investor will find other stocks that could potentially provide benefits. And it is not impossible that investors can make the decision to sell their shares and buy other more profitable shares. From the analysis, we can invest wisely.
Showing posts with label stock. Show all posts
Showing posts with label stock. Show all posts
Friday, February 10, 2012
Know the Index
In a certain period of time we should review and evaluate investments that we have. Various events - both positive and negative - will ultimately affect the level of investment returns earned by investors.
A variety of critical questions to be answered so that investors really know whether the investment has been effective or not. Some questions to ask include: What is my return on investment is sufficient? How effective investment strategies that have been executed? From the answers obtained, investor will know that their investment strategy still on the right track or not. Thus investor will have a solid basis for better investment decisions in the future.
To answer these questions it would need a benchmark or reference to the objective as a comparison of the returns from investing activities was run. One of the measurement tools of objective comparison is already available in the market and can be accessed by investors : index. Yes index, let us discuss more about the index in terms of investment.
Know the Index
In capital markets and finance, we know the term stock index, although index is not monopolized by stock market, but also used in many other markets such as index funds at the bond market and the forex market. It is actually not surprising because the first index is used in finance and capital markets namely the stock index.
Charles H. Dow - a financial pages journalist - is the first person to introduce the use of index to monitor the prices of American stocks in 1896. The introduction of the index was the forerunner of the Dow Jones Industrial Average (DJIA) aka dow jones index, a stock price index is referred to by many of the world's financial players to date. Other popular index is nikkei index .
The index itself is a statistical indicator that shows the size change of a particular object. Stock index will give an overview of the size of price changes in the stock market in a given period. An overview of how large the bond market moves up or down can also be obtained by observing the size of the change in bond price index figures. An index number is generated from a series of calculations to link today's prices with prices in the days before, so it indicated that the price today is higher or lower than the previous day.
By combining the methodology of calculation of index with a choice of capital markets and financial instruments are included in the calculation, then the index is expected to provide an accurate picture of market conditions and direction of movement of the cutting edge of an investment instrument.
A variety of critical questions to be answered so that investors really know whether the investment has been effective or not. Some questions to ask include: What is my return on investment is sufficient? How effective investment strategies that have been executed? From the answers obtained, investor will know that their investment strategy still on the right track or not. Thus investor will have a solid basis for better investment decisions in the future.
To answer these questions it would need a benchmark or reference to the objective as a comparison of the returns from investing activities was run. One of the measurement tools of objective comparison is already available in the market and can be accessed by investors : index. Yes index, let us discuss more about the index in terms of investment.
Know the Index
In capital markets and finance, we know the term stock index, although index is not monopolized by stock market, but also used in many other markets such as index funds at the bond market and the forex market. It is actually not surprising because the first index is used in finance and capital markets namely the stock index.
Charles H. Dow - a financial pages journalist - is the first person to introduce the use of index to monitor the prices of American stocks in 1896. The introduction of the index was the forerunner of the Dow Jones Industrial Average (DJIA) aka dow jones index, a stock price index is referred to by many of the world's financial players to date. Other popular index is nikkei index .
The index itself is a statistical indicator that shows the size change of a particular object. Stock index will give an overview of the size of price changes in the stock market in a given period. An overview of how large the bond market moves up or down can also be obtained by observing the size of the change in bond price index figures. An index number is generated from a series of calculations to link today's prices with prices in the days before, so it indicated that the price today is higher or lower than the previous day.
By combining the methodology of calculation of index with a choice of capital markets and financial instruments are included in the calculation, then the index is expected to provide an accurate picture of market conditions and direction of movement of the cutting edge of an investment instrument.
Tuesday, January 31, 2012
IPO of Facebook
Facebook will start the process of becoming a public company listed on the stock this week. Reports say, the stock valuations of social networking site was estimated at U.S. $ 75-100 billion.
According to the Financial Times and the Wall Street Journal, Facebook plans
propose a number of documents related to go public plans to the regulatory capital markets agency and financial institutions of the United States on Wednesday, February, 1, 2012.
According to the report document, the Facebook's plan is going to be one of the largest stock sales on Wall Street. Funds are likely will be achieved this year about U.S. $ 10 billion.
This figure makes the funds that achieved U.S. $ 1.9 billion by
Google on the stock when it took off shares in 2004 looked very small. But stock sales revenue gained by Facebook is still losing far than the revenues of U.S. $ 20 billion, which obtains by the cars manufacturer General Motors in November 2010.
As reported by BBC.co.uk website, mentioned a number of people estimates
Morgan Stanley will be the lead underwriter. Goldman Sachs has also estimated that many involved in the sale of Facebook shares.
Rumors surrounding the plan of initial public offering (IPO) of Facebook have been circulating for months. Sales value of shares would makes up one of the world's largest companies based on market capitalization.
As a private company, Facebook has no obligations
reported balance sheet. However, in January last year, documents that
delivered by Goldman Sachs for its clients show up
reported a net profit of U.S. $ 355 million with revenues of U.S. $ 1.2
billion in the first nine months of fiscal year 2010. Most of the revenue derived from advertising.
According to the Financial Times and the Wall Street Journal, Facebook plans
propose a number of documents related to go public plans to the regulatory capital markets agency and financial institutions of the United States on Wednesday, February, 1, 2012.
According to the report document, the Facebook's plan is going to be one of the largest stock sales on Wall Street. Funds are likely will be achieved this year about U.S. $ 10 billion.
This figure makes the funds that achieved U.S. $ 1.9 billion by
Google on the stock when it took off shares in 2004 looked very small. But stock sales revenue gained by Facebook is still losing far than the revenues of U.S. $ 20 billion, which obtains by the cars manufacturer General Motors in November 2010.
As reported by BBC.co.uk website, mentioned a number of people estimates
Morgan Stanley will be the lead underwriter. Goldman Sachs has also estimated that many involved in the sale of Facebook shares.
Rumors surrounding the plan of initial public offering (IPO) of Facebook have been circulating for months. Sales value of shares would makes up one of the world's largest companies based on market capitalization.
As a private company, Facebook has no obligations
reported balance sheet. However, in January last year, documents that
delivered by Goldman Sachs for its clients show up
reported a net profit of U.S. $ 355 million with revenues of U.S. $ 1.2
billion in the first nine months of fiscal year 2010. Most of the revenue derived from advertising.
Friday, October 14, 2011
The Pressure of Europe to Asia Enlarges
Pressure from the problem of the debt crisis in Europe towards other regions, including Asia, is feared enlarged. The IMF estimates that Europe has the potential escalation of the crisis triggered selling assets in Asia, triggered the policy of foreign banks to cut lending to Asia.
EU Commission declared that EFSF is fully operational after Slovakia said it would support the bailout area. Support for Italian Prime reduced but is expected to successfully pass the parliamentary motion of no confidence in terms of budget policy.
Political chaos in Italy is potentially aggravate the situation in Europe. Credit Suisse estimates that at least 66 banks in Europe could potentially fail to pay if the European Union to revise the provisions of stress tests and capital increased to USD302, 3 billion. Major banks such as RBS, Deutsche Bank, BNP Paribas will require a total capital of 47 billion Euro.
U.S. stocks closed thin lower after a rally reinforcement in three days. This slight decline was triggered weak financial performance of JP Morgan, but instead Google posted fairly good financial performance. Asia's main index moved lower this morning. China reported a decline in trading in September. Weakening exports that occurs is the effect of strengthening the Yuan since mid-August.
EU Commission declared that EFSF is fully operational after Slovakia said it would support the bailout area. Support for Italian Prime reduced but is expected to successfully pass the parliamentary motion of no confidence in terms of budget policy.
Political chaos in Italy is potentially aggravate the situation in Europe. Credit Suisse estimates that at least 66 banks in Europe could potentially fail to pay if the European Union to revise the provisions of stress tests and capital increased to USD302, 3 billion. Major banks such as RBS, Deutsche Bank, BNP Paribas will require a total capital of 47 billion Euro.
U.S. stocks closed thin lower after a rally reinforcement in three days. This slight decline was triggered weak financial performance of JP Morgan, but instead Google posted fairly good financial performance. Asia's main index moved lower this morning. China reported a decline in trading in September. Weakening exports that occurs is the effect of strengthening the Yuan since mid-August.
Monday, July 18, 2011
Google Stock Performance
Fluctuations in the performance of Google to help stock index on Wall Street out of the slump. Although there is high anxiety of investors due to the uncertainty of U.S. government debt settlement.
Anxiety about the U.S. government debt and Europe to make Wall Street devastated in the week. Within a week, the S & P 500 fell 2.1%, the Dow Jones lost 1.4%, and the Nasdaq down 2.5%.
In trading Friday (15/07/2011), the stock market ignored the fierce debate in Washington about raising the debt ceiling to avoid default on debt.
But it turns out Google Inc. shows a polished performance of their income and make the market rose. Google became a top Gainer on the Nasdaq.
On Friday, the Dow rose 42.62 points (0.34%) to a level of 12479.73. The Standard & Poor's 500 index rose 7.27 points (0.56%) to a level of 1316.14. Then the Nasdaq rose 27.13 points (0.98%) to a level of 2789.8.
The market situation is full of uncertainty, where the European Banking Authority said there are 90 banks in Europe that are undergoing the test, whether they could survive if the economic recession happening again.
Anxiety about the U.S. government debt and Europe to make Wall Street devastated in the week. Within a week, the S & P 500 fell 2.1%, the Dow Jones lost 1.4%, and the Nasdaq down 2.5%.
In trading Friday (15/07/2011), the stock market ignored the fierce debate in Washington about raising the debt ceiling to avoid default on debt.
But it turns out Google Inc. shows a polished performance of their income and make the market rose. Google became a top Gainer on the Nasdaq.
On Friday, the Dow rose 42.62 points (0.34%) to a level of 12479.73. The Standard & Poor's 500 index rose 7.27 points (0.56%) to a level of 1316.14. Then the Nasdaq rose 27.13 points (0.98%) to a level of 2789.8.
The market situation is full of uncertainty, where the European Banking Authority said there are 90 banks in Europe that are undergoing the test, whether they could survive if the economic recession happening again.
Subscribe to:
Posts (Atom)