What is demat account?

Demat refers to a dematerialised account.
Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a demat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. You have to approach the DPs (remember, they are like bank branches), to open your demat account.

Fundamental Analysis:

A method of security valuation which involves examining the company's financials and operations, especially sales, earnings, growth potential, assets, debt, management, products, and competition. Fundamental analysis takes into consideration only those variables that are directly related to the company itself, rather than the overall

What is technical analysis?

Technical analysis is all about studying stock price graphs and a few momentum oscillators derived thereof. It must be understood that technical studies are based entirely on prices and do not include balance sheets, P&L accounts (fundamental analysis), the assumption being that the markets are efficient and all possible price sensitive information is built into the price graph of a security / index.

Therefore, technical analysis supports the efficient market theory as against the "random walk theory" which supports the belief that stocks can be bought / sold on random events like flipping a coin!!! Technical analysis is more dynamic as compared to fundamental analysis based on one simple argument - fundamental analysts depend on corporate events like quarterly results and special announcements like earnings guidance and policy changes in operations to generate a buy / sell recommendation.

Value Investing

Value investing is an investment technique where one buys shares that are believed to be undervalued in hopes that the true (higher) value of the stock will be realized. Therefore, value investing requires more of a long-term outlook.
Someone who believes the market overreacts to good and bad news, which can cause stocks to be traded at less than they're worth, might be more prone to value investing. Those who engage in value investing get out when they think the market has corrected the price.

To determine if a stock in undervalued, investors who opt for value investing typically look for low price-to-earnings ratios and low price-to-book values.

Value investing is not as focused on technical analysis as it is on the stock's fundamentals.
This means that value investing examines the stock's current market value and the company's intrinsic value.

Blue Chip Stock

Blue chip stock is equity in the securities of high quality companies. Blue chip stock is often also high in public share price. Blue chip stock is a term named after the blue-colored highest poker chip denomination. Stock of “blue chips” or “blue chip stock” demonstrate some combination of high credit rating, strong balance sheet, stable earnings power.

Blue chip stock is often found in conservative investors and retirement portfolios.

Volatility for blue chip stock is typically lower than that of lesser known, more thinly traded stocks.

Blue chip stock is often popular in market downturns for their ability to pay dividends no matter what the economic climate

Cool links for online business papers

http://www.businessline.in/

http://www.indianexpress.com/Business.html

http://www.business-standard.com/

Retail investor

An individual who purchases small amounts of securities for him/herself, as opposed to an institutional investor. also called individual investor or small investor.

What is speculation

Taking large risks, especially with respect to trying to predict the future; gambling, in the hopes of making quick, large gains

Who is speculator

One who engages in speculation.

Who is investor

An individual who commits money to investment products with the expectation of financial returns. Generally, the primary concern of an investor is to minimize risk while maximizing return, as opposed to a speculator, who is willing to accept a higher level of risk in the hopes of collecting higher-than-average profits.

Types of investor
accredited investor
retail investor
lead investor
passive investor
institutional investor
qualified institutional investor

What is Share

A Share (also known as an equity or a share) is a portion of the ownership of a corporation. A share in a corporation gives the owner of the stock a stake in the company and its profits. If a corporation has issued 100 stocks in total, then each stock represents a 1% ownership in the company.

What is equity

An equity (also known as an share or stock ) is a portion of the ownership of a corporation. A share in a corporation gives the owner of the stock a stake in the company and its profits. If a corporation has issued 100 stocks in total, then each stock represents a 1% ownership in the company
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What is stock

A stock (also known as an equity or a share) is a portion of the ownership of a corporation. A share in a corporation gives the owner of the stock a stake in the company and its profits. If a corporation has issued 100 stocks in total, then each stock represents a 1% ownership in the company.

What is mutual fund

An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. mutual funds raise money by selling shares of the fund to the public, much like any other type of company can sell stock in itself to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase various investment vehicles, such as stocks, bonds and money market instruments. In return for the money they give to the fund when purchasing shares, shareholders receive an equity position in the fund and, in effect, in each of its underlying securities. For most mutual funds, shareholders are free to sell their shares at any time, although the price of a share in a mutual fund will fluctuate daily, depending upon the performance of the securities held by the fund. Benefits of mutual funds include diversification and professional money management. Mutual funds offer choice, liquidity, and convenience, but charge fees and often require a minimum investment. A closed-end fund is often incorrectly referred to as a mutual fund, but is actually an investment trust.