which a/c in needed for ipo demat a/c or trading and demat a/c?
Monthly archive: October, 2009
Does investing in stocks have a positive or negative effect on the economy?
Stefany asks:
Supposedly, investing large amounts of money in post-IPO stocks simply locks that money away, and pulls it out of circulation. Is that true, and what effect does this have on the economy as a whole? (Is a lot of people with a lot of wealth sitting on their money, with it invested in stocks and only growing value for said people, a good thing or a bad thing?)
Supposedly, investing large amounts of money in post-IPO stocks simply locks that money away, and pulls it out of circulation. Is that true, and what effect does this have on the economy as a whole? (Is a lot of people with a lot of wealth sitting on their money, with it invested in stocks and only growing value for said people, a good thing or a bad thing?)
Great Profit Potential Comes With Greater Risk
Angelo asks:
Perhaps you have been trading stocks for a long time. You believe that you have mastered the art known as trading and want to go even further. You think you are ready to play with the big boys now.
All right then, step right up to the plate and get prepared for some advanced stock market trading.
For advanced traders, using margin, selling short, getting into IPOs, and other quite sophisticated trading techniques and strategies can open a whole new world of exciting trading experiences and potential profits.
Understanding IPOs
IPOs or initial public offerings are a highly visible sign of the transition of a company from a privately owned organization to a publicly held firm. Every incorporated business issues common stock, although initially this is usually to a few stockholders. In order for a company to raise necessary capital without incurring debt, one commonly used method is to sell stock to the public, thereby becoming a publicly traded company.
There are two ways to potentially make money from these IPOs.
First, the trader needs to get in early and buy stocks through the initial public offering, hope for a large quick increase in share price, and then sell shares for a quick profit.
The other way is to sit back, watching and waiting until after the IPO has begun. See if the new stock is fairly priced. If it’s reasonable, then one would purchase the stock.
Shorting Stocks
Selling short is an advanced technique that many traders do not take advantage of. Short sellers look for the best stock to sell. Short sellers sell stock they don’t actually own with a belief the value will come down by a significant amount in the near future. The shares are borrowed from a stockholder. The borrowing is done by each party’s brokers.
When the price tumbles, the short sellers can buy the stock at the lower price to cover their short positions, pocket the profit and return the shares to the owners.
Short selling is risky though. If the prices jump instead of drop, you will lose money. It is often difficult to easily speculate if a stock will fall. The historical tendency of the average stock is to increase in price over the long term. So the potential for loss is greater than the potential for profit, because the short seller is going against a historical norm.
Margin Trading
Margin accounts can permit the trader to borrow money to buy stock. Margin trading uses borrowed money to increase how much stock the trader can buy. This money can be loaned by a broker.
If you were to buy a stock worth $1,000 on a cash basis, without the use of margin trading, you would have to dish out the full $1,000 dollars, plus commissions. But if you margin trade, your broker can lend you up to half of the amount or $500 on many stocks, and you only need to shoulder the other $500 plus commissions and interest payments.
If the stock gets you $10 per stock, profit will be based on the number of shares of stock you bought with $1,000. Then you can pay the broker back. If you did not margin trade, your profit would only have been for the number of shares of stock you paid for using cash. On the other hand, were the stock price to go down, the loss incurred would be based on the entire $1,000, and you would still owe the margin loan amount to the broker.
Closing
As with everything in life, there is a flip side to every coin. In many cases, the greater the profit, the greater the risk. Advanced trading is not for the faint of heart, and you should only trade with risk capital, not with money that you can’t do without.
Perhaps you have been trading stocks for a long time. You believe that you have mastered the art known as trading and want to go even further. You think you are ready to play with the big boys now.
All right then, step right up to the plate and get prepared for some advanced stock market trading.
For advanced traders, using margin, selling short, getting into IPOs, and other quite sophisticated trading techniques and strategies can open a whole new world of exciting trading experiences and potential profits.
Understanding IPOs
IPOs or initial public offerings are a highly visible sign of the transition of a company from a privately owned organization to a publicly held firm. Every incorporated business issues common stock, although initially this is usually to a few stockholders. In order for a company to raise necessary capital without incurring debt, one commonly used method is to sell stock to the public, thereby becoming a publicly traded company.
There are two ways to potentially make money from these IPOs.
First, the trader needs to get in early and buy stocks through the initial public offering, hope for a large quick increase in share price, and then sell shares for a quick profit.
The other way is to sit back, watching and waiting until after the IPO has begun. See if the new stock is fairly priced. If it’s reasonable, then one would purchase the stock.
Shorting Stocks
Selling short is an advanced technique that many traders do not take advantage of. Short sellers look for the best stock to sell. Short sellers sell stock they don’t actually own with a belief the value will come down by a significant amount in the near future. The shares are borrowed from a stockholder. The borrowing is done by each party’s brokers.
When the price tumbles, the short sellers can buy the stock at the lower price to cover their short positions, pocket the profit and return the shares to the owners.
Short selling is risky though. If the prices jump instead of drop, you will lose money. It is often difficult to easily speculate if a stock will fall. The historical tendency of the average stock is to increase in price over the long term. So the potential for loss is greater than the potential for profit, because the short seller is going against a historical norm.
Margin Trading
Margin accounts can permit the trader to borrow money to buy stock. Margin trading uses borrowed money to increase how much stock the trader can buy. This money can be loaned by a broker.
If you were to buy a stock worth $1,000 on a cash basis, without the use of margin trading, you would have to dish out the full $1,000 dollars, plus commissions. But if you margin trade, your broker can lend you up to half of the amount or $500 on many stocks, and you only need to shoulder the other $500 plus commissions and interest payments.
If the stock gets you $10 per stock, profit will be based on the number of shares of stock you bought with $1,000. Then you can pay the broker back. If you did not margin trade, your profit would only have been for the number of shares of stock you paid for using cash. On the other hand, were the stock price to go down, the loss incurred would be based on the entire $1,000, and you would still owe the margin loan amount to the broker.
Closing
As with everything in life, there is a flip side to every coin. In many cases, the greater the profit, the greater the risk. Advanced trading is not for the faint of heart, and you should only trade with risk capital, not with money that you can’t do without.
Godrej Properties to File for Ipo in Few Days - TV
Zofia asks:
MUMBAI (Reuters) - Godrej Industries Ltd chairman Adi Godrej said on Tuesday the group’s real estate unit, Godrej Properties, will file papers for an initial public offer with the markets regulator in “a few days”.
“We will file the prospectus with SEBI (Securities and exchange Board of India) in a few days,” Godrej told television channel CNBC-TV18. “We will be diluting about 10 percent stake.”
The company is currently developing about 20 million sq ft in Mumbai, Pune, Kolkata, Bangalore and Hyderabad.
Indian real estate firms, hit by surging land costs and curbs on bank funding, have rushed to the capital market as they expand to cash in on an urban real estate boom.
In 2007, real estate firms mopped up a third of all funds raised through public offers in India. Twelve real estate firms raised 151.85 billion rupees, including the country’s largest real estate firm DLF, which raised $2.25 billion.
MUMBAI (Reuters) - Godrej Industries Ltd chairman Adi Godrej said on Tuesday the group’s real estate unit, Godrej Properties, will file papers for an initial public offer with the markets regulator in “a few days”.
“We will file the prospectus with SEBI (Securities and exchange Board of India) in a few days,” Godrej told television channel CNBC-TV18. “We will be diluting about 10 percent stake.”
The company is currently developing about 20 million sq ft in Mumbai, Pune, Kolkata, Bangalore and Hyderabad.
Indian real estate firms, hit by surging land costs and curbs on bank funding, have rushed to the capital market as they expand to cash in on an urban real estate boom.
In 2007, real estate firms mopped up a third of all funds raised through public offers in India. Twelve real estate firms raised 151.85 billion rupees, including the country’s largest real estate firm DLF, which raised $2.25 billion.
HYBT - IPO Price and Date?
Natalie asks:
I’ve tried google, but I wasn’t successful. Does anyone happen to know the IPO Price and Date of HYBT (Hybrid Technologies). I will rate best answer. Thanks!! It’s truly appreciated.
I understand that it is traded on the Nasdaq. I’m looking for the initial public offering (IPO) date and price. When it was first offered on the NASDAQ.
I’ve tried google, but I wasn’t successful. Does anyone happen to know the IPO Price and Date of HYBT (Hybrid Technologies). I will rate best answer. Thanks!! It’s truly appreciated.
I understand that it is traded on the Nasdaq. I’m looking for the initial public offering (IPO) date and price. When it was first offered on the NASDAQ.
Mogul Energy Announces Sea Dragon Energy Inc.‘s Ipo
Kiana asks:
SEATTLE,?http://www.new-energy-supply.com/news/? WA–(MARKET WIRE)–Jul 16, 2008 — Mogul Energy International, Inc. (OTC BB:MGUY.OB - News) (Frankfurt:BKX.F - News) (the “Company” or “Mogul”) has been notified that Sea Dragon Energy Inc. (”Sea Dragon”) closed its initial public offering (”IPO”) of common shares on the TSX Venture Exchange, on July 15, 2008, raising gross proceeds of CAD $35,000,000 at $0.60 per share.
Mogul owns 4 million common shares of Sea Dragon through its April 24, 2008, Agreement of Purchase and Sale with Sea Dragon, wherein the Company exchanged its 20% working interest in the EWA Concession in exchange for satisfaction of its outstanding liabilities relating to the Company’s drill program on the EWA Concession and a cash payment of US$100,000 and equity participation in the amount of 4 million common shares of Sea Dragon.
Information concerning Mogul Energy International:
Mogul Energy?http://www.new-energy-supply.com/news/? is an oil and gas exploration company with headquarters in Seattle, Washington. Mogul Energy has acquired a portfolio of oil and gas leases in South East Saskatchewan, Canada. The Company has a 100% interest in sixty-eight (68) separate freehold oil and gas exploration leases on approximately 9,300 acres situated in South East Saskatchewan.
SEATTLE,?http://www.new-energy-supply.com/news/? WA–(MARKET WIRE)–Jul 16, 2008 — Mogul Energy International, Inc. (OTC BB:MGUY.OB - News) (Frankfurt:BKX.F - News) (the “Company” or “Mogul”) has been notified that Sea Dragon Energy Inc. (”Sea Dragon”) closed its initial public offering (”IPO”) of common shares on the TSX Venture Exchange, on July 15, 2008, raising gross proceeds of CAD $35,000,000 at $0.60 per share.
Mogul owns 4 million common shares of Sea Dragon through its April 24, 2008, Agreement of Purchase and Sale with Sea Dragon, wherein the Company exchanged its 20% working interest in the EWA Concession in exchange for satisfaction of its outstanding liabilities relating to the Company’s drill program on the EWA Concession and a cash payment of US$100,000 and equity participation in the amount of 4 million common shares of Sea Dragon.
Information concerning Mogul Energy International:
Mogul Energy?http://www.new-energy-supply.com/news/? is an oil and gas exploration company with headquarters in Seattle, Washington. Mogul Energy has acquired a portfolio of oil and gas leases in South East Saskatchewan, Canada. The Company has a 100% interest in sixty-eight (68) separate freehold oil and gas exploration leases on approximately 9,300 acres situated in South East Saskatchewan.
The common shares of Mogul Energy are quoted on the OTC Bulletin Board (OTCBB) system under the symbol ‘MGUY,’ and the Frankfurt Stock Exchange (”FSE”) under the symbol ‘BKX’. Further information concerning Mogul Energy can be found in the Company’s filings with the U.S. Securities and Exchange Commission (http://www.sec.gov).
Forward-Looking Statements:
The common shares of Mogul Energy are quoted on the OTC Bulletin Board (OTCBB) system under the symbol ‘MGUY,’ and the Frankfurt Stock Exchange (”FSE”) under the symbol ‘BKX’. Further information concerning Mogul Energy can be found in the Company’s filings with the U.S. Securities and Exchange Commission (http://www.sec.gov).
Forward-Looking Statements:
SEATTLE,?http://www.new-energy-supply.com/news/? WA–(MARKET WIRE)–Jul 16, 2008 — Mogul Energy International, Inc. (OTC BB:MGUY.OB - News) (Frankfurt:BKX.F - News) (the “Company” or “Mogul”) has been notified that Sea Dragon Energy Inc. (”Sea Dragon”) closed its initial public offering (”IPO”) of common shares on the TSX Venture Exchange, on July 15, 2008, raising gross proceeds of CAD $35,000,000 at $0.60 per share.
Mogul owns 4 million common shares of Sea Dragon through its April 24, 2008, Agreement of Purchase and Sale with Sea Dragon, wherein the Company exchanged its 20% working interest in the EWA Concession in exchange for satisfaction of its outstanding liabilities relating to the Company’s drill program on the EWA Concession and a cash payment of US$100,000 and equity participation in the amount of 4 million common shares of Sea Dragon.
Information concerning Mogul Energy International:
Mogul Energy?http://www.new-energy-supply.com/news/? is an oil and gas exploration company with headquarters in Seattle, Washington. Mogul Energy has acquired a portfolio of oil and gas leases in South East Saskatchewan, Canada. The Company has a 100% interest in sixty-eight (68) separate freehold oil and gas exploration leases on approximately 9,300 acres situated in South East Saskatchewan.
SEATTLE,?http://www.new-energy-supply.com/news/? WA–(MARKET WIRE)–Jul 16, 2008 — Mogul Energy International, Inc. (OTC BB:MGUY.OB - News) (Frankfurt:BKX.F - News) (the “Company” or “Mogul”) has been notified that Sea Dragon Energy Inc. (”Sea Dragon”) closed its initial public offering (”IPO”) of common shares on the TSX Venture Exchange, on July 15, 2008, raising gross proceeds of CAD $35,000,000 at $0.60 per share.
Mogul owns 4 million common shares of Sea Dragon through its April 24, 2008, Agreement of Purchase and Sale with Sea Dragon, wherein the Company exchanged its 20% working interest in the EWA Concession in exchange for satisfaction of its outstanding liabilities relating to the Company’s drill program on the EWA Concession and a cash payment of US$100,000 and equity participation in the amount of 4 million common shares of Sea Dragon.
Information concerning Mogul Energy International:
Mogul Energy?http://www.new-energy-supply.com/news/? is an oil and gas exploration company with headquarters in Seattle, Washington. Mogul Energy has acquired a portfolio of oil and gas leases in South East Saskatchewan, Canada. The Company has a 100% interest in sixty-eight (68) separate freehold oil and gas exploration leases on approximately 9,300 acres situated in South East Saskatchewan.
The common shares of Mogul Energy are quoted on the OTC Bulletin Board (OTCBB) system under the symbol ‘MGUY,’ and the Frankfurt Stock Exchange (”FSE”) under the symbol ‘BKX’. Further information concerning Mogul Energy can be found in the Company’s filings with the U.S. Securities and Exchange Commission (http://www.sec.gov).
Forward-Looking Statements:
The common shares of Mogul Energy are quoted on the OTC Bulletin Board (OTCBB) system under the symbol ‘MGUY,’ and the Frankfurt Stock Exchange (”FSE”) under the symbol ‘BKX’. Further information concerning Mogul Energy can be found in the Company’s filings with the U.S. Securities and Exchange Commission (http://www.sec.gov).
Forward-Looking Statements:
Question Regarding to IPO in OTC. PLEASE read the details, it is a short question. thank you very much?
Raguel asks:
i read from the SEC website that, Neither the Pink Sheets nor the OTC Bulletin Board has listing standards, although the SEC requires companies to be current in their filings before their stock can be quoted on the OTCBB.
i read from the SEC website that, Neither the Pink Sheets nor the OTC Bulletin Board has listing standards, although the SEC requires companies to be current in their filings before their stock can be quoted on the OTCBB.
what does the SEC mean by “requires companies to be current in their filings??
