Professional Documents
Culture Documents
Bulls Bears and Other Beasts
Bulls Bears and Other Beasts
Margin of Error
In a margin financed trade, an investor would put up part of the money required to buy a stock, while the
lender would put up the rest
Jockeys helping mid-caps boost valuations by dummy HNI.
An Assured-Return IPO?
Double bottom is when a stock price falls very low, rises briefly, again falls to that earlier low, and again rises.
The rule of thumb when it comes to grey market prices is that the premium is reflective of the minimum gains
an investor in an IPO can expect on listing day
The Denouement
R-Powers IPO failure due to high prices and slower economy in general.
Sub Prime Crisis igniting liquidity crunch globally reckoning markets.
How FIIs made money through lending stocks held by investors in the form of P-Notes.
Yen Carry Trade system
o Borrowing money in Japanese Yen at Lower interest rates
o Converting it into USD
o Investing in Indian equity markets through FIIs from TAX Heavens
o Cashing out profits in USD
o Converting USD to Japanese Yen to repay loan
Banks charging hefty interest rates to mutual fund houses for short terms
Suzlon and Mr.T
Taking on companies with pledged shares
A Reality Check
Artificial hiking of share prices to make them eligible for future segment later regretting the
decision after realizing the vulnerability of stock once it is open to be traded on the futures in a
bear run.
Promoters issuing equity warrants to themselves at a predetermined price and date in the
failing to execute since the steep fall in the prices.
Epilogue
Listed SHELL companies strategy to artificially inflate prices by using their shareholders money
to help them evade TAX.
The hierarchy
o Promoters
o FIIs
o Retail Investors
o Swing Traders
o Day Traders
o Jobbers
The impacts of Budgets
The importance of Ruling Party