Professional Documents
Culture Documents
Blue chip stocks are shares of very large and well-recognised companies with a
long history of sound financial performance. These stocks are known to have
capabilities to endure tough market conditions and give high returns in good
market conditions. Blue chip stocks generally cost high, as they have good
reputation and are often market leaders in their respective industries. The term
‘blue chip’ comes from the game of poker where the blue gambling chips holds
the highest value on the table. Similarly, the Blue Chip companies represent those
companies from each industry that are well-established, have stable earnings and
have the highest market valuation.Companies with large market capitalization
deliver consistent returns on investment, because of their high endurance during
turbulent market swings. When it’s a bullish market, returns from equity
investments in large cap companies are better than companies with low market
capitalization.Blue Chip Stocks offer great opportunity for making high returns
on investment. If an individual has a sound knowledge of financial markets and
enough time to track the market, s/he should invest in blue chip shares to earn
consistent returns. The investment horizon of an investor for blue chip stock
investment should be more than 5-6 years.The growth potential of Blue Chip
companies is relatively less, as they’re already at the peak of their performance
in their respective sectors. This is why investment in equities of these companies
carries low-risk, together with low returns when compared to companies that have
a high growth potential. If you have a high risk appetite, then you should consider
investing in mid-cap or small-cap companies.According to the market
capitalization, there are multiple blue chip companies whose stocks will generate
good returns in the long run. Here is a list of top 10 blue chip stocks that are faring
well in the stock market:
They are all comfortable with taking risks People with very low risk
tolerance, who cannot accept losing trades, are not cut out to be winning
traders, since losing trades are simply part of the game of trading.
Winning traders are able to emotionally accept the uncertainty that is
inherent in trading. Trading is not like investing your money in a savings
account with a guaranteed return.
They are capable of quickly adjusting to changing market
conditions They don’t fall in love with, and “marry”, their analysis of a
market – If price action indicates that they need to change their view on
probable future price movements, they do so without hesitating.
They are disciplined in their trading and can view the market
objectively, regardless of how current market action is affecting their
account balance.
They don’t give in to being excessively excited about winning trades
or excessively despairing about losing trades Winning traders control
their emotions rather than letting their emotions control them.
They make the necessary effort and take the necessary steps to be
self-disciplined traders who operate with strict money and risk
management rules Winning traders are not reckless gamblers. They
carefully calculate potential risk against potential reward before entering
any trade.
One of the most important psychological characteristics of winning traders is
the ability to accept (1) risk and (2) the fact that you may well be wrong more
often than you are right in initiating trades. Winning traders understand
that trade management is actually a more important skill than market
analysis.
.raise capital
.mobilize savings
Company expansion
Corporate governance
Creating opportunities for small investors
Capital for development project
Economic growth
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Introduction: The 8 November 2016 was a shocking day for the population of
India when the government announced that the Rs.500 and Rs.1000 notes will
not be a legal tender. What is demonetization? Demonetization is a process by
which a series of currency will not be legal tender. This is not first time in
history of India the currencies are being demonetized. It was in January 1946
first time high denomination currencies Rs.1000, Rs.5,000 and Rs.10,000 were
demonetizedbefore the country won independence from the British. All three
notes were reintroduced in 1954. Second time it was under the leadership of
Morarji Desai these currencies was demonetized as a measure to eradicate
black money on 16 January, 1978.Why the currencies are demonetized? The
aim of the demonetization is to eradicate black money, putting an end to
fake currency circulation, stop funding terrorism, transparency in dealings
and a move towards cashless economy. It is true that the demonetization has
way for digital banking trend in India. The CEO of NCPI said that the volume
of people who use digital banking services has shot up sharply post
demonetization.A cashless economy is one in which all the transactions are
done using cards or digital means. The circulation of physical currency will
become minimal and there by reduced instances of tax avoidance because it
is financial institutions based economy where transaction trails are left. It will
also curb generation of black money and will reduce real estate prices because
of curbs on black money as most of black money is invested in Real estate
prices which inflates the prices of Real estate markets. It will pave way for
universal availability of banking services to all as no physical
infrastructure is needed other than digital. Payments can be easily traced and
collected, and corruption will automatically drop, so people will no longer have
to pay to collect what is rightfully theirs. Government on its part is working
at various levels to reduce the dependence on cash. National Payments
Corporation of India (NPCI) was set up by Indian banks under the aegis of the
various retail payment systems in the country, including card payments. NPCI is
expected to bring greater efficiency by way of uniformity and standardization
in retail payments and expanding and extending the reach of both existing
and innovative payment products for greater customer
convenience.
Section 14 of IRDAI Act, 1999 lays down the duties, powers and functions
of IRDAI..
Subject to the provisions of this Act and any other law for the time being in
force, the Authority shall have the duty to regulate, promote and ensure
orderly growth of the insurance business and re-insurance business.
Without prejudice to the generality of the provisions contained in sub-section
(1), the powers and functions of the Authority shall include, -
1.issue to the applicant a certificate of registration, renew, modify, withdraw,
suspend or cancel such registration;
o 2. protection of the interests of the policy holders in matters concerning
assigning of policy, nomination by policy holders, insurable interest,
settlement of insurance claim, surrender value of policy and other terms and
conditions of contracts of insurance;
o 3. specifying requisite qualifications, code of conduct and practical training
for intermediary or insurance intermediaries and agents
o 4. specifying the code of conduct for surveyors and loss assessors;
o 5. promoting efficiency in the conduct of insurance business;
o 6. promoting and regulating professional organisations connected with the
insurance and re-insurance business;
o 7. levying fees and other charges for carrying out the purposes of this Act;
o 8. calling for information from, undertaking inspection of, conducting
enquiries and investigations including audit of the insurers, intermediaries,
insurance intermediaries and other organisations connected with the insurance
business;
o 9.control and regulation of the rates, advantages, terms and conditions that
may be offered by insurers in respect of general insurance business not so
controlled and regulated by the Tariff Advisory Committee under section 64U
of the Insurance Act, 1938 (4 of 1938);
o 10.specifying the form and manner in which books of account shall be
maintained and statement of accounts shall be rendered by insurers and other
insurance intermediaries;
o 11. regulating investment of funds by insurance companies;
o 12 regulating maintenance of margin of solvency;
o 13. adjudication of disputes between insurers and intermediaries or
insurance intermediaries;
o 14.supervising the functioning of the Tariff Advisory Committee;
o 15. specifying the percentage of premium income of the insurer to finance
schemes for promoting and regulating professional organisations referred to in
clause (f);
o 16. specifying the percentage of life insurance business and general
insurance business to be undertaken by the insurer in the rural or social sector;
and
17.exercising such other powers as may be prescribed