Characteristics of a stock scam

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Many novice investors fall trap to marketing agents who sell them a loss making stock while giving very high promises. So one should be aware of such traps for stock investing which ultimately helps in loosing your hard earned money and may be even making you bankrupt. But how to identify a stock scam? is a big question. Although there is very less percentage of people which fall prey to stock scams but make sure you are not the one to fall into this list in future. Here in this post I shall list few characteristics of a stock scam, which you should be aware of so that in future if you get any call from telemarketer telling you for a very good investing oppurtunity which gurantees you 2x or even more returns...blah blah blah...then you should not fall into his trap and invest your hard earned money into it.

6 Characteristics of a stock scam:

1. The most important thing one has to keep in mind whenever any telemarketer calls you for Investment oppurtunity is to ask for "mailing the policy terms and conditions document" to your inbox rather then listening to his rubbish statements over phone. Most of such agents who sell scams will never forward you the actual official terms and condition document because they speak lies over phone whereas actual investment terms are no way near to ehat they say and mind you "No stock investment oppurtunity can ever offer guarantee returns", So following this approach you are saved from falling into a stock scam for sure.

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Indian Stock indices closing prices for March 2012

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Following are closing prices of major Indian stock indices, Similar posts for each calendar month would be posted for following the trends of Indian stock markets over a longer period of time. This would help in long term analysis for doing investments in components of these indices.

So here is closing price for SENSEX, NSE's NIFTY, MIDCAP index and SMALLCAP index for March 2012:

date	Index	Closing price
6 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17173.29 (Down -189.58 pts) -5222.40 (Down -57.95 pts) -6201.70 (Down -69.70 pts) -6700.19 (Down -87.51 pts)
7 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17145.52 (Down -27.77 pts) -5222.40 (Down -1.95 pts) -6196.55 (Down -4.92 pts) -6659.37 (Down -40.82 pts)
8 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17503.24 (Up^357.72 pts) -5333.55 (Up^113.10 pts) -6330.15 (Up^133.60 pts) -6749.21 (Up^89.84 pts)
9 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17503.24 (Up^357.72 pts) -5333.55 (Up^113.10 pts) -6330.15 (Up^133.60 pts) -6749.21 (Up^89.84 pts)
10 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	SATURDAY
11 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	SUNDAY
12 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17587.67 (Up^84.43 pts) -5359.55 (Up^26.00 pts) -6397.06 (Up^66.91 pts) -6796.26 (Up^47.05 pts)
13 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17813.62 (Up^225.95 pts) -5429.60 (Up^69.95 pts) -6474.44 (Up^77.38 pts) -6865.93 (Up^69.67 pts)
14 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17919.30 (Up^105.68 pts) -5463.90 (Up^34.40 pts) -6495.34 (Up^20.90 pts) -6846.64 (Down -19.29 pts)
15 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17675.85 (Down-243.45 pts) -5380.50 (Down -83.40 pts) -6405.36 (Down -89.98 pts) -6780.45 (Down -66.19 pts)
16 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	- - - -
17 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	SATURDAY
18 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	SUNDAY
19 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17273.37 (Down-192.83 pts) -5257.05 (Down -60.85 pts) -6300.56 (Down -61.03 pts) -6632.28 (Down -72.18 pts)
20 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17316.18 (Up^42.81 pts) -5274.85 (Up^17.80 pts) -6335.90 (Up^35.34 pts) -6630.43 (Down -1.85 pts)
21 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	- - - -
22 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17196.47 (Down -405.24 pts) -5228.45 (Down -136.50 pts) -6312.62 (Down -146.71 pts) -6599.69 (Down -112.51 pts)
23 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17361.74 (Up^165.27 pts) -5278.20 (Up^ 49.75 pts) -6350.92 (Up^ 38.30 pts) -6626.35 (Up^ 26.66 pts)
24 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	SATURDAY
25 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	SUNDAY
26 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17052.78 (Down -308.96 pts) -5184.25 (Down -93.95 pts) -6249.17 (Down -101.75 pts) -6533.36 (Down -92.99 pts)
27 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17257.36 (Up^204.58 pts) -5243.15 (Up^58.90 pts) -6245.06 (Down -4.11 pts) -6522.05 (Down -11.31 pts)
28 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	NA
29 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17058.61 (Down -63.01 pts) -5178.85 (Down -15.90 pts) -6200.87 (Up^ 9.93 pts) -6496.80 (Up^ 45.31 pts)
30 March 2012	SENSEX NIFTY MIDCAP SMALLCAP	-17404.20 (Up^345.59 pts) -5295.55 (Up^116.70 pts) -6346.38 (Up^145.51 pts) -6629.38 (Up^ 132.58 pts)

Efficient Stock Market Theory

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There are several hypothesis and theories which govern the markets all over the world. Efficient Market theory is a model about how the stock markets perform. This might be applicable to some stock markets and not applicable to others which are not efficient. Basically "Efficient Market Theory" states that Stock price or asset values are almost perfectly priced when factoring in all known information.

Now this theory about stock markets is actually simple and theoratically means that even if a monkey invests money in efficient stock markets he/she will perform no good or bad then a stock analyst person. Many novice people or people who are new to stock markets use this theory for investing in stock markets. Efficient market theory works in following order:

Consider a scenario where a listed company has just declared it's quarters earning report and you think of purchasing the stock. But you see that stock price has already risen by lets say some 'X' rupees, now according to Efficient market theory questions which comes to persons mind at this time like whether it is overpriced now? Has market overreacted to results? becomes of least importance. Whatever information (which made you think about purchase) has already been used and reflects in the stock price already, hence predicting future stock price of a company becomes irrelevent until actual information about the health of company comes out. Indian Stock Markets are least efficient because here corporates modify balance sheets and other monetary information about company while disclosing it in public domain. hence stock price of any listed Indian company might not show actual health of company, this is where speculators comes.

So if we categorize stock markets according to efficiency:

-A market has weak efficiency if prices fully reflect any information contained in past price data. Weak efficiency rejects technical analysis.

-A market has semi-strong efficiency if prices fully reflect all readily-available public information like earning reports etc.

-A market has strong efficiency if prices fully reflect all public and privileged information. Privileged information includes knowledge available to a market maker, or even the information used by analysts for their own use is available in public domain.

However efficient market theory is still unable to explain how legendary investor like Warren Buffett has outperformed the stock indices in all these years. So conclusion is that today's investment markets are not very efficient.

HAPPY TRADING!!

Indian Stock Markets analysis for today 28 feb 2012

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Indian Stock markets looked in cheerful mood through out the trading day. Benchmark Stock indices including Bombay Stock Exchange's SENSEX and National Stock Exchange's NIFTY closed up by nearly 2 percent today. Stocks from Realty sector remained the highest gainers.

Here is today's stock market report for the day Feb 28, 2012:

Both SENSEX and NIFTY opened higher thanks to good global cues and rise in US Stock market. The 30 component SENSEX closed at 17731.12 up by 285.37 points. NSE's broader index NIFTY closed up by 94.30 points at 5375.50 index touched a high of 5391.10 and low of 5306.45 in daytrade today. Almost all of sectoral indices remained higher through out the day with IT being a lone exception. The BSE Realty index closed up by over 107 points or nearly 6 precent today with all the major players gaining 3-6 percent in stock value. BSE mid-cap index surged 3.4% while the BSE small-cap index closed 2.7% higher. BSE Banking index rose over 3% today and BSE capital goods index closed 4% higher.

Highlights from BSE and NSE for today:

NSE Updates

Top Losers	Top Gainers	Most Active stocks
CAIRN	RELINFRA	SBI
TCS	RPOWER	L&T
WIPRO	RCOM	ICICIBANK
BPCL	JPASSO	RELIANCE
ITC	IDFC	TATAMOTORS

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Best Stock Investment tips for Indian Share markets

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With major world stock markets reeling under various uncertainities like US Economy downgrade, Euro debt crises and riots. It becomes very difficult to decide the stock in which one wants to invests money, currently gold is favourite for investments but we know nothing can replace stocks as best investment option.

Indian stock indices like Bombay Stock Exchange's SENSEX and National Stock Exchange's NIFTY are very volatile currently hence for a investor(whether he is beginner or experienced in stock trading) the basic principal is to stick to the basics of stock market investing. Here I have compiled together my very best posts which guides the potential investor while investing in Indian markets. Just understand these basic principlesof stock market investing and I am sure that you would minimise the probability of makiing a loss in your investment.

Doing Online trading
49 must follow Stock Investing tips
Making a profitable Investment
Stock Markets investing tips
Short Selling explained
Choosing a Stock broker
Best Books to follow
Online trading techniques for beginners
10 Evergreen Investing tips
Best Investing Strategies
Dont's of Share markets

Indian Stock indices gain on positive global cues

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Good morning to visitors of LiveBombayStockExchange. Coming to latest updates from Indian stock markets for today. Major indices like SENSEX and NSE NIFTY look in jovial mood as investors took strong housing data of USA and slight fall in crude oil price yesterday positively. The most watched index Bombsy Stock Exchange's SENSEX and National Stock Exchange's NIFTY are up by over one and half percent now.

Latest updates from major Indian stock indices at (time of posting) is as follows:

SENSEX	17726.03	Up 280.28 pts
NIFTY	5369.89	Up 88.65 pts
MIDCAP	6270.28	Up 160.76 pts
SMALLCAP	6792.89	Up 159.25 pts

Sector-wise performance: BSE Realty Index is up by 2.55 percent, BSE Metal Index higher by 1.85 percent higher, BSE Bankex also up by 1.77 percent and BSE Power Index moved 1.66 percent higher. BSE IT Index was however on other side and down by 0.11 percent. Market breadth was positive on the BSE with 1378 gainers against 492 losers. Only 2 of the 30 components (TCS and LnT) of SENSEX are trading down.

Other major news coming from Stock markets analysts is as follows:

-Liquidity may not help mkts if oil continues to boil: Kotak
-UP elections, LTRO II, Budget can push mkt up: Dalton Cap
-GDP growth may be slowest in over 2 years
-ONGC, GAIL may offer $2 bn for Cove Energy

HAPPY TRADING!!