Types of capital assets under Capital gains

Subsidiaries of RBI

Fully owned subsidiaries of RBI are as follows:  Deposit Insurance and Credit Guarantee Corporation of India (DICGC),  Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL),  Reserve Bank Information Technology Private Limited (ReBIT),  Indian Financial Technology and Allied Services (IFTAS)

Difference between equity shares and preference shares

Difference between equity and preference  shares                

Partnership accounts Introduction

INTRODUCTION:-
 An agreement between two or more persons is known as Partnership . Partnership firms formed with the contribution of capital , skill and administrative ability . There is an agreement and the partners to share profits and losses of the business.
 DEFINITION Sec . 4 of Partnership Act , 1932 defined Partnership as ' The relation between persons , whose agreed to share the profits of the business carried on by all or anyone of them acting for all " . The members in a firm are individually called as partners and collectively known as firm .

State Financial Corporations (SFC's)

STATE FINANCIAL CORPORATION (SFC's): State Financial Corporations (SFCS) are set up under State Financial Corporations Act. 1951 with a principal objective of meeting the credit needs of medium and small scale industries located in backward areas in different states in the country.

The main purpose of SFC's is to induce industrial activity in the entire country including backward regions. The industrial units located in backward regions are given special treatment in terms of concessional rates of interest, lower margins, reduces service charges, preferential sanction and disbursements of loans and so on.

 By the end of March 2002, there are 18 SFCS. 

Banks that were nationalized in india

The banks that were nationalised on July 19, 1969 are
(1) Central Bank of india
(2)Punjab  National Bank
(3) United Commercial Bank
(4) United Bank
(5)Union Bank
(6) Syndicate Bank
(7 )Indian Bank BB
(8) Bank of  india
(9) Bank of Baroda
(10)Canara Bank
(11)Dena Bank
12 Aliahabad Bank
13 indian Overseas bank
14. Bank of Maharashtra.

                 In April 1980, six more banks wee nationalised. They are (1)Andhra Bank, (2) Corporation Bank (3) Vijaya Bank, (4) Punjab and Sind Bank, (5) Oriental Bank of Commerce.
(6) New Bank of india(merged with Punjab National Bank in 1993) 

Fundamental Analysis

INTRODUCTION

Every time we purchase a good in the market, we want to have more benefit from that product than the price we have to pay for that product. The type of benefit varies with the type of product. But it is sure that whenever we buy anything we want that return from that particular thing should be more than the amount we have to pay for that. Similarly when we buy a share we want to know how much benefit we will derive from that as 

against the current value of that share. Fundamental analysis is a one such technique.

Let us understand it. 

1. WHAT IS FUNDAMENTAL ANALYSIS?

Fundamental analysis is a method that attempts to predict the intrinsic value or True value of an investment. Intrinsic value refers to the true value of the share. This true value can be found by an investor by discounting the future dividends and expected market price of share by his required rate of return. In case this true value or intrinsic value is more than the current market price than the investor will desirous to buy that share otherwise not. Fundamental Analysis is based on the theory that the market price of an asset tends to move towards its 'real value' or 'intrinsic value’. In fundamental analysis an investor makes an attempt to study everything that can affect the share price. One tries to find out all the quantitative and the qualitative factors that he finds to be important for his study. He can look for information about the economy, industry and the company so that he can find a right security to invest in. The ultimate aim of doing fundamental analysis is to find a value that an investor can compare with the security’s current price and on basis of his comparison he finally decides whether to buy an underpriced security or to sell an overpriced security. All this decision is based on the assumption that ultimately a security’s price will reach to its intrinsic value or true value.

2. WHY TO STUDY FUNDAMENTAL ANALYSIS

Before understanding about how to do fundamental analysis one should understand why he should do fundamental analysis. The answer to this question lies in the fact the all of us are rational consumers. We want more satisfaction for every rupee spent. Everyone wants to maximize his benefit. For example many times when we are at a shop to buy a product we often say to the shopkeeper to tell us the final price of the product at which he is ready to sell as the price told by him earlier are not according to the worth of the product for us. The same concept applies here. When we buy a share we are offered with various shares from various companies. Here again the question arises that whether the 

market price of share is a true reflector of its actual worth or not. Thus fundamental analysis helps hereby doing fundamental analysis one can calculate the intrinsic value of the share and then compare it with its market price. If intrinsic value is greater then he buys the shares and if it is lesser then he sells the shares (if he is holding some previously purchased shares).

3. HOW TO DO FUNDAMENTAL ANALYSIS

It is a fact that it is not easily possible for an investor to find the intrinsic value of each and every stock present in the stock market and then decide on what to buy. Even if someone does so it will takes him years and finally when he will reach to a conclusion that the result will be outdated as many new developments must have been taken place during the time he was analyzing. So this makes it essential for an investor to find a certain technique to short down a list of share to be studied. As everyone knows that the price of a share is affected by the performance of a company and the company’s 

performance is dependent upon the changes taking place in Industry and Economy. Thus it is important for us to make an analysis about economy, Industry and company. The logic for this three tier analysis is that the company performance depends not only on its own efforts, but also on the general industry and economy factors. A company can be from any industry. For example a Reliance Infocom, IDEA etc. are companies that come under telecom industry. Thus these companies will be affected by any policy changes or any matter related to this industry. And this industry operates in an economy thus this industry will be affected by the changes in the economy. Thus the factors that affect a company can be broadly classified as; 

• Economic factors like rate of growth of the economy, exchange rates etc.
• Industry factors like demand and supply in the industry, competitors in the industry etc.
• Company related factors like image of the company and its managers, profitability etc.

So Fundamental Analysis involves the following three analysis 

1) Economic Analysis, 

2) Industry Analysis, and 

3) Company Analysis. 

It can be done in two ways: top down approach and bottom up approach. If we start from economic analysis and then industry analysis and company analysis is performed it is called as top down approach. On the opposite side one can go by studying about the company first, then its industry analysis and then economic analysis then it is called as bottom up approach.

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ECONOMIC ANALYSIS

Economic Analysis relates to the analysis of the economy. If the economy is booming and growing then this will also have a positive attitude for the industries and hence the companies. For instance in current scenario of Indian economy when India is increasing its goodwill and building a positive identity internationally it has led to an increase in investors’ confidence in the economy and in industries. The initiatives like 'Make in 

India' is increasing and attracting the attention of investors towards this developing and growing economy. Thus investors attitude are shaped by economic conditions prevailing in a country. They understand whether the economic climate is conducive or not for the growth of the business in general. There are many factors that can be studied for analyzing the economy like gap, rate of inflation, fiscal and monetary policy etc

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INDUSTRY ANALYSIS

A good and booming economy gives positive outlook to investors but not for every industry. Thus it is important to study about the particular industry in which the investor is interested. He should make a detailed study about the future of the industry and its prospect. It is often said that a weak stock in a strong industry is preferable to a strong stock in a weak industry. One should make a study whether the industry is struggling or not. A study about past performance of the industry along with its future prospects must be done. One should know about the phase with which an industry is going. Generally industry goes through four phases .They are pioneering, Expansion, Stagnation and decline. It is more beneficial to buy stock of a company when it is pioneering and 

expansion stage as one can foresee a good return in future. Various other factors shall also be kept in consideration like labor conditions, government’s attitude and policies towards an industry, competitive conditions, technological changes etc.

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COMPANY ANALYSIS

The final analysis after economic and industry is of company. Once an investor has selected the industry, he should then look for the company in which he wants to invest. There are various sources to study about a company like balance sheet ,income statement cash flow statement etc. various ratios can be calculated like return on equity, earning per share ,price earnings ratio etc. these information helps the analyst to make a projection about the future of the company and its growth. When performing ratio analysis on a 

company, the ratios should be compared to other companies within the same or similar industry to make a good decision.

S.Kevin suggested that in this era of globalization one may add one more circle to the diagram to represent the international economy.

Introduction to Statistics

Introduction of Statistics
Q.1 Define ‘Statistics’ and give characteristics of ‘Statistics’.
Ans.: ‗Statistics‘ means numerical presentation of facts.
Its meaning is divided into two forms - in plural form and in singular form.
 In plural form, Statistics‘ means a collection of numerical facts or data example price statistics, agricultural statistics, production statistics, etc.
In singular form, the word means the statistical methods with the help of which collection,
analysis and interpretation of data are accomplished.
Characteristics of Statistics -
a) Aggregate of facts/data
b) Numerically expressed
c) Affected by different factors
d) Collected or estimated
e) Reasonable standard of accuracy
f) Predetermined purpose
g) Comparable
h) Systematic collection.

Define Statistics

Q.1 Define ‘Statistics’ and give characteristics of ‘Statistics’.
Ans.: ‗Statistics‘ means numerical presentation of facts. Its meaning is divided
into two forms - in plural form and in singular form. In plural form,
‗Statistics‘ means a collection of numerical facts or data example price
statistics, agricultural statistics, production statistics, etc. In singular form,
the word means the statistical methods with the help of which collection,
analysis and interpretation of data are accomplished.
Characteristics of Statistics -
a) Aggregate of facts/data
b) Numerically expressed
c) Affected by different factors
d) Collected or estimated
e) Reasonable standard of accuracy
f) Predetermined purpose
g) Comparable
h) Systematic collection.

B.com business Statistics syllabus

Content
S.No. Name of Topic
1.        Introduction of Statistics
2.       Collection and Editing of Data
3.       Classification and Tabulation of Data
4.        Measures of Central Tendency
5.        Measures of Dispersion
6.        Measures of Skewness
7.        Index Numbers
8.        Correlation
9.        Linear Regression
10.      Diagrammatic and Graphic Presentation
11.      Practical Exercise