Friday, December 2, 2011

How to research on the credibility of a stock issuing company?

Hi, I am new to the stock market field, now I want to enter in, could any one give me basic answers to these?





what are the different parameters that tell the asset value of a stock, ie, whether the stock is actually worth its current value.





How to research about the company to find its prospects %26amp; what are the terms and techniques related.





Who are FIIs (Foreign Institutional investors), what triggers their mood to buy or sell,





What undermines the market mood ?





How to determine the best time to buy stock and to sell stock.





Waiting for answers...


Thanks,|||Well if we knew that there would be no point in a stock market! Don't forget the market is "discounting the future". Not only do uou have to work out the stock value by analysing the balance sheet etc., juudging its share of its particular market %26amp; whether that market is growing or shrinking, taking into account global %26amp; currency effects, "sentiment" towards or against, management capability, competition, access to funding, mood of investors, market conditions, weather conditions, state of economy etc. etc. etc. but you also have to see how these factors, or some of them may effect the company's growth in the future.


Now two people may quite feasibly come up with two answers: one that it i overvalued and the other that it is undervalued. One would be a seller and the other a buyer and that's what makes a market! So you could just toss a coin!

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