At What Time the Market closes 4:00:00 PM or 4:00:01 PM

In the past years my posts on 14th February some way or the other have been in conversations between Love and Finance, my last blogpost in 2013 on Feb 14th was a kind of open proposal expression through the priceless charts Love you by Finance Market Professional : Valentine day! , also today my blog turned-up 6 years old, and my first ever post was on the Mergers and Acquisitions in India! and the government policies .

Getting back to the topic for today A few years ago, somebody asking this question on market timings would have been dismissed as a nit-picking nerd, but today that question has become extremely important. Last week, the Wall Street Journal’s Money Beat blog ! carried an interesting story about how this difference cost a trader $100,000. Continue reading “At What Time the Market closes 4:00:00 PM or 4:00:01 PM”

Credit Markets – Collateral and Margin calls

In one of the speech by Jeremy Stein a Federal Reserve Governor brought on board just last year,received a lot of attention for its imagessuggestion that monetary tools might be used in addressing credit market-overheating. That is an interesting argument, but I don’t want to deal with that today. Rather, I want to look at Stein’s comments on collateral transformation:

Collateral transformation is best explained with an example.

Imagine an insurance company that wants to engage in a derivatives transaction. To do so, it is required to post collateral with a clearinghouse, and, because the clearinghouse has high standards, the collateral mustbe “pristine”–that is, it has to be in the form of Treasury securities. Continue reading “Credit Markets – Collateral and Margin calls”

How to select a mutual fund

The market in India for Mutual funds loaded with approximately half of a century and there are thousands of different schemes running across.To chose a mutual fund is a difficult task because your investment horizon, need for investment is more important for the fund’s selection. I have tried to collect the list of mutual funds that could be best to invest in 2012. They are being diversified equityand few debt funds.

Equity funds :
Any fund with holding of more than 65% in equity can be considered Continue reading “How to select a mutual fund”

Over Priced – IPO

I have done a series of posts on this topic and a paper by Pitchard “Initial Public Offerings (IPOs) must simply be abolished” and some fine prints reading of IPO’s “WHAT TO READ IN AN OFFER DOCUMENT ?? “.

In the recent days about how evil banks and corporations are for allowing their IPOs to be “overpriced”. I believe this is a misinterpretation. The whole point of an IPO is for it to be “overpriced”.

This argument about IPO pricing appears like another case of people Continue reading “Over Priced – IPO”