Saturday, December 7, 2024
Tuesday, November 2, 2010
FINANCIAL RISK AND REWARD-MY NERVOUS EXPERIENCE BY CA R.V.RAO HYDERABAD-9849436267
FINANCIAL RISK AND REWARD – MY NERVOUS EXPERIENCE
BY CA R.V.RAO- HYDERABAD-MOBILE 9849436267
post@istory.posterous.com
I bought 200 eq. shares of Satyam computers Ltd@ Rs 1600 per share in the year 2001 ( I do not quite remember if it was the year 2001 or 2002) on a Monday only with an intention to sell on or before Friday in the same week. The intention was to gain on increase in share price in the 5 days. since in those days the settlement cycle was 5 days, there was no need to settle in a day or two like we do now. This action of purchase of 200 shares of Satyam computers was based on an insider news that the quarterly results to be announce in that week it self would be excellent and share price would go up.
Since the settlement has a 5 day period, I was hoping that the share price would go up and I would make money without investing any money. My broker was told that i would settle on or before the Friday . I enjoyed my broker’s confidence but I had not enjoyed any limits with my broker.
Frankly speaking I was a salaried class employee and was clearly not in a position to pay Rs 320000(200 shares x Rs 1600 per share )plus brokerage .
it was my sheer hope that the share price would go up on quarterly results announcement and I would sell and make money on or before that Friday.
Easy money I thought I would make without any investment, since I enjoyed my broker confidence.
The quarterly results were duly announced in 2or 3 days .but the results were not encouraging enough to increase the share price.on the contrary the share price declined gradually from Rs 1600/- to Rs. 1100/
I was shocked and do not know how to react and how to salvage the situation and come out of the grave situation.
The share broker was calling me up every day after Friday that either I should book loss of Rs 100000(200 sharesx Rs.500 per share which is the decrease in price ) and pay him the money.
Or he told me that I should pay Rs 3,20000 plus brokerage …and take delivery.
Since I did not expect f such a drastic fall in share price in only 5 days and since I do not have financial muscle or resources, I was not in a position to tell hoim yes or no for any of these 2 alternatives.
After constant pressure from my broker and also since I did not want to book loss of Rs 100000
(remember what WARRN BUFFET-SHARE GURU said long back- that only 2 points we need to remember in stock market- 1.) never book a loss 2) remember the point 1. ) ,
I decided to take delivery .but where is the money.i remember that HSBC bank was offering loans under the title- asset finance . so I rushed to HSBC f or loan of Rs 320000/- against the 200 shares of Satyam Computers .HSBC bank officials asked me to take delivery of the shares and keep them in my demat account and pledge the shares to HSBC and .then only I will get the loan amount to pay to my broker.
I filled up necessary application for loan which was forwarded to GSBC head office in Mumbai.
Meanwhile I asked my broker to give delivery challan in my name and transfeered the 200 shares to my demat account.
Then I asked my D.P where I have my demat account that I need to pledge the shares to HSBC..they assisted me in cpmpleting the necessary formalities for pledge.
By that time HSBC sanctioned my loan against shares . I pledged the shares to them , and took loan and paid my briker.
I was taking a lot of time to come out of the situation in which I was because of the sudden and sharp drop in share price and my rushing for loan etc…
Gradually the share price went up to Rs4500/ when I sold the shares .
But I learnt a big valuable lesson that one should not day trade without knowing the technicals of stock market or atleast one should be financially sound to meet any eventuality.
So this was my nervous experiment in stock markets and how I was rewarded for a risk I have taken.
REGARDS AND THANKS,
R.V.RAO- HYDERABAD
MOBILE 9849436267
BY CA R.V.RAO- HYDERABAD-MOBILE 9849436267
post@istory.posterous.com
I bought 200 eq. shares of Satyam computers Ltd@ Rs 1600 per share in the year 2001 ( I do not quite remember if it was the year 2001 or 2002) on a Monday only with an intention to sell on or before Friday in the same week. The intention was to gain on increase in share price in the 5 days. since in those days the settlement cycle was 5 days, there was no need to settle in a day or two like we do now. This action of purchase of 200 shares of Satyam computers was based on an insider news that the quarterly results to be announce in that week it self would be excellent and share price would go up.
Since the settlement has a 5 day period, I was hoping that the share price would go up and I would make money without investing any money. My broker was told that i would settle on or before the Friday . I enjoyed my broker’s confidence but I had not enjoyed any limits with my broker.
Frankly speaking I was a salaried class employee and was clearly not in a position to pay Rs 320000(200 shares x Rs 1600 per share )plus brokerage .
it was my sheer hope that the share price would go up on quarterly results announcement and I would sell and make money on or before that Friday.
Easy money I thought I would make without any investment, since I enjoyed my broker confidence.
The quarterly results were duly announced in 2or 3 days .but the results were not encouraging enough to increase the share price.on the contrary the share price declined gradually from Rs 1600/- to Rs. 1100/
I was shocked and do not know how to react and how to salvage the situation and come out of the grave situation.
The share broker was calling me up every day after Friday that either I should book loss of Rs 100000(200 sharesx Rs.500 per share which is the decrease in price ) and pay him the money.
Or he told me that I should pay Rs 3,20000 plus brokerage …and take delivery.
Since I did not expect f such a drastic fall in share price in only 5 days and since I do not have financial muscle or resources, I was not in a position to tell hoim yes or no for any of these 2 alternatives.
After constant pressure from my broker and also since I did not want to book loss of Rs 100000
(remember what WARRN BUFFET-SHARE GURU said long back- that only 2 points we need to remember in stock market- 1.) never book a loss 2) remember the point 1. ) ,
I decided to take delivery .but where is the money.i remember that HSBC bank was offering loans under the title- asset finance . so I rushed to HSBC f or loan of Rs 320000/- against the 200 shares of Satyam Computers .HSBC bank officials asked me to take delivery of the shares and keep them in my demat account and pledge the shares to HSBC and .then only I will get the loan amount to pay to my broker.
I filled up necessary application for loan which was forwarded to GSBC head office in Mumbai.
Meanwhile I asked my broker to give delivery challan in my name and transfeered the 200 shares to my demat account.
Then I asked my D.P where I have my demat account that I need to pledge the shares to HSBC..they assisted me in cpmpleting the necessary formalities for pledge.
By that time HSBC sanctioned my loan against shares . I pledged the shares to them , and took loan and paid my briker.
I was taking a lot of time to come out of the situation in which I was because of the sudden and sharp drop in share price and my rushing for loan etc…
Gradually the share price went up to Rs4500/ when I sold the shares .
But I learnt a big valuable lesson that one should not day trade without knowing the technicals of stock market or atleast one should be financially sound to meet any eventuality.
So this was my nervous experiment in stock markets and how I was rewarded for a risk I have taken.
REGARDS AND THANKS,
R.V.RAO- HYDERABAD
MOBILE 9849436267
Sunday, January 11, 2009
the asatyam about satyam and its billion $ fraud
the word satyam in sanskrit means truth.
but what satyam has shown the world is the asatyam or the lies it has held to itself all these years , cheating millions of poor as well as the rich investors.
the FIIs and OCBs who are always sceptical about corporate governance i indian companies ,have once again proved that their doubts are not totally unfounded.
satyam's ex-chairman mr. raju confessed fraud in accountingin company's books forseveral years and resigned last wens day.
Now this has thrown many questions about companies' auditors credibility and their role as well as role of board of directors of companies and also the role and effectiveness of independent directors.
sebi, stock exchanges and company law board are also unable to come out with any effective inspection and fact finding mechanism on a continuing basis in all such cases. such cases also occured earlier where investors were cheated like global trust bak,dsq software etc...
unfortunately no watch dog in the country like regulatory or otherwise has so far come up with a fool proof system to check such frauds or irregularities to nip in the bud itself,or atleast to alert investors or regulators on a continuous basis in all such cases.
many stock scams likethe ones perpaetrated by harshad mehta or ketan parekh also could not be detected or alerted about in initial stages.
only after extensive damage is done to investors money and confidence ,some regulatory measures are taken up .but all such steps are found useless till we find another scambreaking in stock markets.
so where is the mistake or fault lies?
yes it lies in human greed and unethical ambitions of human beings , about which or upon which no body has control.
sebi and the govts as usual after satyam scam came out with a few measures.
Only time will tell the effectiveness or otherwise of such steps to check future frauds.
lesson for investos for now is to invest only in companies with transparancy and governance values like infosys etc...
safe investing is the best investment.
rallabadi venkatarao
but what satyam has shown the world is the asatyam or the lies it has held to itself all these years , cheating millions of poor as well as the rich investors.
the FIIs and OCBs who are always sceptical about corporate governance i indian companies ,have once again proved that their doubts are not totally unfounded.
satyam's ex-chairman mr. raju confessed fraud in accountingin company's books forseveral years and resigned last wens day.
Now this has thrown many questions about companies' auditors credibility and their role as well as role of board of directors of companies and also the role and effectiveness of independent directors.
sebi, stock exchanges and company law board are also unable to come out with any effective inspection and fact finding mechanism on a continuing basis in all such cases. such cases also occured earlier where investors were cheated like global trust bak,dsq software etc...
unfortunately no watch dog in the country like regulatory or otherwise has so far come up with a fool proof system to check such frauds or irregularities to nip in the bud itself,or atleast to alert investors or regulators on a continuous basis in all such cases.
many stock scams likethe ones perpaetrated by harshad mehta or ketan parekh also could not be detected or alerted about in initial stages.
only after extensive damage is done to investors money and confidence ,some regulatory measures are taken up .but all such steps are found useless till we find another scambreaking in stock markets.
so where is the mistake or fault lies?
yes it lies in human greed and unethical ambitions of human beings , about which or upon which no body has control.
sebi and the govts as usual after satyam scam came out with a few measures.
Only time will tell the effectiveness or otherwise of such steps to check future frauds.
lesson for investos for now is to invest only in companies with transparancy and governance values like infosys etc...
safe investing is the best investment.
rallabadi venkatarao
Saturday, January 3, 2009
new year wishes to all
with the advent of new year, new hopes and aspirations take shape in humanity over the entire globe.
people work with new vigor,new ideas and new year resolutions.
let us resolve that man kind live in peace,harmony and love.To this end all of us shall strive to do our bit .
nations and citizens,whether in gaza,india,pakistan,israel or any where in the world shall take stand to eradicate terror,poverty and help each other to live a happier life.
with warm wishes for a happier new year 2009 to all of us.
rallabandi venkata rao
people work with new vigor,new ideas and new year resolutions.
let us resolve that man kind live in peace,harmony and love.To this end all of us shall strive to do our bit .
nations and citizens,whether in gaza,india,pakistan,israel or any where in the world shall take stand to eradicate terror,poverty and help each other to live a happier life.
with warm wishes for a happier new year 2009 to all of us.
rallabandi venkata rao
Sunday, November 30, 2008
the world has to learn to live with terrorism
your son and daughter have gone to school.did they return safe? your wife and kids have gone for festive shopping. there is a bobmb scare in the shopping complex. what do we do?
these are questions wwhich are facing common man and women now a days, world over, this is a common phenomenon.
dont you think, time has arrived in our daily lives to live every day with scepticism?uncertainity?fear?
what is lying ahead of the day or night ? we do not know.
who is striking whom and where and when? we do not know.
whether iam in taj,oberoi,nariman point,cst or airport in mumbai or any other city,iam not sure what may strike me when and how?
this is the price we pay to live life every day,every hour -just to live -this is the sign of our times in present day modern world.
some people sceptical as they are, asking is this type of life worth living?
is it a civilised society, where we live .
Late sri hemant kurkure or Late sri unnikrishnan and many of such noble warriors -martyrs as they are -sacrificed their lives for us ,the rest of the people.
we all indians and the world salute them for their sacrifices,heroic discharge of duties .
the lessons we have from these recent terorist activities in mumbai - in which many innocent civilians -indians and foreigners lost their valuable lives -is let us learn to live with terrorism,till the politicians take bold steps to wipe out the tribe of terrorists and the like.
rallabandi venkata rao
these are questions wwhich are facing common man and women now a days, world over, this is a common phenomenon.
dont you think, time has arrived in our daily lives to live every day with scepticism?uncertainity?fear?
what is lying ahead of the day or night ? we do not know.
who is striking whom and where and when? we do not know.
whether iam in taj,oberoi,nariman point,cst or airport in mumbai or any other city,iam not sure what may strike me when and how?
this is the price we pay to live life every day,every hour -just to live -this is the sign of our times in present day modern world.
some people sceptical as they are, asking is this type of life worth living?
is it a civilised society, where we live .
Late sri hemant kurkure or Late sri unnikrishnan and many of such noble warriors -martyrs as they are -sacrificed their lives for us ,the rest of the people.
we all indians and the world salute them for their sacrifices,heroic discharge of duties .
the lessons we have from these recent terorist activities in mumbai - in which many innocent civilians -indians and foreigners lost their valuable lives -is let us learn to live with terrorism,till the politicians take bold steps to wipe out the tribe of terrorists and the like.
rallabandi venkata rao
Sunday, October 19, 2008
HEALTH TIPS- AVOID LIFT ALWAYS TAKE STEPS
HEALTH IS WEALTH.
WHAT YOU SAVE ON MEDICINES , DOCTOR CONSULTATION AND PATHOLOGY TESTS IS VERY HIGH OVER LONG TIME. SPECIALLY SO AFTER YOU ARE 40+
IT IS YOUR SAVING AND ADDS TO YOUR SAVINGS AND WEALTH.
TO BE IN GOOD HEALTH AND BEING ABLE TO AVOID COSTS RELATING TO HEALTH IS IN YOUR HAND TO A GREAT EXTENT
I TRIED WITH SUCCESS THE FOLLOWING AND STAY FIT.
--AVOID LIFT AND ALWAYS TRY GOING UP BY STAIR CASE- STEPS
-CONSUME GOOD AMOUNT OF WATER-PURE WATER EVERY DAY.
- STRETCH AND STRAIN THE BODY AS FAR AS POSSIBLE EVERY DAY.
-YOGA AND MEDITATION IF ONE CAN PRACTICE-ALL THE BETTER.
- WALK UP 3 K.M EVERY DAY AND THIS IS MINIMUM. MORE THE BETTER.
- AVOID NON VEGETARIAN AND ALCOHOL AS MUCH AS YOU CAN.
-IF YOU COMPLETELY AVOID BOTH NON-VEG AND ALCOHOL, NOTHING CAN BEAT IT.
- RENDER AS MUCH HELP TO THE NEEDY AND POOR AS POSSIBLE IN CASH OR IN KIND
-EVEN A LITTLE HELP/SMALL GESTURE EVERY DAY- EVEN A KIND WORD GOES A LONG WAY.
STAY FIT. THINK YOUNG AND YOU ARE YOUNG.
RALLABANDI VENKATA RAO
WHAT YOU SAVE ON MEDICINES , DOCTOR CONSULTATION AND PATHOLOGY TESTS IS VERY HIGH OVER LONG TIME. SPECIALLY SO AFTER YOU ARE 40+
IT IS YOUR SAVING AND ADDS TO YOUR SAVINGS AND WEALTH.
TO BE IN GOOD HEALTH AND BEING ABLE TO AVOID COSTS RELATING TO HEALTH IS IN YOUR HAND TO A GREAT EXTENT
I TRIED WITH SUCCESS THE FOLLOWING AND STAY FIT.
--AVOID LIFT AND ALWAYS TRY GOING UP BY STAIR CASE- STEPS
-CONSUME GOOD AMOUNT OF WATER-PURE WATER EVERY DAY.
- STRETCH AND STRAIN THE BODY AS FAR AS POSSIBLE EVERY DAY.
-YOGA AND MEDITATION IF ONE CAN PRACTICE-ALL THE BETTER.
- WALK UP 3 K.M EVERY DAY AND THIS IS MINIMUM. MORE THE BETTER.
- AVOID NON VEGETARIAN AND ALCOHOL AS MUCH AS YOU CAN.
-IF YOU COMPLETELY AVOID BOTH NON-VEG AND ALCOHOL, NOTHING CAN BEAT IT.
- RENDER AS MUCH HELP TO THE NEEDY AND POOR AS POSSIBLE IN CASH OR IN KIND
-EVEN A LITTLE HELP/SMALL GESTURE EVERY DAY- EVEN A KIND WORD GOES A LONG WAY.
STAY FIT. THINK YOUNG AND YOU ARE YOUNG.
RALLABANDI VENKATA RAO
Thursday, October 16, 2008
HEALTH TIPS -CONSUME WATER PLENTY
THE CHEAPEST SOURCE OF STRENTH AND SPARK TO THE BODY COMES FROM PURE WATER.
DRINK BOILED WATER PLENTY AS MANY TIMES AS POSSIBLE.
ATLEAST 3 TO 4 LITRES OF WATER SHOULD BE TAKEN BY YOUNG OR OLD.
APART FROM ENERGY AND SPARK TO THE BODY, WATER HAS A PURIFYING NATURE. IT PURIFIES BLOOD OF ITS IMPURITY AND ACIDITY ETC... IT RINSES ALL INSIDE ORGANS OF IMPURITY.
WHY ALL THIS CRAP ON WATER IN MONEY IDEAS BLOG? YOU MAY WONDER.
FOR THE SAKE OF GOOD HEALTH , PREVENTION IS BETTER THAN CURE.
ONE CAN PREVENT MANY INFECTIONS AND HEALTH BREAKDOWNS WITH PLENTY OF INTAKE OF WATER.
TAKE CARE OF HEALTH. GO A LONG WAY WITH GOOD HEALTH.
RALLABANDI VENKATA RAO
DRINK BOILED WATER PLENTY AS MANY TIMES AS POSSIBLE.
ATLEAST 3 TO 4 LITRES OF WATER SHOULD BE TAKEN BY YOUNG OR OLD.
APART FROM ENERGY AND SPARK TO THE BODY, WATER HAS A PURIFYING NATURE. IT PURIFIES BLOOD OF ITS IMPURITY AND ACIDITY ETC... IT RINSES ALL INSIDE ORGANS OF IMPURITY.
WHY ALL THIS CRAP ON WATER IN MONEY IDEAS BLOG? YOU MAY WONDER.
FOR THE SAKE OF GOOD HEALTH , PREVENTION IS BETTER THAN CURE.
ONE CAN PREVENT MANY INFECTIONS AND HEALTH BREAKDOWNS WITH PLENTY OF INTAKE OF WATER.
TAKE CARE OF HEALTH. GO A LONG WAY WITH GOOD HEALTH.
RALLABANDI VENKATA RAO
Subscribe to:
Posts (Atom)
