Investorpreneur – Oh! I will never understand these stock markets

Prologue

This is a theatrical series that comprises interactive edutainment sessions on the most pertinent topic in the contemporary world – ‘Investment’. ‘Investorpreneur’ is a portmanteau representing a lucrative combination of an investor and an entrepreneur. Every entrepreneur attempts to maximise business prospects and profitability to the fullest. Likewise, every investor looks to compound his/her investments over a given period of time. However, a successful ‘investorpreneur’ combines the winning qualities of an entrepreneur and an investor in his/her quest for maximising returns in the most optimum manner.

 

The series is divided into chapters and episodes. Each chapter would portray a theme, which will form the base for the episodes covering that chapter. These episodes would comprise interactive sessions between the main protagonist – the succesful investorpreneur and other characters, which would feed of the knowledge of the main protagonist. Written in simple and conversational English with a sprinkle of Hindi wherever necessary,the Investorpreneur series aims to ‘edutain’ you – a highly demanding investor, on the increasing importance of financial planning and investment. The sessions will help you understand various vital concepts pertaining to investment.

HAPPY INVESTING!

 

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Episode3: Oh! I will never understand these stock markets

Rahul’sbelief in diversifying his investment portfolio and investing in equity markets just got better by the day. He’s always curious to know about the numerous investment options at his disposal that he could use to multiply his savings effectively. However, information hurled at him from all corners about stock markets, investment, savings, and other related concepts has created serious confusion in his mind, which he needs to clear. It is a Monday evening. Rahul’s just back from office, relaxing on the sofa watching news as Simran serves him coffee.

 

Rahul : Can anyone understand this stock market properly Simi?

 

Simran : Why? What happened?

 

Rahul : Last week the market was doing well and was trending upwards, this week it is back to its old fluctuating ways. I mean, your coffee doesn’t change its taste as much as the market changes directions.

 

Simran: Ya! Try and make coffee for yourself and then talk my dear husband. By the way, your CA friend Amit called today afternoon regarding your IT returns, give him a buzz.

 

Rahul : Woah! I completely forgot about the ITRs. Thanks Simi and by the way, this cup of coffee rocks. Thanks wifey!

 

(Rahul calls his CA friend Amit who handles his tax filings and Amit answers his call)

 

Amit : Hey Rahul! What’s up mate? Long time, no see, no hear.

 

Rahul : Sorry mate, I was busy with a new project and was completely engrossed in work. So, what’s the latest on my ITR? Please let me know what you need.

 

Amit : Nothing much yaar, I’m done with your computation of total income. I just wanted the transaction receipts of the trades you executed this year on the stock market just to work out the capital gains. Simi Bhabhi was telling me you are all geared up these days about investment. I’m done with the rest.

 

(Rahul says sarcastically)

Rahul : Ya! Ya! I will send you the transaction receipts of all my executedtrades.

 

Amit : That’s fine mate, but why is someone sounding so sarcastic all of a sudden? Kya baat hai yaar? You can share with me, maybe I can help.

 

Rahul : Nothing mate, I’m totally confused with this stock market. One week it is up, the other week it is down. Certain company’s stocks do well one day and they fail to perform well another day. Moreover, these companies offer shares through IPOs, FPOs, and OFS. How would a layperson like me know whether to subscribe or not? Plus, I hear all these new terms limit order, stop loss, and what not. I know stock markets are great to invest in but isn’t it important for an investor to know about the market he’s investing in? The terminology used? And much more, to help the investor maximise his/her savings

 

Amit : Hello Mr. Frenzy. Take it easy pal. It is just a stock market and it is much easier than understanding Chinese my friend. All you have to do is to become a decent student who is willing to learn about the market.That’s it.

 

Rahul : Oh Ya! Then please convince me.

 

Amit : Look my friend!There are highly informative websites that publish lots of relevant investor education content, which is highly effective in training you to become a potent investor. The BSE and NSE websites also have loads of valuable information about stock market trading and other related concepts. The information is out there, it is up to you to assimilate it. Moreover, your stock broker or financial planner can be your best friend here indeed. Simply call them, bug them, bore them with your questions, bombard them with all your doubts, and believe me you! They have all the patience in the world to hear your queries and provide you with lucrative solutions.

 

Rahul ; Hmmm! The story’s getting interesting by the minute my friend. Carry on mate, I’m all ears.

 

Amit ; Let’s take the examples that you mentioned such as IPOs, FPOs, OFS, and limit order. If you want to know whether to subscribe shares through an IPO, simply get in touch with your broker and ask him to guide you. They will tell you whether or not to invest. Likewise, they will explain limit orders, stop loss, and all such queries in your mind. Broking houses generally provide you with research reports on stocks, stock recommendations, market analysis reports, and other valuable advisory services. It is up to you to use it wisely. Mate, just remember a simple thing – no question is stupid,definitely not when it pertains to investing your hard earned money into various avenues. Therefore, stop getting finicky about the stock market and just equip yourself with the right knowledge from the right people and sources. This will enable you to become a good and well-informed investor.

 

Rahul : That’s highly informative Amit. Thanks mate! You’ve eased my nerves to a large extent. Why should I trouble my mind so much when there are experts sitting out there with an ocean of information? I should instead squeeze a few drops of their precious knowledge and use it wisely. I will get in touch with my stock broker soon to know more about the stock market. Well! If the markets rise, they rise for a reason and likewise, if they drop, even that’s for a good reason. So, wouldn’t it be better to be as close as possible to knowing those reasons in order to become good investors?

 

Amit : Well said. Woah! Rahul, yaar, I’m getting another call from a client. I will get back to you a little later. Please send over your stock market transaction details. Seyya mate!

 

Rahul : Thanks for your help, take care, and good night.

 

Rahul understood very clearly that knowledge is the only way to make your investment strategies work in the stock market.Have you? Please note that knowledge helps you take well-informed investment decisions. The source and people that provide you with this knowledge become pivotal. Rahul has become a potent ‘investorpreneur’ in the true sense of the term.It is time for you to start acting on your investments.

 

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.

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