The stock market continues to run great. The Sensex crossed the 79,000 mark for the first time on Thursday. It ended the day at an unprecedented 79,243.18. Rise 568.93. It also touched an all-time high of 79,396.03, up nearly 722 during the session. In the other hand Nifty crossed 24,000 for the first time. The record is set at 24,044.50.

According to experts, the market rose continuously. Indices are crossing one milestone after another on a bunch of expectations ahead of the budget. They think, now the index will rise more. Several more precedents will be created. But everyone advises, the common small investor should tread carefully in this market. But if you hold the investment for a long period, you will see good profit.

The main reason India’s stock market has soared so far is the improving economy. So the share price is climbing like this. He is highlighting several issues as an example of this. For example, a total of 2,000 companies listed on the NSE made a profit of Rs 4.14 lakh crore in the last January-March quarter. Which is much higher than 3.62 lakh crore in October-December. Advance tax payment rate of companies increased by 21%. Which is an indication of their good income in the current financial year. The total share value of all companies listed on BSE stands at Rs 438.41 lakh crore. Record that too.

This is the pre-budget run of the market. This time, Sensex is eyeing 80,000. He said, “Even though there is a coalition government at the centre, they have come to a stable position. The market will remain this way for now. There is less risk of going down.”

If you’re thinking about making some extra money, stock trading might be a great option. But the problem is that today’s investors and traders have access to numerous types of trading instruments, which might get you lost in the middle of the way, so learning about them is of the utmost importance.

From trustworthy blue-chip stocks to the fast-paced futures and foreign exchange (or forex) markets, traders often compare forex vs stocks to determine which market is the best one to trade. In this comparison, keep in mind that there will always be benefits and drawbacks for each one and it ultimately comes down to how important those features affect you, personally. Deciding between one of them can be a real pickle, but don’t worry! In this article, we’ll make sure you’ll learn everything you need to know before making a wise decision. So, let’s start with the basics:

The Basics

The foreign exchange market, a.k.a. forex, is the world’s largest financial market. The main thing about Forex is that it’s decentralized and mostly represents a trading network of participants from around the world, including investment banks, central banks, hedge funds, and commercial companies. Many traders prefer the forex market because of its high liquidity, the nonstop trading, and the amount of leverage that is offered to participants.

On the other hand, the stock market is made by well-established and financially sound companies. As you may already know, the shares in a company, as the name suggests, offer a share in the ownership. These equities operate profitably during challenging economic conditions and have a history of paying dividends. Most of the time, these transactions are conducted on stock exchanges, in order to raise capital. Although the stock exchanges might provide a transparent, regulated, and convenient marketplace for buyers to conduct business with sellers, it’s generally considered to be less volatile than many other investments and are often used to provide steady growth potential to investors’ portfolios.

Now that you know what trading is all about, especially when it comes to these two markets, let’s compare them on a more technical level.

Forex vs Stock Market

Size

One of the biggest differences between forex and stocks is the sheer volume of the forex market. A high volume means traders can typically get their orders executed more easily and closer to the prices they want. For example, the forex market volume dwarfs the dollar volume of all the world’s stock markets combined, which averages roughly $200 billion per day. Why do we care? Because the greater the size, the greater the liquidity will be, so, here Forex takes the wins.

Liquidity

As we mentioned above, a market that trades in high volume generally has higher liquidity. Liquidity leads to tighter spreads and lower transaction costs. Forex major pairs have extremely low spreads and transaction costs when compared to classic stock action. This ends up being one of the major benefits of trading on the forex market.

Volatility

This is a measure of short-term price fluctuations. Many traders, especially the short term ones, rely on volatility to make their investments in order to profit from quick price swings in the market. This is an advantage that attracts many investors to the forex markets. Others are more comfortable with less volatile and less risky investments, like buy-and-hold investors, who may prefer the stability offered by the classic stock trading market.

Leverage

Another big advantage of Forex trading is the superior leverage offered by that market. In the US, investors generally have access to 2:1 leverage for stocks. The forex market offers a substantially higher leverage of up to 50:1, and in other parts of the world, even higher leverage is available. Of course, this offers the convenience of being able to command a larger position for a given cash deposit, but be aware! Leverage can be a powerful tool but it can also put a quick stop to your activities.

Trading Hours

Trading sessions for stocks are limited to exchange hours, therefore, stock traders must adhere to the hours of the stock exchange. On the other hand, Forex is a 24-7 market, and it has no single central location! Participants can be spread across the globe and there is always a part of the market that is in business hours. Add that to the efficient forex trading apps that are available on the market, and you can even invest on the go, effortlessly! If you’re interested in knowing which are the best apps for that, click here. The catch is that extended trading sessions remain notably low volume and non-liquid. When comparing volumes across a 24-hour period, Forex has the upper hand.

So… Which One?

The Internet has opened up major possibilities when it comes to trading. The decision is usually based on risk tolerance, account size, and convenience. But in the end of the day, you must choose what works best for you! It often comes down to knowing which trading style suits you best. The instrument a trader uses should fit on his strategies, goals, and outcomes he or she wants to overcome. However, if your strategy is to buy and hold for the long term, generating steady growth and earning dividends, stocks are a more practical choice.

In terms of investments, stocks have proven that it has the most growth potential when you compare it to bonds and other short-term investments. If you are planning to invest in the long run, you will be able to gain much profits and ROIs when you know how to make stocks work for you. Read more about investing in this link here.

If you are one of the people who want to invest in stocks, it is important to do your research first. There is a lot to learn when it comes to the stock market. The rapid ups and downs might be shocking to most people. But if you know what to do, you can survive, thrive, and gain a lot of profits in this type of investment. If you are new to the market, here are some of the things that you should do first.

How to Get Started

1. Open a Brokerage Account:

There are a lot of brokerage accounts available online. However, before choosing one of them you need to determine your goals first. You might be investing because you need the money to grow in a year. You might want to have long term investments that you can use in case of a rainy day. There are a lot of cost and incentives that are being offered to many investors. Take advantage of them. You have to make sure that you read all the terms and conditions of the company you are investing in. You should also review the pricing schedules and incentives to see if they are worth it in the long run.

2. Read Books about investing:

There are a lot of inexpensive books written about the subjects of investing. These kinds of books will introduce you to the world of the stock market. Books can also give you a wealth of information about how stocks work, the jargons that most investors use, and other useful things that you can gain just from reading. However, reading too many books can expose you to too much information that it can be difficult to start the first steps. Be careful with “analysis paralysis”. Know more about analysis paralysis in this website: https://en.wikipedia.org/wiki/Analysis_paralysis. Apply all you have learned to your investments in order to see if they work.

3. Find a Coach:

Choose someone with a wealth of experience when it comes to the stock market. Mentors will be able to navigate you through rough waters. They can also guide you on what to do if a certain stock gains or loses its value. All successful investors have mentors who helped them answer questions, guided them in the right direction, and recommended useful resources whenever the market gets tough. You might be tempted to heed advice from people on online forums. However, most of them do not have a professional background in investing. Be careful to whom you listen to. Study the lives of great people such as Warren Buffet, George Soros, Benjamin Graham, and John Templeton. They can provide perspective, appreciation, and inspiration in the world of investing.

4.Follow the Market:

If possible, read the newspaper every day. If you are a day trader, you can follow the stock market when it opens and closes. You can also get in-depth coverage through Bloomberg and Wall Street Journal. You can check stocks on your iPhone, on Google Finance, and other resources on the internet. By being on top, you will have the advantage of getting exposure and you will be in the know of what’s happening in the market.

5. Take Classes and Seminars about Investing:

These seminars can provide you great insights into the overall market trends. There are also seminars that can teach you about the success strategies of many investors and not all seminars require payment. Some of them are for free and you can benefit a lot from them. However, look out for any sales pitch that is usually included at the end. There are also reviews online such as the Trading Review where you can read if a particular program or seminar really works. Most people can be sucked in by seminars that promise huge returns and they will be left hanging with a course that is not even profitable in the least.

Conclusion:

In the end, learning about investing is a skill that is acquired through years of practice, study, and experience. Get started today by talking to the experts who know a lot about investing. You will be able to start great and get investing right the first time without too much trial and error. Keep in mind that it is your money and funds that are at stake. Learn a lot before investing into anything.

As the New Year begins, expectations in the M&A are high. There was an overall decline in activity in 2016 as compared to 2015. To most of the deal makers, it is due to the uncertainties that come with political environment. However, as the year unveils, stabilization in the new administration will dictate the market, with predictions of favors in the Mergers and Acquisition markets.

2017 Expectations in the Merger market.

2016 showed a drop in activity by a 25% decline in activity and reduction in deals. According to M. Bolsinger from Dechert; there are a lot of expectations from the new administration; running from changes in tax policies, interest rates, to other macroeconomic drivers. It is until the changes stabilize that great deals in M&A will crop. Bolsinger is also optimistic on the available opportunities in the financial sector based on the president’s elect promise to replace Dodd-Frank. From his perspective, there is uncertainty of performance in the environment and healthcare sectors.

It is also expected that M&A importance will be of significance in 2017. The US$1.7tn is the amount of money reported to be lying idle in the financial sectors, which is expected to be put in the M&A market for a significant whopping change. Also, there is the need to invest in the organic growth around the world. According to J, Packee, Baird, most investors concentrate on the inorganic investment. It is reported that dry powder stood at US$800bn in Q3 which would have been invested in the sector.

The first quarter of 2017 is expected to show an increasing trend in the deal activity due to the sudden drop of uncertainties from the pre-election period. According to Eurazzo, who works for an international investment company in Paris, the drop in uncertainties can be seen from the trends in the US stock market.

In addition, higher expectations in the M&A deal sector is linked to the emphasis on quality of deals in 2016 which slowed down activities. It is however expected to be different in the first and second quarters of 2017, since there is more confidence in the inventory deal as high quality deals venture the market.

Expectations in the private equity activity in 2017

It is reported that private equity activity in 2016 in North America remained strong, which is in contrast with the drop in the corporate M&A. In the first, second and third quarters of 2016, there were 781 private equity deals valued at US1bn, which is just five fewer from 786 deals in 2015. The technology, industrial and chemicals, and the business services sectors are the top three sectors that largely contributed to the private equity deals in 2016.

According to West Monroe, the last seven years have recorded such a high competition in the private equity deals. This is due to the emphasis in quality deals, speed and valuation, and availability of active strategic buyers. Also, the financial sponsors have made the private equity business easy and convenient. This is because, private equity firms assemble portfolio companies and then roll up add-ons to those companies.

However, according to Bolsinger, the high competition is due to: fewer and fewer large-cap deals; and availability of very acquisitive strategies that sit on a lot of cash while still fostering big threats to the private equities.

Eurazzo sees the long term deals between a business owner and a private equity firm much more sufficient than the short term deals. This is due to the fact that businesses take long to be more productive.

The driving force of the increase in the inbound deal value by 21% in mid-market M&A.

The inbound deal value went up by 21% to US$22.9bn in Q1-Q3 in 2016 especially from the Asia based acquirers. The Asian countries engage in M&A for various reasons such as acquiring better technology or to expand their market share.

The success of great deals in M&A is the buying of beneficial brands and investing back to the countries’ businesses to enhance them. Also, a strict state control helps in improving M&A deals as evident from the China State Council.

The challenges facing the M&A deals.

Cultural differences makes it difficult for some investors to invest and succeed in foreign areas. This is due to political and cultural differences, as well as communication barriers. However, buying a well-established business can conquer the challenges.

The expansion of private debt for M&A activity.

In 2016, the closed end private debt fund had more than US$131bn, which is the highest amount recorded ever. The increased debts according to Monroe is due to the low interest rates. Also, investors have turned up in large numbers to seek for direct lending, which proves to be more convenient rather than the traditional way of banking market.

Source: Firmex.com

Indian stock market made history today. Indian stock benchmarks Sensex crossed 25,000 and Nifty crossed 7,500 mark respectively. Rupee also strengthened to 11 months high against US dollar. This is all because India gets its long waited single party government in the Lok Sabha election 2014. BJP led by Narendra Modi is the prime creator of this magic.

Sensex climed 1470 points to touch the all time high of 25,373.63 and ended on 24,121.74 points. Nifty also climed 440.35 points to hit 7,563.50 and ended on 7,203 points. 

Indian rupee today gets strengthened to 11 months high of 58.62 against US dollar and ended on at 58.79.

Millions of people already have their own ISA, but if you are completely clueless when it comes to stocks and shares ISAs, don’t worry. This guide offers you a beginner’s introduction to the subject to give you an overview of what they are and some key points you need to know if you are thinking of investing.

• What is a stocks and shares ISA?

First of all, let’s look at what a stocks and shares ISA is. Essentially, it is a type of investment account that invests the money you put into it in the stock market. Depending on the specific account you get, it might invest in different types of companies.

Then, if the shares your money is invested in grows, you will earn dividends. These dividends can then be reinvested or you might be able to withdraw them, depending on the specific account you have.

• What is the annual savings limit?

One really important point about the stocks and shares ISA is that there is an annual limit as to how much you can put into your account. For the current tax year (2012/13), you can save up to £11280 in your investment ISA. Alternatively, you can also save up to have of that amount in a cash ISA. It’s also worth remembering that you can only open one new stocks and shares ISA per tax year, and even though you can hold multiple ISAs, the £11280 limit is the overall limit for all of your ISAs.

• What are the risks?

Now let’s have a look at the risks of the stocks and shares ISA. As we have already seen, it is a type of investment in the stock market. This means that as well as the potential to earn dividends, your money can also go down as well as up. This will depend on the performance of the stock market. You are usually recommended to save for the long term with a stocks and shares ISA to give your money the best chance of growing.

• What are the benefits?

One big benefit of this type of account is that it is tax-free. This means that if you earn dividends on your money, you won’t have to pay any tax on them. This is one of the main reasons these ISAs are so popular with investors.

Also, if you choose the best stocks and shares ISA you can find, the fund will be very careful about where they invest your money to give it the best possible chance of growth. The flexibility of being able to save part of your annual allowance in the form of cash is another benefit that appeals to many people.

• How do I choose an account?

When you are trying to choose the best stocks and shares ISA for your needs, it is important to do some research to see what is out there and the kind of account that might work for you. As well as past performance of the fund, look at things like the terms and conditions, the fees attached, how easy it is to access your money and the reputation of the provider to ensure that your investment has the best chance of success.

A particular mutual fund investment’s failure or success does not depend on their previous or present performance. It may be very attractive to buy funds when they are doing well in the market; however you being the new investor it is not advisable to buy funds depending on their past performance. The reason behind this advice is because you as an investor would want to buy mutual funds when the rates are low and sell them at the maximum price as much as you can.

Funds that are currently established have limited number of stocks in the market. This makes easy to analyze which stock is doing well and which one is not doing well. The stock that is doing well puts a huge effect because of their size being small and it is easy to evaluate this smaller stocks. It is very hard to remain at the same or top position as far as the stock market is concerned, that is the reason why we feel the effect to be less when the stock market is growing.

If you want maximum benefits from your mutual fund investment then you need to follow religiously the expanses and the tax charges that are applicable on these mutual funds. Some fund’s fees would cost you more than the other ones; in this case you should be able to negotiate the price in the market or with the stock broker in order to get good returns as an investor. In the long run if your fees or taxes are increased even by smaller percentage then it could be that your hard earned returns is being enjoyed by someone else. Being an investor it is very important to learn how the government taxes are applicable on your mutual fund investment. So the best ways to know about all this taxation is by reading prospectus that are available at the firm offices.

To buy bonds securities and stocks, a mutual fund manager always finds different ways to pull information from different small investors. This means that your investment is being analyzed by different buyers and you need not make any more investment on that particular mutual fund. Well if you are planning to buy different type of stocks that are available in the market then the investment might be required. However if you have sufficient funds then you could even go for international funds, which would give you more returns than the domestic funds.

There is an element of risk taken by the fund managers in order to get healthy returns. At times you may not agree with fund manager’s risk taken on the investment since you may not be thinking as he is doing. As far as we know, all mutual fund investment bears a minimum risk which is important to acknowledge.