Stock Market Business Good for You?

Stock market business has been luring new and old investors toward the share and scrips for many decades.

Stock market in India, has been consider as equal to betting, where people do fear about losing more than the quantity of gain.

In reality, stock market is same as we have negative impression about it.

Stock market is the one kind of business, that everybody should love to do.

The first logic is that, companies are the main aspect in stock market, where they sell their stock or scrip (may not necessarily directly).

The term company is closely associated with profit or profit making in general or business sense.

If a start up company could become one successful company after listing at stock market, then the stock or scrips of the same company would be gaining much.

Ultimately, the stock holder or investors would be getting high price for the exchange of stock and dividend as decided by the board of directors of the company.

In stock market, how a lay-man would gain money?

Well, for that they need to purchase stock and do need to monitor the price of the share or stock they have purchased.

Simply, if the share is traded on higher price simply sell it, else hold it to see if it would be traded more than the value, you fixed to sell.

And if the share is losing is value in the stock market, then sell it, get your money back.

Interesting thing about stock market is that, you can suffer loss, but you are going to get back the money, and that would be the same as if you lent money to any person.

Why not invest in banks rather putting into risky stock market?

Right, this assumption is right, seldom anybody would agree to take the risk in stock market. But the fact is that, those are ready to take the risk, they win and lose in stock market.

Another factor is that, one can get more interest return for their investment in stock market, but not always.

There share in stock market are just like products, you need to keep those and trade for a profit, and loss is inevitable in business.

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Top Five Things to Learn in Economics?

In the modern world it is very important to gauge your financial health as well as of the nation, and Economics subject has been there for centuries to understand those concepts. Being a student of economics it has been fun to know about many factors those determine the well being of economy and household budget.

Keeping the financial crisis of late everybody witnessing it is very necessary to know abut few terms of economics and their impact on your financial position. The following mentioned factors include both marco and micro economics topics. And the aim of the post is the just hint about the factors and to know further about these we recommend using best economics books.

1. Demand & Supply: It is the major factor that affects our life, the excess or less of demand has certainly impact on the price that is essential in our life. A layman also knows that the demand force in the market is related to supply side in regulating the price. And for that they no need to have degree in economics. Fish market could be the best example where one can experience the practical implementation of the demand and supply factor. Here we mentioned the fish market because of the short-term market for price mechanism.
2. Inflation: It’s a macro economical terms that is being used regularly to say that price goes up of the goods in the market. It is directly affect the health of economy and household budget. There are many types of inflation; however, a bit rise in inflation is always good for economy and household. But the scenarios like galloping or hyper inflation always a bad thing for all. 
3. Money: Everybody wants money to meet their wants. “Money is good servant but bad master” a definition there in economics. In economics, students would know about the evolution of money, which is the most interesting subject to know. The study about money is limited to economics only, but it is just like a general subject that needs no expertise. Everybody deals with money daily even every minute in their life, and their labor is being rewarded in terms of money, no matter a daily labor or CEO of a company. Money is the perfect thing that to know the value of goods and services in the market. It always draws attention of the people because it is the part and parcel of their life, without money even people afraid to imagine. 
4. Market: No need to define what a market is, people knows that a place where buyers meet sellers. Market is the most common word we use every day and all the moment. Without the word, our sentences might not complete, particularly when we are taking about purchasing goods and services. And a favorite word for the ladies since they love to shop and a family is just synonymous for presence of ladies and their shopping. No matter be the size of the market, it due posses all the qualities and characteristics of market. Students of economics study about different types of markets and the role of price mechanism in market. 
5. Human Wants: Just imagine how the world would be without wants. These are the root cause for the significant development of the world, civilization, society and technology. In economics, human wants are unlimited, a true fact. Human being wants many things but could able to satisfy few of those, in general and that is what economics also teaches us about wants. In economics students do learn about consumer behavior and utility factors related to human wants, those are pure micro economic concepts. Interesting thing about this topic is that, nobody tries cutting their wants, even a student of economics who studied and understood about human wants.

All these five things in economics are purely applicable in day-to-day life and for that there is no vast knowledge is required. The practical experience with these common factors made us successful in many ways and the study of economics has been showing the path to excel further.

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Management Tips: Managerial Decision Making

Decision making at the level of manger, is really an art. This involves making decisions, on the individual level, without the concern of the others. There are other kinds of decisions that involve other people. So, the decision making process when it comes to managerial level, becomes very complicated.

There are kinds of decisions that need to be made on a personal level, without the concern of others. These need great competence, having correct information to come to a conclusion, and right assessment of the situation time etc, these decisions may not necessarily need others concern or opinion and are made on a individual level and are executed. Then there are other kinds of decisions that need the involvement of other people, Involvement of the people concerned with the work, their opinion etc.

These kinds of decisions can be made, by putting the problem or the situation in front of the concern persons, taking their opinion, and them with mutual concern or coming to a common conclusion decision is made, in this kind of situation no propels are there from the manager. Then there are situations where the manger thinks about the situation, or a problem assesses it, designs a set of solutions and then places the choices in front of the others to make a choice.

As a manager which kind of decisions you make, depends on your relationship with the others. Then as per the organization structure, what kind of freedom and at what level it has given to its manager. Apart from all these, how much ever you may study the pros and cons of a situation and take a decision, you will only come to learn about the practical aspects and if the decision you have made is hundred percent right only after implementing.

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Does scarcity really exist?

Human wants are unlimited. There should be clear distinction between need and want in order to define scarcity. And more over it’s related to the state of mind of consumer in the behavioural economics.

In general term, scarcity exits due the law of nature and available of limited resources in the world. Wherever there is lack of goods or services, generally it is termed as scarcity. But the perfect definition of the scarcity is something different from the general usage of the term.

Since the human civilization is advanced much, the term scarcity seems not a good fit to some goods and services where substitute can takes place. Alternative to good and services can solve the question of scarcity.

In some assumptions, where there is no question of any substitute the scarcity exists. In the case of the gasoline there is few substitute option to run vehicles – electronic, solar, CNG or bio-diesel. If there any situation we face having no gasoline resources more, then we have few option left to choose among the alternatives. In this case we can see there is scarcity of gasoline.

We always try to pick the good one from the alternatives we have. As it’s a matter of choice always for the consumers. And if there scarcity, there will be no choice but to accept the situation. In the case of natural resources the scarcity is always there as we don’t know the amount of resources we have and how much time it will continue to meet our demands.

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Public Sector Policy in India

The public sector has been central to India’s industrialization within the mixed framework. The industrial policy resolution in 1956 accorded a strategic role to public enterprises. Accordingly, areas of strategic importance and core sectors were exclusively reserved for public sector enterprises.

At centre and state levels, the public enterprises grew dominantly in terms of units and investments. Nationalized sick units accounted for one-third of the public enterprises in due course of time. A number of public enterprises had come up in non-strategic, non-core, consumer goods and services sector. By 1993, only about 60 per cent of total investment in public enterprises was in areas originally envisaged as the “commanding heights”.

Public sector would be confined to strategic, high tech industries and essential infrastructure. In 1992, the government established a Non-statutory National Renewal Fund to provide assistance to cover the cost of retraining and redeployment of labour and also provide compensation to labour affected by the closure of unviable public sector units, etc.,

Many public sector units were brought under the MoU (Memorandum of Understanding) system, which is a performance contract, a freely negotiated document between the Government and specific public enterprise.

MoU was started in 1987-88 with public enterprises, as of now more than 100 such units are covered by MoU. In 1995-96, financial performance was accorded 60 per cent weightage in MoUs. Many areas previously reserved for the public sector have been opened up to the private sector. Although its shares has declined in the past ten years, the public sector still accounts for 25 per cent of India’s GDP, 31 per cent of capital investment and 17 percent of the final consumption expenditure in the country.

At the start of the reforms 18 important industries including iron and steel, heavy plant and machinery, telecommunications and telecom equipment, mineral oils, mining of various ores, air transport services, and electricity generation and distribution, were reserved for public sector.

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How to check Fiscal Crisis?

A fiscal crisis is generally related to the excessive growth of public expenditure. However, the size of public expenditure is not the root cause of a fiscal crisis, it is the manner of financing public expenditure that is more important.

A fiscal crisis means that the government is unable to finance its expenditure out of its income, either because it made commitments to supply public goods and services far beyond its means, or because it is unable to make people pay for the public goods and services either through taxation or through user cost.

To check fiscal crisis, governments often resort to excessive borrowing from both domestic and external sectors, but if the borrowing is excessive and beyond the norms of debt financing it may eventually lead to inflation and reduction in income, lower the amounts of public goods and services and increase unemployment, which together may lead to social and economic discontent in the economy.

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Industrial Growth in India: An Overview

India is now covering a well diversified industrial sector - the entire range of consumer, intermediate and capital goods industries. The story of the commodity composition of India’s foreign trade narrates the progress of the industrial growth in India.

The future of Indian economy has been depending on the sea changes in the rapid industrializations in India. The growth of industries in India during the post independence has played a major role in shaping the current India economy position, which resisted the biggest global slowdown and economic crisis.

The advancement of technology and Information Technology has pushed further the industrialization progress in India especially after 1980s. The boom of Indian IT sector is the biggest bliss for the industrialization in India, as from the core industries – navaratna companies, PSUs to small scale industries made a huge progress.

India could achieve self-sufficiency in consumer goods sector too, as the FMCG companies too booming in India and have been contributing a lot to the Indian industrialization. The infrastructure including Research and Development capabilities, consultancy and design engineering services, project organization services helped too Indian industries too reach the top position.

Of late, the contribution of the mining, manufacturing and electricity has not been at the peak but these three components of industrial production might sign again. The index of production in mining was increased from 125.5 per cent in 1993-94 to 139.6 in 2002-03, which was the biggest rise.

The manufacturing moved up to 183.1 per cent from 148.8 during the same period. Another recession sort of situation across the globe would weight high on the Indian economy this time and ultimately the industrial growth rate may be affected.

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Top 10 Economists of the World

The world without economists - one can't even imagine. The contribution of economists is more alike the scientists made our lives so easy. Similarly, various theories of economics are directly related to the world of business and life line of the world economy.

From household to GDP calculations, marginal utility to law diminishing returns, all the narrowly associated with everyday finance science. Here we have come up with a list of the top 10 economists of the world and their contribution will ever be remembered and applicable in our day to day life.

Adam Smith: Adam Smith (16 June 1723 – 17 July 1790), is known as the father of modern economics. He was in the era of Classical economics, he major contributions to economics are Classical economics, modern free market, division of labor, and the "invisible hand". Hardly do there few economists students those don't like the splendid work done by Adam Smith.

Alfred Marshall : Alfred Marshall was born 26 July 1842 in Bermondsey, London, England, died 13 July 1924 in Cambridge, England. He was an English economist and whose contribution to economics will ever be remembered. Economics without the version of Alfred Marshall, is incomplete. He was the founder of neoclassical economics. Principles of Economics (1890) the book was written by Alfred Marshal.

Karl Marx : Karl Heinrich Marx was born on May 5, 1818 and died on March 14, 1883. Marx was a German philosopher, political economist, historian, political theorist, sociologist, communist, and revolutionary. He was the co-founder of Marxism. His contribution to modern economics is very high and his works include surplus value, alienation and exploitation of the worker, The Communist Manifesto, Das Kapital, materialist conception of history.

John Maynard Keynes : J M Keynes was born on 5 June 1883, was one of the most influential economists of the world. Keynesian economics is the best work made its strong impression on modern economics. His contributions are - Macroeconomics, Keynesian Economics, Liquidity preference, Spending multiplier, and Aggregate Demand-Aggregate Supply model.

David Ricardo : Ricardo was born on 19 April 1772, one of the most influential of the classical economists. His major contributions to the modern economics are - Ricardian equivalence, labor theory of value, comparative advantage and law of diminishing returns. The Law of Diminishing Returns is the best theory for every student to know the rate of returns from the production factors.

Milton Friedman : Friedman was born on July 31, 1912, well known among scholars for his contributions - theoretical and empirical research, especially consumption analysis, monetary history and theory, and for his demonstration of the complexity of stabilization policy.

Joseph Eugene Stiglitz : Joseph was born February 9, 1943, most popular American Economists. He won Nobel Memorial Prize in Economic Sciences in the year 2001. His major contributions were Screening, Taxation, and Unemployment.

Thomas Robert Malthus : Malthus was born on February 13, 1766 in England. He contributed a lot to the modern economics in the fields of demography, macroeconomics and evolutionary economics. 'Malthusian growth model' is one of the finest works by Malthus.

Joan Violet Robinson : Robinson was born on October 31, 1903, was a post-Keynesian economist. Well know for the knowledge of monetary economics. Some of her major works were - The Economics of Imperfect Competition (1933), An Essay on Marxian Economics (1942), Accumulation of Capital (1956) and many more.

Vladimir Lenin : Lenin was born on 22 April 1870 and well known Soviet Russian economists. What is to be done? (1903), Imperialism, the Highest Stage of Capitalism (1916) and The State and the Revolution (1917) were some of his major works.

We ever remember the contribution made by economists all the time. 

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