Are you ready to dive into the captivating world of stocks? Buckle up as we explore some mind-blowing Sharemarketfacts that will educate and entertain you!
Interessting Facts About Sharemarketfacts
Rule of 72
Ever wondered how long it would take for your investment to double? Here comes the Rule of 72 which is as valuable for a beginner as it is for a wise investor. Here’s how it works:
1. Take the number 72
2. One can divide it by the expected annual rate of return
3. The end product is the estimate of the number of years it will take for an investment to double its value.
Let’s crunch some numbers:
- To invest ₹5,00,000 at 8% returns? This means that it will take 9 years to double, or (72 divided by 8 equals 9).
- Is there a red-hot investment that can assure 12 percent returns? You’re looking at 6 years to double your money (72 / 12 = 6)
While not 100% accurate, this rule is surprisingly precise for lower rates of return. Check out these comparisons:
| Rate | Actual Years | Rule of 72 Estimate |
|---|---|---|
| 2% | 35 | 36 |
| 5% | 14.2 | 14.4 |
| 10% | 7.27 | 7.2 |
Price of a Single Typo
In the lightning-fast world of stock trading, a single misplaced digit can spell disaster. Just consider the situation where you put the right quantity in the wrong place as the price of the product. The exchanges are today BSE and NSE and they work at microsecond speeds where there are no “oopsies” Once an order is placed it is already considered to have been executed.
Pro tip: Orders should always be double-checked. Literally the difference between making lakhs or crores or maybe even just an extra minute!
Bombay Stock Exchange
Step aside, youngsters! The oldest stock exchange in Asia is the Bombay Stock Exchange (BSE) which was established during the 19th century.
- Begun by Premchand Roychand, known also as the Cotton King, the Bullion King, the Big Bull
- Also known as the Native Share and Stock Brokers Association (yeah, they could never settle on a name could they?)
- Has more than 5,000 companies on its stock exchange, which makes it the most developed in the world.
- Established Dematerialized trading in 1995 by shifting from physical trading.
But wait, there’s more! India has 23 other stock exchanges. How could we have all guessed such a part of the world as the subcontinent is one of the most active ones in trading?
Berkshire Hathaway
Do you think your favorite stocks are overvalued? Well, they don’t even make up peanuts in terms of Berkshire Hathaway. A single share of this American giant will cost you over ₹2 crore. Yes, and that is what I have highlighted above.
- Managed by revered stock-pickers Warren Buffett and Charlie Munger
- Third-largest public company in the whole world
- Leading financial services company by total revenue globally
- Share price on February 1, 2019: $313,350.00
- First crossed the $100,000 mark on October 23, 2006
Why so expensive? The company has never split its stock and rarely pays dividends. Talk about playing hard to get!
Pirate Stock Exchange
The word Sharemarketfacts isn’t complete if you haven’t heard of the pirate market. Thus, the first pirate stock exchange in the world started its work in the city of Harardheere in Somalia in 2009. It is open 24/7 and helps investors earn money on collected ransoms. Although the particulars are vague, it is rumored that more than seventy organizations are on the list. Who would have believed that piracy could be such. .. organized?
Bulls, Bears, and Market Moods
Have you ever thought about how we come to have terms like a “bull” or “bear” market? It’s all about attitude:
- Bull Market: Inflation rates are rising, hope is the thing that won’t fade away. This one should be easy to visualize: a bull charging up with his horns directed to the heavens.
- Bear Market: It is gloomy and dismal when prices drop. Think of a bear touching its paw to the ground and then dragging it downwards.
The next time you hear these terms, then you will know what is happening in the market zoo!
David vs Goliath: Indian Giants versus Entire Stock Exchanges
Here’s a Sharemarketfacts that’ll make your jaw drop: Certain Indian firms are much larger than some of the foreign stock markets themselves. Case in point:
- Two Indian companies: Tata Consultancy Services (TCS) and Reliance Industries Ltd (RIL) have a market capitalization greater than the KSE.
- KSE’s total market cap is approximately $65 billion
- TCS market cap: Higher than $65 billion
Talk about economic powerhouses!
For context, the KSE:
- Established: September 18, 1947
- Started with: 5 companies (KSE50)
- Initial market cap: $260,000
From humble beginnings to being dwarfed by single Indian companies – now that’s a growth story!
| Fact | Description |
|---|---|
| Rule of 72 | Quick way to estimate investment doubling time |
| BSE | Asia’s oldest stock exchange, founded in 19th century |
| Costliest Stock | Berkshire Hathaway, priced at over ₹2 crore per share |
| Pirate Exchange | World’s first pirate stock exchange established in Somalia |
| Bull vs Bear Market | Terms describing market sentiment and trends |
| Indian Giants | TCS and RIL have higher market caps than entire Karachi Stock Exchange |
Conclusion
The stock market is a realm of endless fascination, filled with quirky facts, mind-boggling numbers, and the occasional pirate. The Sharemarketfacts from using the Rule of 72 to map your financial future to having a pirate stock exchange, stocks and shares are far from boring.
FAQs About Sharemarketfacts
Ans. A simple method of determining how soon any investment is likely to double its value or how long it takes to double itself.
Ans. Some of the oldest exchanges include the Bombay Stock Exchange (BSE) which started in the 19th century.
Ans. The stocks are General Motors, Procter & Gamble, Wells Fargo, and Berkshire Hathaway these are currently trading over ₹2 crore per share.
px.sdmsYes, it was started in 2009 in Harardheere city of Somalia.
Ans. Yes, companies like TCS and RIL have higher market caps than the entire Karachi Stock Exchange.
