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STOCK MARKET ARTICLES

What is the role of Stop loss in Stock Marketing?

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A stop loss is an order to buy a security once the price of the security climbed above a specified stop price. Stop loss is a stage you prefix for any trade to conclude to minimize your loss. When the price touches the prefixed stage, automatically transaction will be concluded at that point without your taking any action. It is very important in stock trading to have stop loss. Most of the traders are making loss from overnight positions, which are not protected by reasonable stop losses. Another reason for making loss is to take an intra-day position carrying over it to the next day without exiting, if the position moves against his expectation. So before entering into a trade, the trader should decide whether the trade is intraday or overnight, and then should place proper stop loss to protect the investment. A stop loss order is placed under the current market "bid".
Fixed Stop Loss involves placing a stop loss at a fixed support level. In the case of Trailing Stop Loss, a stop loss is placed at a fixed support level, which is adjusted according to the predictable movement of the commodity. According to the nature of movement of the market, stop loss can be tight or liberal. In a most unstable market, more pull or more room for the underlying commodity to move is ideal. If you think it might possibly move up but will definitely drop if it slips below a certain price, then a tight stop loss strategy is a must. You also need to take a tight stop loss strategy if you are trading in a choppy and unclear market.


What are the benefits of Branding?

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Strong brand are clear about what they are not. They understand their unique promise of value sets them apart from their competitors. When  the product  or producer  of an  enterprise are marketed  with a particular  brand , it makes very easy  for the enterprise  to advertise  its product  because  the  enterprise  can use the name of  brand  in its  advertisement  message . Use of brand is also helpful in the identification of products. In this The producer can advertise their products with their brand  and consumer can identify such as  product easily .producer can create  a separate market  for their products  if they use a particular brand  because the use of a particular  brand  differentials these product  from  others.
Branding also  help  easy to  expand  the product mix , if the brand of the producer  is  very popular  in the market and the demand  of such product is  quite encouraging , the producer may decided  to expand  his product  mix .  he can add new  product  lines  to his product  mix  or  he can add new  product item  to his  existing   products line  .it does not  create any  difficulty  for the producer  to create demand  for these new  products  because  his brand  has already  got popularity  among the  consumer . Branding also create the personal contacts with consumers

What is the Inventory management in marketing?

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Inventory  management  is concerned  with keeping  enough  product  on hand  to avoid running out  while  at the same time maintain  a small sufficient inventory  balance to allow  for a responsible  return on investment .proper  inventory management  is important to the financial  health  of the corporation  , being  out of  stock forces customers  to turn to  competitors  or result  in a loss  of sale .on the other hand  inventory is  difficult  to manage because  it crosses  so many lines  of responsibility .Inventory proportionality is the goal of demand-driven inventory management.
The secondary goal of inventory proportionality is inventory minimization. Accurate demand forecasting also allows the desired inventory proportions to be active by formative expected sales out into the future and this allows for inventory to be in proportion to expected short-term sales or consumption rather than to past averages, a much more accurate and optimal outcome. The technique of inventory proportionality is most appropriate for inventories that remain hidden by the consumer. The  marketing manager  is responsible  for selling  the product  and  want  to minimize  the chance  of running  out of inventory . funds  invested  in inventory  are  idle  and  do not earn  a return .

What are the role of future & option in stock marketing?

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Interest  rate  futures  contracts , and  options  on these  contracts , can  be used  in two ways  to  hedge  risk in  cash  forecast . The hedging is basically belonged to the buying & selling. like the  purchase  of a future  contract  in anticipation  of investment , similar  to the investment  case , the use of option  on futures enable  the firm to profit from  chance  interest rate movement . they  can be used  to hedge   the interest  rate  risk on  future  borrowing  and investment  or  they can  be used  to hedge  the interest rate  risk  inherent   in investing  in longer time  instruments  where an  unexpected  cash shortage  may  lead to selling  these instrument  before maturity .
lets  us first  consider  the hedging  of interest  rates  on future  expected  , borrowing  and  investing  . To hedge the risk  of change  in interest  yield  on investment  , the firm  may purchase  a financial   future  in investment  instrument  , because  the use of  a future  contract  to hedge  the interest  rate  of a  future  investment  precludes  the firm  from investing   should  rates fall , some  firms  use  options on  futures  contract  to hedge  future investment  even though  there is an  out of pocket   cost to use the   option  .

What are Marketable securities?

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This section  present  brief  description  of the most commonly  held marketable  securities held for  transaction  and safety motives , securities  held for  a speculative  motive are often  long-term , less marketable  issues that  will not be discussed  here . Marketable securities are investments that are highly liquid, meaning that they can be quickly sold in the secondary financial markets in large amounts for cash. A company might invest in these types of securities as a way to preserve cash for surprising events. Investors also select these short-term investment vehicles to seize certain opportunities in the financial markets. The security most commonly  held as the part of  the marketable  securities  portfolio are divided in 2 groups , first is governmental  issues , second is  non- governmental  issues .
This is a sign of liquidity. Bonds are debt instruments, while certificates of deposit are savings certificates, although both pay investors an interest rate over the life of the contract. These securities trade in the secondary market, a segment of the financial markets where previously issued securities are bought and sold. Cash is a type of marketable security, and it can be held in a checking or savings account, because both allow for quick access to capital. Money market instruments are another common type of marketable securities, although features might vary depending on the region in which they're purchased..

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