Beta

While standard deviation determines the volatility of a fund according to the disparity of its returns over a period of time, beta, another useful statistical measure, determines the volatility (or risk) of a fund in comparison to that of its index or benchmark. A fund with a beta very close to 1 means the fund's performance closely matches the index or benchmark. A beta greater than 1 indicates greater volatility than the overall market, and a beta less than 1 indicates less volatility than the benchmark.

Definition of 'Beta'

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.

Also known as "beta coefficient

The role of Depository and Depository Participants in electronic trading and settlement (DP)

A depository can be defined as an institution where the investors can keep their financial assets such as equities, bonds, mutual fund units etc in the dematerialised form and transactions could be effected on it. In India, there are two depositories namely, the

•National Securities Depository Limited(NSDL) promoted primarily by IDBI, the Unit Trust of India and the National Stock Exchange, and the

• Central Depository promoted by the Stock Exchange, Mumbai.

Besides providing custodial facilities and dematerialisation, depositories are offering various transactional services to its clients to effect buying, selling, transfer of shares etc. Through a system of paperless securities, depositories have made the going easier to other institutions as well such as Stock Exchanges and its clearing houses, stock broking firms, equity issuing companies, share transfer agents etc.

Basic Service

Basic services of a depository includes maintenance of accounts of investors, dematerialisation and rematerialisation of shares, settlement of market transaction through the release and receipt of securities in the investor's account ,off market transfers,inter-depository transfers, distribution of non-financial benefits from corporates to its shareholders, nomination facilities, transmission of shares, hypothecation of dematerialised securities for a bank loan, freezing of account to protect one's holdings when he is temporarily out of the scene etc.

Shares

What is the difference between preferred stock and common stock?

Preferred and common stocks are different in two key aspects.

First, preferred stockholders have a greater claim to a company's assets and earnings. This is true during the good times when the company has excess cash and decides to distribute money in the form of dividends to its investors. In these instances when distributions are made, preferred stockholders must be paid before common stockholders. However, this claim is most important during times of insolvency when common stockholders are last in line for the company's assets. This means that when the company must liquidate and pay all creditors and bondholders, common stockholders will not receive any money until after the preferred shareholders are paid out.

Second, the dividends of preferred stocks are different from and generally greater than those of common stock. When you buy a preferred stock, you will have an idea of when to expect a dividend because they are paid at regular intervals. This is not necessarily the case for common stock, as the company's board of directors will decide whether or not to pay out a dividend. Because of this characteristic, preferred stock typically don't fluctuate as often as a company's common stock and can sometimes be classified as a fixed-income security. Adding to this fixed-income personality is the fact that the dividends are typically guaranteed, meaning that if the company does miss one, it will be required to pay it before any future dividends are paid on either stock.

To sum up: a good way to think of a preferred stock is as a security with characteristics somewhere in-between a bond and a common stock.

Systematic Risk:

It is the risk which is due to the factors which are beyond the control of the people working in the market and that's why risk free rate of return in used to just compensate this type of risk in market.

Unsystematic Risk:

This is the risk other than systematic risk and which is due to the factors which are controllable by the people working in market and market risk premium is used to compensate this type of risk.

Total Risk = Systematic risk + Unsystematic Risk

Relevant Risk:

As systematic risk is beyond the control of people working in market that;s why it is defenately not the relevent risk because anything not controllable is irrelevant and that's why unsystematic risk is the relevant risk because it is in the control of investor to in which security to invest or not.

Definition of 'Bombay Stock Exchange (BSE) .BO'

The first and largest securities market in India, the Bombay Stock Exchange (BSE) was established in 1875 as the Native Share and Stock Brokers' Association. Based in Mumbai, India, the BSE lists over 6,000 companies and is one of the largest exchanges in the world. The BSE has helped develop the country's capital markets, including the retail debt market, and helped grow the Indian corporate sector.

Investopedia Says

Investopedia explains 'Bombay Stock Exchange (BSE) .BO'

In 1995 the BSE switched from an open-floor to an electronic trading system. Securities listed by the BSE include stocks, stock futures, stock options, index futures, index options and weekly options. The BSE's overall performance is measured by the Sensex, an index of 30 of the BSE's largest stocks covering 12 sectors.

OTC Exchange Of India (OTCEI) also known as Over-the-Counter Exchange of India based in Mumbai, Maharashtra.It is the first exchange for small companies.[3] It is the first screen based nationwide stock exchange in India.[4] It was set up to access high-technology enterprising promoters in raising finance for new product development in a cost effective manner and to provide transparent and efficient trading system to the investors.[5]

OTCEI is promoted by the Unit Trust of India, the Industrial Credit and Investment Corporation of India, the Industrial Development Bank of India, the Industrial Finance Corporation of India and others and is a recognised stock exchange under the SCR Act.

Definition of 'Over-The-Counter Exchange Of India - OTCEI'

An electronic stock exchange based in India that is comprised of small- and medium-sized firms looking to gain access to the capital markets. Like electronic exchanges in the U.S. such as the

Nasdaq, there is no central place of exchange and all trading is done through electronic networks

Definition of 'Sweat Equity'

Contribution to a project or enterprise in the form of effort and toil. Sweat equity is the ownership interest, or increase in value, that is created as a direct result of hard work by the owner(s). It is the preferred mode of building equity for cash-strapped entrepreneurs in their start-up ventures, since they may be unable to contribute much financial capital to their enterprise. In the context of real estate, sweat equity refers to value-enhancing improvements made by homeowners themselves to their properties. The term is probably derived from the fact that such equity is considered to be generated from the "sweat of one's brow."