UK Stock Market News

If you are starting trading in stock markets, it pays to be aware of certain concepts which are prevalent in common parlance. Let s have a look at a few of these terms and how these may have an impact on your investment decision.

1. AMO (After Market Orders)
Stock Markets are open for normal trading during 09:55 A.M to 03:30 P.M. However it is possible that you may not be able to place your buy or sell order during this period. AMO (After Market Order) facility offered by certain brokerage houses allows you to place your order even after the market closes for the day. These orders can be placed as share market orders, meaning that they will be executed at the best counter bid or ask. These orders can also be placed as limit order within a range of +/-5% of the close price of today. Thus if the close price of the scrip is Rs. 100, you can place AMO anywhere between Rs. 95 to 105. These orders will be placed in the order book of the exchange once the market opens tomorrow and then get executed based on normal price time priority criteria as is the case with other orders.

AMO allows you to place orders based on any event which has taken place after the market closes. Thus instead of waiting for the next morning for market to open, you may place the order today itself, which will get executed tomorrow.

2. Lien
Lien is the security interest created over an asset to secure the payment of a debt or loan. The term lien in securities markets would constitute creating an interest in shares under your ownership so as to secure the repayment of loan granted to you. Thus you can use your investments in shares to obtain loans backed by lien created on investments in favor of lender. Lien is an effective way of raising resources needed by you to meet your financial obligations.

3. Exposure on Cash and Stocks
If you are sitting on cash, you are having an exposure in terms of opportunity cost of gainful employment of such cash. Thus idle cash or cash lying in saving account and earning peanuts is not a good proposition for your finances. On the other hand, if you have invested in shares of a company, you have an exposure to potential fall in value of your investments. You are also subject to liquidity risk, meaning thereby that you will not be able to exit especially if stock and share is thinly traded. Thus you must make a careful assessment of your exposure on cash and stocks.

Stock markets are a great way to make money provided you are willing to spend a bit of time doing research and analysis. Millions of people have made billions and trillions of dollars from the market. You also want to be a savvy investor? Well, the road to prosperity goes through stock market news and analysis. Today whether you are a small investor or a big time trader, you can not ignore stock market news if you want to make money from the market.

Stock market news today forms the very basis for trading of companies and their market prices. Technology has made it possible that any news good or bad is integrated and reflected in the market price of company on almost real time basis. Thus you can benefit if you act fast and remain clued. Charting, technicals, fundamental performance and number, ticker information all form stock market news which may be considered by the prospective investors. Most of the information is available through click of the mouse and that is what makes the whole process pretty simple.

With the advent of internet and popularity of online trading, life has never been so easy for investors. There was a time when information about performance and profitability of a company was difficult to come by. You were dependent only on companies to dish out what they want you to hear about them. Most of times, the information was hyped and only positive. Today you are faced with the prospect of overflow of information. Analysts’ reports, recommendations, tips, deep research and directors’ analysis are all available to prospective investors over internet.

You can also go through news papers and business magazines to have a grip over the subject. Start with the basic and try to learn the ropes as you go along the curve. Pink papers are a must if you want to be a savvy investor. Pore over all the news items and rumors floating in the market about a company. Look for potential mergers and acquisition targets and suitors. These companies are the ones which see substantial increase in price the moment rumors gain momentum. Look for abnormal rise in price in particular scrip. Try to look for reasons behind such a rise. You might be in for a pleasant surprise if you get in well in time.

Stock market news need careful analysis and going beyond what is stated and is obvious. A large number of companies try to build hype around them to woo investors. Investors need to study in detail past performance and prospective future of the company before making an investment decision. It is worth the efforts as serious money is involved in the process.