7 INTERESTING FINANCE FACTS -PART 1

The stock market is an interesting environment. Many folks have tried to understand how it functions and forecast its erratic moods; they have both gained and lost a great deal in the process. This erratic nature contributes to the appeal of the stock market, where millions of investors visit every day hoping to strike it rich. Let's look at some little-known facts about the stock market that will encourage you to investigate this worthwhile investing option. 

FACTS 

1. Rule of 72

Often, uninformed investors would inquire how long it will take for their investment to double. The Rule of 72 can be used to compute it. The rule is an easy approach to calculate how long it will take an investment, at a set yearly interest rate, to double its value. An investor can predict the number of years it will take for their initial investment to double by dividing 72 by the rate of return.

For example : Let's assume You get 10% Annual return (Compound-Interest), so according to The Rule of 72 

{ The money will double itself in nearly 7.2 Years } i.e 72/Expected Rate of Return p.a

(Compound Interest)

 72/10 = 7.2  years approx.

2. Mistakes do occur.

The two most crucial criteria needed to place an order for the purchase or sale of a scrip are quantity and price. When making orders for both quantity and price, an investor must exercise caution. Even a simple error like confusing quantity for pricing or vice versa could lead to losses in the thousands, millions, or even billions. The BSE and NSE exchanges in India operate at a speed of a few microseconds. Therefore, a once-placed order cannot be cancelled.

3. BOMBAY STOCK EXCHANGE (BSE) - THE  OLDEST STOCK EXCHANGE IN ASIA.

In the nineteenth century, a trader by the name of Premchand Roychand established the Bombay Stock Exchange (BSE). Mr. Roychand amassed wealth in the stockbroking industry and eventually rose to fame under the monikers "Cotton King," "Bullion King," and "Big Bull." The Native Share and Stock Brokers Association was the original name of BSE.

More than 5000 companies are listed on the BSE, which is the oldest market in Asia. As a result, the market has the most publicly traded companies of any bourse in the world.

There are more than 23 other exchanges in the nation in addition to the BSE. Additionally, the exchange only conducted physical trades before to 1995. Dematerialization was the first step in the exchange after 1995.

4. Costliest Stock of the World .

The most expensive stock in the world is Berkshire Hathaway. You must pay more than Rs 2 crore for one firm stake.

 Yes , You read it right !!

United States-based American multinational conglomerate Berkshire Hathaway Inc. is based in Nebraska. The business is the third-biggest public firm globally and the largest provider of financial services globally, according to revenue. The corporation is managed by renowned investor and chairman Warren Buffett, who is aided by vice-chairman and fellow investor Charlie Munger. One of the priciest scrips in the world, the company's share is sold for $313,350.00 on February 1, 2019.

This is so because the business has never split its shares and has only ever paid one dividend.

The company's stock crossed $100,000 for the first time on October 23, 2006.

5. Pirate Exchange ☠️

In addition to equities and commodities, there is also a pirate exchange. In 2009, Somalia's Harardheere city developed the first pirate stock market in history. The 24-hour exchange enables investors to make money from the ransoms demanded. Over 70 firms are listed on the market, according to sources, although there is no verified report on the activity.

6. BULL AND BEAR MARKET.

The most frequently used phrase in the stock market is "bull market" or "bear market." A bull market is one in which stock prices are rising and the general market climate is favourable. Additionally, it is thought that the bull's horns are directed upward, signifying upward motion. As a result, the bull market and the rising market are associated.

On the other side, a bear market is one in which there is a general lack of optimism in the market and a downward trend in stock prices. It's a common misconception that the bear's palm points downward as it tackles the bull, giving bear markets their resemblance to declining markets.

7. An Indian Company More Prominent Than The Combined Market Value Of The Karachi Stock Exchange ( Pakistan).

Shockingly It's True !

Indian businesses with market capitalisation greater than the aggregate market capitalisation of the Karachi Stock Exchange include Tata Consultancy Services (TCS) and Reliance Industries Ltd (RIL) Incorporated on September 18, 1947, the KSE debuted as KSE50, a group of five companies with a combined market value of USD 260,000. The exchange has helped a wide range of players raise funds throughout time. The total market cap of 65 billion USD, however, is less than TCS's market cap.