How to create Blogs?

There are simple steps that one needs to follow while making an attractive BLOG.

In this article you will not only know how to create a good blog but also you will know how to get money generated from this blog.

Step 1 : Choose a catchy name/title for your BLOG! (choosing a catchy name comes from punchline or any name that you think a reader will revert back and click on your blog)

Step 2: After creating name/title for your BLOG, its very important that you don't mess around with the layout of your Blog! choosing the best layout is not so easy task as this would depend purely on the theme of your blog!

Step 3: How to start writing the blog? This is very simple do some search get some information from different websites combine it by using simple English and remember always your first paragraph should be purely by yourself no copy-pasting the data! As it would be very irritating for the person who is reading your Blog!

Step 4: Try to put some illustrations such as Graph / Pictures / Quotes in between your blog content. This will help you not only getting attention but also more interest of the reader!

Step 5: Making money out of your blogs! I would like to tell you that since you have taken a lot of effort in making your Blog attractive so remember if it pays well then your hard work is really worth money!

Step 6: I would be giving you some good useful tips on How to create money from Blogs? in my next blog please read more @ .....

An Introduction to Shares & Debentures!!!

Without having a proper knowledge of stocks and debentures it is not advisable to enter stock market. The reason behind, if you build a 100 floor building without having a strong basement, it will lead to the collapse of building at any time. We believe this article will help you to understand the basics of stocks and debentures.

We often hear about markets coming down and going up, receiving dividends, annual general meetings etc and one of the reasons for all of the above things to happen is shares and debentures. Are there different types of shares and debentures? If yes then what are they called, what is the difference between them, are shares better than debentures, let’s find out answer to all these questions.

Companies (Private and Public) need capital either to increase their productivity or to increase their market reach or to diversify or to purchase latest modern equipments. Companies go in for IPO and if they have already gone for IPO then they go for FPO. The only thing they do in either IPO or FPO is to sell the shares or debentures to investors (the term investor here represents retail investors, financial institutions, government, high net worth individuals, banks etc). Whether they issue shares or debentures totally depends upon the concerned company.

Shares are the marketable instruments issued by the companies in order to raise the required capital. Shares are issued by each and every company which goes public. These are very popular investments which are traded every day in the stock market and the value of the share at the end of the day decides the value of the firm.

Shares

Shares are the marketable instruments issued by the companies in order to raise the required capital. Shares are issued by each and every company which goes public. These are very popular investments which are traded every day in the stock market and the value of the share at the end of the day decides the value of the firm.

A company when it decides to raise capital from public prepares a memorandum, capital required which is written down in this is called as authorized capital and then prospectus is prepared which is verified by SEBI. SEBI permits the company to raise the capital and as a result company offers it to the public this is known as Issued Capital. Part of the capital issued which is subscribed by public is Subscribed Capital. If the number of subscriptions is more than the number of shares then it is called as over-subscription and if the number of subscriptions is less then it is called as under subscription. The amount paid by the investor is Paid up Capital.

Types of Equity shares
The Equity share is a common name, some of the types of equity shares are

• Blue Chip Shares
• Income Shares
• Growth shares
• Cyclical Shares
• Defensive shares
• Speculative shares

Types Of Shares

The shares which are issued by companies are of two types

• Equity Shares
• Preference Shares

Equity Shares

Benjamin Graham one of the most influential and respected investor from America and author of two bestselling books “Security Analysis” and “Intelligent Investor” has said that the investor should not be too worried about the present performance of the stocks in the market and should be bothered about long term. The reason that he gives is that stocks behave like a voting machine in short term and like weighing machine in long term. These sentences are definitely applicable to shares and pretty much define their characteristics. Equity Shares are issued and are traded everyday in the stock market. The returns on the equity shares are not at all fixed. It depends on the amount of profits made by the company. The board of directors decides on how much of the dividends will be given to equity share holders. Share holders can accept to it or reject the offer during the annual general meeting.

Blue Chip Shares

These are the shares of some of the companies which have been doing extremely well in the past few years. These are usually well established companies. The word blue-chip shares came into existence when IBM Company was doing very well and shares of that company were trading at higher prices. The companies which come under this umbrella are never fixed as the performance of some of the companies may suddenly fall down and some of the companies which never did well start to do extremely well. Hence it can be said that list of blue-chip companies keeps on changing each year. The companies which come under this are market leaders and have the potential to dictate terms.

Income Shares

These are the shares of the companies which have stable operations. The companies have a high dividend payout ratio and when the dividends paid are high it implies that the profits saved for company is less and hence less opportunities of growth.

Growth shares

These are the shares of companies which have secured their positions in a particular industry. These shares have less dividend payout ratio and hence high growth potential.

Cyclical Shares

There is a definite business cycle that keeps on operating and these are the shares of that company whose performance varies with the stages of the cycle. It means to say that the prices of the shares are affected by the variations in the economy.

Defensive shares

These are the shares of the company whose performance does not change with the changes in the economy.

Speculative shares

These are the shares which are traded in the company which have a lot of speculations. Shares cannot be put into one category strictly because the characteristics of the shares are overlapping in the sense that the blue-chip shares which are in great demand in the market fall under blue-chip shares and speculative shares.

Further Classification

One more classification of shares is given by one of the most successful and respected investor all around the world Peter Lynch. According to him the shares can be classified into 6 types

• Slow Growers
• Fast Growers
• Stalwarts
• Cyclicals
• Turn-around
• Asset play

Slow Growers

These are large companies which have the growth rate equal to the industry growth rate or their growth is equal or slightly faster than the GDP (Gross Domestic Product).

Fast Growers

These are shares of newly started successful companies which have a very good growth rate (the rate is usually 10 to 25 percent) per year.

Stalwarts

These are shares of very large companies which have stable growth. The dividend payout ratio is high. These companies are growing but not rapidly as in the case of fast growers.

Cyclicals

These are the shares of the company which is going through the business cycle or there is variation due to economic factors.

Turn-around

These are the shares of the companies which have started performing very well. These companies were fairing badly in the past and all of a sudden there is a turn-around in their performance.

Asset plays

These are the shares of the companies who are not given any recognition though they have a large asset base.

Advantages

• Equity shares give greater returns if the company makes profits. It is in comparison to debenture holders or preference share holders.

• There is a tremendous amount of capital appreciation if the shares are of a good performing company.

• The equity shares are easily transferable.

• The equity shares are traded at the stock exchanges so they can be bought and sold easily. These can be easily liquidated.

• The equity share holders have got the right to vote in the annual general meeting.

• Only the equity share holders have the right to choose the board of directors.

• Equity share holders have the right to oppose any of the decisions taken by the board of directors. This is what happened when Mr. Ramalinga raju tried to buy Maytas company

Disadvantages

• No doubt equity shares have attractive and better returns but in case the firm has not performed well or is going for diversification or is investing in some venture then the profits carried forward will be more and the dividends paid will be less.

• In worst cases if the company goes bankrupt then it is dissolved. The assets are sold and the money obtained is distributed amongst the stake holders then only if something is left out after it is distributed to debenture holders and preference share holders it is given to equity share holders.

No doubt equity shares have both advantages and disadvantages but the fact is that equity shares are the most sought financial instruments for both investment or for speculation.

Preference Shares

These are other type of shares. The preference shares are market instrument issued by the companies to raise the capital. Preference shares have the characteristics of both equity shares and debentures. Fixed rate of dividends are paid to the preference share holder as in case of debentures, irrespective of the profits earned company is liable to pay interest to preference share holders.

Types of Preference Shares

Preference shares are divided into;

• Cumulative & Non cumulative shares
• Redeemable & Non-redeemable
• Convertible & Non-convertible shares
• Participating and non-participating

Cumulative & Non cumulative shares

Suppose a company does not make any profits for two successive years and makes huge profits in the third year. Then the people who have cumulative shares will get the interest of the three years and in case of non-cumulative share holders they do not receive the interest of past two years.

Redeemable & Non-redeemable

The redeemable shares are redeemed within the life time of the company or before the company closes down or to say that these shares have a maturity period. In case of non-redeemable shares they mature only upon closing down of the company.

Convertible & Non-convertible shares

Classes of shares which can be converted to other forms of shares or securities are called as convertible shares. Whether they are converted to equity shares, debentures depend on the rules laid down by the company. If the shares are not convertible to any other security on their maturity period are called as non-convertible shares.

Participating and non-participating

A company goes bankrupt and is dissolved. Now its assets are sold and liabilities are paid up. First debenture holders are paid then preference share holders and at last the equity share holders. After paying up each one of them still there is some surplus amount left now if the investors have participating preference shares then the surplus amount left will be distributed equally between equity share holders and participating share holders. These are very less preferred in the market because the investor is looking out for long term investment and good returns.

Advantages

• These yield fixed rate of returns

• Preference is given compared to equity share holders while distributing the dividends and once the company is dissolved.

• It’s a hybrid instrument having some of the characteristics of debentures and equity shares.

Disadvantages

• They do not provide the investor with any of the voting rights.

• If the company gets huge profits then they won’t get any extra bonus.

Corporate Bonds

Corporate bonds are debt securities issued by private and public corporations. Companies issue corporate bonds to raise money for a variety of purposes, such as building a new plant, purchasing equipment, or growing the business. When one buys a corporate bond, one lends money to the "issuer," the company that issued the bond. In exchange, the company promises to return the money, also known as "principal," on a specified maturity date. Until that date, the company usually pays you a stated rate of interest, generally semiannually. While a corporate bond gives an IOU from the company, it does not have an ownership interest in the issuing company, unlike when one purchases the company's equity stock.

Wholesale Debt Market

The Wholesale Debt Market segment deals in fixed income securities and is fast gaining ground in an environment that has largely focussed on equities.

The Wholesale Debt Market (WDM) segment of the Exchange commenced operations on June 30, 1994. This provided the first formal screen-based trading facility for the debt market in the country.

This segment provides trading facilities for a variety of debt instruments including Government Securities, Treasury Bills and Bonds issued by Public Sector Undertakings/ Corporates/ Banks like Floating Rate Bonds, Zero Coupon Bonds, Commercial Papers, Certificate of Deposits, Corporate Debentures, State Government loans, SLR and Non-SLR Bonds issued by Financial Institutions, Units of Mutual Funds and Securitized debt by banks, financial institutions, corporate bodies, trusts and others.

Large investors and a high average trade value characterize this segment. Till recently, the market was purely an informal market with most of the trades directly negotiated and struck between various participants.

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Financial Planning

Financial Planning

Preparing Budget
A budget is nothing more than a breakdown and plan of how much money you have coming in and where it goes. If you don’t know how much money you have coming in and where it goes, your road to financial success will be a difficult one.
Budgeting lies at the foundation of every financial plan. It doesn’t matter if you’re living paycheck to paycheck or earning six-figures a year, you need to know where your money is going if you want to have a handle on your finances. Unlike what you might believe, budgeting isn’t all about restricting what you spend money on and cutting out all the fun in your life. It’s really about understanding how much money you have, where it goes, and then planning how to best allocate those funds.

How to create Budget?
The hardest part of creating a budget is sitting down and actually creating one. It’s like staring at a blank piece of paper when you need to write something and that first step seems like a massive hurdle. Don’t worry--I’ve broken down the budget creation process into a few easy to follow steps. You’ll be able to sit down and create a basic budget in just a few minutes.

Follow up!
Once you’re taken the time to create a budget, now it’s time to make sure you follow it. Budgeting can be like going on a diet—you start with good intentions, but after a few weeks or months you drift away from your plan. Don’t let that happen to you. Here are a few basic traits that will ensure budgeting success.

Preparing Budget Worksheet
If you’re having difficulty coming up with all of the various expense categories for your budget, I’ve created a budget worksheet that can help you organize everything. This worksheet has the most common expenses and can help you keep track of everything in an orderly fashion.

How overspending Breaks Your Budget
The main reason to create a budget is to help you keep your finances under control by keeping track of how much money you’re spending and where it goes. When you begin to stray from your budget it’s usually because of spending too much money somewhere. But if you have a budget that tells you exactly how much you’re supposed to spend, why is it so easy to overspend? There are a number of reasons we overspend, so when you understand what causes overspending, you can help put a stop to it and keep your budget on track.

Try using Cash in hand!
Swiping plastic has become incredibly easy. With both credit cards and debit cards, we can be in and out with a purchase in a matter of seconds. Unfortunately, this convenience comes at a cost. By using plastic we can begin to lose track of how much money is actually being spent. Sure, few bucks here and there, it doesn’t seem like much at the time of purchase, but if you aren’t careful they (every penny) can really add up and bust your budget. One trick to help keep your daily spending under control is to use cash instead of your credit or debit cards. It might not be as fast, but it helps you visualize just how much money you’re actually spending.

Cutting Expenses
After you have successfully created a budget, you'll have a much better understanding of where your money goes and where you can possibly trim expenses. For many people, this is as simple as cutting back on some of the little things that can add up.

Getting out of Debt
Even after creating a sound budget and cutting unnecessary expenses, you may still find yourself with lingering debt to get rid of. Using credit and taking on some debt itself isn’t necessarily a bad thing, but when you can't keep up with the payments or borrow more than you can afford to pay back, you could be in trouble. One of the most important steps in getting out of debt is to pay more than the minimum amount due each month. Even a modest credit card balance can take over a decade to pay off if you simply pay the minimum amount due. In addition, paying the minimum will end up costing you thousands of dollars in interest over that period. Please dont take unnecessary loans for buying your luxury!!!!

Saving for Retirement
With fewer companies offering full pension plans and the uncertainty of Social Security, it has become more important than ever to save and plan for your own retirement. Unfortunately many people feel that they simply don’t have enough money left over each month to save.

Retirement savings needs to become a priority instead of an afterthought. The Internal Revenue Service has made saving for retirement even more attractive with special tax-advantaged accounts such as employer 401(k) plans, individual retirement accounts and special retirement accounts for the self-employed. These accounts allow for tax deductions, credits and even tax free earnings on some retirement savings.

Insurance
You've created a budget, cut expenses, eliminated your credit card debt and, have started saving for retirement, so you are all set, right? While you've definitely come a long way, there is one more important aspect of your finances that you need to consider.

You've worked hard to build a solid financial footing for you and your family, so it needs to be protected. Accidents and disasters can and do happen and if you aren’t adequately insured it could leave you in financial ruin. You need insurance to protect your life, your ability to earn income, and to keep a roof over your head. Very important please buy insurance that gives more benefit in terms of Tax breaks and life coverage do not fall for more returns as you might lose the core benefits of insurance. How to judge what is the best insurance plan or why I should buy insurance please visit any insurance web sites/companies they will tell you the answer!!!