Friday, October 2, 2009

Indian ADRs

Indian ADRs



indian ADRs

Indian companies are allowed to raise equity capital in the international market through the issue of GDR/ADRs/FCCBs.

Global Depository Receipts (GDR)
American Deposit Receipts (ADR)
Foreign Currency Convertible Bonds (FCCB)

American Depository Receipt:-

An American Depositary Receipt ("ADR") is a physical certificate proof ownership of American Depositary Shares ("ADSs"). The term is often used to refer to the ADSs themselves. The stock of many non-US companies trades on US exchanges through the use of ADRs.

Global Depository Receipts:-

Global Depository Receipt (GDR) - certificate issued by international bank, which can be subject of worldwide circulation on capital markets and to raise capital simultaneously in two or markets through a global offering. GDRs may be used in public or private markets inside or outside US. GDR, a negotiable certificate usually represents company’s traded equity/debt. Prices of GDRs are often close to values of related shares, but they are traded and settled independently of the underlying share, Normally 1 GDR = 10 Shares.

What is ADRs?

There are 10 numbers of ADRs(American Depository Receipt)

Broadcasting

Broadcasting

BroadCasting for stock market

Broadcasting:-

In the stock market, there are number of contract traded into equities during period of specified time such as day, weekly, monthly. This number of selling & buying traded contract are recorded as amount. Total of amount of transacted side, both buy & sell known as Volume.

For example, sold in RPL security data 12,000 and bought were 32,000. We can say here volume in RPL security 44,000.

A very fundamental aspect of equity trading understands volume in which you trading. In the equity universe, there is a number equity traders who trading difference equities and also volume is import for investors.

Most of the stocks that have smallest volume, 15,000 shares per day or less, have a problem, and there are various reasons you should try to avoid such low volume stocks.

Volume is most import for know trend side, in the up trend, volume may increase and for down trend may decrease volume. Volume is a fundamental parameter of technical analysis which is used to measure worth of stock market move.

Points:-

1 if the market is in an uptrend but volume is weak on the up move; it is a sign of weakness in the existing trend.

2 on the daily analysis, if security falls day to day and volume also increasing, it is called as downtrend. Like this condition, in the securities most contracted on sold.

3 on the daily analysis, if security is rising day to day and volume also increasing, it is called as uptrend. Like this condition, in the securities most contracted on bought.

For investors & traders:


Before investing in any stock, one major element that you have to look at is the company's daily volume.