Insights of Stock Market

The man bought thousands at Rs10 and as supply started to diminish, the Villagers stopped their effort. He further announced That he would now buy at Rs20. This renewed the efforts of the villagers and they started Catching monkeys again.

Soon the supply diminished even further and people started going back to their farms. The offer rate increased to Rs25 and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!

The man now announced that he would buy monkeys at Rs50! However, since he had to go to the city on some business, his assistant would now buy on behalf of him.

In the absence of the man, the assistant told the villagers. Look at all these monkeys in the big cage that the man has Collected. I will sell them to you at Rs35 and when the man returns from the city, you can sell it to him for Rs50.”

The villagers squeezed up with all their savings and bought all the monkeys.

Then they never saw the man nor his assistant, only monkeys everywhere!! !

Welcome to the “Stock” Market!!!!!


Difference between Dual listing & ADR

Off late we are hearing a lot about “Dual Listing” because of Bharti – MTN acquisition. Before telling the difference let me explain what both terms mean?

What is Dual Listing?

Dual Listing means listing of shared of merged entity in Stock market of two countries. In Bharti – MTN case if the deal would have gone through they would be listed in Indian Stock Market & South African Stock market as separate legal identities with a common management.

What is ADR?

ADR stands for American Depositary Receipt where in a US bank buys Shares of a company in lots and trades them in US Stock Exchange. A buyer can convert ADR’s into shares and trade it within US bourses.