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BANKS IN EQUITY MARKET - A RISK ANALYSIS

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Author(s): K.S.Nemavathi | A.Ashraf Ali

Journal: Journal of Management and Science
ISSN 2249-1260

Volume: 2;
Issue: 1;
Start page: 23;
Date: 2012;
Original page

Keywords: Price Earnings Ratio | Earnings per Share | Risk | Equity Market

ABSTRACT
Equity market is often considered as the main engine driving the economy. Inemerging countries, equity market plays a vital role in economic development. Manyemerging markets, firms would need large quantum of fund to expand and be able to pursuethe prevalent high growth rates. Equity market is the only liquid financial market in manyemerging countries and hence its role in economic development cannot be overemphasized.In addition, all over the world, financial markets are getting less insular. The investors indeveloped countries are seeking investment opportunities beyond the confines of theirdomestic economy to enhance return and diversify risks. The investment in stock involvesmany risks. The investors have to carry analysis before investing in any stocks. Most of theinvestors are unaware about the analysis to be carried out before investing. This studyinvolves analysis of earnings per share, price to earnings and analysis of risk through betavalue, of the banks in equity market. Technical analysis helps the investor to know whetherthe stock is in over sold region or over bought region and to find any trend reversals. Basedon these analysis investor can make buy or sell decision. The researcher concludes that themaximum return is based on the maximum risk in which the investor is going to face.
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