December 2016



Stock prices change on a daily basis. In fact, they change every minute. If you are familiar with the stock market or you regularly follow stock market news, you have an idea about this. This is one of the reasons why investing in stocks is considered risky. The value of your shares can reduce or increase within minutes. with some stocks such as bnhlf registering high volatility. It is very easy to make losses with stocks, at the same time; you can easily make profits out of your investments. Most wealthy people around the world can confirm that the riskier the investment, the higher the returns.

Electric Stock Market

What is responsible for the constant change in prices of stocks?

The main reason for frequent fluctuations in stock prices is the market forces; demand and supply. Demand of stock is when there are many willing buyers compared to sellers. Supply on the other hand is when there are many shareholders willing to sell their shares compared to buyers. Demand and supply is influenced by the preference of the public. This is because more people will be willing to buy shares if they prefer a certain company and at the same time, more people will be willing to sell when the prices increase.

Stock prices are also affected by the general state of the economy. However, there are other factors that affect the prices. They are discussed below

  1. Company news

This includes release of earnings and the expected earnings in the future. Announcements of dividends also fall in this category. These announcements have an influence on the demand of the company’s stocks. A company with high profits and well paying dividends tends to attract more potential investors.  This is because people get into stock market with the intention of making profit and therefore go where the money is.

  1. Industry performance

Some industries perform better than others. Companies within the same industry will have the prices of their stock move in the same way. The industry will generally have an increase in their stock price at the same time and vice versa is also true. However, a company may benefit from the failure or set back of one of their competitors within the industry. These setbacks are inclusive of scandals and bad news regarding the competitor.

There are other factors known as economic factors that affect the stock prices. These are

  • Inflation – Inflation causes high prices of consumer goods, as a result, the sales reduce leading to a reduction in profits. In order to deduce inflation, bank rates are increased and as a result, stock prices reduce.
  • Stability- This is in terms of political stability, which can cause shocks in the economy and therefore affect economic growth. The prices of stocks will reduce in places where there is fear of terror attacks.

Understanding the stock market comprehensively requires much time and effort. Thanks to the internet though, you can access stock market blogs that will provide you with the necessary information you may need. You can get information on some of the hot stocks to buy on these stock market blogs, which can be a good start when looking to invest in stock market. Knowing these hot stocks to buy will go a long way in helping you get profit from your investment.

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How Do Pawn Loans Work?

The modern world is such that economic times have become difficult and uncertain. Since the most recent economic downturn, economies around the world have recovered at a slow rate. As such, many people find themselves in situations where they need short term loans. Pawn shops have emerged to fill the gap that had been previously created by banks and other traditional financial lenders. Anyone looking for short term financing can either look for loans against small collaterals or sell off valuables such as jewelry or gold buyer New York.

What to consider before taking pawn loans
Most pawn shops in New York engage in the business of buying expensive items like gold, silver, diamond, jewelry and electronics. For this reason, it is advisable to look for a gold buyer in New York before resorting to taking pawn loan.
Understanding what pawn shops do
The core business of a pawn shop is to offer money against collaterals. These valuable items act as security for the short- term loans that are given to borrowers. However, pawn shops may have other business elements, mostly in retail sales. The shops can engage in the buying and selling of gold, expensive jewelry as well as electronics.
How do pawn loans work?
One of the most important aspects of pawn loans is that the customer must bring in an item of value. The customer is then given a loan based on the value of the item. The lender will, in turn, keep such items until such a time that the borrower pays back the loan as well as accrued interest.
Determine the interest charged on the loans
Before taking any loan, borrowers are always advised to calculate the cost of borrowing. This should be matched against those charged by banks and other financial lenders. If the cost of borrowing is very high, one can always consider disposing of their valuable for money. However, it is important to note that interest rates vary from one lender to another.
What you need before taking a loan
The process of taking out a pawn loan is relatively straightforward. To secure a pawn loan, one needs to have a valuable item and identification documents. This makes it an easy and fast way of getting credit.
If a borrower defaults on their loan, the pawn store will sell off the collateral to recover their money. Therefore, looking for a gold buyer in New York will offer an alternative gold-for-cash solution for people in unforeseen financial emergencies.

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Health insurance premiums, Government initiatives made people buy health insurance for tax savings

To get people to save in today’s environment is a tough job. In the olden days, people used to earn and save. They used their savings in case they needed to purchase anything. However, health insurance premiums the trends have changed now. With the opening of the economy, you have easy access to loans. This makes people go for the loans for procuring the same things their parents procured with savings. This has a negative impact on the cost of the product as well. The easy availability of the loans has made it easy for the manufacturers to increase the cost. Thus, the youngster of today ends up purchasing a highly inflated item. At the same time, he has to repay the loan in installments. This makes it impossible to save any amount for the times of need. Therefore, he requires an incentive to save. The Government of India has recognized this trait. Therefore, they have introduced concessions in tax when you pay premiums for health insurance. This has prompted people to save in the best mediclaim plan for tax saving.

The Income Tax Act 1961 includes several provisions wherein an individual taxpayer can avail of the concessions in income tax by paying the health insurance premiums. Sec 80D, 80DD, and Sec 80U enables you to avail deductions ranging from INR 50000 to INR 60000 in the amounts of wellness insurance premiums. The individual can take out policies for self, family, and parents. As per the tax planning, health insurance India schemes, he can avail exemptions up to an extent of INR 50000, in case the individual and parents are both below the age of 60 years. In case the parents attain 60 years, the exemptions increase to INR 55000. In the same vein, if the individual crosses the age of 60 years, he gets an additional exemption of INR 5000.

Health insurance premiums therefore, you can see people opting for the medical for tax planning purposes. This has a double effect. The individual gets benefits in tax deductions. In addition, he can utilize the health insurance amount in case anyone named in the policy document has to undergo hospitalization. The inclusion of the parents in this scheme is a good sign. This would also instill good values in the children and provide them with incentives to take care of their parents as well.

One more benefit of the health insurance for tax saving is that people inculcate the habit of savings albeit forcefully. This would bring a sea change in the attitude of the youngsters today. This savings would go a long way in reducing their expenses on health care. The insurance companies would be there to bear the costs. The burgeoning cost of the medical facilities today has made it impossible for the normal person to be able to beat it. He has to resort to health insurance. This factor has an automatic effect on the economy as a whole. That should form the subject matter of a completely different discussion altogether. That could give a new dimension to the debate.

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