The Financial Experts: Chartered Accountants

The journey of being the number one in numbers begins full of energy and passion with the first stepping stone of Chartered Accountancy Education: Common Proficiency Test (CPT); comprising of a mixture of theory and objective questions. Any student who has passed Class 10 examination may register for the Common Proficiency Test. However, a registered student can only appear in CA CPT test after he/she has appeared in the 10+2 examination.

CA IPCC is another milestone in the life of CA student, passing an IPCC Exam requires a sincere level of dedication and hard work, It is a decisive phase which determines whether a student has what it takes to be a Chartered Accountant or not. A student who has passed CPT and 10+2 examination or is a commerce/non commerce graduate may join the Integrated Professional Competence Course. After clearing IPCC, the student will have to complete 100 hours ITT Training to polish their Computer and IT Skills.

Now the three years of mentored work experience under an experienced CA, after passing IPCC or even Group I of IPCC .Articleship demands practical application of theoretical knowledge learned during IPCC and the student gains exposure in various fields during the training.

The concluding phase of the chartered accountancy course: CA Final. A student can enroll for CA Final after passing both groups of IPCC. Students can appear for this exam after completion of 3 years of Practical Training. This examination is considered as one of the toughest examination of the world and is very difficult to crack. With the pass rate as low as 5% on an average, even the most talented students find this examination to be difficult .

Chartered accountants work in fields of accounting, including public, management and government accounting. While specific job duties vary greatly within specific positions, many duties shared between CA's include preparing financial reports and documents, maintaining records of investments, reviewing potential financial and providing professional opinions in regards to the fiscal decisions of the firm.

The salary of an accountant can be highly dependent on the size of the organization and the industry or nation of employment. According to May 2015 BLS salary data, most accountants and auditors earned between $41,400 and $118,930. Due to the additional education and training requirements of a CA, job prospects for CA's should be better in comparison to their non-chartered counterparts. Many reputed organizations like Deloitte and other reputed Big 4’s as well other reputed organizations have high demands for qualified Chartered Accountants.

What is Doji?

 Doji:-

A doji is a commonly found pattern in candle stick. It forms when opening and closing price of stock are virtually equal. It looks like cross, inverted cross or plus sign. A doji is considered as sign of possible price reversal of stock but it can be viewed as a continuation of pattern also.

  

Candle Stick

What is Candlestick?

A candlestick is a chart which shows the price movement of a security. It shows the opening, closing, high & low price of the stock for a specific period. The wide part of the candlestick is called real body. The thin line above or below the body is called shadow. 

           Candlestick tells the investor whether the closing price is above or below the opening price. Red or black candle stick indicates that closing price is below the opening price. It also indicates that there is significant selling pressure and price is bearish. Green or white candle stick indicates that closing price is above the opening price and price is bullish. 
            As shown in above chart, lower part of real body of green candle indicates the opening price while as upper part indicates the closing price. Upper part of red candle indicates the opening price and lower part indicates the closing price. Lower & upper shadow of candle indicates the lowest and highest price respectively for a particular day.

Bullish and Bearish Market

Bull Market:

            Bull market is stock market in which share are rising or are expected to rise. This is the time when market is gaining confidence. Bull market is period when market rises up to 20%.During this period, investors should go long for stock.

Bear Market:

            The term bear market is reverse to bullish market. It is stock market in which share are falling or expected to fall. This is the time when market loses confidence. It is time period when market falls by 20%. During this time, investors should short stock.

fig; Bullish market & Bearish market

MOVING AVERAGE CURVE

What is Moving Average?

            Moving average is technical analysis which is calculated to analyze data points by creating of series of averages of past share prices. There are different types of moving average that can be used for analysis such as Simple, Exponential, Time Series, Triangular, Variable, Weighted and Welles Wider. The two basically used moving average are simple moving average (SMA) and exponential moving average (EMA).

Simple Moving Average:

In simple term, simple moving average is the unweighted mean of previous ‘n’ data. It is calculated by adding the closing price of stock for a number of times dividing by number of period of times.

fig: simple moving average curve, copyright@www.moneybazars.com

Exponential Moving Average:

            An exponential moving average is similar to simple moving average but more weight is given to latest data in exponential moving average. It is also known as exponentially weighted moving average.

fig:exponential moving average,copyright@www.moneybazars.com

Simple Moving Average Curve Vs Exponential Moving Average Curve:

fig:simple moving average curve VS exponential moving average curve, copyright@www.moneybazars.com

What is stock market?

 Stock Market:

             Stock market or equity market or share market is the place where buying or selling of shares of public listed company takes place. Shares are either traded through stock exchanges or over -the - counter markets.

Types of Stock Market:

                The stock market can be divided into two sections: Primary Market and Secondary Market.  In primary market, company raised capital by issuing shares to public. Shares are issued to public by company through Initial Public Offerings (IPO).

    Once the new stock has been sold in primary market, they are traded in secondary market. Trade in share market means transfer of share from seller to buyer. A buyer bids specific price for stock as well seller ask specific price for stock. In other words, buyer put purchase order of stock at specific price and seller gives sale order of stock at specific price. When the bid and ask prices match, sale order and purchase order will be executed. If there are multiple bidders or askers at a given price, the transactions will be transacted upon first come first serviced basis. 

Starting Investment?

How to start investment in stock market?

           

          Buying, selling and holding of shares required Demat  & Trading account. So, first step to enter in stock market is opening Demat & Trading Account. One can open Demat & Trading account in any stock broker. PAN card, bank proof, ID proof and address proof is mandatory document for opening Demat & Trading account.

            

          Once you start investing in shares, you should have sound knowledge on any script for deciding whether to hold, purchase or buy that script. So second step is to read book, news, articles, etc and follow markets. Money control is also fruitful to investors for depth coverage of market. By monitoring the market each day, investors can expose themselves to the trend of market and business.

            

          The third step might be attending seminar related to stock market. Seminars can provide valuable insight about markets and investment. Seminar focuses on how speaker has utilized their strategies for successful investment over the years. So any beginner can get useful information by attending seminar which he/she can use in their own investment.