equity as investment avenue then and now
1985:
you want to invest in shares! you are totally at the mercy of the broker. They have no system, they just stnd in the trading room shout on the top of their voices, wave hands making some ununderstandable actions and the deal is struck ! what price ? you are not supposed to know, you wanted the shares na , you got it. Now suppose you want to sell them. You are ain at the mercy of your broker, and you will be happy if you received your money in 45 days. Setlemnt is on fridays. Then you have to send your physical shares to the buyer duly signed. It reaches the buyer, he sends it to the company office to be registered ion his name. sends you the payment, which will be credited to your account in 10 days.
2005
You want to buy shares. Get online. A few clicks and the transaction is complete. No broker interferance, completely transparent market value truly reflected. You get shares in your D-mat Account in 4 days flat.
You want to sell the shares. A few clicks will do the trick again. No need to worry. Your money will reach your bank account in 3-4 days.
We dont seem to realize this but, Indians have technologically adapted very well to the changing scenario. Today you can see even 70 yr old Gujju's clicking away at computer terminals.
What this has done is brought equity as a direct competitor to the traditionally avenue of saving for rainy day "GOLD". why gold has held it's place in our culture.It is considered as the safest investment option. It has not lost it's value over decades and decades. It is easy to sell and provides instant liquidity. Similarly Shares today are trying to offer the same benefits to us. Think about it safety( atleast blue chip stocks) , liquidity and long term returns. No wonder our markets are bullish and will tend to remain so.
Send me your comments for my post as I am new to blogging and dont know how my posts sound. Actually I start with a different idea and when I post it comes out differently. Fellow bloggers will appreciate some tips from you guys.
you want to invest in shares! you are totally at the mercy of the broker. They have no system, they just stnd in the trading room shout on the top of their voices, wave hands making some ununderstandable actions and the deal is struck ! what price ? you are not supposed to know, you wanted the shares na , you got it. Now suppose you want to sell them. You are ain at the mercy of your broker, and you will be happy if you received your money in 45 days. Setlemnt is on fridays. Then you have to send your physical shares to the buyer duly signed. It reaches the buyer, he sends it to the company office to be registered ion his name. sends you the payment, which will be credited to your account in 10 days.
2005
You want to buy shares. Get online. A few clicks and the transaction is complete. No broker interferance, completely transparent market value truly reflected. You get shares in your D-mat Account in 4 days flat.
You want to sell the shares. A few clicks will do the trick again. No need to worry. Your money will reach your bank account in 3-4 days.
We dont seem to realize this but, Indians have technologically adapted very well to the changing scenario. Today you can see even 70 yr old Gujju's clicking away at computer terminals.
What this has done is brought equity as a direct competitor to the traditionally avenue of saving for rainy day "GOLD". why gold has held it's place in our culture.It is considered as the safest investment option. It has not lost it's value over decades and decades. It is easy to sell and provides instant liquidity. Similarly Shares today are trying to offer the same benefits to us. Think about it safety( atleast blue chip stocks) , liquidity and long term returns. No wonder our markets are bullish and will tend to remain so.
Send me your comments for my post as I am new to blogging and dont know how my posts sound. Actually I start with a different idea and when I post it comes out differently. Fellow bloggers will appreciate some tips from you guys.
posted by Thought Leader at 4:21 AM
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