Why do stock prices move Up and Down

Every day, without fail, stocks rise and fall. The main reason for movements in a company’s stock price is due to supply and demand. Stocks go up because more people want to buy than sell. When this happens they begin to bid higher prices than the stock has been currently trading. On the other side of the same coin, stocks go down because more people want to sell than buy. In order to quickly sell their shares, they are willing to accept a lower price.

While these movements may seem mysterious, they often spring from concrete causes. Investors savvy enough to spot these driving forces may also suss out excellent opportunities to profit.

Basically, every stock trades at the latest price at which someone was willing to sell it, and at which someone else was willing to buy it. That willingness fluctuates depending on the people involved, the circumstances around the company, and even basic human psychology.

The most obvious reason that a stock goes up or down has to do with how much money the corporation makes. If a company is making money or might make money in the future, more people will buy shares of its stock. The name of the game is supply and demand. Because of supply and demand, when there are more buyers than sellers, the stock price will go up. If there are more sellers than buyers, the stock price will go down.

Often stocks go up or down based primarily on people's perceptions. This is why so many corporations spend a lot of money on advertising and on actions that will bring them positive publicity. This is also why some shareholders send out emails to strangers or post messages in Internet chat rooms to try to convince people to buy more stock.

Stocks also go up or down depending on the mood of the country and the state of the economy. Once again, a lot is based on perception. If people believe that economic conditions are improving and the country is on the right track, they will be more inclined to invest in the stock market. 

A share price goes up when…

• A company is making huge profits.
• Lots of people want to buy the shares to reap the rewards of the profits.
• Not many people want to sell the shares.
• There are not many shares left.

A share price goes down when…

• A company makes some losses.
• Lots of people want to sell the shares.
• Not many people want to buy the shares.
• There are too many shares.

However there are several external factors too that affect a company’s stock price. One factor that we have all witnessed recently is the recession. Others include inflation rates, interest rates, job cuts, natural disasters, company mergers, changes in company management etc……

Bears

The great novel Animal Farm written by the legendary author George Orwell is about animals and how they live together in a hierarchical society. As it turns out, he may have been talking about the stock market. The market is full of these named animals and each has a different place on the investment pole.

Pigs are greedy, chickens fearful, bears hide and sleep, bulls charge ahead. Over the years these names have become synonymous with a person’s investment interest or view of how the market is going to move. Really the names of the animals signify an individual’s approach or philosophical investment strategy.

One common myth is that the terms "bull market" and "bear market" are derived from the way those animals attack a foe, because bears attack by swiping their paws downward and bulls toss their horns upward.

There are a couple different possible sources for the “bear” part of this tandem, but the leading theory is that it derived from an old 16th century proverb: “selling the bear’s skin before one has caught the bear” or alternatively, “Don’t sell the bear’s skin before you’ve killed him,” equivalent to, “Don’t count your eggs before they’re hatched.”

By the early 18th century, when people in the stock world would sell something they didn’t yet own (in hopes of turning a profit by eventually being able to buy the thing at a cheaper rate than they sold it, before delivery was due), this gave rise to the saying that they “sold the bearskin” and the people themselves were called “bearskin jobbers”.

This is a useful mnemonic, but is not the true origin of the terms.

Long ago, "bear skin jobbers" were known for selling bear skins that they did not own; i.e., the bears had not yet been caught. This was the original source of the term "bear."

This term eventually was used to describe short sellers, speculators who sold shares that they did not own, bought after a price drop, and then delivered the shares.

One of the earliest references of this comes from an issue of The Tatler, April 26, 1709:

Forasmuch as it is very hard to keep land in repair without ready cash, I do, out of my personal estate, bestow the bear-skin, which I have frequently lent to several societies about this town, to supply their necessities; I say, I give also the said bear-skin as an immediate fund to the said citizens forever…

In a later edition, June 23, 1709, it goes on to state:

I fear the word Bear is hardly to be understood among the polite people; but I take the meaning to be, that one who insures a real value upon an imaginary thing, is said to sell a Bear, and is the same thing as a promise among courtiers, or a vow between lovers…

Yet another early instance of the term is in Daniel Defoe’s The Anatomy of Change Alley, published in 1719, around the time the term was popularized to something of the same type of definition we use today:

Those who buy Exchange Alley Bargains are styled buyers of Bear-skins.

The use of the word “bear” in this way was popularized thanks to one of the early market bubbles known as the South Sea Bubble. While it was a long and incredibly complex market scheme that led to the bubble, the gist of it was that the South Sea Company, formed in 1711, was granted by Britain a monopoly on all trade to South America and would be given an annual sum (6% interest plus expenses) from the government. In exchange, the new company agreed to take over large portions of the government’s debt. (In fact, this was primarily how the company actually made money throughout its century and a half it was in business, simply by dealing in government debt.)

Thanks to this deal and an amazing amount of government corruption, insider trading, and other unscrupulous practices by certain shareholders who knew well that the company’s trade business had little hope of ever being profitable, the burgeoning company’s stock soared. At its peak, based on the stock price, the company was worth about £200 million (by purchasing power, today this would be about £24 billion or $37 billion; by average earnings, it would be £350 billion or $537 billion).

Besides the fact that they didn’t even have their first trading shipment until 1717, 6 years after the trading company first formed, one of the problems was that having an exclusive monopoly on trading to South America from the British government at the time wasn’t saying much as most of the region was almost entirely held by Spain, who Britain was at war with. Nevertheless, amid rampant and widely published rumors (deftly planted by certain stock holders to jack up the price) of the vast wealth from gold and other resources in those regions and the potential promise of soon securing trade rights from Spain, the stock prices soared, even though the company itself wasn’t really doing any actual trading and their main asset, the monopoly on trade to Middle and South America, was essentially worthless, as the core stock holders knew well.

Spain did eventually grant the South Sea Company rights to trade in the regions held by Spain, but only one ship load per year total was allowed in exchange for a percentage of the profits. Needless to say, the inability to do any actual real volume of trading and the fact that war once again broke out in 1718 between Spain and Britain causing much of the company’s scant physical assets to be seized by Spain, the market crash that followed wasn’t pretty.

As to the “bull” name for rising markets, in this case we have to do a little more speculation as the documented evidence just isn’t there. The leading theory is that it came about as a direct result of the term “bear”. Specifically, the first known instance of the market term “bull” popped up in 1714, shortly after the “bear” term popped up. At the time, it was something of a common practice to bear and bull-bait. Essentially, with bear baiting, they’d chain a bear (or bears) up in an arena, and then set some other animals to attack the bear(s) (usually dogs) as a form of entertainment for spectators seated in the arena.

While bears were one of the more popular animals to use in these games, bulls were also commonly used. More rarely, other animals were used such as in one instance where an ape was tied to a pony’s back and dogs were set on them. According to one spectator, the spectacle of the dogs tearing the pony to shreds while the ape screamed and desperately tried to stay on the pony’s back, out of reach of the snapping jaws of the dogs, was “very laughable”…

In any event, the popularity of bear and bull baiting, along with perhaps the association with bulls charging, is thought to have probably been why “bull” was chosen as something of the antithesis of a “bear”, shortly after “bear” first popped up in the stock sense. But, of course, we can’t be at all sure on this one as there wasn’t the more lengthy documented progression of definition as with the “bear” term.

Because bull and bear baiting were once popular sports, "bulls" was understood as the opposite of "bears." I.e., the bulls were those people who bought in the expectation that a stock price would rise, not fall.

Bear Market

A bear market is when the economy is bad, recession is looming and stock prices are falling. It is a period of several months or years during which securities prices consistently fall. Also defined as a period when the stock market as a whole is decreasing in price.

The term is typically used in reference to the stock market, but it can also describe specific sectors such as real estate, bond or foreign exchange. It is the opposite of a bull market, in which asset prices consistently rise.

Bear markets make it tough for investors to pick profitable stocks. One solution to this is to make money when stocks are falling using a technique called short selling. Another strategy is to wait on the sidelines until you feel that the bear market is nearing its end, only starting to buy in anticipation of a bull market. If a person is pessimistic, believing that stocks are going to drop, he or she is called a "bear" and said to have a "bearish outlook".

One theory as to where the bull and bear market got their names is due to the way the animals attack! A bull throws its horns up in the air and a bear swipes down at its prey. -

Just as with a bull market, not all sectors of the economy may participate. Certain sectors of the economy may decline while others rise. Making money during a bear market can be more challenging than during a bull market, but it can be done. Investors can protect their profits or generate current income by selling call options against stock they currently own. This is referred to as writing a covered call, and it involves selling another investor the right to purchase your stock at a set price for a set period of time in exchange for a premium. If the underlying stock does not increase in value to the set price, known as the strike price, the option will likely expire unexercised. The original investor gets to keep both his stock and the premium.

For those who don’t know, a “bear” market, or when someone is being “bearish” in this context, is marked by investors being very conservative and pessimistic, resulting in a declining market generally marked by the mass selling off of stock. A “bull” market is simply the opposite of that, with investors being aggressive and positive, with stock prices rising as a result of this optimism. This “bull” and “bear” terminology first popped up in the 18th century in England.

Bulls

The precise origin of the phrases "bull market" and "bear market" is still unknown but one theory suggests that the fighting styles of both animals may have a major impact on the names. When a bull fights it swipes its horns up but when a bear fights it swipes down on its opponents with its paws. Thus when the market is going up, it is similar to a bull swiping up with its horns and when the market is going down it is similar to a bear swinging its paws down. These actions are metaphors for the movement of the market. If the trend is up, it's a bull market and if the trend is down, it's a bear market. There is, however, another theory which proposes that the animals' personalities are behind the symbolism. Bears move with caution, while bulls are bold and like to charge ahead. So a "bearish" investor thinks the market will go down, while a "bullish" investor thinks it's headed up.

Bull Market

A bull market is loosely defined as a period when the stock market as a whole is rising in price. Certain sectors of the economy may experience a bull market while other sectors remain stagnant or are in decline. The classic way of making money in stocks during a bull market is to purchase a security, wait for the stock price to go up, then sell. The difference between the purchase price and the sale price of the stock is referred to as a capital gain.

Have you ever wondered what a bull and bear market is? The stock market can be tricky as stocks are constantly going up and down. When the market is going down it is referred to as a "bear market". When the market is going up it is referred to as a "Bull Market" Then if any particular stock is doing well it is referred to a bullish stock.

So the words Bull and Bear describe the general conditions of the stock market. They do not describe the daily or short term fluctuations. So these terms would describe the condition of the market over a longer period of time, such as two months. That does not mean to say that the market may go up or down during that period. It is more to say that the overall general performance of the market is termed as Bull Or Bear over a given period of time.

A bullish market refers to a market that has a long-term up trend. For a market to be bullish, investor confidence must be high and the market’s respective country will likely be showing solid economic growth. The number of stocks traded in a bull market is often high.

Bull and bears not only describe the market condition they also reflect the state of the economy. In a Bull market the economy is doing well. The opposite holds true in a bear market. The reality of these terms is a general indication of the state of a given pattern on the stock market.

It is generally known that most of the money is made during a bull market. That does not mean to say that there is no money to be made during a bear market. Opportunities lie within both markets. The key then is to understand the state of play so that you can execute trades that will make you money. After all that is why people trade on the stock market. When understanding this as the fundamental reason for trading then it is necessary to gain knowledge on how to execute a plan of trading that will yield a return.

However without a shadow of doubt it is always easier to make money on a bull market. So when starting out you may want to just focus your attention here so as to increase your odds of making money.

The reality of bear markets is timing. Getting in at the right time when the price is at bottom. Then the only way is up. You should always be prepared for short term losses. Trade logically not emotionally. Be careful out there and do your homework.

PTC India Stock

The Concept of PTC
India is the third largest producer of electricity in Asia with an installed capacity that has increased from 1362 MW in 1947 to about 169749 MW as on 31st December 2010. However, alongside this growth story is the large scale shortages in meeting peak (10.5%) as of 31st December 2010 as well as energy shortage (8.2%) as of December 2010. In spite of the overall shortage, the inherent diversity in demand of various States and Regions in the country results in periods of seasonal surplus in one State or region coinciding with periods of deficit in another.

This coexistence of overall shortages with complementary geographical and temporal surplus-deficits provides substantial opportunities to improve the economic efficiency and reliable supply through trading of power both within as well as across Regions.

PTC India is in the Trading sector. The current market capitalisation stands at Rs 1,583.64 crore.The company has reported a standalone sales of Rs 2198.74 crore and a Net Profit of Rs 37.05 crore for the quarter ended Mar 2013.The company`s standalone trailing 12-month (TTM) EPS was at Rs 4.50 per share as per the quarter ended Mar 2013.The stock`s price-to-earnings (P/E) ratio is 11.89.The latest book value of the company is Rs 78.57 per share.

PTC India Ltd. (formerly known as Power Trading Corporation of India Limited), was incorporated in 1999 to undertake trading of power to achieve economic efficiency and security of supply and to develop a vibrant power market in the country. Therefore, PTC has a tri-fold mandate:

a. To optimally utilize the existing resources to develop a full fledged efficient and competitive power market

b. To attract private investment in the Indian power sector

c. To encourage trade of power with neighboring countries

The pioneering service of the Company led to recognition of “Power Trading” as a distinct licensed activity in the Electricity Act 2003. PTC holds Category I license from Central Electricity Regulatory Commission (CERC), the highest category with permission to trade unlimited volumes. PTC has maintained the largest market share since inception and is No. 1 in last 10 years of operations with its innovative products and services.

PTC would continue to play a frontrunner's role towards development of a vibrant power market in India and the South Asian Region and shall strive to add value to its customers' operations through providing holistic services that serve the evolving needs of the sector.

VISION

To be a frontrunner in power trading by developing a vibrant power market and striving to correct market distortions

MISSION

# Promote Power Trading to optimally utilize the existing resources
# Develop power market for market based investments into the Indian Power Sector
# Incentivize development of Power Projects by providing services on a holistic basis
# Promote exchange of power with neighbouring countries

CORE VALUES

# Transparency
# The Customer is Always Right
# Encouraging Individual Initiative
# Continuous Learning
# Teamwork

The company management includes

Deepak Amitabh	- Chairman & Managing Director,
Rita Acharya	- Director,
M K Goel	- Director,
S Balachandran	- Director,
Hemant Bhargava	- Executive Director,
Ved Jain	- Director,
Anil Razdan	- Director,
Dhirendra Swarup	- Director,
I J Kapoor	- Director,
Ravi P Singh	- Director,
Deepak Chatterjee	- Director,
M S Babu	- Executive Director.

It is listed on the BSE with a BSE Code of 532524 and the NSE with an NSE Code of PTC.

Its Registered office is at 2nd Floor, NBCC Towers,,15 Bhikaji Cama Place New Delhi, 

Delhi - 110066.

Their Registrars are M C S Ltd.

TATA POWER - Success Stock

Company Profile
Tata Power Company Ltd is India's largest integrated private power company. The company operates in two segments: power, which is engaged in the generation, transmission and distribution of electricity, and others, which is engaged in the defense electronics, project contracts/ infrastructure management services, coal bed methane and property development. 

Tata Power Company Ltd was incorporated in the year 1919. The company has successful public-private partnerships in generation, transmission and distribution- Tata Power Delhi Distribution Limited with Delhi Vidyut Board for distribution in North Delhi, 'Powerlinks Transmission Ltd' with Power Grid Corporation of India Ltd for evacuation of Power from Tala hydro project in Bhutan to Delhi and 'Maithon Power Ltd' with Damodar Valley Corporation for a 1000 MW Mega Power Project. 

The company commissioned their first hydro electric power generating station commissioned at Khopoli in the year 1915 with an installed capacity of 40 MW, which was subsequently upgraded to 72 MW. In the year 1922, they commissioned another hydro power station at Bhivpuri with an installed capacity of 40 MW, subsequently upgraded to 72 MW. In the year 1927, they set up Third Hydro power station of 90 MW capacity at Bhira, which was subsequently upgraded to 150 MW. 

In the year 1956, the company set commissioned a major thermal power station of 62.5 MW capacity at Trombay, to meet the increasing demand of electricity. Also, they set commissioned two more thermal units of similar capacity i.e. 62.5 MW in the years 1957 and 1960 respectively. 

In the year 1965, they set up Fourth thermal unit of 150 MW capacity at Trombay. In the year
1984, the company commissioned India's first 500 MW generating unit with multi-fuel burning capability at Trombay. In the year 1990, they set up Second 500 MW thermal unit at Trombay. 

In the year 1994, the company commissioned a gas-based 180 MW capacity combined cycle plant to provide quick-start capacity to Trombay Thermal Station and to ensure reliable and uninterrupted supply for essential services in Mumbai.

In the year 1996, the company commissioned the 150 MW Pumped Storage Unit at Bhira. Also, they set up 67.5 MW Thermal Power Plant at Jojobera (Jharkhand).

In the year 2000, The Tata Hydro-Electric Co. Ltd., The Andhra Valley Power Supply Co. Ltd., and the Tata Power Co. Ltd., are amalgamated to become one entity- The Tata Power Company Limited. Also, they commissioned a unit of 120 MW at Jojobera.

In the year 2001, the company set up 81.3 MW diesel generator based plant at Belgaum, Karnataka. In the year 2003, the company entered into a joint venture with PowerGrid Corporation of India Ltd., to develop a 1200 Km long transmission line to bring electricity from Bhutan to Delhi.

In the year 2004, the company incorporated a wholly owned subsidiary company, known as Tata Power Trading Co. Ltd. for the power trading business.

In the year 2005, the company commissioned the unit 4 of 120 MW capacity at Jojobera. In the year 2006-07, the company completed the acquisition of 30% equity in Indonesian Coal Mines, PT Kaltim Prima Coal (KPC), and PT Arutmin Indonesia, as well as trading companies from PT Bumi Resources.

In the year 2008, the unit 1 of 2 x 45 MW Phase of Haldia Project is synchronised with the grid. Also, the company commissioned the expansion project of 250 MW (Unit # 8) at Trombay.

During the year 2009-10, the company successfully completed the overhaul of Unit 5 during which the Unit underwent major renovation and modernization. The company commissioned Unit 3 of 30 MW, resulting in increase in the installed capacity of the plant to 120 MW. These Units use hot coke oven gas from Hooghly Metcoke and Power Company Limited to produce steam for power generation. Also, the company commissioned an additional 42 MW of wind power capacity, taking the total capacity to 201 MW.

During the year 2010-11, the company commissioned an additional 6 MW of wind power capacity in Maharashtra, taking the total installed wind power capacity in Mumbai Operations to 106 MW. Also, the company acquired a 21 MW wind farm, taking the total installed capacity outside Mumbai operations to 122 MW. As of March 31, 2011, the Company's installed wind power capacity outside Mumbai operations was Samana, Gujarat with a installed capacity of 50 megawatt; Gadag, Karnataka with a installed capacity of 50 megawatt, and Nivede, Maharashtra with a installed capacity of 21 megawatt. The Company had an installed capacity of 3,127 megawatt based on various fuel sources: thermal (coal, gas, oil), hydroelectric power, renewable energy (wind, solar photovoltaic and waste gases).

Today, Tata Power has an installed generating capacity of 5297 MW and a presence across the entire value chain in generation (thermal, hydro, solar and wind) transmission, distribution and trading. The company has emerged as a pioneer in the Indian power sector, with a track record for performance and has been a frontrunner in introducing state-of-the-art power technologies. Among its achievements, the company has to its credit the installation of India's first 500 MW unit at Trombay, the first 150 MW pumped storage unit at Bhira, a Flue Gas De-sulphurization plant for pollution control at Trombay and is now bringing the first 800 MW super-critical unit at Mundra, Gujarat. 

Equity Capital Structure                                                                                                                                                      (Rs.in Cr) Year Authorised Issued Subscribed Called Up Less : Calls  in Arrears Forfeited Paid Up 2013 300.00 242.95 237.37 237.31 0.04 0.06 237.33 2012 300.00 242.95 237.37 237.31 0.04 0.06 237.33 2011 300.00 242.95 237.37 237.31 0.04 0.06 237.33 2010 300.00 242.95 237.37 237.31 0.04 0.06 237.33 2009 300.00 227.06 221.48 221.42 0.04 0.06 221.44 2008 300.00 226.34 220.76 220.70 0.04 0.06 220.72 2007 300.00 203.54 197.96 197.90 0.04 0.06 197.92 2006 300.00 203.54 197.90 197.90 0.04 0.06 197.92 2005 300.00 203.54 197.90 197.90 0.04 0.06 197.92 2004 229.00 203.54 197.90 197.90 0.04 0.06 197.92 2003 229.00 203.54 197.90 197.90 0.05 0.06 197.91 2002 229.00 203.54 197.90 197.90 0.05 0.06 197.91 2001 229.00 203.54 197.90 197.90 0.05 0.06 197.91 2000 229.00 116.68 115.68 115.52 0.05 0.07 115.54 1999 229.00 115.68 115.68 115.66 0.22 0.01 115.45 1998 229.00 115.68 115.68 115.68 0.46 0.00 115.22 1997 229.00 115.68 115.68 115.68 0.62 0.00 115.06 1996 229.00 110.00 110.00 110.00 1.00 0.00 109.00 1995 229.00 110.00 110.00 110.00 1.72 0.00 108.28 1994 229.00 102.23 102.23 67.08 0.30 0.00 66.78 1993 59.00 48.73 48.73 48.73 0.00 0.00 48.73 1992 59.00 20.52 20.52 20.52 0.00 0.00 20.52 1991 26.00 20.52 20.52 20.52 0.00 0.00 20.52 1990 26.00 20.52 20.52 20.52 0.00 0.00 20.52 1989 26.00 20.52 20.52 20.52 0.00 -0.04 20.48