Pearls of Financial Wisdom

1) Bonds are for storing wealth and equities are for creation of wealth.

2) In my opinion, *the biggest asset one can have is zero debt*.

3) *The greatest discipline in personal finance is living below your means*.

4) As Ben Carlson says, emotions cannot be back tested. That’s why past bear market always looks like opportunities and future ones scary.

5) Early financial independence and early retirement are completely different. To me, the former is a blessing and the latter is a curse.

6) Don’t think how it would have been if you’ve started 10 years ago. Start today and visualise how you would feel 10 years from now.

7) The neighbourhood we live determines our life style & spending. Need to be careful in choosing one which matches our goals and personality.

8) Paying minimum balance regularly on credit card is the maximum sign that you’re getting into debt trap.

9) Many are long term investors till next bear market.

10) *Don’t take aggressive bets. Take measured risk*. Remember one blunder can push you back by a decade or more in terms of wealth.

11) *Big money can be made through high savings, wise investing and lots of patience*.

12) One sign of progress in individual investor’s portfolio is no churn or very less churn.

13) *Trying to get rich fast is a foolproof way to lose what we have*.

14) *Losing opportunities is far better than losing money. Don’t invest in fads*.

15) ‘Making as much money as quickly as possible’ is not an investment strategy. Unfortunately for most of us that is the strategy.

16) Aggressive strategy cannot be a substitute for high savings. *Save high and take moderate risk than saving less and taking high risk*.

17) *The day we realise not losing is as important as winning; we would stop blindly chasing returns*.

18) Good periods are more than bad periods. By *not timing*, though we go through bad periods, do not miss even a single good period.

19) We’ll stop looking for quick money the moment we consider stocks as businesses and realise that our wealth grows in line with business growth.

20) *There are periods of high returns, low returns, no returns and negative returns. We need to go through all these to get long term returns*.

21) *Listening to market forecasts is not only useless but can be very harmful too* if you start acting on them.

22) *The hard truth is only around 3% of our population are in a position to aspire for financial independence. Don’t waste this rare privilege*.

To determine whether you should get a dividend, you need to look at two important dates. They are the "record date" or "date of record" and the "ex-dividend date" or "ex-date."

When a company declares a dividend, it sets a record date when you must be on the company's books as a shareholder to receive the dividend. Companies also use this date to determine who is sent proxy statements, financial reports, and other information.

Once the company sets the record date, the ex-dividend date is set based on stock exchange rules. The ex-dividend date for stocks is usually set one business day before the record date. If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment. Instead, the seller gets the dividend.

To sum it up hence, if you purchase before the ex-dividend date, you get the dividend.

IPO Non-Allotment / Rejection Reasons

1. Demat Account details furnished were found “Inactive”.
2. List of employees provided by the company does not reflect your name.
3. In terms of SEBI guidelines you are not considered as a QIB.
4. It is found that you have withdrawn your Bid.
5. More than One application found with same demat account details.
6. More than One application made with the same First holders name.
7. Amount paid was less than the price at which shares were allotted.
8. Applicant being Minor, not made by the Guardian.
9. Demat Account details furnished were found “Invalid”
10. Specimen signature(s) of the applicant(s) not affixed
11. Provision to bid at ” Cut-Off ” price is not applicable to HNI Category investors.
12. Amount paid with the application was insufficient to consider for allotment.
13. Partnership firms are not eligible to participate.
14. Residents of USA are not eligible for participating in IPOs in India.
15. Details of PAN Card required mandatorily, not furnished.
16. Details of demat account were not furnished.
17. Corporate Bodies cannot participate under Retail Investor Category.
18. Your bid against the application was not registered.
19. Your participation in IPO’s had been barred by SEBI.
20. Registration of your Bid was after 4PM on closing day of the Issue.
21. Application under ASBA with invalid demat account details.
22. Application under ASBA found with incorrect PAN Card details.

IPO GREY MARKET AND ITS WORKING

IPO Grey Market is an unofficial market where IPO applications or *shares are bought and sold before they become officially available for trading on the stock exchange.

All transactions are done in cash on personal basis.

SEBI, Stock Exchange or Brokers are not involve or back these transaction.

It includes:
- Trading (selling or buying) IPO Applications at certain rate (premium) and
- Trading (selling or buying) allocated IPO shares before they list on stock exchanges.

Grey market trading is usually done among the small set of people who trust each other as there is no official platform or rules define for these trading

Terms used:

Grey market premium: Premium amount at which IPO shares are traded on stock market before they get listed on stock exchange. It can be positive or negative based on demand and supply of stock.

Kostak: Premium amount at which IPO applications are being traded in IPO Grey Market.
‘Kostak' is especially for people who do not want to take risk with IPO allotment or listing gains.

Who decides Grey Market Price?
Just like stock market or commodity market trading, IPO Grey Market

Premiums are decided on basis of demand and supply

If there are more buyers than sellers, the price goes up and vice versa.

Precaution:
As there are no regulatory bodies involved in Grey Market Trading and therefore there are no limitations on price momentum. Grey market premium may rise or fall suddenly

Steps to apply to Offer for Sale (OFS) in India:

- You need to have a demat and trading account to apply to an OFS

- Once the OFS starts, you can participate in the process yourself using your online trading accounts such as ICICI Direct, Kotak Securities etc. by placing your bids under the IPO / OFS section of their respective broking websites

- You will be given application form number / confirmation reference for your application