Know Your Company
These are a few things we need to ask ourselves before we pin down an investment.
Transparency:
Is the company in which you are planning to invest or hold shares communicative with the necessary information on resource raising?
Does the company have an interactive website packed with every conceivable detail, update regularly and easily navigable?
Are changes in address and other missives from you taken note of and rectified in the shortest time possible?
Is there prompt credit of dividends of your saving account and bonus shares into your demat account?
Market Intelligence:
Order wins, tie-ups, accidents at manufacturing facilities, and aggressive takeover bids can affect the stock prices, positively or negatively.
Liquidity of the stock in your portfolio will suffer if it is shifted to the compulsory-delivery category.
Change in Ownership:
Is your company seeking to allot preferential shares to the promoters without any valid reason?
Are promoters selling shares (an indication that something is amiss), or they quietly consolidate holding through open market purchases(a signal that they have confidence in the future, or may want to thwart an unwanted raid).
Have the owners suddenly decided to transfer ownership to a holding company? Are you satisfies that this move was in the interest of the company’s many businesses?
Demerger of divisions, accompanied by the offer of shares in the news company based on valuation, is given a thumbs-up by the market as it brings clarity and focus to a company doing too many things.
Know your intermediary:
Whom will you invest through? Can you access them easily, either physically or through the internet?
Do they maintain a proper record of your transactions and are thorough in after-sales services?
Are they been penalized by the market regulator for any irregularities?
Wrong stock selection is excusable. But not investment in opaque companies.
Friday, September 12, 2008
Paying Dividends Or Issuing Bonus Shares
Paying Dividends Or Issuing Bonus Shares: A Prudent Move
It makes sense to return cash to investors in the form of dividends or recapitalizing part of the reserves into paid-up capital when the company cannot utilize the reserves well enough to give significant growth in the revenue and profit. Holding excess cash would only lead to diminishing of return on capital employed (ROCE). If a company is high on cash (represented by general reserve), which is not being optimally utilized, then the net profit/capital employed ratio would come down as reserves form a component of capital employed. Thus it’s better to distribute the company’s gain among the shareholders.
It makes sense to return cash to investors in the form of dividends or recapitalizing part of the reserves into paid-up capital when the company cannot utilize the reserves well enough to give significant growth in the revenue and profit. Holding excess cash would only lead to diminishing of return on capital employed (ROCE). If a company is high on cash (represented by general reserve), which is not being optimally utilized, then the net profit/capital employed ratio would come down as reserves form a component of capital employed. Thus it’s better to distribute the company’s gain among the shareholders.
Rang De Marketing
Submitted by Neelu Saluja.
fashionmeter.blogspot.com
Introduction
Back in the 1950s, people depended mainly on the radio, the printing press and the black and white television as media for advertising. These three media largely limited the visual experience of the viewer, as there was not a wide spectrum of colors used here. However, as technology advanced and introduced the television with color and the Internet, advertisements have become increasingly vibrant and diverse, along with the importance of color in advertising.
Color is all around us. It is the lenses by which we perceive the world. Thus, it is essential for designers of advertisements to be aware of the different responses different colors will bring about and thus have the ability to make the choice of which color to use to enhance their advertisement. Generally, colors can be compartmentalized into two categories: warm, bright and loud colors like red or orange and passive, serene and soothing colors such as blue or green. Designers must use these colors to their favor and compliment the general attractiveness of the advertisement or the underlying message. Colors, other than emotionally affecting people, also have physical effects. They may affect the visibility of an object, for instance, a yellow or white object may look larger than the same object of other colors. Another example would be that human responses are 12% quicker than usual under red lighting. Other than the responses some colors may be able to stimulate, most of them hold human-constructed meaning or significance as well.
Submitted by Neelu Saluja
fashionmeter.blogspot.com
fashionmeter.blogspot.com
Introduction
Back in the 1950s, people depended mainly on the radio, the printing press and the black and white television as media for advertising. These three media largely limited the visual experience of the viewer, as there was not a wide spectrum of colors used here. However, as technology advanced and introduced the television with color and the Internet, advertisements have become increasingly vibrant and diverse, along with the importance of color in advertising.
Color is all around us. It is the lenses by which we perceive the world. Thus, it is essential for designers of advertisements to be aware of the different responses different colors will bring about and thus have the ability to make the choice of which color to use to enhance their advertisement. Generally, colors can be compartmentalized into two categories: warm, bright and loud colors like red or orange and passive, serene and soothing colors such as blue or green. Designers must use these colors to their favor and compliment the general attractiveness of the advertisement or the underlying message. Colors, other than emotionally affecting people, also have physical effects. They may affect the visibility of an object, for instance, a yellow or white object may look larger than the same object of other colors. Another example would be that human responses are 12% quicker than usual under red lighting. Other than the responses some colors may be able to stimulate, most of them hold human-constructed meaning or significance as well.
Red
Associated with all things intense and passionate, danger, fire, energy and excitement
Highly erotic
Symbol for violence, blood and war
High visibility → used for road signs
Indicates courage → used in many countries' flags
China - indicates celebration or luck
India - color of purity (used in weddings)
Brands using this color- Virgin signifying purity.
Yellow
Color of sunshine
Indicates energy, optimism, joy, hope and warmth
Seen before other colors when placed against black
Symbol of spontaneity and impulsiveness
Dull yellow is associated with decay, sickness, jealousy and deceit
Asia - symbol of royalty and sacredness
Brands – Aditya Birla Group, Yellow Pages.
Blue
Depth and stability → color of the sky and sea
Symbol of freedom
Associated with tranquility, wisdom and loyalty
Symbolic of cleanliness, technology and security
Slows human metabolism → calms and soothes
Masculine color
China - associated with immortality
Hindus - the color of Krishna
Jews - holiness
Middle East - protective color
Brands using blue- all detergents and cleaning products pre-dominantly use blue which is a symbol of cleanliness.
Orange
Associated with enthusiasm, attractiveness, stimulation, creativity and warmth
Increases oxygen supply to the brain; an invigorating effect
Symbol of fall and harvest
Ireland - religious significance (Protestant)
Green
Associated with Nature, youth, fortune and vigor
Also associated with feelings of envy and jealousy
Sharp and acute → not a relaxing color
Connotes inexperience (a greenhorn)
Darker green associated with money
Improves vision
The color of Islam
Brand using this color – Onida which enhances its tag line “neighbour’s envy owner’s pride.
Purple
Connotes royalty, nobility, wealth and extravagance
Symbolic of wisdom, magic and arrogance
Associated with mourning
75 percent of pre-adolescent children prefer purple to all other colors
Brand using this color - Thai airlines to signify royalty .
Gray
Associated with security and solid
Connotes maturity, old age and dignity
Symbolic of conservativeness and boredom
Brown
Associated with Earth, home and comfort
India - the color of mourning
White
Connotes purity, simplicity and faith
Associated with clinical elements → hospitals
Color of perfection
Represents peace or virginity → color of doves and snow respectively
Japan - white carnations signify death
Black
Gothic representations → death and evil
Symbol of grief
Associated with power, mystery and fear
Positive connotations - elegance and class
Aggressive and strong color
Thus, advertising can be enhanced through the use of specific colors to attract attention .
Conclusion
The best colors for advertising are those that make people comfortable or stimulate their senses. A color scheme that incorporates warm colors encourages people to linger, leading restaurants to choose deep burgundy, burnt orange, and similar colors. They stimulate warmth and comfort, and when people relax over dinner, they are more likely to enjoy a leisurely dessert or a nice cup of coffee, thus spending more money.
Hot colors are some of the best colors for advertising when it comes to products like fast food. Bright red and yellow are hot colors, indicative of fire, and they stimulate excitement. Warm and hot colors will encourage people to eat more, which translates to revenue. Virtually all logos, advertisements and menus of fast food chains feature these colors, which is no accident.
Cool colors have their own niche. Colors like green and blue are some of the best colors for advertising when it comes to over the counter medicines and other health products. Blue is associated with tranquility, and also represents water, a life force. The color blue can actually slow a person's heart rate, and it reduces appetite, (which is why is not chosen for restaurants). Certain shades of blue indicate dependability, making it a good color for business ads. Blue is also a popular color for uniforms, worn by mail carriers, security guards and other officials. Darker blue uniforms are usually worn by more authoritative figures, such as police officers.
It has been debated whether or not blue is one of the best colors for advertising online. Many websites use at least some blue in their color schemes. Whether or not it is one of the best colors for advertising, it is a popular choice for online ads. Colors like sky blue and certain shades of green can also be effective since they evoke the feeling of being outdoors.
According to research, black and white can be two of the best colors for advertising. They are used to signify power and create a sense that the company is highly professional. Often a splash of color, such as red, is included to accent the starkness, but the main colors are black and white.
You may wish to hire someone to choose the best colors for advertising your business or product, and develop a color scheme for you. Or, conduct an experiment: look over several websites and see which ones you are most comfortable viewing. Which ones influence you to linger? Content is of course important, but don't underestimate the influence of color.
Submitted by Neelu Saluja
fashionmeter.blogspot.com
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