Now working as a professional trader, Fedorov is also the founder of a stock-picking company. tion (spĕk′yə-lā′shən) n. 1. a. 75,00,000/-, Thus net loss of Rs. Benjamin Graham the author of classic books Security Analysis and The Intelligent Investor is regarded as the father of financial analysis. Reasoning based on inconclusive evidence; conjecture or supposition. My query is regarding how to show speculation loss on shares (intra day shares transactions) in Income Tax Return. People interchangeably use these words:investing, speculating, trading and consider it to be the same, but certainly the fact is, that there is a lot of difference which clearly comes out from your article. Save your team efforts and time. 100,000/-Total of all net Plus differences (i.e. In this article, i would like to talk about the difference between three terms – investing, Trading and Speculation. A speculator seeks out situations with as many factors in his favor as possible. Investor risk is holding an asset that may fail to perform to expectations. A speculator is nothing but a man who makes his living out of hope. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. 1 crore. The week ahead: Q4 results and FIIs will be the key drivers. The week ahead : Bearish sentiments to continue .. 1 crore. Investing is the proactive use of money to make more money or, to say it another way, you make your money work for you. Trading can be done in many fields. It is based on exploiting probabilities, … There is a very thin line of difference between the three. I loved the insight and the information given . You can get the latest posts delivered to you for An asset can include anything from a small business to fine art, rare wines to gold coins, stocks, mutual funds, bonds, real estate, antiques, song rights, patents, trademarks, or other intellectual property. Website developed by Toobler Technologies. Speculation is seeking immediate profits by frequently buying and selling. 3) Delivery based trading of shares – Sale value or purchase value whichever is high is considered as turnover. Stock Market Speculation Definition. Investing is buying and holding an asset for the long haul with the expectation that it will appreciate in value. b. free via Email or RSS, © 2010 Share Market School. So, traders generally rely on Technical Analysis, a form of marketing analysis that attempts to predict short-term price fluctuations using graphs, charts and oscillators. Graham’s key insight is the premise that “investment is most successful when it is most businesslike. Based in Kochi, he heads one of the leading financial consultancy firms in Kerala. Replies to my comments Detailed lessons on Futures and options are comming up soon . Your email address will not be published. It is based on exploiting probabilities, market inefficiencies and investor psychology. Check GST return status of your client’s or suppliers using GSTIN. When you invest, you are buying an asset like shares, real estate or gold. Required fields are marked *. Total of Speculation share sale Rs. I’m ralely into it, thanks for this great stuff! Shares of companies that are part of the Samsung Group climbed amid speculation the family-controlled conglomerate may raise dividends at some units following the death of Chairman Lee Kun-hee, to help his heirs raise funds to pay the inheritance tax. It’s buying something at low prices and selling it for a gain. Traders adopt a “Buy & sell” approach. INVESTING. Engagement in risky business transactions on the chance of quick or considerable profit. The week ahead: US fed meet and macro-economic data to move the markets.. Notify me of followup comments via e-mail. Profit) Rs. NOTE - You may get answer to free queries within 30 working days. He is an avid follower of stock markets and invests in his own account. I am a Chartered Accountant based in Jaipur (Rajasthan). Duncan On Investment And Speculation In Stocks And Shares (1895): Duncan, William Wallace: Amazon.nl Selecteer uw cookievoorkeuren We gebruiken cookies en vergelijkbare tools om uw winkelervaring te verbeteren, onze services aan te bieden, te begrijpen hoe klanten onze services gebruiken zodat we verbeteringen kunnen aanbrengen, en om advertenties weer te geven. Risk is making a decision without complete information. Also writing actively for TaxAdda blog and our e-Magazine on GST & Income Tax. All Investors adopt a “Buy and Hold” approach. The basic idea is to sell it at a future date when the value of these assets appreciates. He has worked in financial services for more than 20 years, serving as a banker, financial planner and stockbroker. Gamblers bet on a particular outcome that is determined purely by chance, such as a specific number at a roulette table. Practice Management Software For CA/Tax Professionals, GST Return Status Bulk Checker for CA/Businesses, GST Payment and Input Tax Credit Calculator, TDS Return – Due Date & Penalty Calculator, Depreciation Calculator As Per Income Tax Act, Depreciation Calculator – Companies Act 2013, HRA Calculator – Monthly & Yearly Calculations, Average Monthly/Quarterly Balance Calculator, Pre-validate Bank Account on Income Tax e-Filing Portal, Save Yourself from Clubbing Provisions for the Gifts Made in Cash, Section 194J – TDS on Professional or Technical Fees. So the crucial factor that distinguishes a trade from an investment is the length of time you hold on to the assets. Stock market speculation is the buying and selling of shares for the purpose of making a profit. What is important is to understand that investing; trading and speculation are three different things. Select client name and username, password will be autofilled. Good investments are the soundest way of growing wealthy but can take time, perhaps even years, to work out because we live in an uncertain world. Gamblers take blind risks and may lose it all in a bad bet. Save my name, email, and website in this browser for the next time I comment. Audit under section 44AB is required when turnover exceeds Rs. Trading is a more short term activity than investing. (Bloomberg) -- Shares of companies that are part of the Samsung Group climbed amid speculation the family-controlled conglomerate may raise dividends at some units following the death of Chairman Lee Kun-hee, to help his heirs raise funds to pay the inheritance tax. Investing is the proactive use of money to make more money or, to say it another way, you make your money work for you. In stock trading, a gambler may buy a stock because he simply thinks, or “bets,” that it will go up based on nothing more than a gut feeling. In addition, your blogging style is very fun to read. Short term price fluctuations are caused by the variations in the demand and supply of a particular asset. Don't subscribe Samsung C&T Corp. Depending on the asset class in which you invest, the potential for profits and risk will also differ. A trader is always concerned about short-term fluctuations in prices, because he’ll even out them in the long run. But in case of speculation business, shares trading and futures/options, turnover is determined in the following manner. Thanks for sharing. 4) Futures – The aggregate of both positive and negative differences is to be considered as the turnover. Based in San Diego, Slav Fedorov started writing for online publications in 2007, specializing in stock trading. The week ahead : Q4 results and global cues to drive the markets.. Speculator risk is somewhat similar to investor risk in that a trade may not pan out as expected, but it is much shorter in size and duration—i.e., if a stock moves against a speculator, he sells it immediately and cuts his loss. Audit under section 44AB is required when turnover exceeds Rs. But in case of speculation business, shares trading and futures/options, turnover is determined in the following manner. Choosing a Broker and opening Demat Accounts, The week ahead: Macro data to guide the markets…. b. Subscribe to our weekly newsletter and get updates in your email. 74,00,000/-Total of Speculation shares purchase Rs. Now, at this point of time, It is unnecessary to start a complex discussion about investing, trading and saving. 50,000/- Share; Tweet; Share; Tweet; Hi there, In this article, i would like to talk about the difference between three terms – investing, Trading and Speculation. I don’t think I should explain it in more detail. 1) Speculation Business – The aggregate of both positive and negative differences is to be considered as the turnover. Shares of companies that are part of the Samsung Group climbed amid speculation the family-controlled conglomerate may raise dividends at some units following the … Manage your practice efficiently. Great article! You can also subscribe without commenting. Through this website, he shares his experiences and knowledge and teaches how to make money from share markets using solid rules. An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return. 2. a. sahal , Please keep track of beginner’s lessons. 2) Intra day trading of shares –  The aggregate of both positive and negative differences is to be considered as the turnover. “How to Trade in Stocks”; Jesse Livermore; 2001. Jins Victor is the founder of www.sharemarketschool.com, a website for share market enthusiasts. Started TaxAdda in 2011 as a blog and now providing various service related to GST and Income Tax to the client all over India. A conclusion, opinion, or theory reached by conjecture. Since we are discussing about shares and stocks for trading or investment, our next chapter discusses about shares and stock markets in detail.. sir, Operations not meeting these requirements are speculative”-(Benjamin Graham, security analysis,1951). Your email address will not be published. please give me information about future and option trading. 5) Options – Premium received on sale of options is also to be included in turnover. All rights reserved. c. Archaic Contemplation or consideration of a subject; meditation. No spam, Only relevant mails. Stock market speculation is the buying and selling of shares for the purpose of making a profit. Check status of any number of GSTIN with single click.

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