About Board of Directors of a firm

Board of Directors are the individuals elected by the shareholders of the company who oversee the activities of a company. Board of Directors are some times referred to as board of trustees, board of governors, executive board or simply ‘the board’.

The board of directors is made up of two kinds of representatives. One: Internal individuals within the company. These can be CEOs, CFOs etc who work for the company. The other kind is external individuals who are independent from the company.

The responsibilities of board of directors include

Governing the organization by establishing broad policies and objectives
Accounting to the stakeholders for the organization’s performance.
Selecting, appointing, supporting and reviewing the performance of the CEO and other high level management team
Formulating company’s business strategy
Approving annual budgets

9 tips for success of share market investors

The below mentioned are most important tips for success of share market investors. The below are designed keeping in mind of long term investors.

1. Never invest borrowed money

If you invest borrowed money, it is very tough to get real gains. Your real gains will be the left over money(if any) after you repaid the borrowed money with interest. Only few lucky fellows may find success with it and for others it will be a night mare.

With borrowed money, you don’t have freedom to leave the investments for long term. Even small things in the market leave you panic and you will end up with wrong decisions. Always, invest the money which you feel won’t impact your life even if you lose it.

2. Do your own research

The first thing to avoid is depending on the tips you get from brokers, colleagues or so… There is nothing wrong with listening to the tips, but if you make decision without doing analysis from your side then don’t blame them if you get negative result. It is your responsibility to make the decisions on your own understanding. If you don’t have time and knowledge to do the research on stocks, better go for mutual funds. Read more