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Azure
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Quote Azure Replybullet Posted: 10/Feb/2009 at 12:51pm

Can anyone tell me how companies lose money by hedging????
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investor
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Quote investor Replybullet Posted: 10/Feb/2009 at 3:49pm
Check this out - even the Tata's are no exception.
Tata Sons pledge entire holding in Tata Coffee

http://www.business-standard.com/india/news/tata-sons-pledge-entire-holding-in-tata-coffee/11/27/54690/on

Promoters of five Tata Group firms pledged 111 crore shares

http://economictimes.indiatimes.com/articleshow/4105257.cms


Originally posted by kulman

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The market is a place where people with money meet people with experience.
The people with experience get the money while people with money get experience!
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gcpradhan1
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Quote gcpradhan1 Replybullet Posted: 10/Feb/2009 at 4:02pm
If any company is pledging shares to borrow money for business needs which the company thinks will pay off later, then what is wrong is pledging? I really do not understand that point.
Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years - Buffet
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Quote Azure Replybullet Posted: 10/Feb/2009 at 4:06pm
See i didnt said that its wrong....
 
But its like promoters pledging their personal property for the company.. Isnt???
If predictions were true then stock markets wouldn’t be this exciting!
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Quote Azure Replybullet Posted: 10/Feb/2009 at 6:51pm
Basantji..

Can you plz tell me how companies lose money by hedging????
If predictions were true then stock markets wouldn’t be this exciting!
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Hitesh Shah
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Quote Hitesh Shah Replybullet Posted: 10/Feb/2009 at 6:57pm
See this.
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Quote Azure Replybullet Posted: 10/Feb/2009 at 7:11pm
Originally posted by Hitesh Shah

See this.
 
Hello,
 
Thanks for that but its not clear yet...
 
Does that works like this....
 
Say an IT Company expects $100 Mn. from overseas.. and suppose the Rs. is trading at 40 Rs.
 
Now they hedge $100 mn. at the rate 40 Rs.,,, now if the Rs. depreciate to say 50 Rs. then they face a loss of $100 mn X 10 Rs.
 
Is that how it works???
If predictions were true then stock markets wouldn’t be this exciting!
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Quote kulman Replybullet Posted: 15/Feb/2009 at 8:15am
Please do change the title of this thread to Hedging & Pledging---A new corporate way to lose money
Life can only be understood backwards—but it must be lived forwards
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