Beginner’s guide to different trading order types in stock market

When you call your broker to place an order or execute on your own online, you need to be familiar with different kinds of buy and sell orders that you are allowed to place. A trade is completed with a buy and sell order. This means, if a trade is entered by buying stocks of … Read More » "Beginner’s guide to different trading order types in stock market"

What is market order and how its used to buy and sell stocks

Market order gives you whatever price is available in the stock exchange for a stock at the time of execution. If you place a request to buy 100 shares of XYZ limited without specifying a price, then the system will automatically take the current trading value and execute it. This type of instruction to buy … Read More » "What is market order and how its used to buy and sell stocks"

How limit order used when buying and selling stocks

When you are buying or selling stocks from the secondary market, you have the option to place different trading order types to get the best execution price. It’s used in stock market to control the buying and selling price of stocks. In this article, we will be discussing what is limit order and how to … Read More » "How limit order used when buying and selling stocks"

Investment Vs Speculation – Differences you must know

Whenever a person spends money to buy a security with the expectation of making a profit, he is either investing or speculating. The main difference between investment and speculation is the level of risk that the person undertakes as they attempt to make a profit from transactions they make in the market. Before getting into … Read More » "Investment Vs Speculation – Differences you must know"

What is blue chip stock and how it can benefit an investor

Blue chip stock refers to the stock of a well established company which is large and financially sound. The main reason for investing in these stocks is that these companies have already survived challenges, adverse economic conditions and market cycle in their business. Therefore, investing in these companies is considered as safe. Here are certain … Read More » "What is blue chip stock and how it can benefit an investor"

What is common stock and how to find it on the balance sheet?

Common stock is a security that represents ownership in a company. The owners of common stock are known as common shareholders or equity stockholders. One share out of the total common stock represents fractional ownership based on the total number of outstanding shares. For example, if a company has 10,000 shares of common stock outstanding … Read More » "What is common stock and how to find it on the balance sheet?"

What is the difference between Growth and Value investing

There are a number of ways to make money in the stock market. To make money, certain type of investors are attracted to companies that are expected to grow faster in comparison to others by reinvesting most or all of its earnings in themselves. These type of investment strategy is known as growth investing. These … Read More » "What is the difference between Growth and Value investing"

How bad capital structure can create financial distress

Financial distress is a situation in which an organization will be unable to repay its financial obligations due to high cost, lack of liquid assets or economic downturn. In this article, we will discuss how bad capital structure can create financial distress for a company or organization. Economists have put 4M as the most essential … Read More » "How bad capital structure can create financial distress"

Cash dividend or share buyback – which is better for investors

In our last articles, we have discussed what is payout ratio, DPS and stock repurchase. In this article,  we will be discussing the difference between cash dividend and share buyback, which one is better for investors. A company with surplus cash has following three options to reward shareholders: Pay cash dividends to shareholders, Share repurchase … Read More » "Cash dividend or share buyback – which is better for investors"

What is growth investing and why investors use it to select stocks

Growth investing is an investment strategy where investors typically invest in growth stocks seeking capital appreciation over the long term. Therefore, to understand what is growth investing, we first have to understand what is a growth stock. What is growth stock Growth stocks are shares of those companies which uses most or all of their … Read More » "What is growth investing and why investors use it to select stocks"