You must have heard about "buy low, sell high" and "sell high, buy low" strategies in the stock market. In option trading, we have different ways to follow these two strategies. Option is a derivative contract which gives its buyer the right, but not the obligation, to buy or sell a certain quantity of assets at a fixed price on a given date. Assets can be stock, crude oil, … [Read more...] about Option trading: What is it and how traders are making money?
Finance
When Securities Transaction Tax (STT) is levied in India
Securities Transaction Tax (STT) was introduced by the former finance minister of India P. Chidambaram with effect from October 1, 2004. Securities Transaction Tax (STT) is a kind of turnover tax that is levied by the central government on the total consideration paid or received in a transaction. As the name implies, Securities Transaction Tax (STT) is levied on the … [Read more...] about When Securities Transaction Tax (STT) is levied in India
Why do companies go public and launch IPO
In an initial public offering (IPO), a privately owned company for the first time made its shares available to the general public. Companies take the root of IPO to fund their growth, expansion and future investments. Every year new companies are getting listed their stocks on the National Stock Exchange (NSE) and BSE. Before investing your hard earned money in any of the … [Read more...] about Why do companies go public and launch IPO
Top 5 technical analysis books to start trading in stock market
In the stock market, we have a wide range of books to learn technical analysis. In this article, we will look at 5 best technical analysis books to help you understand various topics covering chart patterns, crowd psychology and market behavior to develop your own trading system. You can use these technical analysis books to trade all most all markets including forex, … [Read more...] about Top 5 technical analysis books to start trading in stock market
Common Day trading myths Versus Reality in stock market
Day trading means buying and selling of financial instruments such as stocks, forex, options, future contracts, commodities and other financial securities within a trading session. This means, if you are day trading, then all your positions must be closed before the end of each trading session. Day trading is also referred to as Intraday. The most important reason why … [Read more...] about Common Day trading myths Versus Reality in stock market
Equity vs Debt Financing: What’s the Difference?
Before getting into the difference between equity financing and debt financing, let us first understand what is the meaning of "financing". The term financing means a process in which an entity arranges funds for its business activities such as for making purchases, investing etc.. In other words, It's a process of funding an entity’s business activities. For instance, … [Read more...] about Equity vs Debt Financing: What’s the Difference?
Best online discount stock brokers in India to trade in 2024
If you are looking to open a Demat and trading account with a stock broker, but are confused about which online stock broker to choose, then this article is for you. In this article, we have listed almost all online discount stock brokers to help you know their charges to open a Demat and trading account. In the old days, one of the best ways to trade in the stock market was … [Read more...] about Best online discount stock brokers in India to trade in 2024
Free cash flow (FCF): How to calculate and interpret
Free cash flow (FCF) means the amount of cash remaining with the company after paying for its operating costs, inventory and to buy fixed assets. Which means the cash flow from operating activities minus capital expenditures during the financial year. We can also define free cash flow as the amount of money the company has generated after accounting all cash outflows that … [Read more...] about Free cash flow (FCF): How to calculate and interpret
How segment wise revenue and results are reported and analyzed
In this article, you will learn what is a segment and how companies report segment wise revenue and results in their annual report and financial statements. As per law, all listed companies must report their segment wise revenue and results for the reporting period. It will enable the stakeholders to have insight into the entity’s operations from the perspective of that … [Read more...] about How segment wise revenue and results are reported and analyzed
How to calculate the annual return of an investment
Every investor has one goal in mind when they invest: to make money. Due to this reason many investors are interested to know what kind of return they are going to get before investing in anything. In this regard, annual return is used as a measure to report the historical rate of return of investments. Here is a list of the most important tools used to measure rate of … [Read more...] about How to calculate the annual return of an investment