List of Share Market Articles

The risk-free rate of return is a theoretical number within the capital markets that pertains to an investment that provides guaranteed returns with negligible or zero risk.

The concept of average is quite clear. If we buy 3 items at Rs.40, Rs.50 and Rs.60 each then the average price is Rs.50. In other words, the average price is nothing but the total value divided by the number of items.

The greatest resource for a company is its employees. You can start a company with very little capital. However, to see it succeed, you have to rely a great deal on the employees and their hard work. Take the example of any big company that is enjoying success today.

Algorithmic Trading is the process of using pre-programmed trading instructions to execute trading orders at high speed in the financial market.

Equities refer to small pieces of a company’s worth, considering all pending liabilities. If you are investing in a company by purchasing equities, you become an owner of the company in the same ratio as the equities bought.

To meet its long term and short term needs of finance, a company may issue various kinds of securities to raise funds from public. A company may decide to issue securities because it needs start up capital or to repay debts or even to expand. It may also need an infusion of new management ideas and know-how.

A difference of perspective on a stock amongst people enables continuous buying and selling.

Nil-paid refers to a right to a security that was originally issued at no cost to the seller, but is tradeable.

The big question that mutual fund traders have on their minds is can I buy mutual funds on margin? That is an interesting question and we will come back to why it is practically tough in the Indian context.

Stock exchanges are responsible for protecting the interest of the investors. If certain events affect the financial health of a large number of investors, stock exchanges are responsible for taking some action.

Investors invest in a company with a positive point of view, hoping that every managerial decision will be favourable and contribute to the company’s growth.

The debt/equity ratio, also known as the gearing ratio, denotes the proportion of the shareholder’s equity and the debt used to finance the company’s assets.

Depending on investors' knowledge and the risk profile, investors choose asset classes that ensure good profits. Those who are deeply familiar with the equities market know that it is one asset class that can provide the highest returns.

Over a longer time frame, the Indian rupee has generally followed a weakening pattern. That is due to the inflation differential between India and the US. The Real Effective Exchange Rate (REER) is based on the premise that in order to remain competitive, the INR has to weaken to the extent of the inflation differential.

Investing usually seems like a stress-free side hustle. However, first-time investors often find that the truth is far from this myth. Investing takes time, effort and patience. Investing in the stock market can be tricky and can cost you lots of money if not paid attention to.