Learn all about Share Market
What is Return on equity (ROE) - Formula & Calculation
20 February 2025 | 7 mins read
When it comes to trading in stocks or investing in mutual funds, there are several metrics that need to be considered. Each of them highlights the performance of the company and when considered together gives a picture of its financial health. One such metric is Return on Equity, also known as ROE. Let’s find out more about it and how you can use it to make smart investment decisions.
What is Price/Earning-to-Growth (PEG) Ratio?
20 February 2025 | 8 mins read
The Price/Earnings-to-Growth ratio, or Price Earning Growth ratio, or simply PEG ratio, is a popular metric used by investors to evaluate the value of a stock relative to its growth potential. Unlike the traditional Price-to-Earnings (P/E) ratio, the PEG ratio incorporates a company's expected growth rate, offering a more comprehensive view of its valuation. But what exactly is the PEG ratio, and how does it help investors make better decisions? Let’s explore its meaning, formula, interpretation, and limitations.
What is a Candlestick Pattern?
20 February 2025 | 7 mins read
Successful traders use a variety of tools to identify the right entry and exit points in the stock market. Among them, one of the most popular tools is the candlestick pattern. Candlestick patterns are vital for technical analysis and are widely used by traders to predict future price movements in various financial markets. Let us dive deeper into the concept of candlestick patterns, how to read them, key features of different patterns, their advantages and limitations, and how to incorporate them into your trading strategy.
Advantages & Disadvantages of Pledge Shares
20 February 2025 | 6 mins read
Pledging shares is a common practice in the stock market that allows shareholders, especially promoters, to leverage their holdings as collateral for securing loans. While it can offer quick liquidity and financial flexibility, pledging shares also comes with risks. This article explains the concept of share pledging, its benefits, disadvantages, and factors to consider before pledging or investing in companies with high pledged shares.
Understanding Share Pledging by Promoters and Its Impact on Stock Valuation
20 February 2025 | 7 mins read
Share pledging is a common practice in the share market, particularly among promoters of companies. It involves using shares as collateral to secure loans or raise funds for various purposes, such as business expansion, debt repayment, or personal financial needs. However, this practice can significantly impact the stock's valuation, investor confidence, and market perception. Understanding the reasons behind share pledging, how it works, and its potential risks is crucial for investors. This article delves into the nuances of share pledging, focusing on promoters, its benefits, risks, and how it affects stock valuations.
What is Quote Currency: Meaning & Examples
14 February 2025 | 6 mins read
If you’re considering foreign exchange trading or FOREX trading, then understanding the basic terminology is critical to making informed decisions. One of the most fundamental concepts is the quote currency, which plays a central role in currency exchange quotes. Let us break down the meaning, examples, and significance of quote currency, along with the benefits, risks, and key tips for trading in the foreign exchange market.
What Is A Currency Pair And How They Work
14 February 2025 | 7 mins read
When it comes to foreign exchange trading or Forex Trading, a currency pair is a term used to describe the two currencies that are being traded against each other. Trading currency pairs allows you to profit from the fluctuation in the value of one currency against another. Understanding how forex currency pairs work is essential for anyone looking to participate in Forex trading. In this article, we will explore the concept of currency pairs, why they are traded, the factors that impact their movements, and the different types of pairs available in the Forex market.
Difference Between Hedging and Speculating
13 February 2025 | 7 mins read
Managing risk and seeking opportunities in the stock markets are essential for financial success. Two widely used approaches — hedging and speculating — serve these purposes but differ significantly in their methods, objectives, and outcomes. Understanding these concepts and their distinctions is critical for investors, traders, and businesses to navigate the dynamic world of finance effectively.
What is a Futures Contract? Meaning, Features & Advantages
13 February 2025 | 6 mins read
A futures contract represents a legal and binding agreement between two parties, to purchase or sell an asset, determined in the contract, at a definite price on a fixed date in the future. The asset could be anything from a stock to a commodity, or currency. Contracts that fall into the basket of futures contracts are standardised for both quantity and quality. Trading in these contracts is conducted on a futures exchange with buyers making commitments to buy an asset by an expiry date, and sellers agreeing to deliver an asset on an expiry date. In case you wish to delve into this form of trading assets, you must know some basics like what contracts entail, their features, and some key perks and cons of this kind of trading. Let’s get down to the business of futures contracts then!
What is a Cumulative Fixed Deposit?
13 February 2025 | 7 mins read
While the stock market can give you lucrative returns, some investors like to stick with assured returns like those you get from a fixed deposit (FD) scheme. Fixed deposits are offered by banks and certain non-financial banking companies and are of two types: cumulative and non-cumulative. The distinction is mainly due to the interest that is paid from either. The kind of FD you opt for is based on whether you wish to have your interest payments made regularly or when your FD reaches maturity.
What is a Debenture? Meaning, Features & Types
13 February 2025 | 9 mins read
Debentures are popular investment devices that have been developed to suit long-term investors. Debentures meaning translates to this being a debt instrument that has no backing/collateral. Debentures are backed up by the reputation and creditworthiness of the organisation issuing them. Furthermore, the issuance of debentures is conducted by governments and companies to raise funds. Simply put, debentures are a kind of loan provided by investors to any government body or company. In return for this, the issuing entity promises repayment of the principal sum along with regular payment of interest at rates that are fixed in advance.
Best Option Trading Strategies that Every Trader Should Know
13 February 2025 | 8 mins read
In case you wish to scale up your stock trading, you can familiarise yourself with option trading strategies. If you are planning to hit the trading floor, this article has you covered and teaches you about some of the best option trading strategies, their implications, and how to use them. A background in basic options trading strategies may be a good idea for you to master some further complex moves described here.
What is Time Decay in Options Trading?
13 February 2025 | 7 mins read
Investors who deal with options trading may know that time is a crucial variable that can importantly affect the value of any options contract, therefore, its potential to make profits. In options trading, a single most significant concept to be familiar with is that of “time decay”. This refers to gradual erosion of the value of an options contract as it approaches the date of expiry. This concept is an inherent phenomenon of the time-sensitive characteristic of the options contract and can critically impact decision-making and trading techniques. It’s worth your while to read this article to know what time decay is and how it aids traders to strike when the iron is hot to make profits in options trading.
What is Momentum Trading: Meaning, Strategies, and How It Works
3 January 2025 | 7 mins read
Designed to take advantage of continuing market trends, momentum trading is an efficient trading strategy that assists traders in realising price shifts, helping them achieve profits. The strategy of momentum trading works on the principle that the momentum of a price trend - its likelihood to continue in its present direction, either upward or downward - can be effectively leveraged to gain substantial profits. Typically, such an approach to trading involves analysing shifts in price as well as volumes in trading. This is primarily done to determine the sustainability and strength of any market trend.
P/B Ratio: Price-to-book Ratio: Meaning, Formula & Limitation
3 January 2025 | 6 mins read
The Price-to-Book (P/B) ratio is a key metric in stock market analysis that helps with the assessment of a company's valuation relative to its book value.