Learn all about Share Market
Why Use Limit Orders? Key Benefits & How They Work
4 March 2025 | 7 mins read
A limit order is a fundamental trading tool that allows you to control the price at which you buy or sell a stock or asset. Setting specific price conditions ensures that your transactions align with your financial goals and risk appetite. This guide explores what limit orders are, their various types, benefits, and how to use them effectively.
Types of Stock Market Orders & How They Work
4 March 2025 | 6 mins read
In the stock market, an order is an instruction given to a broker to buy or sell a specific security at a defined price or condition. Orders are the fundamental building blocks of trading, determining how and when a transaction is executed. Understanding stock market order types is crucial for traders to navigate the complexities of the market efficiently and optimise their strategies.
What Is Call Option And Put Option?
26 February 2025 | 8 mins read
If you’re new to trading, then it is likely you must have come across the terms “call option” and “put option” often. But what are they? In this guide, you will find out what these terms stand for, their differences, call and put options examples, and other details that will empower you to use the strategies to your advantage.
What Is A Covered Call Options Strategy
26 February 2025 | 6 mins read
There are various strategies that are used to maximise returns and manage risk in options trading. One such popular approach is the covered call strategy. It combines owning a stock and selling call options. This strategy is widely used by investors looking to generate additional income from their existing stock holdings. In this article, we’ll explore the concept of covered calls, their features, benefits, and associated risks, helping you understand how to leverage this method effectively in your portfolio.
What are Options Contracts: Features & Types
26 February 2025 | 6 mins read
Options contracts are financial instruments that are widely used in the financial markets for hedging, speculation, or enhancing portfolio returns. A good understanding of options contracts and their types is vital before using them. Here’s everything you need to know.
What Is Current Ratio? Formula & Examples
26 February 2025 | 8 mins read
The current ratio is one of the most commonly used financial metrics to evaluate a company's ability to meet its short-term obligations. By comparing current assets to current liabilities, the ratio provides a clear picture of a company's liquidity position. Whether you are an investor, a business owner, or simply someone interested in financial analysis, understanding the current ratio is vital for making informed decisions.
Common Stock: Meaning, Types & Benefits
26 February 2025 | 9 mins read
Today, stock investing is one of the most exciting ways to earn money, albeit with some risk. Nonetheless, with easy apps and reputable brokerages, investing in stock is convenient. However easy investing may be, investors are inclined to research stocks. Before doing this, knowing about the stock as a concept is essential. Essentially, there are two kinds of stock: preferred stock and common stock. Knowing about each reveals the implications and advantages you get while investing.
What is a Buyback of Shares? Reasons & Impact
26 February 2025 | 8 mins read
Investing in equity or stock trading is a popular way to grow wealth through capital appreciation over the long run. While considering stock investments, investors must be aware of many aspects of investing in shares, so they are aware of the impact of company actions and other aspects of investing. Something for investors to know about is a share buyback. This is essentially a share repurchase where a corporation buys back its shares from investors, that is, from the markets.
What is Preferred Stock? Types & Features
26 February 2025 | 6 mins read
People involved with investing, and those not so inclined, know the stock market well enough. Stock investing has been around for ages. Nonetheless, there are kinds of stocks you can invest in based on the companies they represent, or even based on the nature of the stocks themselves. As you may know, the word “stock” represents equity or ownership in any company. Any individual can buy stock and if they do, they become shareholders of the company based on their ownership of shares held. In the stock market, there are two kinds of equity: common stock and preferred stock. Preferred shareholders have a claim on company-issued dividends, but are imposed restrictions on voting rights in any company whose stock they own. This article is about aspects of preferred stock that all investors must know.
Insider Trading: SEBI Regulations & Penalties
26 February 2025 | 6 mins read
In an attempt to tighten the grip on insider trading in India, SEBI, or the Securities & Exchange Board of India, has determined that it would broaden the definition of “connected persons” (insiders) who have easy access to company price-sensitive data and information. According to a recent decision, a “connected person” would also include anyone, be it a company or an employee, of which the “connected person” is a partner. Furthermore, any family member linked to a “connected person”, sharing a residence with them, would also be held accountable.
What is a Limit Order and How Does it Work?
26 February 2025 | 7 mins read
Traders and investors immerse themselves in the stock market with two basic aims: either they want to sell stocks at a profit, the highest possible price they can get at any given time, or they want to buy stocks low so they can sell them high sometime in the future. While placing an order to buy or sell assets and securities, the most common being stock in the equity markets, investors and traders use a “limit order” method to hedge risk and get the best prices possible.
Earnings Per Share (EPS) - Meaning, Types & Importance
26 February 2025 | 8 mins read
The earnings per share or EPS is a significant metric in the realm of stock investment. Earnings per share calculates the measure of a company’s profitability by giving values of the amount of profit each share of a company’s common stock earns. The EPS is computed when you divide the net income of a company (without dividends) by the total amount of shares outstanding. In case a calculation shows an EPS on the higher side, it indicates that the company is making positive gains. Such companies may be highly attractive to investors as they portray the potential for earning and let investors know that the company is doing potentially well in terms of its operations and overall performance.
What is a Bull Market? How to Benefit from a Bull Market
26 February 2025 | 8 mins read
Rather than a physical concept, a bull market is a period that a financial market may experience when prices of securities and assets are on the rise or are estimated to rise. Commonly, in bull markets, prices of assets are predicted to increase by approximately 20%. Investors refer to this surge as a “bullish market trend”. As you may have gauged, a bull market presents opportunities for investment because the market sentiment is optimistic. Consequently, a bull market results in dynamic trading activity over various stock exchanges.
What is a Day Order? Meaning & Overview
26 February 2025 | 6 mins read
Many years ago, people trading in the stock market were composed of employees of large corporations, financial firms, brokerages, and well-known trading bodies. With the arrival of online trading and the dynamic release of news, the trading playing field has been levelled, so to speak. Trading apps are easy and convenient to use these days, even for the novice trader or the enthusiastic senior trader. Trading apps are evolving into dynamic trading systems that give you the chance to leverage opportunities anytime and anywhere. Given this modern trading scenario, day trading, or giving a day order, has emerged as a fast-paced method of investing in which traders purchase and sell stocks, and other securities, on the same day.
Fixed-Income Securities - Types, Risks & Examples
26 February 2025 | 7 mins read
To balance your financial portfolio, you may consider investing in different instruments. The idea for a diversified portfolio is to have some securities and assets that may yield high returns but are relatively risky, like stock. Other securities in your basket could be fixed-income securities that are more assured than high-risk assets like stocks. Fixed-income securities may deliver assured returns in case your other investments let you down due to the effect of market volatility.