Five Corporate Actions and Its Impact on Stock Prices
Dividends There are only a few ways to earn from stocks. Dividends are one of them. When a company makes a profit, it either keeps the entire profit for future
Derivatives
A derivative is a contract entered into by two or more parties that derives its value from the performance of an underlying asset. They are usually leveraged instruments; the trader
OFS and FPO
A private company brings an initial public offering (IPO) by selling shares to outside investors in order to raise funds for various purposes. Reason includes company’s growth and expansion or
Trading Vs Investing
The two types of participants in equity markets; Investors – who work on the principle of buy and forget for a long time in the belief that their investment will
Equity
Equity, also known as shareholders’ equity, is the shareholders’ percentage of ownership in the company. It is the amount of money that would be returned to a company’s shareholders if
Commodity
A commodity market is one that deals in raw materials rather than finished goods, such as cocoa, fruit, and sugar. Commodity pricing is primarily influenced by supply, demand, and scarcity.
IPO
Introduction Every large business today began with a small investment from the promoters. As the company grew in size and earn profit, it expanded into new horizons and verticals by
Indexation, Inflation and Capital gain
Indexation Because all income in India is taxed, you risk losing a significant portion of your gains by paying taxes on such income. Indexation is a method of adjusting an
Mutual funds Glossary
SIP A systematic Investment Plan, also known as a SIP, allows you to invest a small sum in your chosen mutual fund scheme at pre-determined intervals. You can invest in
ETF fund
An ETF is a stock basket created by pooling small-denomination investments from various investors that track a specific index, sector, or commodity, such as the Sensex or the Nifty. ETFs
