Jargons What is Arbitrage Trading? What are Arbitrage Funds? Arbitrage trading is the practice of buying shares of a company in one market and selling it in another market for a profit. This is made possible because the price differences in different markets are not completely correlated and always a minute difference between them. For example: If TCS trades at Rs. 1800.00 on BSE, […] Written by Maarg Vaidya October 14, 2020October 14, 2020
Jargons What is a Buy Back of Shares? Why Does a Company Buy Back its Shares? A stock buyback refers to the situation when a company decides to buy back its own shares from its shareholders at fair market value. In a stock buyback, a company reabsorbs a part of its ownership and rights and reduced total number of shares in the market. A company can decide to buy back its […] Written by Maarg Vaidya October 10, 2020October 16, 2020
Jargons What is ASBA? ASBA stands for Applications Supported by Blocked Amount. Whenever you hear about IPO’s application process, you will encounter the term ASBA. Applications Supported by Blocked Amount is a process which is developed by The Securities and Exchange Board of India (SEBI). It is a process of applying in Initial Public Offers (IPO) and Follow-On Public […] Written by Sanidhya Bhardwaj October 9, 2020October 12, 2020
Jargons What are Fixed Income Securities? Fixed income securities are a group of debt instruments that provide fixed returns. These can be in the form of regular interest payments or repayments of the principal when the security reaches maturity. They are issued by a government, corporation or other entity to finance and expand their operations. Investors in fixed-income securities are typically […] Written by Maarg Vaidya September 11, 2020September 17, 2020
Jargons Who is a Venture Capitalist? You may have heard how the companies which are listed on the stock market raise funds through IPO, FPO, Rights Issue, QIP etc. But, most of the start-up companies are not listed on the market. How do they raise funds? Do the promoters or the founders of the company has to put their own money? […] Written by Sanidhya Bhardwaj September 11, 2020September 11, 2020
Jargons What are Penny Stocks? Stocks that trade at a very low price and have a low market capitalization are referred to as Penny Stocks. Depending on the market capitalization of the company, these stocks are also called as Nano-cap stocks, micro-cap stocks, and small-cap stocks. Although there is no official rule, Penny Stocks in the Indian stock market are […] Written by Sanidhya Bhardwaj September 11, 2020September 11, 2020
Jargons What is an IPO? A company can raise funds through debt, equity or through its own retained earnings. One of the ways through which a company uses equity to raise money comes under Initial Public Offering (IPO). An IPO converts a privately-held company into a public company by selling its shares to the public for the first time. Thus, IPO […] Written by Sanidhya Bhardwaj September 11, 2020September 11, 2020
Jargons What is Contingent Liability? A contingent liability is a potential loss, that may or may not occur in the future. What is a liability? Liability is an event where one party is obligated to pay to another party depending on some contract. This liability has three parts – Non-Current liability, current liability and contingent liability. The events of the […] Written by Sanidhya Bhardwaj September 10, 2020September 17, 2020
Jargons What is Inflation? What are its Effects? Inflation is simply the rise in the prices of goods and services offered. In India, inflation is measured based by two metrics: CPI and WPI. Retail inflation and wholesale inflation is mapped by CPI (Consumer Price Index) and WPI (Wholesale Price Index) respectively. Today, we will see how inflation really affects various participants in the […] Written by Sanidhya Bhardwaj September 10, 2020September 30, 2020
Jargons Uncategorized What is CAGR(Compounded Annual Growth Rate)? CAGR stands for the Compound Annual Growth Rate. It is the measure of an investment’s annual growth rate over time(n years), with the compounding effect taken into account. It is the average year-on-year growth rate of an investment over a number of years. As Albert Einstein famously said, he who understands compounding earns it; he […] Written by Maarg Vaidya September 8, 2020September 16, 2020
Jargons Money Market vs Capital Market These are different types of financial markets which serve different investing purposes of the investors. The fundamental difference between these markets is the timeline of maturity of the instruments traded in both the markets. The Capital Market In Capital market, the participants trade in long-term financing instruments. It serves a purpose of long-term capital requirement […] Written by Mohit Modi September 3, 2020September 5, 2020
Jargons What are Masala Bonds? Masala Bonds are rupee-denominated bonds. These bonds are issued by Indian entities in foreign markets. The term ‘masala’, which means spices in the Hindi language, was used to add some Indian context to the bond and increase the familiarity of Indian culture on foreign platforms. Masala Bonds helps in internationalising the Indian currency. It further […] Written by Sanidhya Bhardwaj September 3, 2020September 3, 2020
Tier-2 Lockdown Declared in London. Is it as Serious as it Sounds? Why the Lockdown? The number of coronavirus cases in the United Kingdom is showing a huge spike. As of October 15th, the country has recorded more than 6,57,000 cases of Covid-19, with 43,245 related deaths, as per official data compiled by John Hopkins University. The infection rates are increasing, with the number of cases doubling […] Written by Cherian Varghese October 19, 2020October 19, 2020
The infamously famous Satyam Scam – The Whole Story Immediate rise after the Birth Satyam Computer Services Limited was one of the biggest IT companies in India during the 2000s. It was started by Ramalinga Raju in 1987. Satyam used to offer various products and services related to software development, business intelligence and data warehousing, consulting and enterprise solutions. Rapidly, the organisation moved from […] Written by Sanidhya Bhardwaj October 17, 2020October 17, 2020
TCS: Tata Group’s Cash Cow TCS has become one of the top IT companies in the world. Even though we have heard of the company, most of us are not really aware of the services that they provide, or the scale at which they operate. It is important to know certain relevant details and facts of a company, before investing […] Written by Cherian Varghese October 16, 2020October 16, 2020
