Mission 2020

People who succeed in the stock market also accept periodic losses, setbacks and unexpected occurrences. Calamitous drops do not scare them out of the game…..Peter Lynch A newbie investor or a veteran – a stock market glossary is needed by both. This glossary will provide a quick explanation of important ‘D’ terms and expand your overall stock market vocabulary and language. Familiarize yourself with these terms and understand stock market talk better. 21 Important ‘D’ Terms Dalal Street : A…

Read More Read More

A newbie investor or a veteran – a stock market glossary is needed by both. This glossary will provide a quick clarification on important ‘C’ terms and expand your overall stock market vocabulary and language. Familiarize yourself with these terms and understand stock market talk better. 27 Important ‘C’ Terms Call Option : This is a derivative contract between two parties. An option which gives the holder the right, but not the obligation, to buy a fixed amount of a certain stock…

Read More Read More

A newbie investor or a veteran – a stock market glossary is needed by both. This glossary will provide a quick clarification on common stock market ‘b’ terms and expand your overall stock market vocabulary and language. Familiarize yourself with these terms and understand stock market talk better. 22 Important ‘B’ Terms Basis Points (BPS) : This is a unit of measure for interest rates and other percentages in finance. One basis point is equal to one hundreth of one…

Read More Read More

Options are a very significant and interesting part of the derivatives market all over the world and particularly in India. An option is a derivative contract between a buyer and seller. Here, the first party gives the second party the right, but not the obligation, to buy or sell to the first party the underlying asset at a later date. In other words, the second party is given an ‘option’ or the right to make the transaction. However the second…

Read More Read More

  Derivative market is the other important segment of the stock market. It is also called Futures and Options market or F&O market. F&O segment is the most popular trading segment all across the world and in India.   Origin of Derivatives The origin of derivatives can be traced back to ancient Greece. The advent of modern day derivatives is attributed to and was initially developed in commodities. The first “Futures” contracts can be traced to the rice markets in…

Read More Read More

The stock market has two main segments. One is the Cash market or Equity Market Segment. The other is the Derivative Market or the F&O Market segment. Cash Market In the cash market segment, traders buy and sell stocks in the present. Cash markets involve immediate delivery and are primarily influenced by supply and demand. The delivery of the share normally takes place in T+2. This means the trade day plus two more business/ working days. The cash market may…

Read More Read More

Debentures, like bonds, are a type of debt instrument that can be issued by a company. It is generally issued to raise medium or long term funds from the public. In the Indian Stock Market, the terms bonds and debentures are interchangeably used.   Main Features of a Debenture A debenture is a debt instrument that acknowledges a loan to the company. It is a movable property. It is a certificate issued under the seal of the company and is…

Read More Read More

What are Bonds? Bonds are fixed income instruments. They are a type of loan taken by companies. They are contractual rights to receive or deliver cash. Very simply, bonds are debt instruments created for the purpose of raising capital. A bond is a loan taken by the company. Owners of bonds, the bondholders, are creditors and the issuer of the bond is the borrower. Investors are actually lending money to the company when they buy its bonds. In exchange, the…

Read More Read More

  Preference shares are a long term source of finance for a company. They have elements of both Equity shares and Debts. Preference shares are those shares of a company with dividends that are paid out first to their shareholders before dividends on equity shares are issued. In other words, these are shares which are preferred over equity shares in payment of surplus or dividend. The preference shareholders have a preferential right to receive dividend at a fixed rate before…

Read More Read More