what is stock marketUsually, people get confused and clueless when it comes to stock marketing. But with the right information, anyone can get familiar with terms related to stock markets as well as their workings. So with the motive to spread financial awareness, we bring you a complete guide to the stock market which will help you to learn the basics from scratch.
What is Bombay Stock Exchange (BSE)?The Bombay Stock Exchange is the official name of BSE. With a history dating back to 1875, the BSE is the oldest Asian stock exchange and was the first in India to be recognised by the government as such under the Securities Contract (Regulation) Act of 1957. Since then, it has played an essential role in the growth of the country's capital market.
What is National Stock Exchange (NSE)?NSE stands for National Stock Exchange which is India's largest financial market. It has progressed in a refined, electronic marketplace ranking fourth globally, as indicated by equity trading volume. Though it was integrated in 1992, it started trading in 1994 as it launched a wholesale debt market and cash market after that. National Stock Exchange is the first electronic limit order book to trade and ETFs; it is considered a founding base in the financial market of India.
What is Multi Commodity Exchange(MCX)?MCX stands for Multi Commodity Exchange. It is like trading stocks and shares; the only difference is that the investor exchanges money for commodities with the Indian government. The MCX has been operational since 2003, and it is the largest commodity derivatives exchange in India. On this online platform, buyers and traders can share commodities that can range from mined goods to agricultural products.
What is National Commodity & Derivatives Exchange Limited (NCDEX)?Trading commodities in India is one of the factors that has led to its flourishing economy. Although many investors still feel safer with traditional stock exchanges, the commodity exchange market is growing at a rapid rate. One of the biggest commodity exchanges in India dealing with the trade of agricultural products is the National Commodities and Derivatives Exchange (NCDEX). It was incorporated as a public limited company in 2003 and uses modern technology to aid in error-free trading.
What is a DEMAT Account?A DEMAT account works like a bank account, the only difference being that this holds stocks and shares rather than actual money. Owners of a DEMAT account can trade these shares in the stock market as these are all in electronic formats. These accounts also eliminate the need to handle documents that can easily be lost, and the variety of investments that people can make is highly variable.
What is IPO?Investing in an initial public offering (IPO) has the potential to provide excellent profits. However, before investing, it's critical to know how these assets are traded and the additional risks and restrictions that come along with IPO investments are different from trading regular stocks. An IPO (initial public offering) occurs when a private firm sells stock to the general public for the first time (IPO). A company's ownership changes from private to the public via an initial public offering (IPO). As a result, a company becoming public is commonly referred to as an IPO. An IPO can be a good option for companies just getting started or that have been around for
What are Bull and Bear?In the investment world, the terms "bull" and "bear" are commonly used to characterize market conditions. These terms describe how stock markets are performing in general, such as whether they are expanding or declining in value. The direction of the market is a major force that has a substantial impact on your portfolio as an investor. As a result, it's crucial to understand how each of these market conditions may impact your investments.
What is a Bond?An investor lends money to a borrower in the form of a fixed-income instrument known as a "bond" (typically corporate or governmental). It is common for businesses and governments to use bonds to raise money for projects and operations. Bondholders are those who owe money to the issuer. If you have a fixed-rate or variable-interest bond, you can specify how much you owe in principal and how often you pay it back to the owner. Here’s a guide for you to understand the concept better.
What is Endowment ?A trust, a private foundation, or a public charity are the most common types of endowments. Educational institutions, such as colleges and universities, manage several endowments. Others are supervised by cultural institutions like art museums and libraries, religious organizations, and service-oriented organizations like retirement homes and hospitals. In some situations, a specified percentage of an endowment's assets may be used each year, allowing the amount removed from the endowment to be a mix of interest and principal. The principal-to-income ratio would fluctuate from year to year depending on market rates.
What is Copay ?The expense of health care has been rising steadily over the last few years. This makes it difficult for those in the middle- and lower-income groups to get effective treatment at a reasonable price. Things are becoming easier, though, thanks to innovative health insurance policies. There's no denying the importance of having health insurance. However, before you leap on the concept of health insurance, you need first to learn the lingo so that you can read the policy document more easily. In the case of health insurance, one such key term is a copay.
What is a home equity line of credit (HELOC) ?Credit cards are a common technique to maintain consistent access to a line of credit that you can borrow and repay over time. They aren't, however, the only option to fund an expense - especially if you're planning to spend tens or even hundreds of thousands of dollars on a home repair, debt repayment, or even the purchase of a second property. However, if you own a home and have been paying mortgage payments on it, you may have access to funds for that refurbishment or second property through a home equity line of credit. A home equity line of credit (also known as a HELOC)
What are C.D.O.s ?A stock market is risky for everyone. It includes newcomers and experienced investors. Everyone must have a buffer to protect themselves against the risks in the stock market. This article is about the CDOs in the stock market. They help to shift risk and capital. The long-form of CDOs is collateralized debt obligations. It is a product with a complex financial structure. It helps manage risk if your loan defaults. A mang creeper possesses loans into products and sells them to investors in the secondary market.
What is Foreclosure?When a borrower fails to make several mortgage payments, the lender takes custody of the property is called a foreclosure. You committed to an agreement with your bank or lender when you bought your home and took out a mortgage. They provided you with the funds to purchase the home upfront in exchange for you signing a contract committing to paying a fixed amount each month for a specified period of years. If you fall behind on your payments or stop making them altogether, the bank or lender can foreclose on your home and sell it to recoup the money you owe.
What is a credit rating agency?Individual companies, stocks, government, corporate, or municipal bonds, mortgage-backed securities, credit default swaps, and collateralized debt obligations can all be assigned a credit risk rating by credit rating agencies. The likelihood of a borrower defaulting on their loan repayment obligations is measured by credit risk. The rating provided to one of these securities can be used to determine whether the security is a good investment or a risky gamble. Investment-grade securities have a higher rating, whereas speculative securities have a lower rating.
What Is Attrition?A company is a dynamic system of components that must all operate together in order for the company to function properly. Attrition is a business factor that affects both personnel and the company as a whole. Understanding what attrition is and how it affects a company might help you avoid high employee turnover. We'll go over what attrition is, the different form of attrition, the benefits of attrition, and how to calculate attrition rates in this post. Employee attrition is a metric that measures how many employees depart a company. Attrition is measured as a proportion of the company's total workforce.
What is open interest?The stock market is full of technical terms with deep meanings. It is crucial to understand these terms and their significance to become a successful trader in the stock market. One of these terms is called open interest. It refers to the number of options in future contracts active at the time. It indicates the number of securities that have not been closed at a given time. Market fluctuations significantly affect the open interest, due to which it increases and decreases with time. The formation of new contracts causes the open interest value to increase and vice versa. High open interests indicate there are several buyers and sellers for that security. Contrary, low open interest values imply that buyers and sellers are uninterested in closing positions. People can make liquidity and market activity using open interest.
What is Hedge?Making money in the stock market is not an easy task. However, there are several tips and tricks to make profits and industry. Hedging is a technique in the stock market that can make your investment game better than before. Irrespective of the investment type, every investor should understand the practice of hedging in the stock market. Hedging is a crucial technique for portfolio appreciation and protection.
What is Recession?Every country goes through periods of growth and decline in its economy. It is rare for any country to maintain positive growth without any setbacks. A recession is a period of economic decline recognizable by the following GDP. It is a time marked by unemployment, low salaries, and a loss in living standards. Most countries in the world have experienced recession at some point. The decline in the economy for two consecutive quarters indicates a recession. However, the recession begins well before the reports of the two quarters come out. It requires time to determine whether the country has truly gone into a recession. Recession often does not last for a long time but leaves behind a significant impact. Recession affects the following areas in an economy:
What Does SEBI do?As India is a billion-dollar economy, its capital markets are also quite massive as numerous investors park their funds in companies listed in stock markets. For the protection of such investors and smooth functioning of capital markets, there need to be certain regulations and a regulatory body to govern these institutions. That is where SEBI makes a difference. Briefly known as 'Securities and Exchange Board of India', it keeps an eye on every matter and regulation related to stock markets, including National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). It constantly attempts in protecting the retail investor's interest along with enforcing and amending necessary rules and regulations timely.
What is Security Transaction Tax (STT) ?The Security Transaction Tax (STT) was initially implemented in the Union Budget of 2004 and is now in effect. Following the discovery of capital gains tax avoidance incidents via genuine and fraudulent losses, the concept of STT was conceived and developed. The goal of introducing the STT was to reduce the amount of money kept out of the country by those who made money by trading in securities. For this reason, the STT was established as a means of achieving the true potential of taxing the stock markets. Consequently, even though long-term capital gains (LTCG) tax was exempted, STT was implemented to ensure that no tax avoidance occurred. Finally, in 2019, long-term capital gains (LTCG) also came under the purview of tax.
What is stagflation?Stagflation is a phrase used in economics to explain what happens when economic development slows or stops, unemployment is high, and the price of goods and services continues to rise at the same time. What makes stagflation so bad? When you combine a stagnating economy with out-of-control inflation, you get a toxic concoction of economic conditions that might make everyone feel a little queasy. People not only have less money to spend, but the value of the money they do have decreases because they can't buy as much as they once could.
What is The National Debt of The United States?The federal government's debt is known as the national debt. Sovereign debt is also known as country debt or government debt. The national debt of the United States is made up of two categories of debt: public debt and intragovernmental debt. The public debt is the amount the government owes Treasury investors. People from the United States, international investors, and foreign governments are among the investors. The federal government owes other government agencies intragovernmental debt. It pays for pensions and other government programs, such as Social Security in the United States. When the federal government spends more than it receives in tax revenue, it contributes to the national debt. The debt is increased with each year's budget deficit, while the debt is decreased with each year's budget surplus.
What Do Rating agencies Do?A rating agency evaluates a company's or government entity's financial strength, particularly their ability to make principal and interest payments on their loans. A credit rating provided to a debt shows an agency's belief in the borrower's ability to meet its debt commitments as agreed.
What is the Cash Reserve Ratio (CRR)?In India, the Monetary Policy Committee of the Reserve Bank of India decides on the Cash Reserve Ratio in its monthly Monetary and Credit Policy. Every six weeks, the Reserve Bank of India conducts a monetary policy review, which includes a review of the CRR. The CRR is one of the RBI's main weapons for maintaining a desirable level of inflation, controlling the money supply, and ensuring liquidity in the economy. The lower the CRR, the more liquidity there is in the banking system, which leads to increased investment and lending, and vice versa. Higher CRR can have a negative influence on the economy since it reduces the availability of loanable money, which slows investment. As a result, the economy's money supply is reduced.
What is the futures and options contract expiry?The expiry date, as the name implies, is the date on which a contract comes to an end. Every derivative contract that is based on an underlying security, such as a stock, commodity, or currency, has an expiration date, even if the underlying security does not. A derivative contract based on an underlying security is only valid for a certain amount of time before it expires. The derivative contract is finally resolved between the buyer and seller on the expiry date
What is leverage?Debt is terrible; we've all heard it before. That isn't always the case, though. Debt can be used to establish credit, begin generating equity through the purchase of a new home, or even leverage it to make a profitable investment. Leveraging is when you use borrowed funds for an investment, such as loans, securities, capital, or other assets, to potentially increase the investment's return. Here's everything you need to know about leverage, including what it is, how it works, and how it's utilized by business owners, investors, and regular individuals wanting to make money.
What are Balanced budget, Surplus budget, and Deficit budget?A government budget is an annual financial statement that details the planned government expenditures and receipts or revenues for the coming fiscal year. Budgets are divided into three categories based on the viability of these estimates: balanced budget, surplus budget, and deficit budget. The following are brief descriptions of the three types of budgets:
What are Jobless Claims?One metric to keep an eye on if you're trying to assess business conditions or create economic forecasts is the number of weekly jobless claims. Jobless claims are a count of people who have applied for unemployment benefits. The US Department of Labor publishes them every week. Initial claims that are made immediately after a worker loses a job and continuous claims that are filed by those who are already receiving unemployment benefits, are the two types of jobless claims. Learn how Jobless claims work and how to interpret them when watching the news. Learn why economists keep a careful eye on jobless claims, as well as some of the drawbacks of utilizing them.
What is cost-cutting?If a company's profitability is suffering or it wants to find new methods to save money, it may devise and implement a cost-cutting strategy. Cost-cutting is frequently required, but it necessitates a strategy and meticulous attention to detail before implementation. When opting to cut expenditures, it's critical to analyze all of your options thoroughly if you're in a managerial position. We explain cost-cutting, examine why a corporation might cut costs, provide some recommendations for developing a successful cost-cutting strategy, and detail how to design and manage a cost-cutting strategy in this article.
What Are Futures?Futures are capital assets that compel the counterparties to trade a commodity or any underlying asset at a preset date and value in the future. Futures are indeed a type of speculative business deal. Irrespective of the prevailing market value at the end date, the purchaser must purchase or sell securities at the predetermined price on the day of the renewal. In addition to actual products, underlying securities may also contain various investment products. Futures trading specify the amount of the asset class to be traded, and they are standardised to make deals on a futures market more convenient. Futures contracts are used for various purposes, including balancing and selling prediction.
What is the Pre-open market?Trading hours in the Indian stock market begin at 9:15 a.m. and end at 3:30 p.m. However, there is a 15 minute time before the opening hours known as the pre-open market and has a lot of significance in the trading industry. The pre-open market sessions begin at 9 a.m. and end at 9:15 a.m., and they have been in India since 2010. The purpose of a pre-open market session is to reduce the volatility due to sudden announcements. The NSE and BSE pre-open market timings are the same. Let us learn more about the pre-open market here.
What Are Gross Domestic Product of USA (GDP)?The gross domestic product (GDP) is a metric for determining a country's economic output. Countries with greater GDPs produce more goods and services and, as a result, higher the standard of living of the people also. Many people and political leaders related to GDP development as a vital indicator of national success, using the terms "economic growth" and "GDP growth" interchangeably. But several economists contend that GDP should not be used as a proxy for overall economic performance, greatly lowering the success of society in general, due to many constraints.
What is Portfolio?Portfolios of investments may be divided into numerous categories, each serving a certain function. Bonds, equities, mutual funds, pension plans, real estate, and even tangible assets such as gold may be included in this portfolio of financial instruments (coins or bars). Everything that can increase in value or generate a profit is included in this category. Many people even invest in precious artifacts in the hope of making money in the long run. An optimal investment portfolio has a wide range of assets in it. Government bonds, small-cap stocks, and foreign currencies are examples of this. However, good portfolio management is critical. Your returns might suffer as a result.
What is an angel investor?If you're a new company in its early stages, getting capital from an angel investor can be a terrific method to get money without taking on debt. Working with angel investors also provides you access to their expertise and mentorship, which can be invaluable in the early stages of a company's development. Understanding the benefits and drawbacks of seeking finance from angel investors might help you decide whether this is the best option for your company. In this essay, we'll go over what angel investors are, how you discover them, and the primary benefits and drawbacks.
What are Treasury Bills?T-bills, or quick cash market products, are known as T-bills. T bills are an effort to reduce financial deficits by the RBI on behalf of the country. It is a debt obligation with a promise of future reimbursement. In most cases, the money collected is utilized to meet short-term government needs. It is also employed to lower the country's total budget surplus. A zero-coupon rate, i.e., no payment generated on Treasury notes or T-bills, may be purchased at a discount from their face value by private individuals. Investors receive the difference when the securities are later exchanged at an asset value. The face value of a 91-day T-bill, for example, is reduced from Rs. 100 to Rs. 95. T-bill holders get Rs.100 at maturity, netting them a profit of Rs.5 each. Because of this, the Central Bank employs it as a vital monetary tool. Additionally, by regulating the overall money supply and generating cash, RBI can do its job more effectively.
What is Forex?The term "money" has evolved through time. Today, we speak of "currency" when saying "money." Until a few centuries ago, "money" and "currency" had completely distinct connotations. Before the current monetary system, the world existed on a "gold standard" monetary system. Swapping foreign currency in the forex market (also known as forex or FX) is the purpose of this market Since it is the world's biggest market for currency exchange, the transactions that take place there influence everything.
What is Call (CE) ?As a rule, a call in finance means one of the following: If you have the ability but not the responsibility to acquire a certain quantity of a specific company's stock, you have the opportunity to do so using a call option. A call auction happens over a predefined timeframe in which purchasers set a higher and lowest incredible deal for securities to be traded on a platform. Such a technique promotes fluidity and reduces instability by offering goods and services together. As a result, the bidding is often known as a "call market."
What is Arbitrage?Taking advantage of pricing discrepancies across marketplaces is known as arbitrage. It is common practice for traders to acquire the lower-priced item in one market and then sell it at a greater price in another in order to make a profit. Arbitrage is a kind of investing in which investors take advantage of price differences between the same asset on multiple marketplaces. Arbitrage practices in markets have long been used by traders with a keen eye for a bargain. In order to find and take advantage of complex arbitrage methods, financial experts now employ sophisticated algorithms.
What is Margin Call?A margin call is when a brokerage tells an investor that they need to deposit cash, move in eligible securities, or sell stocks and securities to raise a certain amount of money in a few days. In most cases, a margin call is made when the value of the securities in the account drops, which means the investor's equity is lower. There is a "margin call" when an investor's equity in their margin account falls below the brokerage's "maintenance margin," as well as regulations and exchange rules.
What is Capital Gain Tax?On the sale of equities valued at more than Rs.1 lakh, long-term capital gains (LTCG) are taxed at 10%, while short-term capital gains (STCG) are taxed at 15%. (STCG). Debt mutual funds are also subject to capital gains tax, both long and short term. Taxes on total and protracted capital gains on investments are 20% with annual increases or 10% without adjustment, based on a taxpayer's Individual Taxpayer Identification Number (ITIN). The practice of modifying prices to take shifts in the overall level of prices is referred to as "indexation". Inflation raises the cost of goods, which reduces profit margins for businesses.
What do Stock Brokers Do?To effectively complete a stock trading transaction, you will need the assistance of an intermediary who will assist you in acquiring and selling stocks more efficiently. In this case, the intermediary might be either an individual or a business that has been approved to deal in stocks on your behalf. Financial institutions, individual investors, and corporations may all benefit from the services of a stockbroker, who is a registered financial market representative. A registered representative or a broker are other terms for a stockbroker. A stockbroker is often involved in acquiring or selling equities on national stock markets.
What is Put (PE) ?A put option is a contract that gives the holder the ability (but not the responsibility) to purchase an asset at an agreed sum, which is called the striking price. These companies reckon that the valuation will decrease by purchasing a put option. The more profitable the option contract gets with a declination of actual stock value, the more attractive it becomes. Possibilities on put options can be exchanged on a range of items, such as equities and cryptocurrencies. There are two types of options: put and call. Put options are those that allow you to sell an asset class for less than what you paid for it at the time of the option agreement's termination.
What is short-selling?The standard, most common method of earning money in the stock market is this: buying shares at a lower price and selling them at a higher price. Most people require years of study to gain expertise in this standard method. They think that one can only profit in the share market when the prices continuously increase, but it is a misconception. However, there is a way to earn money even while the market experiences downfall in prices.
What is Trade Surplus in Countries?Having a positive trade balance is what constitutes a trade surplus. As a measure of a country's capacity to sell more than it consumes, trade surpluses are used. The entire worth of imports is deducted from the absolute value of exports to reach a trade balance. A trade surplus replicates the net incursion of internal capital into the foreign market. When there is a trade surplus, the net outflow of goods and services is greater than the net inflow. TB = EX – IM In other words, when exports surpass imports, the trade balance is positive.
What does CDSL do?A depository functions in the same way as a bank, with the main difference being that a bank stores money, while a CDSL holds stocks, bonds, and other securities. Upon request from an investor via a registered Depository Participant, it serves as an administrative entity that owns the investors' stakes in an electronic format (DP). The fundamental goal of Central Depository Service Limited is to provide investors and traders with depository services that are safe, dependable, beneficial, and secure. The CDSL began operations in February 1999 after obtaining India's Securities and Exchange Board (SEBI) approval to do so. They provide various services for keeping assets such as stocks, bonds, commercial papers, government bonds, and certificates of deposit, among others
What does NSDL do?As a financial institution, the National Securities Depository Limited (NSDL) holds physical or non-physical certificates, i.e., dematerialized securities. Depository accounts, such as bank accounts, are kept in these securities. Since ownership is transferred only via book entries, it allows for the quick transfer of securities. Since this is usually done electronically, the additional time involved in exchanging physical certificates once a deal is completed is no longer an issue. The National Stock Depository Limited (NSDL) was created on November 8, 1996, and is the first and biggest depository in India. NSDL was designed for the exclusive purpose of processing dematerialized securities in the Indian capital market. On average, NSDL creates 3602 new accounts per day.
What does The Reserve Bank of India (RBI) do?Founded on April 1, 1935, under the Rbi Act, the Reserve Bank of India (RBI) is India's monetary system and primary financial institution. The Reserve Bank of India is responsible for maintaining economic security in India through the use of financial regulation. It is also in place to regulate its monetary and banking systems. Indian monetary authority and a government entity, the Reserve Bank of India, is in charge of the generation and circulation of the currency as well as the monitoring and supervision of the country's financial system. It is headquartered in New Delhi. The organization is also in charge of overseeing the nation's primary payment networks and working to advance the growth of the economy.
What is Mutual Fund?Mutual funds are investment vehicles managed by investment firms that gather money from a wide range of clients and invest that money for those investors on their behalf. Stock, bond, commodity, and short-term debt funds are the most often used types of mutual funds. Let's take a closer look at mutual funds' most crucial features.
What is F.E.D?For a country or a group of countries, the national bank is a financial institution with preferential authority over access to credit transmission and supply. The money supply is generally formulated by the monetary authority, which regulates financial institutions in economic systems. In reaction to the economic meltdown of 1907, President Woodrow Wilson enacted the Federal Reserve Act, establishing the F.E.D. The Fed Reserve Program's chief supervisor, the Fed, has wide-ranging powers to maintain monetary sustainability. Participating organizations can finance from it as a final option if they can find no other donor. Aside from being known as the Fed, it is responsible for keeping the economy stable. On top of all that, it's the nation's top economic sector supervisor.
What are Commodities Market?If you were under the impression that the stock market was the only financial market in the world, you're in for a pleasant surprise. Although the stock market is the most widely traded financial market globally, many others are just as popular, including the currency and commodities markets. Let's go a bit further into the intricacies of the commodities market and attempt to grasp the fundamentals. Commodities are bought and sold on the commodities market, like how shares of a limited company are exchanged on the stock market. This financial market is commonly used as a price discovery mechanism for a broad range of products and commodities by producers, manufacturers, and wholesale dealers.
What is Bond yield?A bond's yield is a percentage of interest rate that expresses the expected earnings and returns on a fixed-income investment over a specific period. The yield on a bond is calculated in various ways, each revealing a different aspect of the bond's potential risk and reward. When you buy bonds, you effectively lend money to the company issuing them. As long as a bond is outstanding, its issuers promise to pay interest to bondholders and then return the principal to investors. A bond's yield can be calculated by dividing its coupon payment by its face value. The coupon rate is a term for this.
What is Inflation?An increase in the purchasing power of one currency over time is known as inflation. It is possible to calculate the rate at which purchasing power is eroding in any given economy by tracking changes in the average price level of a selected basket of goods and services across time. The general rise in prices often expressed as a percentage shows that a currency unit is functionally worth less than in prior periods of the same currency. Understanding the Inflation. People need many goods and services to have a good quality of life. In addition to commodities like wheat and other staple foodstuffs, energy and transportation services such as electricity and gas are also included in this category. An economy's total rise in the price of goods and services may be represented by a single metric, known as inflation, which measures the effect of price increases on a wide range of different types of commodities and services.
How Does the IPO allotment decided ?An IPO (initial public offering) is a significant milestone in a company's history. It's an indication that a firm has finally evolved into a fully-fledged, effective organization with enough market goodwill to begin raising capital from the general public. An IPO is frequently baked into the list of things that a venture-capital-funded firm must accomplish to fulfil the expectations of their investors by providing an 'exit.' IPOs are usually done on a large scale and result in a few changes in a company's ownership structure. Companies can now increase operations, engage in product development, recruit superior people, and so much more with a fresh inflow of cash. This occurs at the cost of dilution in the ownership structure, and the price at which the stocks trade reflects the investors /owners faith in the company's future potential.
What is an Asset Management Company (AMC)?It's usually a good idea to have a financial expert manage your money, especially if you don't understand how the stock markets function. This is where a mutual fund house, also known as an Asset Management Company (AMC), comes in. An asset management company is known as AMC, which controls various types of funds of retail clients and invests it in several areas to improve the fund return. In stocks, property, bonds, and mutual funds are invested.in current times, Asset Management companies are more known as money managers, asset managers. These companies assist in spreading the investment in diverse areas.
What is a conglomerate?When it comes to business organizations, you've probably heard that there's usually one parent company that oversees several other companies that operate independently. This is frequently accomplished by the parent company owning significant holdings in the little businesses. A conglomerate is a term used to describe a parent corporation or organization. Conglomerates are formed for a variety of reasons, and these conglomerates have their own set of advantages and disadvantages. Let us go over the basic principles of the term Conglomerate to better grasp these reasons and to become more comfortable with the phrase.
What is a custodian?A custodian also known as a custodian bank is a financial organization that holds customers' securities in its possession to limit the risk of theft or loss. Securities and other assets can be stored electronically or physically. Custodians are usually large, renowned companies that are in charge of preserving assets worth millions or even billions of dollars. Custodians provide services such as transaction settlements, account management, dividend collecting, interest payments, foreign exchange, and tax assistance in addition to storing securities. The rates of charge vary that is depending on the services demanded by the clients. Few companies charge a quarterly fee depending on the total value of the assets in their custody.
What is an index?A stock market index is intended to closely track the performance of any specific aspect of the market, such as the 500 largest corporations in the United States or the rate of inflation. Economists, investors, and others can use them to track market performance in a variety of ways. An index is similar to a ruler in that it may be used to measure the performance, or price change, of almost anything. Learn about indexes, how they function, and how they may help you invest.
What is an NFO?The chance to subscribe to a new fund offer is only available for a short time in a new fund offer. Investors can purchase units of the mutual fund scheme and subscribe to the NFO at an offer price during the pre-defined time. In most circumstances, this is set at Rs. 10 in most cases. After the tenure has expired, investors will be entitled to purchase fund units at the specified price. After the listing, NFO subscribers have seen much higher returns on average.
What is NREGA?ndia is still regarded as a land of villages, even after seven decades of freedom, because the majority of our population lives in villages. Because employment possibilities in such villages are still limited, residents from rural India are migrating to metro cities in pursuit of work. The Indian government has attempted to solve this situation by attempting to give employment possibilities and has enacted legislation in this regard. NREGA stands for National Rural Employment Guarantee Act of 2005. At the time of its launch, the act was renamed MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act), the full form of which is the Mahatma Gandhi National Rural Employment Guarantee Act. The scheme was implemented as a social policy to ensure "the right to work" in India's rural districts. The primary idea of this social measure and labor regulation is that local governments must provide at least 100 days of pay employment to rural Indians to improve their quality of life.
What is Remittance?Remittance transactions are a popular means of payment for overseas money transfers. The increase of cross-border business in the global economy creates a big demand for remittance payments all over the world. According to the Pew Research Center, approximately $148 billion in remittances were sent from the United States to overseas countries in 2017. The requirements for remittance are numerous, as are the techniques for carrying them out. Understanding the nuances of remittance payments is beneficial because each case is different.
What is SIP?A systematic investment plan (SIP) is a strategy in which investors put money into a mutual fund, a trading account, or a retirement account like a 401(k) (k). SIPs allow investors to save more frequently with a lower amount of money while still reaping the benefits of dollar-cost averaging over time (DCA). An investor who uses a DCA approach buys an investment using periodic equal transfers of funds to progressively create wealth or a portfolio.
What is Overhead?Overhead is a word that is used to define the business recurring expenses that are not straightforwardly regarding the formation of a product and a service. It is vital not only for budgeting but also for determining how much a company should charge for its services and products to break even. Overhead is any cost that is mandatory to support a firm that is not directly related to a specific product and service.
What is Fiat Money?A government-issued currency is known as fiat money. It is not backed by a physical commodity, like silver or gold, but by the government that declared it. The value of fiat money is determined by the relationship between supply and demand and the overall stability of the government. It is not determined by the worth of any commodity backing it. The most well-known modern paper currencies are fiat currencies,
What is Deflation?Most people have heard of the word ‘inflation’ and are aware of how it works or what its implications are. However, not as many people are aware of deflation and how it can affect them. The common misconception is that deflation, meaning a considerable drop in prices across the economy, is a good thing. But the reality is actually the opposite.
What is an Audit?A detailed examination or inspection of financial records and accounting documentation is known as an audit. While the phrase is most usually associated with an organization's financial audit, there are different sorts of audits. We'll learn more about what an audit is, the many sorts of audits, and the advantages of doing one in this post.
What Are Bullions?Bullions are defined as gold and silver, which are at least 99.5% pure, and are kept in the form of bars or ingots that are metals in the form of shapes to facilitate safe transportation. To produce these bullions, they are first discovered by a mining company in the form of gold ore or other material, after which the pure gold is extracted. Pure bullions are also called parted bullions, and bullions that contain more than one metal are known as unparted bullions.
What is Currency Market?India ranks third behind China and the United States in terms of foreign direct investment (FDI). According to the country's well-established norms, India's commerce markets provide significant earning possibilities. Since buyers from all over the globe may meet and exchange currencies at any time of day or night due to digitised connectivity, the country is quickly becoming a favourite destination for currency traders. In India, the foreign exchange market, also known as the currency trading market, is where international currency trading takes place.
What is Net Asset Value (N.A.V)?When the net asset value, or NAV, of a mutual fund, is computed, it is equal to the market price of all of the fund's assets at the time of calculation. When it comes to evaluating the performance of the fund, the Net Asset Value (NAV) acts as a gauge. There are several techniques for computing the net asset value of a mutual fund's unit of investment, each of which has its own advantages and disadvantages. The amount you pay for a mutual fund's units is known as the net asset value. In the majority of cases, mutual fund units are purchased for a price of 10 dollars. New Fund Offerings, also known as N.F.O.s, are being offered at a set price of Rs. 10 per unit. It's crucial to remember that a mutual fund's net asset value (NAV) does not always correspond to the fund's current market value.
What is Return on investment (ROi)In order to measure the profitability of an investment, return on investment is employed. When evaluating an investment's ROI, the method takes into account how much the investor spent and how much they gained. Let us look at how both individual investors and corporations utilise it.
What is the Annual Percentage Rate (APR)?The Annual Percentage Rate (APR) is the yearly rate of interest on a loan to be paid. It can vary from personal loans, home loans, and even life insurance loans. It is denoted as a percentage to show the monetary amount owed by an individual or business on a specific principal sum.
What is Default?The exact definition of “what a payment default is” varies from situation to situation. However, the basic term “default” indicates the inability of a debtor to repay a certain sum of money he has borrowed or the payment of a wrong amount to the creditor, which can result in a default notice. For example, when it comes to individual lenders, a single non-repayment can result in default.
What is Scarcity?Scarcity, also known as paucity, is the term used for the gap between the number of resources available and demand from the public for such resources. It is then up to the company to decide how these resources will be allocated and used to meet as much demand as possible. Therefore, all resources with no cost in consumption can be considered scarce. However, this happens only in theory, and the reality is very different.
What is Book Value?The equity worth of a firm as recorded in its financial accounts is referred to the company's book value. It is customary to consider the book value in connection to market capitalization. The book value is calculated by taking the entire value of the corporation's assets and removing any obligations that the corporation may still owe. The book value of assets on the company's balance sheet also takes depreciation into account. It tries to reconcile the company's book value with its actual worth.
What is an Annual Report?Those who own shares in publicly traded corporations are expected to submit an annual report to stakeholders. When a firm releases its annual report, it's common for the first section to feature a slew of visuals and text that tell the storey of the last year's accomplishments. The back of the report contains significant financial and operational information.
What is a Stock Split?When a company decides to split its stock, they first determine the split ratio, which can be done in multiple permutations. The most common ratios are 2-for-1, 3-for-1, and 3-for-2. For example, if a company decides to go for a 2-for-1 split and has 20 million outstanding shares, the number of shares will increase to 40 million, and shareholders will get an additional stock for everyone they have already bought. However, this means that the price of these stocks they hold will go down by 50%.
What is The Money Market?Short-term deals, fixed-income debt instruments is what the money market is all about. This article will explain what money market instruments signify and what they are, and why they exist. Short-term financial assets with liquidity of no more than one year are exchanged on the money market. However, the trading bills or securities are quite liquid. In addition, by exchanging bills, these instruments make it easier for the participant to get short-term borrowing. In this financial sector, you'll often find banks, major institutional investors, and retail investors all vying for your attention.
What Is Diversification?Diversification refers to a strategy of risk management that is about merging different investments in a portfolio. The expanded portfolio is a combination of different types of assets and investment vehicles to restrict the disclosure to anyone. The logic that inspires this is that when a portfolio is made up of various assets, it brings in higher long-term returns (on average) and reduces the risk for an individual with security or holding. Investors are interested in diversifying their investments athwart asset classes and showcase the percentage that each investment gets in that portfolio.
What is Compound Annual Growth Rate (CAGR)?CAGR stands for Compound Annual Growth Rate, which is the annual growth of the investments made by a person during a particular duration. It can also be defined as the rate of return necessary for the investment’s growth. It is different from the absolute return as absolute return does not include time while calculating the investment returns. Therefore, CAGR is considered comparatively better.
What is insider Trading?Insider trading is the malpractice of buying or selling a company’s securities while withholding information from the public. This information can have a massive impact on the company and investors’ decisions pertaining to buying and selling securities. Only a few people have hold of this kind of private information. In other words, insider trading refers to buying and selling shares through people directly within the company based on unpublished information generally from higher authorities who have the wherewithal to get it and share it with the few people they think might benefit from it. Insider trading is illegal and can result in colossal penalties for the company as well as the people who partake in this process.
What is Earnings Before Interest Taxes & Amortisation (EBITA)?EBITA stands for Earnings Before Interest, Taxes, and Amortisation, which is a measure applied by the investors for the company's profitability. This is used to compare two companies that have the same type of business. Oftentimes, the EBITA of the company indicates the actual performance of that company over the duration.
What is the ex-dividend date?The stock market attracts a wide range of investors with varying objectives. As a result, one may be employed by a company to increase the value of one's retirement savings. At the same time, another may be a self-employed investor looking for a long-term investment. However, the remaining investors are professional investors who depend on stock market revenue to earn a livelihood. Companies with significant demand for their goods, a solid business model, and regular payouts to shareholders should be considered for investment in stocks. Aside from that, they invest in a wide range of firms that pay dividends to generate a steady stream of income and build a future fund based on stock price growth.
What is Royalty?A royalty is a contractual payment made by one person for the use of another person's assets. Royalties for the use of intangible assets like as copyrights, trademarks, or franchise model agreements are included in the payment. In addition, royalties are paid for the utilisation of natural resources, such as mining leases. In general, royalty agreements grant a limited licence to use assets or resources.
What is Real Estate Regulatory Authority (RERA)?The Real Estate (Regulation and Development) Act, 2016, (RERA) is a law passed by India's parliament. The RERA aims to protect home buyers' interests while simultaneously encouraging investment in the real estate market. While the Rajya Sabha cleared the RERA law on March 10, 2016, the Lok Sabha approved it on March 15, 2016. On May 1, 2016, the act went into effect. While 59 of its 92 parts became effective on May 1, 2016, the other provisions took effect on May 1, 2017.
What is CIBIL Score?Your CIBIL score is a three-digit numeric summary of your credit history that is calculated using information from the 'Accounts' and 'Enquiries' sections of your CIBIL report, such as (but not limited to) your loan accounts or credit cards and their payment status, as well as outstanding amounts' days past due. Based on your borrowing and repayment history as reported by lenders, the score represents your creditworthiness. Your CIBIL score ranges from 300 to 900, with higher scores indicating more likely you are eligible for loan approval. Borrowers with a CIBIL score of 750 or higher receive 79 percent of loan approvals.
What is Union Budget?The Union Budget 2022 will be presented by Finance Minister Nirmala Sitharaman, and it is expected to last between 90 and 120 minutes. The Finance Minister's address during the Union Budget of 2020, which lasted about two hours and forty minutes, was the longest in the history of Independent India. According to the Ministry of Parliamentary Affairs, the Union Budget will be presented to the Lok Sabha on February 1 at 11 a.m. before being submitted to the Rajya Sabha. As is customary, the Economic Survey before the Budget Session will be delivered on January 31, 2022.
What is the term" Populist Budget" refer's to?A populist Budget is usually devoted to schemes that are just giveaways to make people happy and don't have any persistent positive effect on the economy. Subsidies and tax cuts are focus areas while framing a populist budget. Such a budget mainly focuses on the general interests of the public. Examples of such expenditure are waiving off farmer loans, giving higher minimum support prices for different crops to farmers, and cutting income tax levied on lower slabs. Such budgets are also a result of election manifestoes of political parties once they come into power. For example, when a political party won assembly elections in 3 states in 2018, it immediately waived farmer loans in all those states, as promised during the election campaign.
What is Collateralized Loan Obligation (CLO)?Investors frequently buy and sell firm debt in the financial sector. Lenders can reduce their risk and investors can increase their rewards by using a collateralized loan obligation. In this post, we'll define collateralized loan obligations, explain how they function, look at how to build one, and discuss some of the benefits they offer to investors.
What is White paper?A white paper can be a powerful marketing tool for informing your audience about a specific topic and assisting them in making decisions and finding a solution. White papers can also help your organization establish itself as a thought leader by presenting persuasive research and information about your products, as well as creating leads. In this post, we'll go over what a white paper is, what it's used for, how it differs from a research report, and what aspects you should include when writing one.
What is stop-loss?A stop-loss order is an advance order to sell an asset when it hits a certain price threshold. It is used to minimize a trade's loss or gain. The principle can be applied to both short-term and long-term trading. This is an automatic order that an investor sets with the broker/agent in exchange for a fee. Stop-loss orders are often referred to as ‘stop orders' or ‘stop-market orders.' The investor orders the broker/agent to sell a security when it reaches a predetermined price limit by placing a stop-loss order.
What Is Market Analysis?A company can always benefit from learning more about the market in which it operates. Conducting a market analysis is an excellent technique to learn more about a market. There are numerous types of market analysis to select from, which means that organizations can undertake a market study on the components of a market about which they wish to learn more. In this post, we define market analysis and examine seven market analysis approaches.
What is business forecasting?A 'forecast' is a prediction of what will occur as a result of a specific set of circumstances. The dictionary definition of 'forecast' is 'prediction, provision against the future, computation of likely events, foresight, provision'. In the business world, it is defined as "the calculation of likely events." Forecasting is the act of making systematic estimations of future situations, and the figure or statement obtained is known as a 'forecast.' The increasing competitiveness, the pace with which circumstances change, and the trend toward automation necessitate that business decisions not be based solely on guesswork, but rather on a meticulous examination of data indicating the future course of events. Business Forecasting aims to minimize the uncertainty that surrounds management decisions making on expenses, profit, sales, production, pricing, capital investment, and so on.
Why Market Value Is Important?The market value of an asset is the price that buyers are willing to pay for it in the marketplace. It is also known as market capitalization in the case of publicly-traded assets or entities and is determined by multiplying the current price by the number of outstanding units. Calculating the market value of some assets, such as enterprises, involves a few components, and with real estate, it entails much more than knowing share prices. The value of intangibles and the future worth of linked assets can also be considered when determining the market value of a business. Market value is more than just a price; it represents the genuine underlying value, not just the perceived value.
What is Good-till-cancelled order (GTC)?A good-till-canceled (GTC) order is a form of buying or selling trade that orders the broker to keep the order open until the investor executes or cancels it. An investor may cancel GTC orders at any time. Otherwise, they will expire after a set amount of time, which is usually 60 or 180 days, depending on the brokerage firm. GTC orders differ from other forms of trade orders in that they limit the timing of execution. A GTC order, in contrast to a day order, is immediately canceled after regular trading hours if it is not filled. A day order, like a GTC order, remains available until it is filled. Of course, there is no guarantee that the order will be filled.
What is (Panic Sell) refers in the stock market?For investors, Panic sell can be a moment where they decide what they want to go to cash and sell everything that they have in the market such as; their holdings, efficiency, quality, and effectiveness of their assets without regard to taxation. Fundamentally, investors opened up their hands and sell everything. Panic sell is a wide-scale trade of investment that causes a huge decline the prices. Precisely, being an investor, you want to sell your investment with giving little regard to the price obtained. This sale would be problematic for you as being an investor, you will react emotionally or fearfully, rather than calculating the fundamentals. Some major stock exchanges always use the trading limits to regulate panic selling by providing a peaceful period for a group of investors to digest the suggestive information to sell and restore normality in the stock market.
What is Exchange-Traded Funds (ETF)?An exchange-traded fund (ETF) is a pooled investment asset that functions similarly to a mutual fund. ETFs frequently track a specific index, sector, commodity, or another asset; but, unlike mutual funds, ETFs can be purchased and sold on a stock exchange in the same manner that traditional stocks can. An ETF can be designed to track anything from the price of a single commodity to a huge and diverse group of commodities. ETFs can be designed to follow essential investment techniques.
What is a Fragmented Market?Fragmented markets can allow smaller firms to enter an industry and reach smaller target consumers. When a market divides, it creates smaller sub-markets that are more attractive to new entrants. There are various aspects to consider if you want to learn how a small business might enter a fragmented market. In this post, we'll look at what a fragmented market is, how they emerge, how to detect them, what industries tend to fragment, and how fragmented markets might benefit you.
What Is a Bid-Ask Spread?A bid-ask spread is typically a difference between the ask price and the bid price for a security. This difference is quoted by the single market maker for an immediate sale purpose. The ask price holds the vale point where the seller is quite ready to sell. Here the bid price holds the point where a buyer is almost ready to buy. When these two value points meet in the marketplace, or when a seller and buyer are agreed to the price being undertaken by each other, a specific trade takes the place. Consequently, a bid-ask spread can be defined as the amount from which the ask-price increases the bid-price for a particular asset in the market. It is basically a difference between the uppermost price which a buyer is ready to pay for an asset and the bottommost price which a seller is ready to accept.
What are the ask price and bid price?The term, ask and bid refers to a quotation that is two-way based; indicates the best essential price on which a security can be sold or bought at a specific point in time. Fundamentally, the bid price represents the utmost number of the price that buyers usually are interested to take for the same security. A transaction occurs while a buyer is ready to pay the paramount offers available or is ready to sell the same asset at the highest bid. And the difference between the two; ask price & bid price, is denominated as the key indicator of the asset’s liquidity. Generally, the smaller spread is the better liquidity.
What are delta and gamma in options?Option Greeks are fundamentally known for sensitivities. You must be familiar with some school formulas such as Black and Scholes to calculate the significance of the option. But when a trader is more concerned about the sensitivities; Option Greeks basically measure how the value of vulnerable to the variations in different variables like interest rates, market price, expiry time, volatility, etc. The two most significant and closely related Option Greeks are Delta & Gamma.
What is a currency Manipulator watchlist?Currency manipulator is a term used by US government authorities, such as the US Department of the Treasury, to describe countries that engage in "unfair currency practices" that provide them a trade advantage. Money intervention or monetary policies are examples of such actions, in which a central bank buys or sells foreign currency in exchange for domestic currency, to affect the exchange rate and commercial policy. Policymakers may intervene in the currency market for a variety of reasons, including controlling inflation, maintaining international competitiveness, or ensuring financial stability. In many circumstances, the central bank weakens its currency to subsidize exports while raising import prices, sometimes by as much as 30-40%, and this is a kind of protectionism. Currency manipulation is not always easy to detect, and some individuals believe that quantitative easing is a sort of currency manipulation.
What is The European Union (EU) ?The European Union (EU) is a trade and monetary union made up of 27 countries. It eliminates all member-to-member border regulations. The unrestricted flow of products and people is enabled by the open border. There may be police checks that are not similar to border inspections, based on police information and expertise. Any product created in one EU country can be sold without taxes or duties to any other EU member. Most professions, such as law, medicine, tourism, banking, and insurance, are allowed to operate in all member countries.
What is The European Union Sanctions?Economic sanctions are an important component of the EU's Common Foreign and Security Policy (CFSP), and they are used as part of the international effort to combat money laundering, terrorism financing, and other financial crimes. To that purpose, the EU prepares and distributes a sanctions list to all member countries, which must be incorporated into the AML/CFT processes of all financial institutions in the EU.
What is Swift?The Society for Worldwide Interbank Financial Telecommunication, often known as SWIFT, is a Belgian cooperative society that provides services connected to the execution of financial transactions and payments between banks all over the world. Its primary function is to serve as the primary message network for initiating international payments. It also sells software and services to financial institutions, primarily for usage on its proprietary "SWIFTNet" network, as well as ISO 9362 Business Identifier Codes (BICs), sometimes known as "SWIFT codes."
What are Swift Sanctions?The Society for Worldwide Interbank Financial Telecommunications (SWIFT) system is used for the majority of international money and security transactions. SWIFT is a massive communications network that banks and other financial organizations use to send and receive information such as money transfer orders swiftly, accurately, and securely.
What is United Nations Organisation?The United Nations (UN) is an international organization whose mission is to promote international peace and security, foster cordial relations among nations, accomplish international collaboration, and serve as a focal point for nations' actions. It is the immense and most renowned global organization in the world. The United Nations has its headquarters on international territory in New York City, as well as major offices in Geneva, Nairobi, Vienna, and The Hague.
What are UNO sanctions?Sanctions are punishments used by our governments to prevent financial fraud and protect law-abiding citizens. Sanctions are imposed on individuals, businesses, or even countries that constitute a potential threat as a result of their involvement in criminal or terrorist actions. UN sanctions are diplomatic decisions imposed by United Nations bodies and nations on other countries, entities, or individuals. These sanctions are precautionary measures designed to protect national security interests, peace, and international law.
What are The United States of America (USA) Sanctions?Following the failure of the Embargo Act of 1807, the federal government of the United States showed little interest in imposing embargoes and economic sanctions on foreign countries until the twentieth century. Trade policy in the United States was essentially a question of economic policy. Following World War I, interest was resurgent. Such sanctions were advocated by President Woodrow Wilson as a means for the League of Nations to enforce peace. However, he was unable to pull the United States into the League, and the United States did not participate in the League's 1935 sanctions against Italy. But, the United States joined the ABCD line against Japan in 1940, and the Helium Act of 1925 prohibited the export of that strategic mineral. During the Cold War, there was a surge in interest in the trade as a tool of foreign policy, and several economic sanctions were imposed. The Comprehensive Anti-Apartheid Act of 1986 was only in effect for five years. Later, penalties were imposed against countries designated by the US government as "State Sponsors of Terrorism."
What is Chicago Board Options Exchange (CBOE) Volatility Index (VIX)?The VIX, officially known as the Chicago Board Options Exchange (CBOE) Volatility Index, gauges the amount of volatility that professional investors believe the S&P 500 index will experience over the following 30 days. This is referred to by market professionals as "implied volatility"—implied because the VIX follows the options market, where traders make wagers on the future performance of various assets and market indices, such as the S&P 500. People who follow the VIX index understand that the S&P 500 represents "the stock market" or "the market" as a whole. When the VIX index rises, it indicates that professional investors are reacting to increased price volatility in the S&P 500, in particular, and in markets in general. When the VIX falls, investors bet on smaller price swings up or down in the S&P 500, implying calmer markets and less uncertainty.
What are options?You can purchase or sell stocks, ETFs, and other securities at a fixed price for a set period using online trading options. This technique of online trading also allows customers the option of not purchasing the securities at the specified price or on the specified date. Although options trading is more complicated than stock trading, it can provide significant upside potential with minimal negative risk, which is limited to the premium you pay when purchasing the option. Similarly, selling options reduces your losses if the price of the security falls, which is known as hedging.
What is an underlying asset?The security on which a derivative contract is based is known as the underlying asset. The cost of the derivative could be directly (e.g. call option) or inversely (e.g. put option) associated with the value of the underlying asset. A stock, commodity, index, currency, or even a derivative (e.g. volatility index, VIX) product might be used as an underlying asset. The underlying asset of some exotic derivatives, such as weather derivatives, may be a non-financial entity. Typically, the underlying asset trades on a spot market (particularly when the underlying is a financial asset), where the asset must be purchased in full upfront (or within 1-2 days). Derivatives based on such assets typically do not require a 100% upfront payment to gain exposure to them, implying that they have a built-in element of leverage. The majority of listed stocks traded on stock exchanges serve as the underlying asset for futures and options contracts based on them. Take, for example, ITC, a stock that trades on the Indian stock exchanges.
What is a strike price?An option's striking price (or exercise price) is the fixed price at which the option's owner can buy (in the case of a call) or sell (in the case of a put) the underlying security or commodity. The strike price of an option can be determined using the spot price, which is the market price of the underlying security or commodity on the day the option is purchased. The strike price could also be set at a discount or premium. In a two-party derivatives contract, the strike price is a critical variable. The deal will be at the striking price if the contract demands delivery of the underlying instrument, regardless of the market price of the underlying asset at the moment. The exercise price is another name for the striking price.
What are the upper circuit and lower circuit?In the stock market, a circuit is a maximum gain or loss for any stock in a single day. That means the stock cannot go beyond or below the circuit limit in a single day. In the stock market, this is also known as the circuit breaker. A circuit breaker is also used on indices, in addition to stocks. The circuit breaker mechanism is used at three stages of the index movement: 10%, 15%, and 20%. The stock market will come to a standstill when the index circuit breaker is tripped. The stock exchange devised this to prevent stock price manipulation. Every stock has an upper and lower limit set by them.
What is Blue Chip Stock ?Blue Chip stocks are noted for their capacity to survive a variety of market situations while also producing large returns when the market is favourable. Blue-chip corporations are typically not only premium but also dominating in their industries. They are considered to be among the greatest in their respective fields. The majority of the time, a blue-chip stock has a track record of paying steady dividends to its shareholders throughout time. In 1923, Dow Jones employee Oliver Gingold developed the term "blue chip." Gingold coined the term after noticing many stocks trading at $200 or more per share while standing near a stock ticker at a brokerage firm. He coined the phrase "Blue Chip Stocks" and published an article on them. This is how the phrase originated. Since then, the term has been used to describe high-priced stocks, albeit it is now more commonly used to describe high-quality shares.
What is Muhurat Trading?In India, there are many festivals that are considered auspicious days for trading stocks and shares. This is because it is believed that these stocks will improve in health and the investor will get a better return on investment by trading these days. This is commonly seen during the festival of lights which is also called Diwali. During Diwali, stocks and shares are advertised and people are encouraged to invest in many of them. This is what is known as Muhurat Trading. A muhurat is defined as the alignment of the planets which make people believe that good is coming. Diwali is considered a muhurat festival when it comes to the stock market and it is common to see many investors looking and monitoring the stock market during the ten days of this festival.
What are Earnings Per Share (EPS)?An organisation's profitability and market share depend on many factors. It is important to aggregate all of them to consolidate them into one report. It helps to know whether it is making a profit. One thing to remember is that a company's profit is not solely for its employees and reputation. It is also for the shareholders who hold a certain amount of the company shares they had invested into. Many of these shareholders have some stake in the company, and if they are not making good returns on their investments, they are more likely to withdraw their funds. Hence, a ratio called Earnings Per Share (EPS) is calculated frequently to learn an organisation's financial health.
What is Capex?Capex is another term used for capital expenditures. These are the funds applied by a company to obtain, update and preserve physical assets like plants, property, technology, equipment or buildings. Capital expenditures are generally applied by a company when the company is to undertake new projects or investments for their business. The fixed assets need capital expenditures for the purposes like- repairing, purchasing some equipment or constructing a new factory. The companies go with outlays like these to help companies increase the scope of their operations or let operations have more economic benefit.
What are the terms most used in the Stock Market?In the stock market, traders and businesses may purchase and sell stocks and issue new shares of their stock. There are two types of stock: those that reflect the company's equity and those that represent its assets. Having a better understanding of the stock market's terminology will make you a more effective investor.
What is Shares Buyback?Share buyback refers to the act performed by a company that involves buying or purchasing the company’s shares back from its investors. It is also referred to as a share repurchase. Here the company purchases its shares from the market. The transaction of purchasing the shares takes place with the help of the company’s broker. The re-buying of the shares is a very time-consuming procedure because the company needs to buy large blocks of shares back. The company has no obligation to go ahead with its decision of repurchasing even after the announcement.
What is Brexit?Brexit is an acronym for "Britain Exit," which refers to the United Kingdom's choice to withdraw from the European Union and replace it with another country. As part of the Brexit process, negotiations will take place on new trade agreements, citizen registration laws, border controls, and other issues. As a result of the referendum's victory, the procedure began on June 23, 2016.
What is Capital Gain Tax in India?Any gain or profit after the sale of some capital asset is termed as capital gains and comes under the income tax act 1961 to be charged. The act specifies that a capital asset is any property held by a person like- lands, buildings, debentures, jewellery, machinery, trademarks, leasehold, patents, house property, vehicles and equities. However, it does not include agricultural land, specific bonds and stock-in-trade. The tax on the capital gain could be long term or short term, and they start from 10 per cent and 15 per cent. The income tax in India specifies that the property, when inherited by a person, does not come under the taxable chart when the property isn’t sold. But if there is any income generation with the help of the property either by selling the property or renting it out or any other way, then the individual must be taxed on the income thus earned.
What happens if a country prints so much of its currency?Money is, without a doubt, a critical component of every economy since it facilitates the efficient flow of commerce. Governments have a tremendous amount of power that no one else in the economy possesses: the capacity to create money out of thin air. This means that by creating more money, the government may buy more things, a process is known as seigniorage. On the other hand, this authority comes with its potential risks.
What Is a Stock Auction?An auction is a process that facilitates the relationship between buyers and sellers over certain assets. During the process, the buyers indicate the highest price at which they are willing to gain an asset, and the sellers, in turn, express the minimum price they are willing to accept for the same asset. Auctions can be held in any form. However, in finance, the concept of stock auctions has made its way to prominence. The stock auctions are held in the auction market, online, or even in-person events. Here, investors and lenders can bargain and trade stocks and shares where the investor with the highest bid gets matched with a lender with the lowest selling price. Stock auctions are no different from antique and art auctions; however, since stocks and shares are financial assets, they are carefully regulated by critical financial institutions and government bodies to ensure trade fairness.
How does the USA put sanctions on other countries but other countries can't do the same?In terms of international policy, economic sanctions are the suspension of normal commercial and financial contacts between two countries. The long-standing US embargo on Cuba is an example of broad sanctions limiting any economic activity in respect to the country as a whole. On the other hand, sanctions may be narrowly targeted, prohibiting only transactions with and between certain companies, organisations, or individuals.
What is Primary Market?Financial resources are made available to organisations in many sectors of the economy by purchasing debt and capital securities in the primary market. To begin trading on the stock market, a firm must first raise an Initial Public Offering (IPO). A primary market is sometimes known as the New Issue Market since securities are offered here first. In an initial public offering (IPO), the firm offers its stock to the general public on the open market. When new stock is sold to investors in an IPO, the procedure is known as underwriting which is also used to raise investment cash.
What is Spread price?It is possible to speculate on financial markets via spread trading, and it is possibly the most straightforward method. You may trade on various markets, including stock indexes, stocks, commodities, and currency, and you are not required to own the assets you are trading in. Simply speculating on whether the price will climb or decrease is all that is required, and if your prediction is true, you will earn a profit. Market movements contrary to your expectations may cause you to lose money on your investments.
What is a Secondary Market?An aftermarket or a secondary market is an exchange where investors may buy and sell company stock. Investors may easily purchase and sell shares on secondary markets without the involvement of the issuing firm. The performance of these transactions is used to value the company's stock. Because of this, stock trading provides profits for both buyers and sellers. The secondary market is a hive of activity where various securities are traded. This bid or dealer environment is where investors purchase and sell stocks, securities, convertible notes, bills of exchange, and treasury bills. Both auction and over-the-counter may be found in the secondary markets. There is a lot of negotiating to go on in the stock market. On the other hand, the OTC market does not use a stock exchange platform at all.
What is Face Value?Investors who have just entered the stock market may encounter many terms that can confuse them. Investment options in the stock market are aplenty, but one lesser-known security which not many people invest in is a bond. A bond is a type of debt security used by governments and other financial institutions to raise money. This results in financial stability and a possible rise in the country's Gross Domestic Profit. Investing with a financial institution generally requires a minimum balance to be given initially, whether the assets are in cash or bonds and stocks. With this, the investor can select from several investment options to grow his investment and ultimately try and increase his earnings. This could mean diversifying the portfolio with different shares or even investing in bonds that give better returns.
What is Debentures?‘Debre’ - a Latin word - is the root of debentures. In the simplest terms, it means to borrow or loan. A debenture can be considered marketable security or a type of investment. Since it is debt capital, it falls under the debt category of a company’s balance sheet. A debenture has a fixed period and interest rate paid yearly or half-yearly. Investors cannot claim any assets in case of any deficits. Large corporations with triple A-credit ratings usually issue debentures as no collateral is involved. A company can benefit from its privileged status by borrowing money without security. A debenture is a legal certificate that covers how much money the investor gave (principal). In addition, it also has information about the interest rate and payment schedule. Investors collect their principal amount when the debenture matures or reaches the end of its term amount.
What is the Relative strength index (RSi)?The relative strength index refers to momentum indicators applied in technical analysis. It is used to measure the recent price changes' magnitude to make it possible to evaluate oversold or overbought conditions in a stock's or asset's price. The relative strength index is shown as an oscillator and could read from zero to about a hundred. The former meaning of the term is that anything above 70 RSI points becomes overvalued or overbought and can be positioned for a corrective pullback or trend reversal in price. And, anything below 30 RSI points becomes undervalued or oversold.
what are the Factors Affect the Stock Market?The stock market in India is very dynamic. The prices are constantly fluctuating, making it risky for investors looking for a profit. Many risk-averse investors prefer to put their money into equities. But in recent years, the stock market has seen several avid investors who wish to buy and sell shares. Since the stock market fluctuates all the time, it makes for an exciting study to delve into. When investing in the stock market, investors need to constantly check their assets to make sure they are not at a loss. Although the nature of the stock market cannot be predicted, it is worth asking about the major factors that contribute to its unstable nature. There is no saying that a single factor alone affects the stock market. In fact, it is a combination of various factors that tend to contribute to the constantly fluctuating rates of stocks and shares.
What is inheritance tax in India?Inheritance tax refers to the tax levied on an asset at the time of the inheritance of that asset. It is also called estate duty or estate tax. There are many countries worldwide that follow the law of paying Inheritance tax after one becomes the legal heir of an asset, but no such provision exists in India. The inheritance tax was first introduced in 1953 under the Estate Duty Act of 1953 to reduce economic disparity. Even when it was clear that the inheritance tax act was promising objective welfare, it was not much appreciated and was disapproved. The act was seen as too complex and understood as leading to more administrative costs. There were cases all over India where the legal properties were slowly being inherited illegally to escape from the inheritance tax leading to illegal concealment of properties. Because of the reasons mentioned above, the inheritance tax act was finally scrapped in 1985, and the provision of inheritance tax thus no longer exists in India, which means that an individual, when acquiring property as inheritance or being the legal heir of an asset, no longer has to pay tax on that inheritance.
Why gold is called a safe investment?Gold, the yellow metal, has been respected throughout the world since time immemorial. Its rich and culturally woven history has made it a universally acceptable form of payment. In the modern era, it is considered a ‘safe haven’ for investors because it has always commanded good value in the market. Moreover, gold is relatively stable, while other investment options like real estate and cryptocurrency are risky.
What is a Financial Bailout?Bailout refers to the act of lending money called capital injection as performed by an individual or business or government to some failing business. The capital injection helps avoid bankruptcy or defaulting on financial obligations, which might result from the potential downfall of that failing business. Financial bailouts are generally for the businesses that might affect the whole economy if gone bankrupt. Bailouts occur in different forms like- loans, buying of stocks or bonds, or cash infusions. Also, there might be a need for reimbursement through the support of the rescued business as per the term determined.
What is Dovish Vs? Hawkish in Monetary Policy?When it comes to monetary policy, there are many financial institutions responsible for maintaining inflation rates and ensuring financial stability. One of these organisations is known as the Central Bank. When needed, central banks can interfere with financial markets and coordinate with other institutions to ensure that the Monetary Policy Framework is being followed. The Central bank acts as a lender to the government if they need funds to support the Gross Domestic Profit or ensure that any debt is paid off. If the debt to GDP ratio is very high, and fundraising efforts don’t work, then the government can ask the central bank for a loan through bond auctions to meet the liquidity ratio.
What is (ATM)?, (OTM)?, (ITM)?Moneyness is about striking the option's price concerning the present or current trade price of essential assets or property. It is, therefore, about the intrinsic value of some option when that option is in its current state. Traders categorise the options into three classes depending on the relationship of the underlying stock to the strike price at the current time. These categories thus describe the moneyness of an option. The options strategy incorporates the terms given, and if one does not have a great hold of them or have a great understanding of the same, it might be difficult and confusing for the beginners. So here are three types of moneyness options: At- The- Money (ATM) Out- Of- The- Money (OTM) In- The- Money (ITM) These three categories have two different types, depending on call options and put options. Call options are the ones that give the holder the liberty or right to purchase a stock, while the put options are the ones that give the holder the liberty or right to sell a stock.
What Does the The International Monetary Fund (IMF ) Do?The international trading industry is dependent on so many factors, and it can be extremely hard to regulate. With every country having its own monetary policy, and in the wake of the economic crisis, many countries have seen drops in their international funds. In 1944, during World War II when fixed exchange rates collapsed, there was a need for drastic action. This is why in July of 1944; the International Monetary Fund (IMF) was established. The decisions have affected people and financial institutions worldwide. However, it is an international government organisation that strives to bring back financial order when it comes to providing fair returns in terms of trade to its member nations. They hold regular meetings to discuss important issues related to international economic management.
What is the Union Budget?The Union Budget of India, also known as the Annual Financial Statement, describes the government's estimated receivables, payables, and receipts for the following fiscal year. As per Article 112 of the Indian Constitution, the government must present a budget at the Parliament before the financial year begins. Accordingly, the budget division of the DEA in the finance ministry produces it. This article consists of details about the Union Budget, its work structure, and its importance.
What is The Organization of the Petroleum Exporting Countries (OPEC)?The Organization of the Petroleum Exporting Countries is a body that aims to manage the worldwide supply of oil and set the price of oil in the world market to avoid any issue that might arise in terms of economic crisis or arguments among producing as well as buying nations. The headquarters of the OPEC is in Vienna, Austria, and it is where the OPEC Secretariat, the executive department of the organisation, functions daily. The CEO of this organisation holds his term for three years, and the same person can also be re-elected for a second term. OPEC has an open membership policy, and any country can become a member of this organisation as long as they have a significant oil export and share their ideas. However, any country wishing to become a member needs at least 75% of its current members to agree on their membership request. Additionally, associate membership can also be granted under special circumstances.
What does Asian Development Bank Do?The Asian Development Bank has a vision specifically for the Asia-Pacific Region relating to its growing needs. It intends to address these needs to create a more inclusive, prosperous, sustainable and resilient region. It focuses on tackling social and gender inequalities, developing quality and sustainable infrastructure, adapting to climate change, enhancing governments' institutional capacity, and promoting regional integration. The Asian Development Bank's vision is to enhance and expand its present capacities. The Asian Development Bank is all in for revamping to ensure its relevance and rules.
What does the World Bank Do?The World Bank is an organisation working at the international level that works in giving financing advice and research to the developing nations to help with their economic growth and development. The World Bank centrally focuses on fighting poverty in underdeveloped or developing nations by providing developmental assistance to less developed countries. The Bretton Woods Agreement led to the creation of the World Bank in 1944. later secured the agreement under the United Nations auspices in the final days of the Second World War. The Bretton Woods Agreement was inclusive of various components like creating the World Bank (WB), the formation of the International Monetary Fund (IMF), and a collective monetary system.
What are The Federal Reserve System (F.E.D) and its role?The Federal Reserve System or FED is the United States of America's central banking system. After a series of financial panics (especially the panic of 1907) led to a need for central control of the monetary system to relieve financial crises, the Federal Reserve Act was passed on December 23, 1913. Events such as the Great Depression in the 1930s and the Great Recession in the 2000s have led to the Federal Reserve System's tasks and responsibilities being expanded throughout time. There are numerous layers to the Federal Reserve System. The Federal Reserve Board is managed by a board of governors selected by the president (FRB). Privately owned commercial banks are regulated and overseen by twelve regional Federal Reserve Banks situated around the country. Nationally chartered commercial banks are required to own stock in the Federal Reserve Bank of their region and can elect some board members.
What are Financial Action Task Force (FATF) and its role?The Financial Action Task Force (on Money Laundering) (FATF), also known as Groupe d'action financière (GAFI) in French, is an intergovernmental organization created in 1989 on the initiative of the G7 to develop policies to combat money laundering. In 2001, its scope was expanded to include terrorism financing. FATF's mission is to develop standards and support the effective implementation of legal, regulatory, and operational measures to combat money laundering, terrorist financing, and other risks to the international financial system's integrity. FATF is a "policy-making group" tasked with generating the political will necessary to implement national legislative and regulatory reforms in these areas. FATF monitors member countries' progress in implementing its Recommendations through "peer reviews" ("mutual evaluations").
What are The Foreign exchange Market?Every country has its currency that it uses in trade and business, but what about in the international market? Because of their limited adaptability, currencies have become a barrier to international trade. The Foreign Exchange Market was created to address this issue. This is a form of market where the exchange rate for currencies is fixed. The global economy would suffer greatly if the foreign exchange market did not exist. As a result, we must treat this topic as a pre-study. In this context, we will define the foreign exchange market, as well as its types, characteristics, and participants.
What is Bid & Ask spread?Typically, the Bid-Ask spread is the difference between the bid (purchase/buy) price and the ask (offer/sell) price of a security. The value point at which the seller is ready to sell is the ask price while the point at which a buyer is ready to buy is the bid price. A trade will take place only when in a marketplace, the two value points are matching. Herein, the seller and buyer agree to the prices that the corresponding party is offering. Demand and supply are the two of the most important market forces that determine these prices. Similarly, the gap that exists between these two forces will determine the spread between buy-sell prices.
What is panic selling?Panic selling is typically based on fear of making excessive losses in the stock market. Sound market logic, or reasoned analysis which causes the prices to drop seldom drives investors to panic selling. Panic is the instant and far-reaching sale of a security. In most cases, the factor driving panic selling is an outside event that leads a security's price to instantly reduce and in turn, induces fear. People react to this fear and sell their securities such that further losses are safeguarded against. But, when too many investors simultaneously involve themselves with panic selling, the prices reach lower still. This induces further panic in the markets and results in a positive feedback loop. In an event such as panic selling, stock exchanges typically halt trading, such that the cycle of fear and selling is broken. This is via defining halts and curbs at predefined breaking points over commodity prices.
What is Ask price & Bid price?The bid and ask prices are best defined as the best price that a trader chooses to buy or sell a security for. In case it is a buyer, then the bid price is the highest price that the buyer is willing to pay. But, when we consider the case of a seller, then the ask price is the lowest price at which the seller is willing to sell a security or a financial instrument. Another way of looking at Bid and Ask prices is the potential prices at which the traders, which are the buyers and the sellers are willing to transact. Bid-Ask spread is a term that is frequently associated with bid price and ask price. The difference between the Bid price and Ask price is the Bid-Ask Spread. Before one ventures to trade anything in the market, it is going to be helpful if one is sure of the trading terminology that is used. Similarly, a trader should also know about the market forces associated with these trading terminologies. The difference between the bid price and the ask price may be something basic. But in trading, it is one of the most crucial theories to understand.
What is over-the-counter (OTC)?Trading that takes place over-the-counter (OTC) or off-exchange is done directly between two parties without the involvement of an exchange. It differs from exchange trading, which takes place on exchanges. A stock exchange provides the advantages of facilitating liquidity, transparency, and maintaining market prices. The price of an OTC trade is not always publicly revealed. Assets, financial instruments (including stocks), and derivatives of such goods are traded on the over-the-counter market (OTC). The exchange's products must be well-standardised. This means that exchanged deliverables must fall within a specific quantity, quality, and identity range that is set by the exchange and is consistent across all transactions of that commodity. This is required for trading to be transparent. This restriction does not apply to the OTC market. They may, for example, agree on an uncommon quantity. OTC market contracts are bilateral (i.e., the contract is only between two parties), and each side may be concerned about the other's credit risk. In several asset classes, such as interest rates, foreign exchange, equities, and commodities, the OTC derivative market is prominent.
What are Penny stock?When it comes to accumulating wealth, the stock market offers a lucrative possibility. You can trade in the markets and achieve financial success by investing in the correct stocks by opening a share trading account. When it comes to investing in the stock market, most people stick to well-known large-cap and mid-cap stocks. While that is a sound plan, penny stock investment can also help you achieve your financial objectives. This article will teach you all you need to know about penny stocks.
What is the SEBI "Scores" ?The regulatory body for the Indian securities market: the Security Exchange Board of India, abbreviated as SEBI, has been in existence since 1988. But, after the SEBI Act 1992 passed, it was provided with statutory powers on 1992 April 12. The SEBI maintains an online centralized grievance redress system named SCORES (SEBI Complaints Redress System). The article elaborates essential information about it.
What is the USSR?Single-party Marxist–Leninist state was the Union of Soviet Socialist Republics of USSR. It was in operation from 1922 to 1991, 69 years. First to proclaim socialism and move toward a communist society was China. There were 14 Soviet socialist republics and one Soviet Federative Socialist Republic in the Union of the Soviet Union.
What Is the North Atlantic Treaty Organisation (Nato)?NATO is the name given to the North Atlantic Treaty Organisation, a political union between the United States and its European allies. As a result of World War II, the Atlantic Council was established to promote peace and collaboration between countries on both sides of the channel. As a national security alliance, NATO has an Economic Committee, which aims to facilitate economic discussions among its members and keep tabs on economies inside the Alliance and outside its borders. Additionally, NATO has been a stabilising force in Europe and North America, enabling its members' economies to grow and thrive.
What is a Currency Swap between Countries?An interest rate swap contract, also known as a currency swap contract, is a financial derivative agreement between two parties that includes the exchange of interest payments and, in some situations, the exchange of principal amounts between two currencies denominated in separate currencies. Contrary to the usual rule, currency swap contracts may not always need the exchange of principal amounts; in certain cases, the transfer of interest payments may be required.
What is The Consumer Price Index (CPI)?Inflation is measured by the Consumer Price Index (CPI), which is a measurement of changes in the prices of a range of consumer products and services that are purchased by individuals. The Consumer Price Index (CPI) is a numerical assessment based on the rates of a selection of representative products, the costs of which are collected on a regular basis. A change in the level of prices at the consumer level is captured by the CPI. The Wholesale Price Index keeps track of price fluctuations at the producer level (WPI). When compared to the WPI, the CPI is better at capturing changes in the pricing of services.
What is a Unified Payments Interface (UPI)?India has marched ahead towards achieving a cashless economy with the invention of the Unified Payment Interface (UPI). A UPI is a smartphone application that allows transferring money between bank accounts in just one click. Developed by the National Payments Corporation of India (NPCI), it is a single-window payment system that eliminates the task of entering the bank and other details for transferring funds.
What is the Wholesale Price Index?When it comes to retail prices, a wholesale price index (WPI) seems to be an index that monitors and records changes in the prices of items at the stages before they are sold in retail stores. This term referred to items sold in bulk and transferred between corporations or companies rather than between individuals or families. The WPI, usually represented as a ratio or percentage, displays the average price change of the items included in the calculation; it is often used to measure a country's degree of Inflation.
What is Small Finance Bank?A small finance bank is a financial institution that provides monetary services to the unbanked and unserved regions of the country. They are a public limited company registered under the Companies Act, 2013. They play an essential role in supplying credit to micro and small enterprises and agriculture and banking services in the unbanked and under-banked regions of the country. While permitting small finance banks, RBI considers the experience gained, size, capital requirements, area of operations, exposure norms, regulatory prescriptions, corporate governance and resolutions.
What is a Payments Bank?The Reserve Bank of India has introduced a new category of banks known as the Payments Banks. Payment Banks meet the remittance and credit requirements of low-income households, small businesses, and the unorganised sector. Thus, they operate on a small scale with less credit risk. Payments banks are registered under the Companies Act 2013. In addition, they are governed by various other legislations such as Banking Regulation Act, 1949, RBI Act 1934, Payment and Settlement Systems Act 2007, and the Foreign Exchange Management Act 1934. Payments banks earn money by depositing into the accounts of bigger commercial banks that provide higher interest.
What is a Non-Banking Financial Company (NBFC)?Non-Banking Financial Companies (NBFC) or non-banking financial institutions (NBFI) offer various banking services but do not have a banking licence. The NBFCs are incorporated under the Companies Act 1956 or 2013. According to section 45-I (c) of the RBI Act, NBFC engages in the business of Loans and Advances, acquiring stocks, equities, debts etc., issued by any local authority or Government or other marketable securities. They work as financial institutions and can receive money in deposits under any scheme or arrangement as one lump amount or in instalments through contributions or any other manner.
How does Monsoon impact the "Stock market"?For each zone of India, Skymet/IMD estimates rainfall patterns across the Indian subcontinent and then begins the sequence of rainfall forecasts. Agri-crops are often devastated by El Nio or drought. The monsoon season lasts for four months out of the year, bringing around seventy-five per cent of the country's yearly rainfall. For agri-economies like India and its equity markets, this is critical. Because the country relied on agricultural economies, the Monsoon significantly influenced the Indian stock market.
What Is the London Metal Exchange (LME)?The London Metal Exchange (LME) deals in metals futures and options. It is the most significant commodities exchange for options and futures trading of base metals such as aluminium, lead, zinc, nickel and copper. The exchange also allows the trading of precious metals, gold and silver. The London Metal Exchange is located in London, United Kingdom but has been owned by Hong Kong Exchanges and Clearing since 2012. The prices on the LME are considered the standard global prices for base metals.
What is an Employee Provident Fund Organisation (EPFO)?Employee Provident Fund Organisation (EPFO) is the statutory body and the World's largest Social Security Organisations responsible for managing Provident Funds in the country. The government of India made this organisation deal with the volume of financial transactions undertaken. It works under the Ministry of Labour and Employment. From 2019 to 2020, EPFO maintained 24.77 crore accounts of its members.