What is an Index? An index is created using a group of stocks. These stocks might belong to the same sector, the same industries, or could be a mix of stocks from different sectors or industries. An example of an index is Nifty 50, which comprises stocks from different sectors of the economy. Another example … Read more
Return on equity (ROE) simply means how much return you are generating over the shareholders’ funds. Shareholders’ funds are called equity. What is Equity? The money a company receives after selling its ownership is called equity or shareholders’ funds. Suppose you open a samosa shop in your local area. You raise ₹5 lakh after selling … Read more
An ETF, or Exchange Traded Fund, is similar to a mutual fund but offers more flexibility. As the name suggests, ETFs are traded on stock exchanges, just like regular stocks. Essentially, ETFs are baskets of different securities (like stocks, bonds, or commodities) that hold a collective value. When you invest in an ETF, you’re investing … Read more
When investors analyze companies in the stock market, they often come across the terms ‘industry’ and ‘sector’. These terms might seem confusing, but they are important for understanding how companies are grouped and compared. In this article, we’ll clear up the confusion between these two terms with simple examples. Let’s begin. What is a sector? … Read more
A group of shares can be combined to form an index. These assets could be from the same sector or industry, and the index provides a way to track their collective performance.
A share buyback happens when a company decides to buy back its own shares from the market. They usually offer a price higher than what the shares are currently worth. This reduces the number of shares available for trading. When there are fewer shares, the value of the remaining shares can go up. Companies buy … Read more
In this article, we will learn the complete concept of dividends. We often hear about the dividend payouts by companies listed on the stock exchange. Along with these, terms like Ex-dividend and Record Date can sometimes cause confusion. So, let us begin the learning. What is Dividend? A dividend is a portion of a company’s … Read more
In this article, we will go over the entire process from IPO announcement to allotment and listing on major Indian stock exchanges like NSE and BSE, including steps to check the allotment status. IPO stands for Initial Public Offering. It refers to the process where a company offers its shares to the public to raise … Read more
Finance Minister Nirmala Sitharaman recently announced an increase in the tax on trading futures and options (F&O) and on capital gains from both financial and non-financial assets. These changes impact key taxes like Long-Term Capital Gains (LTCG), Short-Term Capital Gains (STCG), and Securities Transaction Tax (STT). Understanding these taxes is crucial for investors as they … Read more
The concept of the Financial Year (FY) is fundamental in business, finance, and accounting. This guide aims to break down the various aspects of the Financial Year, particularly in the context of India, and provide a clear understanding for beginners. What is the full meaning of FY? The full form of FY is Financial Year. … Read more