Online Share Trading

What is the difference between IPO and Direct Listing?

There are two ways to raise capital or money for startup companies. One is direct listing and the other is IPO. Most companies that go public use IPO (or initial public offering) as their primary method of raising capital. Direct …


Split off vs Spin off : Meaning and Difference

Investors in the stock market may have heard that different types of divestment are used by companies to increase shareholder value. Companies use two common strategies to achieve this goal: spin off and split-off. The company can choose between either …


What is Extraordinary General Meeting (EGM) ?

What does it mean when a company that you invested in or plan to invest in decides to hold an "extraordinary general meeting"? Although you may have heard this term before, it is possible that you are not sure what …


What does it Mean by Share Dilution?

A company, corporation or business that decides to issue more shares of stock can reduce the value of existing shareholders. This is called share dilution or stock dilution. Investors should be cautious about share dilution when becoming shareholders in a …


Difference Between Stock options and Restricted Stock.

There are many ways to invest in the stock exchange. Many of these involve making critical choices about the companies that you wish to invest in over the long-term. What if the company you work for gives you the opportunity …


What is a Benchmark Portfolio & How does it works?

If an investor is savvy enough to know where to look, the financial markets offer a wide range of opportunities. To achieve your goals, it is crucial to build the right portfolio that includes the right investments in terms of …


What are Fractional Shares?

One unit of ownership in a company is called a share. You become a shareholder when you buy a substantial amount of the capital of a company. As an annual dividend, you also get a portion of the company's profit. …


What is Beta in Stock and Finance?

Beta measures volatility relative to the market. It measures how volatile a stock is in relation to changes in the market. Where is beta used CAPM (Capital Asset Price Model) uses beta. CAPM is a model that shows the relationship …


What is Rule of 72?

The Rule of 72 in finance is a quick way to calculate the time it will take to double an investment amount at a fixed annual rate of returns. You can use spreadsheet programs such as excel sheets and calculators …


What is the Real Rate of Return?

Inflation is a risky factor that every income earner must manage. Inflation increases the purchasing power of money that is left in a bank account. Therefore, it is wise to take into account the inflation impact on any investment that …


What is Bond Yield?

Bonds are one of the safest investment options on the financial market. Bonds are a good option for investors who are cautious about taking on risk. However, many investors are aggressive and seek to diversify their portfolios and reduce the …


Difference Between ROCE and ROIC

Fundamental analysis allows you to assess whether or not a company's financial stability and financial soundness are good. This allows you to make investment decisions based upon whether or not the company is fundamentally sound. One of the most common …


What is the Difference Between Tangible and Intangible Assets

Many investors use financial analysis to find the best companies. This involves looking at the financial statements of a company in order to determine if they are financially sound enough to justify an investment. This approach will allow you to …


What is Interest Coverage Ratio (ICR)?

The interest coverage ratio, or ICR, is one of the most important financial ratios when discussing a company's debt situation. This tool is useful not only for the lender but also for investors looking to buy stocks of the company. …


What are Preference shares?

Preferred Stock Definition These shares are known as preferred shares. They are the shares that are granted priority for dividend payouts over other equity stocks. If the company decides that it will pay dividends, preferred stock or preference shares is …


What is Buyback of Shares?

You may be wondering what buyback of shares is. It is when a corporation purchases its shares from its shareholders. The company that previously issued shares pays some shareholders and absorbs the portion of ownership that several investors have before. …


What is Gann Theory ?

William Delbert Gann was a market forecaster. Gann Theory was born from his ability to use geometry to predict market movements. This tool is complex and requires deep understanding of its principles before being used in actual trading. Are you …


How Do I Apply Buyback

What is share buybacks in trading? This is also known as share buyback. Buybacks occur when the issuing company pays retail investors in the market value per shares. The company decides to reabsorb a portion of its ownership that it …


What is OFS?

The OFS (offer for sale) is a way that listed companies can sell shares on the exchange platform. In 2012, the Securities and Exchange Board of India introduced the OFS method to make it easier for promoters of listed forms …


Everything On Modern Portfolio Theory

What's Modern Portfolio Theory? Modern Portfolio Theory simply refers to an investment strategy that maximizes returns while minimizing market risk. Harry Markowitz, an economist developed this theory in the 1950s. Experts already believe that Modern Portfolio Theory is particularly suitable …