Let’s Talk Markets
A complete analysis of the market to help you understand stocks better. Watch research videos and get other useful insights to be well versed with the latest market trends.
Understanding Stocks
Get acquainted with various Do’s & Don’ts of stock market trading. Read more and understand how you can cautiously use you money to make smart investments.
From the Service Desk
Are you uncertain about trading in a volatile market? Our service desk answers all your doubts regarding share trading and stock markets. Educate yourself on how the market behaves and be more confident with your decisions.
Technical Analysis
Learn how SMA (Simple Moving Averages), Bollinger Bands, Williams %R and various other technical charts can assist you in stock trading. Learn to make effective prediction on the movement of stocks using technical analysis of past-market data.
Management Musings
Learning from the experts - Know the macro views on the markets and the industry as our top leaders analyse and discuss the prevailing trends.
Insights
Get to the core of a company’s financial statements with insights provided by our experts. Read through the fine print of results and analysis to choose the right stock to invest.
Fundamental Analysis
Read all about our research team’s work on the “Fundamentals” of a company. Our analysts’ help you make informed decisions to help you make smart investments and generate better returns.
Others
Understanding Derivatives
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- We start with the most basic term, Stock. The stock represents your ownership position in an organization. A person’s ownership in an organization will be the number of shares owned by a person divided by the total number of outstanding shares. Anyone holding 100 shares in a company where the number of outstanding shares is 1000 will have 10% ownership in the company. Stock is same as Share (Part of the company) and Scrip.
- Stock Exchange is the next important word you must know. It is the exchange of securities between the buyers and sellers in an organized financial market. It is necessary for a stock to be listed on an exchange to enable its buying or selling. It reduces the risk involved in investing. The largest exchanges in the world are The New York Stock Exchange (NYSE), The London Stock Exchange (LSE) and The Tokyo Stock Exchange (TSE). The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are India’s premier stock exchanges.
- Listing refers to qualifying a security to be able to bought or sold on the stock market. The securities can belong to Central or State Government, any public limited company, financial institution, corporations etc. On the other hand, Delisting refers to the removal of a stock from the stock exchange, which happens during bankruptcy of a company. The primary objective of Listing is to provide liquidity to stocks/securities. It also generates savings that is used for economic development and guarantees full disclosure that protects the interests of the investors.
- The Share Price of a company is an indicator that reflects the worth of a company and its potential to create money in the future. It is necessary to understand the factors involved in the movement of share prices to foresee the impetus of these price moves.
The four major factors that cause movement in the stock prices:
- New Information: Stock prices are based on the information available to the public about the same. The market marks the price up or down depending on the information on hand. Information, whether it is positive or negative can play a pivotal role in the market pricing a stock at a particular level.
- Uncertainty: Stocks are volatile in nature and it is difficult to guarantee their future. The uncertain nature of stock brings in the aspect of movement. Irrespective of the availability of information, there is a persisting uncertainty about the future of the company affecting its movement.
- Psychological Factors: The phenomena of trading and pricing of a stock involves the action of human beings. Thus, human psychology can act as the determining factor in the pricing of shares. Emotions including fear, greed, and anxiety are implicated, where we move away from the rational thought process leading to a market bubble. E.g., Stocks are sometimes priced higher than the potential future value determined based on the present earnings due to more people buying it because of greed. Though it can be momentary, human psychology acts as an influential factor.
- Supply and Demand: When the demand for the stock is more than its supply, the prices move up. On the other hand, the prices will plunge if more people want to sell it than buy it. Fluctuations are high because of demand and supply when one trades in smaller volumes of shares. Investors who understand the demand – supply relation and have the ability to anticipate the demand – supply variations that are deviant at times, have an advantage over others.
- Dividends: Dividend is the benefit that shareholders can enjoy when a company earns profit. This profit sharing is a voluntary payment in the form of cash that a shareholder receives making them feel certain that their investment is safe.
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