Categories
- Glossary
Suggest a new Definition
Proposed definitions will be considered for inclusion in the Economictimes.com
Equity
- PREV DEFINITION
Stock Split
Stock split is done to infuse liquidity and to make shares affordable for various investors who could not buy the shares of that company before due to high prices.
Read More
- NEXT DEFINITION
Stop Loss
Read More
Definition: A stock is a general term used to describe the ownership certificates of any company. A share, on the other hand, refers to the stock certificate of a particular company. Holding a particular company's share makes you a shareholder.
Description: Stocks are of two types—common and preferred. The difference is while the holder of the former has voting rights that can be exercised in corporate decisions, the later doesn't. However, preferred shareholders are legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders.
There is also something called 'convertible preferred stock'. This is basically a preferred stock with an option of converting into a fixed number of common shares, usually any time after a predetermined date.
Read More News on
- SHARESRIGHTSINSURABILITY
- PREV DEFINITION
Stock Split
Stock split is done to infuse liquidity and to make shares affordable for various investors who could not buy the shares of that company before due to high prices.
Read More
- NEXT DEFINITION
Stop Loss
Read More
Related Definitions
- 52 Week High Low: Prices of commodities, securities and stocks fluctuate frequently, recording highest and lowest figures at different points of time in the market. A figure recorded as the highest/lowest price of the security, bond or stock over the period of past 52 weeks is generally referred to as its 52-week high/ low.Description: It is an important parameter for investors (as they compare the current trAlgorithmt is Algorithm?The term "algorithm" refers to a collection of guidelines to be followed in computations or other problem-solving procedures. This sums up the algorithm definition. It is also a process for handling a mathematical equation in several iterations, sometimes using recursive operations. It is often easy or complex, depending upon the nature of the problem. What are the characteristics oAlgorithm Trading: Algorithm trading is a system of trading which facilitates transaction decision making in the financial markets using advanced mathematical tools.Description: In this type of a system, the need for a human trader's intervention is minimized and thus the decision making is very quick. This enables the system to take advantage of any profit making opportunities arising in the market much beforAlpha: Alpha is an estimated numeric value of a stock's expected excess return that cannot be attributed to the market's volatility, but may be due to some other security.Description: In other words, it is the difference between the investment return and the bench mark return (for e.g. NSE Nifty). It is one out of the five technical risk ratios which help the investor to determine the risk reward p
- American Option: American options are derivatives contract with the option of redeeming the contract during the life of the option.Description: The unique feature of redeeming the contract before maturity or on the date of maturity gives it an added advantage of tradability. Due to this particular feature, it is the most widely traded option on trade exchanges. It is highly liquid in nature.It is to be nArbitrageArbitrage is the process of simultaneous buying and selling of an asset from different platforms, exchanges or locations to cash in on the price difference (usually small in percentage terms). While getting into an arbitrage trade, the quantity of the underlying asset bought and sold should be the same. Only the price difference is captured as the net pay-off from the trade. The pay-off should be Assetare things you own that you can sell for money. In accounting, an asset is any resource that a business owns or controls. It's anything that could be sold for money. The study of a balance sheet and assets and liabilities helps us to ascertain the equity value. This value can be used to value a company and understand if a company is overvalued or undervalued in the market. What is an asset?An asseAsset AllocationAsset allocation is an investment strategy by which an investor or a portfolio manager attempts to balance risk versus reward by adjusting the percentage of amount invested in an asset of a portfolio according to the risk tolerance of the investor, his/her goals and the investment time frame.Description: Financial assets vary in returns from each other depending on market conditions and user r
- Auction MarketAn auction market is the market where interested buyers and sellers enter ambitious bids and offers, respectively, at the same time. The price at which the security trade reflects the highest price the buyer is interested to pay and the lowest price at which the seller is interested to sell.The trade is executed at the price where the bid and the offer price match. It is different from an overBasis RiskBasis Risk is a type of systematic risk that arises where perfect hedging is not possible. When there is a variation between hedge/futures/relative price and cash/spot price of the hedged underlying at any given point of time, that variation is called ‘Basis’ and risk associated with it is called Basis Risk.Basis is simply the relationship between the cash price and future price of an underlyi
Related News
Yen surges as traders brace for interest rate shift while risk mood soursThe yen rallied for a fourth day running on Thursday, reaching a a six-week high, as traders ditched their long-running bets against the currency and a plunge in global stocks drove investors towards traditionally safe assets.- The S&P 500 and Nasdaq reached multi-week lows after disappointing earnings from Alphabet and Tesla. Investor confidence in megacap stocks was shaken, causing significant declines in both indices. The S&P 500 saw its worst performance since December 2022, while the Nasdaq had its biggest drop since October 2022. The Dow also posted a notable decrease.
- Tech slump knocks Asia shares, yen towers at 2-1/2-month peakThe sell-off in stocks saw investors ramp up bets on rate cuts globally, with futures implying a 100% chance of a Federal Reserve easing in September. A spike in market volatility fuelled a vicious squeeze on carry trades which saw the dollar sink another 0.6% to 152.85 yen on Thursday.
- Go long, go short, go pay more taxGAIN DRAIN Tax on long-term capital gains raised from 10% to 12.5%, while short-term capital gains up from 15% to 20%
- Wall St ends slightly lower with Big Tech earnings on deckWall Street's main indexes closed slightly lower as investors turned attention to earnings reports from Alphabet and Tesla. Both companies reported positive revenue numbers for the second quarter. Market awaits tech giants' earnings to gauge market valuation. Small-cap stocks showed a 1% increase, while megacaps initially lifted markets before overall declines.
- Budget 2024: Rail stocks tumble up to 8% as Budget fails to impress sectorShares of railway stocks fell up to 8% on BSE today after the Union Budget disappointed the Street, with no sector-specific announcements or allocation by the Finance Minister Nirmala Sitharaman.
- Budget 2024: Realty stocks slip 5% after removal of indexation benefitsThe Nifty Realty index became the top sectoral loser today, falling by 2.3% as 9 out of 10 stocks ended the day in red, with Lodha being the top loser of the sector, dropping nearly 5%.
- Budget 2024: Boost to disposable income augurs well for FMCG companiesThe Union Budget 2024 has measures for providing support to poor, women, youth and farmers. There is a provision of Rs 1.5 lakh crore towards education, employment and skilling. These measures augur well for the FMCG companies as they may result in more disposable income.
- Dividend yielding stocks: In a raging bull market don't ignore, it serves more than one purpose. 5 stocks with dividend yield between 4 to 7 %In a market which is giving decent capital gains, looking at dividend yield stocks might not appeal to many. But when valuations are high and stocks which are IBC cases, quoting at half a billion market capitalization, then probably if one is looking at putting in fresh capital, it might be better to be cautious and don't ignore stocks where there is a cushion of dividend yield. There is reason to believe that if bears come to rule the street then dividend yield does act as cushion and even end up protecting capital. But then there are some things to be looked at before deciding to have dividend yield as a theme to invest. Track record of paying dividends on a regular basis for a decade or not. Yes, it might have missed one time in ten years, but the fact that if a company is paying a dividend continuously for ten years, it gives a reasonable level of comfort that it will continue to do so.
- First it was auto companies like Tata motor & TVS motors which were re-rated due to their EV venture. Then as the time went, stocks like Bajaj Auto and Hero honda also joined the re-rating bandwagon. But the re-rating of the auto ancillary industry has been slower, for a valid reason. These auto ancillary units are dependent on their main buyers. So, for an auto ancillary company which has been supplying to the TVS motors, Tata motors the process of transformation started a long time back but for some others, where the major buyer which is the auto companies was late in coming out with the EV model, transition has been slower. But the biggest factor which distinguishes a winner and laggard in the auto ancillary industry is how proactive the management has been of auto ancillary companies in anticipating the demand and changing its priority. Some are able to do better than others.
Load More
Trending DefinitionsRailways Budget 2024Interim Budget 2024Budget 2024 New Tax RegimeIncome Tax in Budget 2024Debt fundsSensexNiftyRepo rateMutual fundGross domestic productData miningAdvertisingProductMonopolyCryptographyDepreciation
