What Is Day Trading?

Day Trading, also know as Intra-Day trading, is the system where traders buy’s financial securities and sell the same before the end of that day’s trading session. In other words it is the act of buying and selling of various securities within the same day with the expectation making a profit for yourself in that buy-sell or sell-buy exercise. All …

Read More »

Difference Between Freehold & Leasehold

The terms ‘Freehold’ and ‘Leasehold’ are used in connection with land property, these are two different ways in which properties can be owned. This is one of the first problems people come across when buying a house is understanding the difference between leasehold and freehold. They make take wrong purchasing decisions without taking in consideration the difference between them. These …

Read More »

What Is Margin Trading?

When an investor borrows money from his broker to buy stocks, the process is called margin trading. Margin is a way of increasing your purchasing power for investments. Buying on margin means that you take a loan from your broker to increase the amount of funds you have at your disposal to invest. The loan comes with its own costs …

Read More »

Types Of Corporate Actions

Corporate actions are the actions initiated at the corporate level having material impact on the companies financial structure and ultimately the stakeholders who are the owners of company.  In other words corporate actions are events initiated by issuer of securities that directly or indirectly effects its shareholders or bondholders, whether positively or Negatively. It is important that the investor has …

Read More »

What Is Credit Rating?

Credit rating estimates the credit worthiness of an individual, corporation or even a country. In other words a credit rating helps a lender or investor the probability of the subject (borrower) being able to pay back a loan in full and on time. A simple alphanumeric symbol is normally used to convey a credit rating. Credit rating agency (CRA) evaluates …

Read More »

What Are Derivatives?

The term “Derivative” as the name indicate is a financial instrument that has no independent value, i.e. its value is entirely “derived” from the value of other financial instruments called as “underlying asset”. This underlying asset can be gold, currency, stock or any commodity. In short, derivative is not an asset in itself but an agreement or a contract to …

Read More »

Different Kinds Of Mutual Funds

Mutual funds is a trust that pools money from a group of investors sharing common financial goals and invest the money. In other words, a mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. Financial intermediaries or investment companies carry out detailed …

Read More »

Overview Of United Stock Exchange (USE)

United Stock Exchange (USE) of India , is an Indian newest Stock Exchange. USE has launched its operations on 20th Sep 2010, after the final approval from the market regulator Stock Exchange Board Of India, SEBI to start Currency Futures Trading (it is a contract to exchange one currency for another currency at a specified date and a specified rate …

Read More »

Difference Between Depreciation And Amortization

Every business invest in some equipment’s, furniture, machinery, vehicles, building, land, patents etc in order to operate. Major assets last for more than one year, but will not last indefinitely. Major assets that will be used in your business for more than a year are known as “capital assets” and are subject to special treatment under the tax laws. Most …

Read More »

What Is Private Mortgage Insurance (PMI)?

PMI stands for Private Mortgage Insurance, It is a special kind of insurance that lenders may require the borrower to purchase if the loan they are taking out is 80% or higher of the value of the real estate. In other words, buyers with less than a 20% down payment are normally required to pay PMI. This protects the lender …

Read More »

What Is Systematic Investment Plan (SIP)?

A systematic investment plan or SIP (as it is more commonly known) is a way to invest in mutual funds regularly. It is just like a recurring deposit with the post office or bank where you put in a small amount every month. The difference here is that the amount is invested in a mutual fund (indirectly in stocks etc). …

Read More »

What Is Stock Beta?

Beta is the statistical measure of the risk of an investment. Beta is a calculation that compares a stock’s historical performance against the overall performance of the entire stock market. Investors use beta to measure the volatility of any stock. Investment analysts use the Greek letter ‘ß’ to represent beta. Since stocks are characterized by their dynamic nature in terms …

Read More »

Difference Between Call Option And Put Options

You must have heard about people making money from stocks. To make money with a stock, there are two basic options: buy it (call option) or sell it (put option). Call and put are called options as there is no obligation on your part to carry out the transaction and they are merely an option for you. But at the …

Read More »

What Is Sovereign Debt?

The term “Sovereign Debt” refers to the debt issued by national Government in the international or foreign currency. Sovereign debt are also known as Sovereign bonds, these bonds are issued in the international currently and can be sold to other countries and foreign investors. It is very common that when a country needs huge capital to support the spending, it …

Read More »

What Is A Bank SWIFT Code?

SWIFT code stands for ‘Society for Worldwide Interbank Financial Telecommunication’ code. A SWIFT code is a universal way of identifying banks throughout the world. The SWIFT code is an 8 or 11 alphanumeric characters code that uniquely identifies financial institution. The first four characters of a SWIFT code are letters and refer to the bank specifically. The next two characters …

Read More »

Difference Between NRE, NRO and FCNR Bank Accounts

There are many types of NRI banks accounts available. But, here I will be explaining only the most widely used and offered by the leading banks in India. The following are the three types of NRI bank accounts offered by most of the bank across India: NRE (Non Resident (External) Rupee) Account:NRE is a term assigned to bank accounts available …

Read More »