You must have heard about "buy low, sell high" and "sell high, buy low" strategies in the stock market. In option trading, we have different ways to follow these two strategies. Option is a derivative contract which gives its buyer the right, but not the obligation, to buy or sell a certain quantity of assets at a fixed price on a given date. Assets can be stock, crude oil, … [Read more...] about Option trading: What is it and how traders are making money?
When Securities Transaction Tax (STT) is levied in India
Securities Transaction Tax (STT) was introduced by the former finance minister of India P. Chidambaram with effect from October 1, 2004. Securities Transaction Tax (STT) is a kind of turnover tax that is levied by the central government on the total consideration paid or received in a transaction. As the name implies, Securities Transaction Tax (STT) is levied on the … [Read more...] about When Securities Transaction Tax (STT) is levied in India
Why do companies go public and launch IPO
In an initial public offering (IPO), a privately owned company for the first time made its shares available to the general public. Companies take the root of IPO to fund their growth, expansion and future investments. Every year new companies are getting listed their stocks on the National Stock Exchange (NSE) and BSE. Before investing your hard earned money in any of the … [Read more...] about Why do companies go public and launch IPO
Common Day trading myths Versus Reality in stock market
Day trading means buying and selling of financial instruments such as stocks, forex, options, future contracts, commodities and other financial securities within a trading session. This means, if you are day trading, then all your positions must be closed before the end of each trading session. Day trading is also referred to as Intraday. The most important reason why … [Read more...] about Common Day trading myths Versus Reality in stock market
Equity vs Debt Financing: What’s the Difference?
Before getting into the difference between equity financing and debt financing, let us first understand what is the meaning of "financing". The term financing means a process in which an entity arranges funds for its business activities such as for making purchases, investing etc.. In other words, It's a process of funding an entity’s business activities. For instance, … [Read more...] about Equity vs Debt Financing: What’s the Difference?
Who can claim income tax rebate under section 87A
As per section 87A of the Income tax act, 1961, a resident individual is eligible for income tax rebate if their taxable income does not exceed 5,00,000 rupees in the financial year 2023-24 (assessment year 2024-25). This means, being a resident individual, if your taxable income after eligible tax deduction is Rs 5,00,000 or below it, then you can claim income tax rebate … [Read more...] about Who can claim income tax rebate under section 87A
Free cash flow (FCF): How to calculate and interpret
Free cash flow (FCF) means the amount of cash remaining with the company after paying for its operating costs, inventory and to buy fixed assets. Which means the cash flow from operating activities minus capital expenditures during the financial year. We can also define free cash flow as the amount of money the company has generated after accounting all cash outflows that … [Read more...] about Free cash flow (FCF): How to calculate and interpret
How segment wise revenue and results are reported and analyzed
In this article, you will learn what is a segment and how companies report segment wise revenue and results in their annual report and financial statements. As per law, all listed companies must report their segment wise revenue and results for the reporting period. It will enable the stakeholders to have insight into the entity’s operations from the perspective of that … [Read more...] about How segment wise revenue and results are reported and analyzed
How to calculate the annual return of an investment
Every investor has one goal in mind when they invest: to make money. Due to this reason many investors are interested to know what kind of return they are going to get before investing in anything. In this regard, annual return is used as a measure to report the historical rate of return of investments. Here is a list of the most important tools used to measure rate of … [Read more...] about How to calculate the annual return of an investment
CAGR: How to calculate Compound Annual Growth Rate
If you are following financial news channels, websites and research reports, then by now, you must have heard about the term CAGR. In case till now, you are not able to figure out what is the CAGR and how compound annual growth rate is calculated, then this article might be a great help. CAGR stands for the Compound Annual Growth Rate. Compound Annual Growth Rate (CAGR) … [Read more...] about CAGR: How to calculate Compound Annual Growth Rate