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So far Prem has created 79 blog entries.

Glossary Series : Windfall Profit

By |2022-08-08T18:59:00+05:30August 8th, 2022|Categories: Uncategorized|

Windfall profit or Windfall Gains is an unexpected profit.    For instance: winning a lottery unforeseen inheritance Shortage of Supply or Sudden Increase in Demand The main feature of the Windfall Profit is it is temporary in nature. In India, a Tax on Windfall Profit is levied depending on the various parameters. This Tax is

Glossary Series : Block Deal

By |2021-10-31T00:13:59+05:30October 30th, 2021|Categories: Uncategorized|

It is a single transaction, of a minimum quantity of five lakh shares or a minimum value of Rs 5 crore, between two parties that are mostly institutional players. The transaction happens through a separate trading window. The deals happen in the beginning of trading hours for a time span of 35 minutes. Block deal

Glossary Series : Recession

By |2021-10-30T22:25:58+05:30October 30th, 2021|Categories: Share Market|

A recession is a slowdown or a massive contraction in economic activities. A significant fall in spending generally leads to a recession. Such a slowdown in economic activities may last for some quarters thereby completely hampering the growth of an economy. In such a situation, economic indicators such as GDP, corporate profits, employment, etc., fall.

Glossary Series : Securities Transaction Tax

By |2021-10-30T22:22:46+05:30October 30th, 2021|Categories: Share Market|

STT is a kind of turnover tax where the investor has to pay a small tax on the total consideration paid or received in a share transaction.  STT was introduced in the Budget of 2004 and implemented in Oct 2004. The objective behind the levy is to mitigate tax evasion as the same is taxed

Glossary Series: Derivatives

By |2021-10-30T20:22:10+05:30October 30th, 2021|Categories: Share Market|

A derivative is a contract between two parties that derives its value/price from an underlying asset. The most common types of derivatives are futures, options, forwards, and swaps. It is a financial instrument that derives its value/price from the underlying assets. Originally, the underlying corpus is first created which can consist of one security or

Glossary Series : Delisting

By |2021-10-30T20:19:54+05:30October 30th, 2021|Categories: Share Market|

Delisting involves the removal of listed securities of a company from a stock exchange where it is traded on a permanent basis.  Delisting curbs the securities of the delisted company from being traded on the stock exchange. It can be done either on the voluntary decision of the company or forcibly done by SEBI on

Glossary Series : Day Trader

By |2021-10-30T20:16:29+05:30October 30th, 2021|Categories: Share Market|

Day trader refers to the market operator who indulges in day trading. A day trader buys and subsequently sells financial instruments like stocks, currencies or futures and options within the same trading day, which means all the positions that he creates are closed on the same trading day. A successful day trader must know which

Glossary series : The Stock Market

By |2021-10-30T20:01:46+05:30October 30th, 2021|Categories: Share Market|

 It is a place where shares of pubic listed companies are traded. The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital.  Once new securities have been sold in the primary market, they are traded in the secondary market—where one investor buys shares from

Glossary Series: Squaring Off

By |2021-10-30T19:44:14+05:30October 30th, 2021|Categories: Share Market|

Squaring off is a trading style used by investors/traders mostly in day trading, in which a trader buys or sells a particular quantity of an asset (mostly stocks) and later in the day reverses the transaction, in the hope of earning a profit (price difference net of broker charges and tax). For example, Person A

Sharpe Ratio

By |2021-12-01T22:56:13+05:30October 30th, 2021|Categories: Share Market|

Sharpe ratio is the measure of the risk-adjusted return of a financial portfolio. A portfolio with a higher Sharpe ratio is considered superior relative to its peers. The measure was named after William F Sharpe, a Nobel laureate and professor of finance, emeritus at Stanford University. Sharpe ratio is a measure of excess portfolio return