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.  Stocks are of two types—common and preferred. The difference is while the holder of the former

Stop-loss can be defined as an advance order to sell an asset when it reaches a particular price point. It is used to limit loss or gain in a trade. The concept can be used for short-term as well as long-term trading. This is an automatic order that an investor places with the broker/agent by

Security-based lending is the practice of raising a loan by offering your existing investments in stocks/mutual funds/ETFs as collaterals. The loan can then be used for making purchases like real estate or personal items like cars. The only thing that this loan cannot be used for is making further security purchases or using the same

Asset turnover ratio is the ratio between the value of a company’s sales or revenues and the value of its assets. It is an indicator of the efficiency with which a company is deploying its assets to produce revenue. Thus, the asset turnover ratio can be a determinant of a company’s performance. The higher the

Domestic Institutional Investors are those institutional investors who undertake investment in securities and other financial assets of the country they are based in.  Institutional investment is defined to be the investment done by institutions or organizations such as banks, insurance companies, mutual fund houses, etc in the financial or real assets of a country. Simply

Foreign institutional investors (FIIs) are those institutional investors which invest in the assets belonging to a different country other than that where these organizations are based.  Foreign institutional investors play a very important role in any economy. These are the big companies such as investment banks, mutual funds etc, who invest a considerable amount of

Bullish Trend A 'trend' in financial markets can be defined as a direction in which the market moves. 'Bullish Trend' is an upward trend in the prices of an industry's stocks or the overall rise in broad market indices, characterized by high investor confidence. Bearish Trend 'Bearish Trend in financial markets can be defined as

Bollinger Bands is one of the popular technical analysis tools, where three different lines are drawn, with one below and one above the security price line. Its specific period moving average is denoted as midline to form an ‘envelope’. These lines show a band or a volatility range in which a particular security price is

Stocks that give returns that are several times their costs are called multibaggers. These are essentially stocks that are undervalued and have strong fundamentals, thus presenting themselves as great investment options. Multibagger stock companies are strong on corporate governance and have businesses that are scalable within a short span of time.  A stock that doubles

In the stock market, margin trading refers to the process whereby individual investors buy more stocks than they can afford to. Margin trading also refers to intraday trading in India and various stock brokers provide this service. Margin trading involves buying and selling of securities in one single session. Over time, various brokerages have relaxed