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.

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

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

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

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

 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

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 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

 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