FPO stands for Follow-on Public Offer, which is another term for a secondary offering. It refers to a situation where a company that is already publicly traded issues additional shares of stock to the public. An IPO, or Initial Public Offer, is the process by which a privately held company raises capital by issuing and Read more about What is a FPO and how is it different from an IPO?[…]
These are certain sectors that are likely to continue to be a focus in the future due to their importance to the economy and society. Infrastructure: This sector includes transportation, water, and energy infrastructure, and it is likely to be a focus in the future as governments look to improve and upgrade these systems to Read more about What sectors will the financial budgets of the future be focused on?[…]
The color of a price candle on a stock chart is used to represent whether the closing price of a security is higher or lower than its opening price. A positive price candle is typically represented in green and a negative price candle is typically represented in red. The reason for this color convention is Read more about Why is a positive price candle typically green and a negative price candle red?[…]
T+1 stock settlement refers to the process of settling a stock trade one day after the trade date. In other words, T+1 settlement means that when a trade is executed on Monday, it will be settled on Tuesday. From 27th January 2023 onwards, this is the new standard settlement cycle for all stock trades in Read more about What is T+1 settlement cycle for stocks?[…]
Open interest is the total number of outstanding futures contracts (i.e. contracts that have been entered into but not yet liquidated by an offsetting transaction or fulfilled by delivery) for a particular market or commodity. It can be used as an indicator of market activity, as an increase in open interest suggests that new positions Read more about Open interest explained, and what does the relationship between open interest and the price of a futures contract indicate?[…]
“Liquidity eats liquidity” is a phrase that is often used to describe the way that liquidity can be both created and destroyed in financial markets. The idea behind the phrase is that when there is a high level of liquidity in the market (or in a specific instrument, for example, nifty) , it can attract Read more about Liquidity eats liquidity; what does this phrase mean in financial markets?[…]
Standard deviation and probability are related in that they are both used to measure and quantify uncertainty or randomness. Standard deviation is a measure of volatility, which is used to quantify the amount of variation or dispersion in a set of data. It tells us how much the individual data points in a set deviate Read more about How are standard deviation and probability related?[…]
The “fear of missing out” (FOMO) syndrome is a phenomenon that occurs in intraday trading, where traders feel a sense of anxiety or urgency about missing out on potential profits from a trade. This fear can be triggered by market conditions, such as a rapidly rising market, or by the actions of other traders, such Read more about What is the “fear of missing out” syndrome in intraday trading, and why traders need to be aware of it?[…]
Stock markets typically react differently to hawkish and dovish monetary policies. When a central bank adopts a hawkish monetary policy, by raising interest rates or taking other measures to tighten monetary policy, it can lead to a decrease in stock prices. Higher interest rates make borrowing more expensive, which can lead to a decrease in Read more about How do stock markets react to hawkish and dovish monetary policies?[…]