Embark on a journey of continuous growth with our Random Learning Series category, offering a diverse array of bite-sized lessons, insights, and knowledge nuggets spanning various topics to enrich your mind and broaden your horizons
The grey market premium (GMP) plays a crucial role in the initial public offering (IPO) landscape, serving as an unofficial indicator of how shares might perform once they are listed on stock exchanges. This article explores the concept of grey market premium, its significance, and the factors influencing it. Understanding Grey Market Premium (GMP) Grey Read more about What is Grey Market Premium? A Guide to IPO Market Insights.[…]
In an effort to bolster market integrity and protect investors, the Securities and Exchange Board of India (SEBI) has introduced the Enhanced Surveillance Measure (ESM) Stage 1. This regulatory framework targets micro and small-cap companies, specifically those with a market capitalization of less than ₹500 crores. Launched on June 5, 2023, ESM Stage 1 aims Read more about Understanding ESM Stage 1: A New Era of Enhanced Surveillance in Indian Markets.[…]
When a company’s security is under the encumbrance of promoter group shareholding exceeding 50%, it signifies that a significant portion of the promoters’ shares is pledged or otherwise restricted. This situation has important implications for investors, corporate governance, and market dynamics. Understanding Encumbrance Encumbrance refers to any claim, lien, or liability that affects the ownership Read more about Security is under Encumbrance of Promoters promoter group shareholding more than 50%. What does this imply?[…]
The Put-Call Ratio (PCR) is a critical financial metric that helps investors gauge market sentiment by comparing the volume of put options to call options. A put option gives the holder the right to sell an asset at a predetermined price, while a call option provides the right to buy. The ratio is calculated by Read more about Mastering the Put-Call Ratio: How to visualize the Put-Call Ratio?[…]
When you’re trying to figure out how well your investments are doing, you might come across terms like CAGR and XIRR. CAGR stands for Compound Annual Growth Rate. It gives you an average yearly growth rate, assuming your investment grows at the same rate every year. This makes it easy to compare how different investments Read more about CAGR vs XIRR: What’s the Difference and Why Does It Matter?[…]
Recency bias, a cognitive bias where individuals give more weight to recent events than to earlier ones, can have several implications for intraday trading. In the context of intraday trading, recency bias can influence traders’ decision-making in the following ways: Short-Term Trends: Traders may be more inclined to follow short-term trends based on recent price Read more about How is recency bias relevant to intraday trading?[…]
In India, the financial year typically runs from April 1 to March 31. Public companies are required to publish their financial results on a quarterly basis. The quarters are defined as follows: Q1 (First Quarter): April 1 to June 30Q2 (Second Quarter): July 1 to September 30Q3 (Third Quarter): October 1 to December 31Q4 (Fourth Read more about When do the quarterly results of public listed companies in India get published?[…]
The relationship between interest rates and stock market growth can vary, and it is not strictly categorized as universally positive or negative. Generally, the correlation between interest rates and the stock market can be complex and context-dependent. Positive Correlation: In some scenarios, a positive correlation may exist. For instance, during periods of economic expansion, rising Read more about Is there a positive or negative correlation between interest rates and the growth of the stock market?[…]
Several factors contribute to investor enthusiasm when the stock market reaches record highs: Wealth Effect: As stock prices rise, investors often experience an increase in wealth. This wealth effect can lead to greater consumer confidence and spending, driving economic growth. Positive Sentiment: Record highs indicate a positive market sentiment. Investors may interpret this as a Read more about What factors contribute to investor enthusiasm when the stock market reaches record highs?[…]