INTELLECTUAL TRADING

  As you know, there is a marketplace for everything that we want to trade: a vegetable market where you can buy fruits and veggies, a gold showroom that sells ornaments, coins, and other items made of the yellow metal, and so on. Likewise, there is a regulated marketplace called a ‘stock exchange’ where you can trade listed-financial instruments such as: Stocks Commodities Bonds Derivatives Currencies Futures & Options The main objective of a stock exchange is to ensure that the companies and clearing members abide by the rules and regulations of the exchange and also that trading happens in a legitimate manner. Over-the-counter (OTC) market Financial instruments that are not listed and do not meet the requirements of a stock exchange are traded on an over-the-counter (OTC) market. Compared to a stock exchange, an OTC is less formal and regulated. Stocks traded here belong to smaller and riskier entities. BSE and NSE Coming back to stock exchanges, India has 23 in all, out of whic

  Have you ever come across the two-letter code that appears next to a stock or any other capital market instrument when you search for it on a trading terminal on NSE? Yes, we are talking about NSE stock series: EQ, BE, BL, BT, GC, IL and IQ. These suffixes for stocks are more than just codes. Though it may seem all daunting at first, decoding these codes will make trading a lot simpler for you as it takes away certain doubts that may be troubling you. So, let’s understand what the NSE stock series means in this article. Why  NSE stock series ? The National Stock Exchange (NSE) is known to have recorded the highest volume traded on any exchange in India. The bourse not only allows trading in equities but a host of other capital market instruments such as preference shares, debentures, government securities, Indian Depository Receipts (IDR), close-ended mutual funds, and ETFs. Since these investments are transacted in high volume on NSE, the bourse has established several series/catego

  Globalisation has touched every aspect of the financial space including how we trade in stocks. That is to say, if you are a resident of a foreign country looking to invest in Indian stocks, you can do it. This is the essence of SGX Nifty, a derivative of Nifty, the Indian benchmark index. Moreover, SGX Nifty index is also known to indicate how the Indian stock markets would perform. But by nature, a stock market is volatile. Then how can SGX Nifty indicate the performance of the Indian stock market for a given day? Let us find out that and more about a benchmark index in this article. What is a benchmark index? A benchmark index is an important indicator of how a group of stocks traded on an exchange performs. It consists of several stocks, that either belong to all the sectors or a specific segment of the economy. Depending on the stocks it represents, a benchmark index thus indicates the performance of the overall stock market or the respective sector. For instance,   Nifty or Nif

  Not long after the   Facebook and Jio deal   was signed, Reliance Industries Limited, the oil-to-telecom conglomerate, has given us a new topic to chew on. In its regulatory filing to the BSE (Bombay Stock Exchange), Reliance Industries Limited (RIL) revealed that it would consider rights issue in the Board of Directors meeting on 30th Apr. And it was approved. Some analysts say Reliance’s rights issue maybe its 3rd round of fundraising to deleverage its balance sheet, the other two being a stake sale in Jio to Facebook and issuance of non-convertible debentures (NCD). We take this opportunity to discuss rights issue and how it would impact Reliance Industries Limited and its shareholders/investors. What is a rights issue? A rights issue is a way to raise capital by inviting existing shareholders to buy additional shares at a price lower than the market value. That said, the meaning of right shares is straightforward: existing shareholders are given a right to buy new shares, but are

  Earlier this month, the mining major, Vedanta—a subsidiary of Vedanta Resources—filed to delist its shares from Indian stock exchanges. A week later, Diageo, one of the world’s largest distillers also hinted at possibly delisting United Spirits, its subsidiary. What would happen if, one fine day, the company whose shares you hold announces delisting from the stock exchanges? Will you lose money? Or will you have to compulsorily sell the delisted shares? Or will you no longer have ownership rights and receive dividends? Tens of questions must be doing rounds in your mind. We have the answers, in here. What is delisting? When a company lists its securities on a stock exchange, it becomes a public entity. Shares of such a company are available to trade on the registered bourses. In contrast, when the entity delists its shares, it means the stock will no longer be available for trade on the stock exchanges. And, also that the company wants to be a private entity. Types of delisting There

  Recently, the board of directors of Eicher Motors approved a 10-for-1 stock split. Does this mean you have to forgo your shares or parts of them? Does this mean the value of your shares in Eicher Motors will slash? Does this mean your investment portfolio will carry a lower value after the stock split? But what is a stock split anyway? And why should you care? We’ll discuss that and more in this piece. Let’s dive right in. Introduction to the concept   of a stock split As per Lexico, split means to “Break or cause to break forcibly into parts, especially into halves or along the grain”. Evidently, if you split a thing you own or enjoy, you will have to forgo a part of it. Does this mean you are at loss or gain? On the face of it, a split definitely seems like a loss. Unless you did it wholeheartedly. So, does this mean a stock split is bad for you as an investor? Well, not necessarily. More often than not, a stock split can be good news. Stock split meaning Simply put, a stock split