Learn all about Share Market
Capital Reduction: Meaning, Benefits & How It Impacts Shareholders
2 June 2025 | 7 mins read
Companies often adjust their financial structures to improve efficiency, return value to shareholders, or address financial challenges. Capital reduction is one such strategic tool that allows a company to decrease its share capital for various reasons, such as restructuring, adjusting excess capital, or offsetting losses. While it may seem like a negative action, capital reduction can actually have significant benefits for both the company and its shareholders. In this detailed guide, we will explore what capital reduction entails, its legal framework, advantages, and drawbacks, as well as its impact on shareholders.
What is the Debt Market?
2 June 2025 | 9 mins read
Today, there are various investment options available for investors. While most people are familiar with the stock market, not everyone understands an equally important segment – the debt market. The debt market, also known as the bond market or fixed-income market, is a place where participants buy and sell debt securities, typically in the form of bonds. In simpler terms, it is a marketplace for loans in the form of bonds, notes, and bills. This market plays a crucial role in the functioning of the global economy, offering investors a chance to lend money in exchange for interest payments and the eventual return of principal.
Impact of Interest Rate Changes on the Stock Market
2 June 2025 | 6 mins read
Interest rates play a significant role in shaping the stock market's performance. When central banks adjust interest rates, they influence borrowing costs, corporate profitability, and investor sentiment. For investors and market participants, understanding the relationship between interest rates and the stock market is essential for making informed financial decisions. In this article, we explore how interest rate changes affect the economy, stock prices, market volatility, and investor strategies.
What is Operating Margin?
23 May 2025 | 7 mins read
Operating margin (OM), also known as operating profit margin, is a key financial metric that measures a company's profitability by assessing how much profit it generates from its core business operations after covering operating expenses. Expressed as a percentage, it reflects the efficiency of a company in converting revenue into operating profit before interest and taxes. A higher operating margin signifies better operational efficiency, while a lower margin may indicate higher costs or weaker pricing power.
What is EBITDA?
23 May 2025 | 7 mins read
In financial analysis, one of the most commonly used metrics to assess a company’s profitability is EBITDA. But what is EBITDA? EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation. It provides a clearer picture of a company’s operational efficiency by focusing on earnings from core business activities.
What Is a Forward Contract?
23 May 2025 | 7 mins read
A forward contract is a financial agreement between two parties to buy or sell an asset at a predetermined price on a specified future date. Unlike standardised futures contracts, forward contracts are customised, allowing the buyer and seller to negotiate terms such as price, quantity, and settlement date. These contracts are commonly used in commodities, foreign exchange, and financial markets to hedge against price fluctuations and manage risk.
What is a Non-Convertible Debenture? Features, Risks and Rewards Explained
21 May 2025 | 6 mins read
Non-Convertible Debentures (NCDs) are an attractive fixed-income instrument that allows companies to raise funds while offering investors the opportunity to earn stable and predictable returns. Unlike convertible debentures, NCDs cannot be converted into equity shares of the issuing company, which makes them a preferred choice for investors looking for secure, interest-based income rather than potential capital gains through shareholding. This article explains what a non-convertible debenture is, how it works, its benefits, risks, and important factors to consider before investing.
The Impact of Market Volatility on Low-Cost Index Funds
19 May 2025 | 7 mins read
Investors seeking a less expensive, passive investment strategy often turn to low-cost index funds. These funds track market indices and offer diversification at minimal expense. However, market volatility — the rapid and unpredictable movement of stock prices — can significantly influence their performance. While these funds aim to provide stable, long-term returns, understanding how they react to market fluctuations is essential for making informed investment decisions.
Growth Option vs IDCW: Which Mutual Fund Investment Strategy is Right for You?
19 May 2025 | 6 mins read
Before investing, selecting the appropriate mutual fund investment strategy is crucial to achieve your financial objectives. Among the various options, two stand out – the Growth Option and the Income Distribution cum Capital Withdrawal (IDCW) Option. Understanding the distinctions between these strategies will help you in making informed investment decisions.
Mid Cap Stocks: Benefits, Risks & Growth Potential
15 May 2025 | 6 mins read
If you're an investor seeking a balance between stability and high returns, mid cap stocks might be a good addition to your portfolio. While large cap stocks offer security and small cap stocks promise rapid growth, mid cap stocks are placed in the middle, offering a balance of both worlds. But like any sound investment, you need to understand their various aspects and nuances before deciding.
What Is Growth Rate? Definition, Formula & Importance
15 May 2025 | 6 mins read
Growth rate is a fundamental metric used to measure the expansion of a company, investment, or economy over time. Whether you are an investor analysing stock performance or a business assessing revenue growth, understanding growth rates can help in making informed investment decisions. This blog explains growth rate meaning, its formula, types, and how it applies to investments such as mutual funds and stocks.
Call Ratio Backspread Strategy: A Smart Approach to Options Trading
8 May 2025 | 9 mins read
The Call Ratio Backspread is an advanced options strategy often used by traders seeking to capitalise on significant price movements in a stock or asset. It's particularly useful when you expect high volatility but are unsure of the direction. This strategy involves a combination of buying and selling calls in a ratio, allowing traders to profit from sharp price movements while limiting initial risk exposure. This guide will explore how the Call Ratio Backspread works, when to use it, its profitability, and more.
What is the Physical Settlement of Futures & Options Contracts?
8 May 2025 | 8 mins read
Futures and options (F&O) contracts are derivatives that derive their value from underlying assets such as stocks, commodities, or indices. Traditionally, many F&O contracts were settled in cash, meaning traders received or paid the difference in price instead of taking possession of the asset. However, in recent years, regulatory bodies like SEBI (Securities and Exchange Board of India) have mandated physical settlement of stock derivatives to curb excessive speculation and improve market stability. In this article, we will explore physical settlement of F&O contracts, its working mechanism, margin requirements, advantages, and disadvantages, along with key differences from cash settlement.
Stock Vs ETF: Difference Between ETF and Stock
8 May 2025 | 8 mins read
When it comes to investing in the stock market, two popular choices are stocks and exchange-traded funds (ETFs). While both offer opportunities for wealth creation, they differ in structure, risk level, diversification, and overall investment strategy. For beginners, understanding stock vs ETF can help in selecting the right investment option based on financial goals, risk appetite, and market knowledge. This article provides a detailed comparison between stocks and ETFs, including their features, advantages, disadvantages, and key differences.
Discounted Cash Flow (DCF): Calculation & Analysis with Examples
24 April 2025 | 5 mins read
If there is one thing certain in the investment world, it is uncertainty—you can never be sure of the results. However, there are strategies and financial models that you can use to estimate the return potential of investments. One such valuation method is the Discounted Cash Flow or DCF analysis. This article explores the meaning, calculations, benefits and challenges of DCF analysis.