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Q1. What is fundamental analysis? Answer: Fundamental analysis is the detail evaluation and analysis of the entity’s financial statement. It provides the information regarding the entity’s operation. With the help of financial analysis tools, one can easily forecast the company’s future. It gives the bird’s eye view of the performance and growth of an organization. Q2. What is a fundamental analysis of the stock? Answer: Apart from the technical analysis as we have discussed earlier, fundamental analysis is the detailed study of both macroeconomic and microeconomic factors that affect the company’s share price in the secondary market (i.e. stock exchanges).  In order to determine the fair value of the shares, we have to calculate the intrinsic value of the shares. Various fundamental analytical tools help an investor to determine the intrinsic value of the stocks. Q3. What are the major components of the fundamental analysis? Answer: Fundam...

  Technical analysis of stocks Technical analysis is similar to simulation technique. Here, we make the analysis of the past data and on the basis of this analysis, we’ll forecast the price movement. Technical analysis can be used in the equity market, derivative market, commodity market, etc where the theory of supply and demand works. Technical analysis only talks about the trend and patterns. It ignores the other factors like economic growth, monetary policies, interest rates, etc. Technical analysis involves analysis of a lot of charts, patterns, trend lines and other various indicators. In layman terms, it is just the identification of patterns in the market and following the trend in order to earn a good return. It is a scientific method that is based on a number of significant assumptions. Some of the major assumptions are : History always repeats . The trend of stocks always tends to repeat. The behavior of an investor or trader in most of ...

This is a time of cryptocurrency . And here is one that is trending around the globe and this bad boy is named as “bitcoin”.We find People often talk about bitcoin, bitcoin miner, bitcoin wallet, bitcoin value, bitcoin trading,etc. Now the question arises in the newbie mind  "What the heck is a bitcoin?" Around five years prior, Nakamoto, an anonymous PC developer or gathering of software engineers assembled the Bitcoin software system and discharged it onto the internet. This appropriated software seeded the new currency, making few bitcoins.                                                                       ...

The price of the share is affected by numerous factors. Among them, one of the most significant factors is the various corporate action. Corporate actions are the various activities generally undertaken by a company through an event like board meetings, general meetings, and announcements. On these events, the detail financials of the company are presented and discussed. It’s a great opportunity for an investor willing to earn a good ROI (Return of income). An investor if efficiently use that financial information would be able to get a bird’s eye view of the company’s operations, its stability, growth and the future prospects and further scope of growth. Today we are going to have a look at one of the most significant corporate actions i.e. dividend declaration. Dividends are generally paid by the company to its equity shareholders. Dividends are nothing but it’s a way company distributes its profit to its shareholders. However, it is not mandatory f...

The word equities in the financial market generally represent the stock of a company. By buying the equity shares of a company you will get the small portion of the ownership of the company’s stake. Trading in equities means buying and selling the shares of the public company that are listed on the nation’s stock exchanges.  There are mainly three methods of investing in the equity shares. They are:           IPO           FPO           And, secondary market IPO means the Initial Public offer . The public company at the time of their formation issues shares to the public through IPO process. The investor willing to buy the company’s share will have to fill up the IPO forms mention their details. After collection of the forms, the company declares allotment of the shares. Finally, the shares allotted will be reflected in the investor's De-mat account. The second me...

Q1. What is the stock market? Answer : In a layman term, Stock market is just similar to any Grocery market. The only difference is: In the Grocery market, you purchase and sell grocery items while on the stock market you transact on equities. Q2. Who regulates the stock market? Answer : Stock markets are regulated by the nation’s various stock exchanges. Further, these stock exchanges are regulated and monitored by a separate regulatory authority. Like in the USA, the regulatory authority is SEC (Securities and Exchange Commission). Q3. What are the instruments that are traded on stock exchanges? Answer : Generally, on most of the stock exchanges the following financial instruments are traded: •    Equities, •    Commodities, and •    Derivatives ·          Options ·          Futures In some stock exch...