Found 23 Articles for Share Market

Tax-Saving Bonds

Praveen Varghese Thomas
Updated on 03-Jan-2024 17:46:23

12 Views

Introduction Tax-saving bonds are a popular strategy to minimize taxable income and save money on taxes. These bonds are long-term investments. They have a lock-in period of 5 to 10 years, during which the investor cannot redeem the bonds. In this tutorial, we will learn about tax-free bonds and their advantages. Define Tax-Saving Bonds Tax-saving bonds are financial instruments issued by the government or public sector undertakings (PSUs) to provide tax benefits to investors. These bonds are purchased with the idea of profit in the long run. The investments are kept in a lock-in period for 5- 10 years. ... Read More

Switching in Mutual Funds

Praveen Varghese Thomas
Updated on 03-Jan-2024 17:47:36

15 Views

Introduction Mutual funds are the best investment option for people who want to expand their investment choices. This method will help them earn larger returns. Mutual funds allow investors to move their investments from one mutual fund to another via switch option. What Switching in Mutual Fund Means? Switching in mutual funds refers to transferring your investment from one mutual fund to another within the same fund family. Fund families are groups of mutual funds managed by the same investment company. For instance, if you invest in an NYC mutual fund, you can convert to another NYC mutual fund ... Read More

Red Herring Prospectus

Praveen Varghese Thomas
Updated on 03-Jan-2024 17:48:27

21 Views

Introduction A prospectus must be submitted to the SEC, a regulatory authority, when a firm wants to go public. A prospectus is a legal document containing thorough information about the firm, business activities, financial performance, etc. However, before the final prospectus is issued, companies often release a preliminary prospectus known as a red herring prospectus. Meaning of Red Herring Prospectus RHP is the first document filed by the firm that wants to go public through an IPO. The document is called a "red herring" because there is a disclaimer on the cover, written in red, stating that the herring is ... Read More

Financial Independence Retire Early (FIRE)

Praveen Varghese Thomas
Updated on 03-Jan-2024 17:09:19

21 Views

Introduction The traditional idea of retirement involves working for several decades and saving enough money to comfortably retire in your 60s (common benchmark in several countries). However, the FIRE movement challenges this traditional approach by encouraging people to retire much earlier, often in their 40s. An important factor in achieving early retirement is by becoming financially independent. It means we need enough money to cover our expenses without taking a job. FIRE Meaning The acronym FIRE stands for "financial independence retire early." The concept of FIRE is based on the idea that if you can save and invest aggressively ... Read More

Euro Interbank Offer Rate (Euribor)

Praveen Varghese Thomas
Updated on 03-Jan-2024 17:10:27

19 Views

Introduction The Euro Interbank Offer Rate (Euribor) is a benchmark interest rate for borrowing between banks. It is a daily reference rate based on the interest rates banks offer to lend unsecured funds to other banks in the euro wholesale or interbank market. EURIBOR is a crucial benchmark for financial institutions and borrowers, as it prices various financial products such as loans, mortgages, derivatives, and other financial contracts. Define Euribor Euribor is a daily reference rate calculated by the European Money Markets Institute (EMMI) based on the average interest rates. A panel of 18 banks partake in computing this ... Read More

Escheatment

Praveen Varghese Thomas
Updated on 03-Jan-2024 17:14:24

16 Views

Introduction A method of transferring ownership of unclaimed assets or property to the state when the true owner cannot be found is referred to as escheatment. This approach is taken to avoid misplacing or abandoning the item and ensure it is put to good use. Escheatment can occur in various circumstances, including when a person dies without leaving a will or any heirs or when a company goes bankrupt, and its assets cannot be distributed to its shareholders. Define Escheatment Escheatment is a legal term that is used worldwide. When the actual owner of the property is not found, ... Read More

Dividend Stripping

Praveen Varghese Thomas
Updated on 03-Jan-2024 17:31:25

21 Views

Introduction If you want to earn money and maximize your profit, then stock investment is the best way to do so. While other tactics are available to investors to maximize their earnings, more experienced investors prefer to opt this investment avenue. Parking your money in mutual funds enables you opt between two options, i.e., growth and value. You can either let the funds grow by allowing the company to reinvest the dividends or claim them at the time of pay-out. This type of investment allows you to appreciate your capital or gain returns in the form of dividends. The ... Read More

Coupon Bond

Praveen Varghese Thomas
Updated on 03-Jan-2024 17:32:50

22 Views

Introduction Coupon bonds are a fixed-income asset that pays the bondholder interest through periodic coupon payments. A coupon bond issuer borrows money from investors and offers to repay it with interest over a set period. What are coupon bonds? Coupon bonds are debt security issued by corporations or governments to raise funds. They are called coupon bonds because they typically pay interest in the form of coupons, which are detachable pieces of paper attached to the bond certificate. The coupon rate is the interest rate paid to bondholders, usually fixed when the bond is issued. How do coupon bonds ... Read More

Wash Trading

Pratik Kumbhare
Updated on 20-Nov-2023 11:51:38

45 Views

Introduction We will delve into the definition of wash trading, how it works, and its differences compared to market making, high-frequency trading, and its relevance in the world of cryptocurrencies. Additionally, we will discuss the reasons why wash trading is illegal and explore strategies to detect and prevent this deceptive practice. This tutorial provides an in-depth exploration of wash trading, a manipulative trading technique that distorts market activity and undermines market integrity. Wash Trading: Definition and Explanation Wash trading is a term used to describe a manipulative trading technique in which a person or institution repeatedly buys and sells ... Read More

Voluntary Delisting

Pratik Kumbhare
Updated on 20-Nov-2023 12:00:51

29 Views

Introduction A corporation may choose to delist its stock voluntarily for several reasons, such as amalgamation, merger, or underperformance. The corporation must provide you with two options if you own stock in the company that chooses to voluntarily delist: Your shares will be purchased back by a promoter or buyer of the company using a reverse book-building procedure. Promoters are required to advertise buybacks in the media. They accomplish this by sending a letter of offer and a bid form to each shareholder who qualifies. The price at which the greatest amount of stocks has been offered is used to ... Read More

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