Penny stocks are stocks that trade at a low price, typically below $5 per share. They are different from other stocks, such as blue-chip stocks, in several key ways. Firstly, penny stocks are often issued by smaller, less established companies with...
Price gaps can occur in stock or commodity prices, and they are typically categorized into four main types: common gaps, breakaway gaps, runaway gaps, and exhaustion gaps.
Fully diluted market capitalisation represents the total value of a company’s shares if all possible securities, such as stock options, convertible bonds, warrants, and restricted stock units (RSUs), were converted into common stock. Unlike basic...
No-load funds contain no commission charges at all, with the fees simply reflected in the net asset value of the fund. A front-end load is assessed when the investor buys shares, and a back-end load is assessed when the investor sells...
Interest rates and inflation can have a significant impact on the performance of defensive stocks. Defensive stocks are often sought after by investors seeking stability and consistent returns, especially during times of economic uncertainty.
The key difference between short-term capital gains (STCG) and long-term capital gains (LTCG) on shares lies in the holding period and tax treatment. In India, if shares are sold within 12 months of purchase, the profit is classified as STCG, taxed...
Stock market indices are tools used to measure the performance of a group of stocks. The most important stock market indices include the Dow Jones Industrial Average (DJIA), the S&P 500, and the NASDAQ Composite.
A networked economy is one that relies on electronic communication networks. In the information society, it represents the emerging economic order that governs the production and sale of digital services. As a result of the substantial harmonization...
Cumulative preferred shares offer investors a significant layer of protection in the event of missed dividend payments. Unlike common shares or non-cumulative preferred shares, cumulative preferred shares guarantee that any unpaid dividends must be...
Multilateral Trading Facilities (MTFs) are electronic trading platforms that enable multiple buyers and sellers to meet and trade financial instruments. These facilities operate under the oversight of regulatory bodies and are designed to provide...