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Why does stock exchange give negative returns?
Many factors can cause an investment to have a negative rate of return (ROR). Poor performance by a company or companies, turmoil within a sector or the entire economy, and inflation all are capable of eroding the value of the investment.
Many factors can cause an investment to have a negative rate of return (ROR). Poor performance by a company or companies, turmoil within a sector or the entire economy, and inflation all are capable of eroding the value of the investment.
See lessWhat are the things that have to be kept in mind while entering into stock exchange?
.1.on't get carried away by sentiment. This is something you must be wary about. 2.Keep your trading capital intact. When you begin trading, you set out with a certain amount of 3.money as trading capital, which you use to buy and sell stocks. 4.Don't go broke. 5.Keep it small.
.1.on’t get carried away by sentiment. This is something you must be wary about.
See less2.Keep your trading capital intact. When you begin trading, you set out with a certain amount of 3.money as trading capital, which you use to buy and sell stocks.
4.Don’t go broke.
5.Keep it small.
What is the difference between stock market and new issue market?
New securities are issued (created) and sold to investors for the first time in the primary market. Thereafter, investors trade these securities on the secondary market. The primary market is also known as the new issues market. The secondary market is what we commonly think of as the stock market oRead more
New securities are issued (created) and sold to investors for the first time in the primary market. Thereafter, investors trade these securities on the secondary market. The primary market is also known as the new issues market. The secondary market is what we commonly think of as the stock market or stock exchange.
See lessWhat are the different types of markets that can co-exist?
Economic market structures can be grouped into four categories: perfect competition, monopolistic competition, oligopoly, and monopoly. The categories differ because of the following characteristics: The number of producers is many in perfect and monopolistic competition, few in oligopoly, and one iRead more
Economic market structures can be grouped into four categories: perfect competition, monopolistic competition, oligopoly, and monopoly. The categories differ because of the following characteristics: The number of producers is many in perfect and monopolistic competition, few in oligopoly, and one in monopoly.
See lessIs there any possibility of any outside force to manipulate the market?
Indeed, the price of securities or derivatives may be manipulated in one market for the express purpose of affecting their price, or the price of underlying assets, in another jurisdiction or market
Indeed, the price of securities or derivatives may be manipulated in one market for the express purpose of affecting their price, or the price of underlying assets, in another jurisdiction or market
See lessWhat kind of object analysis is used to compare trading activities?
Presents a comparison of six object-oriented analysis and design methodologies. For each of the methodologies, a formal representation of it is constructed as a metaprocess model and a meta-data model. These two metamodels of a methodology represent the steps of the analysis and design, the conceptsRead more
Presents a comparison of six object-oriented analysis and design methodologies. For each of the methodologies, a formal representation of it is constructed as a metaprocess model and a meta-data model. These two metamodels of a methodology represent the steps of the analysis and design, the concepts and the techniques provided by this methodology. Based on this uniform representation, an extensive comparison of these six methodologies is then performed. The results are given as a set of tables in which the similarity and differences of these methodologies are exhibited. Adopting this formal approach, one can avoid errors caused by misunderstanding or misinterpretation of these methodologies. Consequently, an accurate and unbiased comparison is made possible
See lessWhat are the different types of trading that exist?
This article will explore the various types of trading in the stock market, including intraday trading, scalping, swing trading, position trading, momentum trading. By familiarising yourself with these trading approaches, you can make informed decisions and develop a trading strategy that suits yourRead more
This article will explore the various types of trading in the stock market, including intraday trading, scalping, swing trading, position trading, momentum trading. By familiarising yourself with these trading approaches, you can make informed decisions and develop a trading strategy that suits your investment goals.
See lessWhat are the security features that are being provided to a person in the stock market?
For a person, the stock market provides security through bonds and stocks. Stock security features allow traders to vote and get periodic dividends based on the company’s profitability. Bond security features guarantees a person for a fixed rate of return, called the coupon rate, in exchange for useRead more
For a person, the stock market provides security through bonds and stocks. Stock security features allow traders to vote and get periodic dividends based on the company’s profitability.
See lessBond security features guarantees a person for a fixed rate of return, called the coupon rate, in exchange for use of the invested funds much like a Bank Loan. Bond security provides a specific par value, coupon rate, and maturity date. At the time of maturity, the issuing entity repays the full par value of the bond.
Preference Share Securities features allow a person to get a fixed dividend, much like a bond. If the issuing company goes bankrupt then preferred shareholders can grant a higher claim on funds than their common counterparts.
So, these are the most common securities that a person can get in the Stock Market.
What are the strategies used to implement stop loss?
Some traders believe in determining a percentage of loss. For example, an investor may choose to place a stop-loss order at 10%, that is the stop loss will be triggered when the stock price reaches 10% below the buy price. This is one of the popular stop-loss strategies.
Some traders believe in determining a percentage of loss. For example, an investor may choose to place a stop-loss order at 10%, that is the stop loss will be triggered when the stock price reaches 10% below the buy price. This is one of the popular stop-loss strategies.
See lessHow to handle stop loss while trading in stock markets?
Stop-loss is a method used by an investor to limit his losses. It works as an automatic order given by the investor to his broker to sell a security as soon as it reaches a certain predetermined price. For example, let’s say Ashish buys 50 shares in ABC Mobiles at the rate of one thousand rupees perRead more
Stop-loss is a method used by an investor to limit his losses. It works as an automatic order given by the investor to his broker to sell a security as soon as it reaches a certain predetermined price. For example, let’s say Ashish buys 50 shares in ABC Mobiles at the rate of one thousand rupees per share. Shortly, the share price falls to 960 rupees per share. Ashish wants to limit his losses; so he inputs a stop-loss order at nine hundred and fifty rupees. If price corrects further to nine hundred and fifty rupees, his broker Angel One will sell the shares to prevent further losses.
On the other hand, if the share price jumps to oshane thousand four hundred rupees per share, Ashish would want to hold on to his shares and not lose his advantage; so he inputs a stop-loss order to sell the shares if the price falls to one thousand three hundred rupees. By placing the stop-loss order, Ashish protects his investments by retaining his gains and preventing potential losses.
See less