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What Is Market Cap? Meaning, Formula & Simple Example
You must have heard this… “Reliance is a large-cap company’ ‘This is a small-cap stock ‘ You might be doubtful what is this “cap” which is being talked about. I am going to explain ‘Market cap’ in simple terms. What is Market Cap? Market cap is a…
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What Is a Bonus Share? How It Works, Bonus Ratios & Why Companies Issue Them
Imagine you sleep with 30 shares of Reliance in your account. The next day you have 60! How? Magic…. NOPE. It’s the bonus issue. Bonus shares are free additional shares that a company gives to existing shareholders in proportion to the number of the shares they already…
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What Is a Stock Split? Why It Matters to Companies and Investors
Raman had ₹100000 that he wanted to invest in the share market. He wanted to buy shares of company A. He saw the financials and realised the company was financially strong. But, he forgot one thing. Market Price of 1 share of company A was ₹10000. He…
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What Is a Dividend? Meaning, Calculation, and Important Dates
You invest in a share. You gain ownership. But shares are considered risky. Your returns depend on how well the share performs in the market. There is a risk that the share price could fall. Is there something the company gives you in return? Yes, a dividend. …
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What Is the Face Value of a Share? Why Should Investors Care?
Whenever you open up your trading app. You see only one value- the current share price. And to be honest, most of the time this is the value you should care about. But, face value is another value that the investor should understand. What is the Face…
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Why Investors Panic Sell: 4 Reasons Fear Takes Over During a Market Crash
“You bought Hindustan Aeronautics Limited at 4400 yesterday with the hope of it rising to 4600 soon. But, the next day you got up it was at 4300 with a percentage negative of around 2.27% and it does not seem to stop. Your heartbeat is rising. Maybe…
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Why Do Share Prices Go Up and Down Every Day?
You open the Trading App. And you see the stocks going up in one second and down in the other. The stock prices change every second. What makes this happen? The answer is simple. DEMAND and SUPPLY Demand > Supply — The share price goes Up. Demand…
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Share vs Stock. Is there a difference?
In everyday market conversations, the terms shares and stocks are often used interchangeably. We don’t care about whether they differ or not in real life. But there is a difference when we talk. We say: I bought Reliance’s shares today. And I own defence stocks. From these examples…