When you are holding a particular stock/F&O/commodity, you fear the losses that can happen when the price starts moving against you. If you place an order to limit such a loss it is called as a Stop Loss order. So for example, if you have bought a stock at Rs… Continue reading
The term “save” indicates generating 5%-10% positive return from overall portfolio while market corrected by more than 50%. You can’t expect 20%-30% return while market corrects by 50%+. Even marginal positive return will be great during those situation. You need to take the following steps during major stock market crash… Continue reading
During minor stock market crash it is more of discipline that can save your portfolio. Followings are the disciplines and required action – Don’t sell-of your entire equity holdings to re-enter at lower level. Nobody in this world can predict short term market movement correctly. So, it may happen that… Continue reading
Tax on share trading can be reduced considerably by following certain Tax saving methods – Trading as business income: – If you consider your trading gain as “business income” then you have to pay tax as per your Tax slab. The benefit is you can deduct your trading related expenses… Continue reading
Income tax on share trading depends on whether you are showing it as “Capital gain” or “Business Income”. Capital gain: If you are trading in stock market as an investor (mostly involved in delivery based trading), the gains from trading can be classified as: Long term capital gain: – If equity… Continue reading
A bonus is a free additional share while a stock split is the same share split into two. Some companies accumulate its earnings in reserve funds instead of paying it to shareholders in the form of a dividend. This accumulated reserve fund is then allotted to shareholders as bonus shares… Continue reading
It is as simple as cutting an eight-inch pizza into eight slices from four slices. When a stock split is declared by the company the number of shares increases but the investment value remains the same as the number of pieces in pizza is increased but the size of pizza… Continue reading
A bonus issue is a stock dividend, declared by a company to reward the shareholders. The bonus shares are issued out of the reserves of the company. In simple terms, these are free shares that the stockholders receive against the shares that they currently hold. These allocations typically come in… Continue reading
The principal purpose is to enlarge its share capital. They have three options to do the same: New issue of shares to present shareholders. Making an open offer. Bulk allotment of shares to a group of individuals or companies. The rationale behind preferential allotment is to provide a way to… Continue reading
Preferential allotment is the process by which allotment of shares is done on a preferential basis to a select group of investors.Now let us understand about it in details. A company plans to raise funds for its future expansion activities and reducing debt. But issuing securities to the public at… Continue reading