INFLATION's EFFECT ON STOCK MARKET: Understanding inflation is crucial to investing because inflation can reduce the value of investment returns. Inflation affects all aspects of the economy, from consumer spending, business investment, and employment rates, to government programs, tax policies, and interest rates. It is because of the inflation that share market has … [Read more...]
Archives for 25/01/2010
FII – ( FOREIGN INSTITUTIONAL INVESTOR )
Foreign Institutional Investor [FII] is used to denote an investor - mostly of the form of an institution or entity, which invests money in the financial markets of a country different from the one where in the institution or entity was originally incorporated. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds. It is a hot money … [Read more...]
The Sub-Prime Effect and Emerging Markets
What is Sub-prime? Some borrowers may have issues like poor credit history or hard to prove income, which makes Them ineligible to borrow money at prevailing market rates or prime rates. Sub Prime Lending is the Practice of financing such borrowers at a higher than prime rate. Such loans are considered risky Because of high interest rates, bad credit history and lack of … [Read more...]
Technical Indicator- Moving Average used in Indian stock market
MOVING AVERAGE The concept of moving average in statistics is used to analyze the time series data. Moving averages simply measure the average price or exchange rate of a currency pair over a specific time frame. For example, if we take the closing prices of the last 10 days, add them together and divide the result by 10, we have created a 10-day simple moving … [Read more...]
IPOs : In detail
An initial public offering (IPO) occurs when a company first sells common shares to investors in the public. Generally, the company offers primary shares this way, although sometimes secondary shares are also sold as IPOs. This article contains: What are the eligibility criteria for a company to issue an IPO? Why companies … [Read more...]