Stock Pathshala

पुट ऑप्शन निवेश बाजार में एक कॉन्ट्रैक्ट के रूप में जाना जाता है। यह होल्डर को एक पूर्व-निर्धारित समय अविधि में  तय मूल्य पर अंतर्निहित सिक्योरिटी बेचने का अधिकार देता है। लेकिन यह होल्डर के लिए अनिवार्य  नहीं होता है। पुट ऑप्शन को कई अंतर्निहित एसेट्स जैसे करेंसी, इंडेक्स, शेयर और कमोडिटीज पर ट्रेड किया जा सकता है।  For more, download our stock market education app - https://bit.ly...

The income statement is seen as one of the top three financial statements you need in order to analyze a business.  It is a financial statement that outlines the profits realized or losses incurred. It also shows the revenues of business as well as its expenses. The details of an income statement are mostly obtained from the cash flow statement and the balance sheet.  For more, download...

Income statement takes into account the sales revenue including adjustment for return inwards, opening inventories from the previous period, closing inventories of the previous period, purchases that have been made during the year, carriage inwards as well as returns outwards. To get gross profit, you deduct the cost of goods sold from net sales (sales after deducting returns inwards).  For m...

Fundamental analysis is an analytical method applied by investors to determine the performance of publicly-traded organizations.  The analysis looks into common factors that impact the intrinsic value of a company. The factors of fundamental analysis are categorized into two; Qualitative and Quantitative factors. These factors look into what adds or decreases the value to a company that makes...

Risk and return is a concept that is commonly known as a risk-return tradeoff.  The concept states that when risk is at a high level, then the potential return increases. Individuals in the investment industry link low-risk activities with low returns. The benefits that an investor enjoys as a result of investing in a given firm is called returns.  The profits generated by a business are...

A cash flow statement document is a type of analysis tool that is used to reveal how the elements in the balance sheet and income statement influence cash and other cash equivalents.  The statement summarizes how cash is being received and paid out by the business.  It also measures the ability of an organization to generate income to pay its operating expenses and also meet its financia...

There are several tools that financial investors use in the management of their portfolios.  One such tool is known as fundamental analysis which allows investors to acquire accurate information needed in making key investment decisions. Investors successfully use fundamental analysis to realize profits and accumulate wealth by distinguishing companies that are fundamentally weak from those t...

A balance sheet is used by business owners and bookkeepers to determine the financial position of the business.  The key components entailed in a balance sheet include what the business owns, also known as assets, what it owes, also called liabilities and lastly, the amount that has been invested in the company referred to as equity. When several balance sheets belonging to consecutive busine...

Well, you are analyzing stocks. But how do you pick them? It can be challenging for an investor deciding which stocks to choose and which ones to discard by simply looking at the stocks.  The process of selecting a particular stock for investment should be based on specific criteria.  Before selecting specific shares to invest in, an investor needs to do proper due diligence and come up...

Efficiency ratios are tools used by business stakeholders to analyze an organization’s ability to generate sales using available resources.  A typical business has two classes of resources; assets and liabilities that it can use to generate income from sales. While evaluating the assets that are used to generate income, the efficiency ratios compare a combined group of assets to either sales...

Valuation ratios are commonly used by investors who actively take part in stock market trading.  The ratios provide you with information about the values of securities of various publicly traded firms. A majority of people who use valuation ratios are investment analysts, portfolio managers all the way to individual investors. Investment analysts and portfolio managers mainly use the valuatio...

Solvency ratios are known in the investment industry as leverage ratios.  The primary purpose of solvency ratios is to measure the firm’s ability in sustaining its operations in an indefinite period. The leverage ratios compare debt levels with the company’s earnings, equity, and assets. The ratios help you in identifying the ability of the company to clear its bills during the long term. For...

Investors use cash flow statements as essential financial documents of any organization.  The financial strength of any company mostly relies on the statement of cash flows. The operations conducted by a business are normally influenced by its cash flow. You will find that cash flow analysis involves the use of ratios, which mainly revolve around the cash flow of the company.  For more,...

Growth ratios are not only used to evaluate a company’s sustainability but also growth in an increase in revenue and profits. For more, download our stock market education app - https://bit.ly/34us7OL

Return ratios are management tools used in evaluating a company’s profitability.  They measure the effectiveness of a company towards utilizing its assets or investments to generate income.  For more, download our stock market education app - https://bit.ly/34us7OL

Stochastics is a very popular indicator used by traders to predict when the market moves into the overbought or oversold conditions.  This technical indicator was formulated by George Lane towards 1960.  How stochastics work? Think of a rocket shooting into the air.  What happens when the rocket wants to start descending? It first slows down. For more, download our stock market educ...

RSI stands for the Relative Strength Index. It is a common technical indicator that you can use to classify stock price levels either as overbought or oversold.  RSI can take any number between 0 and 100. An RSI value above 70 shows that people are overbuying given security.  On the other hand, an RSI value of less than 30 shows that people are overselling the security.  For more, d...

MFI stands for Money Flow Index.  It is one of the technical indicators used by traders to tell whether the market is in an overbought or oversold condition.  In addition, you can use the MFI to identify deviations that point to a change in the market trend. For more, download our stock market education app - https://bit.ly/34us7OL

This is an indicator used by technical analysts and investors to ascertain the strength of a trend.  Most of the time, Two indicators i.e. positive directional (+DI) and negative directional (-DI) indicators are involved in showing this trend. Three lines are therefore included by ADX to help you evaluate and choose if you should take a long or short during trading.  Long refers to buyin...

The developer of MACD is Thomas Aspray. He developed this histogram in 1986. The purpose of the MACD histogram is to calculate how far the signal line is from the MACD.  Additionally, this histogram oscillates aloft and below the zero-line.  The reason why Thomas developed the MACD Histogram was to predict crossovers of the signal line in MACD. For more, download our stock market educati...

This is an indicator of momentum which follows the trend.  It shows the correlation between the moving averages of the prices of two securities. To calculate MACD (Moving Average Convergence Divergence), EMA of the 26th day is subtracted from the EMA of the 12th day.  EMA (Exponential Moving Average) also known as Exponential Weighted Moving Average (EWMA), focuses on adding weight in cu...

Moving average is widely used by most technical analysts.  It refers to the average price of a stock over a specific period of time ranging from 7 days to 6 months even though, sometimes it is longer. Moving average is taken as a lagging indicator. Most times, the price movements shown in price charts are too jerky and random such that you cannot get the clear picture.  For more, downloa...

Indicators and oscillators are common terms used by technical analysts. Indicators are calculations done to get more knowledge on the movement of prices on security by using price and mass of stocks.  For more, download our stock market education app - https://bit.ly/34us7OL

Options trading is quite popular among investors, mostly because of the prices move quickly hence increasing or lowering earnings.  Option strategies usually range from simple techniques to more complex ones. For more, download our stock market education app - https://bit.ly/34us7OL

A put option is known in the investment market as a contract that gives the holder the right and not necessarily the obligation to sell a particular number of the underlying security at a given price over a given period.  A put option is the reverse of a call option which allows the owner to purchase an underlying security at a particular price before the expiration of the option. The concept...