What is Face Value in an IPO? Face value is the fixed price a company sets for its share before going for an Initial Public Offering (IPO). It is also known as ‘Par Value’. The face value can be any...

The term direct equity refers to investment in the stock market directly. To directly invest in the stock market, you need a demat and trading account. This account allows investors to buy shares/stock of the company directly from the stock...

A capital market is a financial market where long-term debt or equity-backed securities are bought and sold. Suppliers are people/organisations with the capital to lend or invest. Banks and investors are common examples. Securities Exchange Board of India (SEBI) governs...

What is a Call Option? A call option (CE) is a derivative contract where the buyer has the right but not an obligation to purchase the underlying asset at a predetermined price within a specific expiration date. The underlying asset...

Meaning of Bonus Share Bonus Shares are the shares where the company issues additional number of shares to the existing shareholders of the company without incurring any additional cost. These are the company's cumulative earnings that company converts into free...

What is Arbitrage? Arbitrage is the practice of buying an asset in one market and simultaneously selling it in another, but at a higher price. As a result, the transitory difference in share price benefits the traders.Stocks, commodities, and currencies...

While investing in the US stock market, investors must know one of the important aspects of the ticker symbol. Every stock or security name has a certain number or letters along with it. This is the stock ticker symbol.  What...

Futures and options are derivatives that are traded on the stock exchange and derive their price from the underlying asset. Hedgers, speculators, and arbitrageurs use these contracts to make profits or hedge the risk with the underlying asset. A futures...