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Initial Public Offering(IPO)

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  What Is an Initial Public Offering (IPO)? An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance for the first time. An IPO allows a company to raise equity capital from public investors. The transition from a private to a public company can be an important time for private investors to fully realize gains from their investment as it typically includes a share premium for current private investors. Meanwhile, it also allows public investors to participate in the offering.          KEY TAKEAWAYS An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance.  Companies must meet requirements by exchanges and the Securities and Exchange Commission (SEC) to hold an IPO. IPOs provide companies with an opportunity to obtain capital by offering shares through the primary market. Companies hire investment banks to market, gauge demand, s

Mutual Fund

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  What are mutual funds? A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as its portfolio. Investors buy shares in mutual funds. Each share represents an investor’s part ownership in the fund and the income it generates. Why do people buy mutual funds? Mutual funds are a popular choice among investors because they generally offer the following features: Professional Management.  The fund managers do the research for you. They select the securities and monitor the performance. Diversification  or “Don’t put all your eggs in one basket.” Mutual funds typically invest in a range of companies and industries. This helps to lower your risk if one company fails. Affordability.  Most mutual funds set a relatively low dollar amount for initial investment and subsequent purchases. Liquidity.  Mutual fund investors can easily redeem their shares at any

Sensex

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  What is Sensex?       It is a portmanteau of two terms- Sensitive and Index and was coined by Deepak Mohoni, a stock market expert. Sensex was meant to denote the most popular market index of 30 companies listed under Bombay Stock Exchange. The component companies listed in this index today are some of the biggest companies in this country with the most actively traded stocks. Companies included under it are selected by S&P and BSE commitee based on following criteria: 1.Companies have to be listed under Bombay Stock Exchange in India. 2.It must consist of large or mega-cap stocks. 3.It has to be relatively liquid. 4.It must generate earnings from core activities. 5.Companies must contribute to keep the sector balanced with the country’s equity market. Ever since opening up in the 1990s, it has witnessed rapid growth, especially post 2000. For instance, in 2002, information technology companies helped the index cross 6000 marks for the first time. From then onwards, Sensex grew b

Nifty50

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   The NIFTY Next 50 is an index for companies on the National Stock Exchange of India. It represents the next rung of liquid securities after the NIFTY 50. It consists of 50 companies representing approximately 10% of the traded value of all stocks on the National Stock Exchange of India. The NIFTY Next 50 is owned and operated by India Index Services and Products Ltd. It is quoted using the symbol NSMIDCP. The NIFTY Next 50 and the NIFTY 50 together comprise the NIFTY 100, which represents the 100 most liquid stocks traded on the National Stock Exchange of India. What is the importance of NIFTY 50? The NIFTY 50 covers major sectors of the Indian economy and offers investment managers exposure to the Indian market in one efficient portfolio. The Index has been trading since April 1996 and is well suited for benchmarking, index funds and index-based derivatives. Introduction: The NIFTY 50 is the flagship index on the National Stock Exchange of India Ltd. (NSE). The Index tracks the beh

NSE

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                                                 National Stock Exchange    History:    National Stock Exchange was incorporated in the year 1992 to bring about transparency in the Indian equity markets. Instead of trading memberships being confined to a group of brokers, NSE ensured that anyone who was qualified, experienced, and met the minimum financial requirements was allowed to trade.[19] In this context, NSE was ahead of its time when it separated ownership and management of the exchange under SEBI's supervision. Stock price information that could earlier be accessed only by a handful of people could now be seen by a client in a remote location with the same ease. The paper-based settlement was replaced by electronic depository-based accounts and settlement of trades was always done on time. One of the most critical changes involved a robust risk management system that was set in place, to ensure that settlement guarantees would protect investors against broker defaults. NSE

BSE

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                                                                             BOMABY STOCK EXCHANGE                 BSE, the first ever stock exchange in Asia established in 1875 and the first in the country to be granted permanent recognition under the Securities Contract Regulation Act, 1956, has had an interesting rise to prominence over the past 143 years. BSE and Sustainbility Sustainability in a general sense can be seen as meeting the needs of the present without compromising the ability of future generations to meet their own needs. Environmentalists have long warned that our current patterns of economic growth and resource consumption, so severely threaten the earth's carrying capacity that ecological collapse is likely, if not inevitable. BSE being a responsible stock exchange is taking various initiatives in the domain of sustainability and corporate social responsibility. BSE has launched theme based indices like S&P BSE Carbonex and S&P BSE Greenex. BSE is also