Stocks in India are classified into three categories based on market capitalisation large-cap, mid-cap, and small-cap. SEBI defines these categories so that fund houses and investors have a common reference point. Large-cap stocks These are the top 100 companies by market cap listed on Indian exchanges. Companies like Reliance Industries, […]
What is market capitalisation and what does it tell you about a company?
Market capitalisation (market cap) is the total market value of a company’s outstanding shares. It is calculated by multiplying the current share price by the total number of shares issued. Formula: Market Cap = Current Share Price × Total Number of Shares Outstanding For example, if a company has 10 […]
What is equity and how is it different from debt?
When a company needs money to grow, it has two main ways to raise its equity or debt. Understanding the difference helps you know what you are actually buying when you invest in the stock market. Equity Equity means ownership. When a company raises money by issuing shares, it is […]
What is credit rating and why does it matter for bonds and NCDs?
A credit rating is an assessment of how likely a borrower, typically a company or government, is to repay the principal and interest on a debt instrument on time. When you invest in a bond or NCD, the credit rating gives you a quick indication of the risk involved. In […]
What is a Non-Convertible Debenture (NCD)?
A Non-Convertible Debenture (NCD) is a debt instrument issued by companies to raise money from the public. When you invest in an NCD, you are lending money to the company for a fixed period. In return, the company pays you interest at a fixed rate and repays the principal at […]
What is Debt?
In the context of investing, debt refers to a category of financial instruments where an investor lends money to an issuer, a government, company, or institution in exchange for regular interest payments and repayment of the principal at the end of the agreed period. Debt instruments are the opposite of […]
What is G-Sec?
G-Sec stands for Government Security. It is a debt instrument issued by the central or state government to borrow money from the public and institutional investors. When you buy a G-Sec, you are lending money to the government. In return, the government pays you fixed interest at regular intervals and […]
What are Bonds?
A bond is a debt instrument through which an entity, a company, bank, or government borrows money from investors. When you buy a bond, you are lending money to the issuer. In return, the issuer pays you fixed interest (called coupon) at regular intervals and returns the principal at the […]
What is an ETF?
An ETF (Exchange Traded Fund) is a type of investment fund that is listed and traded on a stock exchange — just like a regular stock. It holds a basket of securities such as stocks, bonds, or commodities and tracks the performance of an underlying index or asset. For example, […]
What Happens After You Apply for an IPO?
Submitting your application is just the first step. Here’s exactly what happens from the moment the subscription window closes to the day your shares start trading. Subscription Closes Once the IPO close date passes, no new applications are accepted. The registrar begins processing all submitted applications, removing invalid ones and […]
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