When you sit down to apply for an IPO, two terms will come up immediately: price band and cut-off price. Getting these right is essential to applying correctly and maximising your allotment chances. What is a Price Band? A price band is the range within which you can place your […]
What is the Difference Between a Primary Market and Secondary Market?
When you invest in the stock market, you’re participating in one of two markets – the primary market or the secondary market. You may not always realise which one you’re in, but the distinction matters because it tells you exactly what happens to your money. The Primary Market — Buying […]
What is an IPO and Why Do Companies Go Public?
If you’ve been hearing the term IPO a lot lately and wondering what it actually means for you as an investor, you’re in the right place. An Initial Public Offering, or IPO, is simply the first time a private company sells its shares to the general public. Before an IPO, […]
What is Bid Price and Ask Price?
Every time you look up a stock on your trading platform, you’ll notice two prices not one. These are the bid price and the ask price, and the difference between them is called the spread. Understanding these three terms helps you trade more efficiently and avoid paying more than you […]
What is 52-week high and low and what does it indicate?
The 52-week high and low are the highest and lowest prices at which a stock has traded over the past one year. These are widely tracked and visible on most trading platforms, including the Samco app and Nest Trader. 52-week high This is the highest price the stock has touched […]
What is PE ratio and EPS — and why do investors look at them?
PE ratio and EPS are two of the most commonly used metrics when evaluating a stock. They help you quickly assess whether a stock is expensive or fairly priced relative to its earnings. EPS – Earnings Per Share EPS tells you how much profit a company has earned per share. […]
What is a demat account and a trading account — and what is the difference?
To buy and sell shares in India, you need two accounts – a demat account and a trading account. They work together but serve different purposes. Demat Account A demat account (short for dematerialised account) is where your shares and securities are held electronically. Just like a bank account holds […]
What is the difference between equity and preference shares?
When a company issues shares, it can issue two types, equity shares and preference shares. Both represent ownership in the company, but they work very differently. Equity Shares Equity shares are the most common type traded on the stock market. When you buy a stock on NSE or BSE, you […]
What is the face value, book value, and market value of a stock?
These three terms are used often when discussing stocks, but they mean very different things. Face Value Face value (also called par value) is the original value of a share as stated by the company at the time of issue. It is a fixed number usually ₹1, ₹2, ₹5, or […]
What is Quarterly Settlement?
According to SEBI’s mandate, all stockbrokers must settle client accounts every 30 or 90 days. To meet this requirement, the free balance will get credited to your registered primary bank account. The settlement of funds and securities through quarterly settlement is an initiative by SEBI to safeguard the interests of […]
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