Stock split is done to infuse liquidity and to make shares affordable for various investors who could not buy the shares of that company before due to high prices.
Definition: A stock is a general term used to describe the ownership certificates of any company. A share, on the other hand, refers to the stock certificate of a particular company. Holding a particular company's share makes you a shareholder.
Description: Stocks are of two types—common and preferred. The difference is while the holder of the former has voting rights that can be exercised in corporate decisions, the later doesn't. However, preferred shareholders are legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders.
There is also something called 'convertible preferred stock'. This is basically a preferred stock with an option of converting into a fixed number of common shares, usually any time after a predetermined date.
Stock split is done to infuse liquidity and to make shares affordable for various investors who could not buy the shares of that company before due to high prices.
Ahead of Market: 10 things that will decide stock action on TuesdayIndian equity indices ended Monday with mixed results. Gain in energy and metals stocks balanced by profit booking in financials left the Nifty 50 index slightly up and Sensex nearly unchanged. Analysts forecasted range-bound movement, noting crucial support and resistance levels.
From transferring stocks to gifting mutual funds, 5 ways to secure your sister’s future this Raksha BandhanGifting financial instruments such as stocks, mutual funds, gold, cash, and fixed deposits were highlighted as great ways to secure a sister's future during Raksha Bandhan. These gifts offer various benefits, including tax advantages and potential appreciation. The article also explained how to transfer shares online and offline, along with utilizing platforms like Zerodha for gifting securities.
ET Analysis: Stocks excluded from Nifty 50 outperform those includedData from the past 10 years shows that stocks removed from the Nifty 50 index often perform better than those newly added. Of the 28 excluded stocks analyzed, 17 outperformed their replacements. Research indicates that stocks removed from indices might experience initial drops but generally recover and outperform in the long term.
Three different types of asset allocation strategiesIf you are confused by personal finance terms, jargon and calculations, here’s a new series to simplify and deconstruct these for you. In the 12th part of this series, ET Wealth explains what asset allocation means.
Three different types of asset allocation strategiesIf you are confused by personal finance terms, jargon and calculations, here’s a new series to simplify and deconstruct these for you. In the 12th part of this series, ET Wealth explains what asset allocation means.
Hindenburg gambit: What once seemed like financial activism is now blatant interference in India’s economic sovereigntyThe Hindenburg saga is a stark reminder of the complex interplay between global finance, political interests, and national institutions. While short-selling and investigative financial research have their place in maintaining market integrity, this affair raises critical questions about the potential for abuse and manipulation. We are likely to see more such episodes and it’s important for investors to be aware of this.
There is more to banking than SBI and HDFC Bank: 7 bank stocks which are a kind of hybrid of PSU and Private banksIn the last few days, there has been a debate about PSU and private banks. A debate which partially has been ignited by the fact that in the last few trading sessions both the PSU and private banks have come under pressure. There is a third set of banks which once again not finding much mention on the street. But the fact is that over the last few years, they have been improving their performance. The reason for the improvement is simple, when RBI makes a change in law, it applies equally to all, whether it is HDFC banks or SBI or a bank which is neither private nor public and is some sort of hybrid. So, these lesser talked ones are a set which come with their own shortcoming and strength.
Recession has its own losers & even winners: 5 stocks from pipes and wire sector with upside potential of up to 44%Whether it comes or not, but the fact is that since the first week of August, there has been a talk of possible recession in the US. The first reaction was that of panic and then as usual, across the globe a trade got in motion to sell possible stocks and sectors which are going to get hit. There is enough evidence to show that if there is a recession then it is the metal sector stocks which get the hit first as the metal prices tend to come down. Already if one looks at performance of the metal stocks, they have under performed in the last two weeks. Now there is an inverse relationship between the falling price of metal and margins of the many user industries. So, while metal prices come down, metal stock gets hit, there is another set of companies which might end up gaining, in terms of margins and better bottomline. Given the fact that some of these companies have strong brands they should be on watch list for a possible short term tactical investing if and when the word “ R” is heard back on the street.
Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 34%This week's movement of Nifty and Sensex, once again confirms the underlying sentiment on the Street, which is that for a week or few trading sessions, bears might strike, but it is bulls who are still in power in every corner of the Street. Which is why, one has to be bullish, but given that the valuations are not cheap, it would be better that while being bullish, one is cautious and selective also. These have to be applied at both the levels, on the amount of exposure one is taking and the stocks which one is buying. The stocks should have good fundamentals and the score should have seen some improvement. These selected stocks depict a strong upward trajectory in their overall average score. This implies that there has been a significant improvement in their market outlook in the given time frame.