Blog categorized as Stock Market

Bull markets are when stock prices keep rising, boosting investor confidence and optimism. Bear markets are the opposite — stock prices fall for a long period, leading to fear and caution among investors. These two market conditions influence how people invest and react to financial news.

Brokers make money mainly through brokerage fees, commissions, margin interest, account-related charges, and partnerships with third-party service providers. Even discount brokers offering zero brokerage on delivery trades earn revenue through volume-based services and value-added offerings.

Brokers handle margin trading and leverage by allowing you to borrow funds to trade larger positions than your actual capital. They set the margin limit, monitor your risk in real-time, and ensure compliance with SEBI rules. This helps traders take bigger positions but also comes with higher ris...

Brokers execute trades for clients by receiving your buy or sell order, routing it to the stock exchange through their trading system, and confirming once it gets matched. The entire process is fast, digital, and highly secure — completed in just a few seconds on most trading platforms like Ange...

Brokers keep your investments safe by following government rules, separating your money from their own, using strong cybersecurity, and offering full transparency. These steps protect your shares, mutual funds, and trading account even if the market crashes or the broker shuts down.

Brokerage firms influence market trends by providing research, recommendations, and trade execution services. Their analyst reports and market calls often shape investor sentiment, increase trading volumes, and drive price movements. Through their client networks and tools, they can spark or slow d...

Brokerage fees reduce your overall stock returns because they are charged on every buy and sell transaction. Even if your stock performs well, high brokerage can eat into your profit. That’s why choosing a broker with low or zero charges is very important to boost your net gains.

Brokerage charges directly reduce your profits from buying and selling stocks. The higher the brokerage, the lower your net profit, especially for frequent traders. Keeping brokerage costs low is key to maximizing overall returns from the stock market.

Wha...

During a market crash, bonds often act as a safety net. Investors move money from risky stocks into safer assets like government bonds. This demand can drive bond prices up and yields down. However, not all bonds behave the same — government bonds usually rise, while risky corporate bonds may fa...

Bond yields directly affect stock market movement because they change how investors look at risk and return. When bond yields go up, investors often move money from stocks to bonds, causing stock prices to fall. When bond yields drop, stocks usually rise because bonds become less attractive.

Bond yields and stock markets share an inverse relationship. When bond yields rise, stock markets often fall, and when yields drop, equities may gain. This is because higher bond yields make fixed-income investments more attractive, drawing funds away from stocks and increasing borrowing costs f...

Bond yields and stock markets often move in opposite directions. When bond yields rise, it can lead to a drop in stock prices. This is because higher yields make bonds more attractive compared to stocks, and they also increase borrowing costs for companies, reducing profits and investor enthusia...

Bond yields affect stock market performance by influencing investor preferences, interest rates, and corporate profitability. When bond yields rise, stocks often face pressure as borrowing costs increase and safer fixed-income options become more attractive, while falling yields typically suppor...

Bond yield curves predict economic recessions by showing an inversion—when short-term interest rates become higher than long-term rates. This unusual shape signals that investors expect slower growth or a downturn in the future, which has historically preceded many recessions.

Bond ratings affect bond investments by indicating the creditworthiness of the issuer. Higher-rated bonds are considered safer with lower returns, while lower-rated bonds carry more risk but offer potentially higher yields. These ratings help investors assess the risk and return before investing...

When interest rates rise, bond prices fall. This inverse relationship exists because newly issued bonds offer higher returns, making existing bonds with lower rates less attractive. As a result, the price of older bonds drops to stay competitive in the market.

Bond mutual funds are investment vehicles that pool money from investors to invest in a diversified portfolio of bonds. These bonds can include government securities, corporate bonds, or other fixed-income instruments. The main objective is to earn regular income while preserving capital.

Bond funds and stock funds differ in how they handle risk and return. Bond funds are generally safer and offer stable income, while stock funds carry higher risk but can deliver much greater long-term growth.

What Are Bond Funds?

Bond funds invest in fixed-inco...

Bond mutual funds and bond ETFs both help investors gain access to diversified portfolios of bonds, but they differ in how they're managed, traded, and priced. Bond ETFs trade like stocks on an exchange with real-time prices, while bond mutual funds are bought or sold only at the end-of-day NAV. Un...

Bond convexity and duration are essential concepts used to understand how bond prices respond to interest rate changes. Duration tells you how sensitive a bond’s price is to interest rate shifts, while convexity helps adjust that sensitivity for larger changes, giving a more accurate picture of ris...