Blog by PriyaSahu

Private market valuations play a big role in deciding the IPO price of a company. If a company was valued very high in the private market, it often tries to set a similar or higher IPO price. However, public investors may not always agree with that valuation. So, understanding private...

Promoter holdings in a stock show how much stake the company’s promoters or owners have in the business. High promoter holding usually means strong confidence in the company’s future, while low or decreasing holding may raise concerns. Investors use this information to judge the trust...

Proxy voting is very important in shareholder activism because it allows shareholders to vote on key company issues even if they cannot attend the meetings in person. This process helps investors express their views on company policies, leadership decisions, environmental concerns, an...

Put-call parity is an important concept in options trading that shows the relationship between the price of a call option, a put option, and the stock price. It helps traders understand if the options are fairly priced and allows them to find arbitrage opportunities. This principle is...

R-squared is a key statistic used in mutual fund analysis that helps investors understand how closely a fund's performance correlates with the performance of a benchmark index. A higher R-squared value suggests that the mutual fund’s returns are closely tied to the benchmark's movemen...

Ratio spreads are a type of options strategy where you buy and sell options in unequal quantities. This strategy can help traders profit from small price movements while managing risk. It's commonly used when a trader has a view on the underlying asset's price direction but wants to limit ...

Rebalancing is the process of realigning the proportions of assets in a mutual fund portfolio. It is important for maintaining the balance between risk and return based on the fund's original objectives. The frequency at which a fund is rebalanced can greatly impact its performance and ris...

Relative Strength in trading refers to comparing how well a stock or asset is performing relative to another benchmark, such as an index, or another asset in the market. It shows which assets are doing better compared to others. By looking at relative strength, traders can pick stocks that...

EV/EBITDA is a key ratio used in stock analysis to know if a company is overvalued or undervalued. It compares the company's overall value (including debt) to its earnings from core business activities. This helps investors judge whether the stock is priced fairly compared to others in the...

Repo markets are very important in bond trading because they provide short-term funding to investors and traders using bonds as security. This helps in smooth buying and selling of bonds and keeps the bond market liquid and active.

Repo rate is very important in financial markets because it controls the flow of money in the economy. It is the interest rate at which the RBI lends money to banks. When the repo rate goes up, borrowing becomes costly, which slows down spending. When it goes down, borrowing gets cheaper, ...

Retained earnings are very important in a company’s financials because they show how much profit the company has kept aside over the years. This money helps the company grow, pay off debts, or handle tough times. It shows financial strength and the ability to grow without borrowing money.

Retained earnings play an important role in stock valuation because they show how much profit a company has kept and reinvested in its business. This reinvestment helps the company grow, which can lead to higher future earnings and increase the stock’s value. Investors often check retained...

Retained earnings show the amount of profit a company has kept aside after paying dividends. These earnings are used for business growth, paying off debts, or saving for future use. It is a key sign of a company's financial strength and long-term strategy.

Return on Assets (ROA) is a key financial metric used to measure how efficiently a company is using its assets to generate profit. It helps investors evaluate how well a company is utilizing its resources to maximize returns. A higher ROA indicates that a company is using its assets more e...

Return on Equity (ROE) is one of the most important financial ratios in analyzing stocks. It measures how well a company is using its shareholders' equity to generate profit. Understanding ROE helps investors identify the profitability and financial efficiency of a company, which can signi...

Return on Equity (ROE) is a key financial metric used in stock analysis to measure how effectively a company uses its equity to generate profit. It's one of the most important ratios for investors because it gives insight into the company’s ability to turn its investments into profits. In ...

Return on Equity (ROE) is a crucial metric in finance that helps investors and analysts evaluate how efficiently a company is using shareholders' equity to generate profits. A higher ROE indicates that a company is good at generating profits relative to its equity, which is a sign of stron...

Risk reversals are an essential strategy in options trading, used by traders to express directional views on an asset's price movement. They involve buying one option (a call or a put) and selling another, typically with the same expiration date, creating a position that can potentially pr...

In portfolio management, evaluating investments based on their risk-adjusted returns is essential for making informed decisions. While many investors focus solely on the raw returns of an asset or a portfolio, risk-adjusted returns take into account the level of risk involved in achie...