PriyaSahu

Blog by PriyaSahu

What is the stochastic oscillator, and how does it work?

By PriyaSahu - Comment(s)

The stochastic oscillator is a technical tool used by traders to know if a stock is overbought or oversold. It compares the current price of a stock to its prices over a certain number of days. This helps traders understand when the stock price might change direction. It's useful to predic...

What is the stock market and how does it work?

By PriyaSahu - Comment(s)

The stock market is a place where people buy and sell shares of companies. When you buy a share, you become a small owner of that company. The price of the share keeps going up or down based on how well the company is doing and how many people want to buy or sell it. If the company grows, ...

What is the stock market volatility, and how can I manage it?

By PriyaSahu - Comment(s)

Stock market volatility refers to how much the price of stocks goes up and down. If prices change a lot, it's called high volatility. If prices are stable and don’t change much, it's low volatility. This can happen because of news, political changes, or how people feel about the economy.

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What is the stock market's role in the economy?

By PriyaSahu - Comment(s)

The stock market plays a very important role in the economy. It helps companies raise money from investors, gives people opportunities to grow their savings, and acts as a mirror of a country's financial health. A strong stock market shows economic growth, while a falling market can signal prob...

What is the stock split and how does it affect stock value?

By PriyaSahu - Comment(s)

A stock split is a corporate action where a company issues more shares to its existing shareholders. This is done by dividing each share into multiple shares. The most common type of stock split is the 2-for-1 split, where each shareholder receives two shares for every one share they own. ...

What is the stock’s ticker symbol?

By PriyaSahu - Comment(s)

A ticker symbol is a unique combination of letters used to represent a particular company’s stock or security on a stock exchange. For example, the ticker symbol for Apple Inc. is "AAPL," while Microsoft’s ticker symbol is "MSFT." These symbols help investors and trader...

What is the strategy behind value-oriented mutual funds?

By PriyaSahu - Comment(s)

The strategy behind value-oriented mutual funds is rooted in the belief that the market often overreacts to short-term challenges, leading to the undervaluation of solid companies. Value fund managers typically seek stocks of companies that are priced lower than their actual worth, based o...

What is the strike price of an option?

By PriyaSahu - Comment(s)

The strike price of an option is the price at which the option holder has the right (but not the obligation) to buy or sell the underlying asset, depending on whether it is a call option or a put option. For example, in a call option, the strike price is the price at which the buyer can pu...

What is the sunk cost fallacy in trading?

By PriyaSahu - Comment(s)

The sunk cost fallacy is a common cognitive bias in trading and investing where traders make decisions based on the amount of money or time they've already invested in a trade, rather than on the current and future potential of that trade. This fallacy leads traders to hold onto losing pos...

What is the Supertrend indicator, and how do I use it?

By PriyaSahu - Comment(s)

The Supertrend indicator is a popular technical analysis tool used to identify the direction of a market trend. It is particularly useful for traders who prefer to follow trends, as it helps to signal when a trend may be starting or ending. The Supertrend is simple to interpret, and it pro...

What is the tax impact of receiving stock options as part of my salary?

By PriyaSahu - Comment(s)

When receiving stock options as part of your salary, the tax impact depends on the type of stock options you receive and when you decide to exercise them. Generally, there are two main types of stock options: Non-Qualified Stock Options (NSOs) and Incentive Stock Options (ISOs). Each of th...

What is the tax impact of selling stocks in a retirement account?

By PriyaSahu - Comment(s)

When you sell stocks within a retirement account, you typically do not pay taxes on the gains right away. The taxes you pay depend on the type of retirement account. In some cases, taxes are deferred, meaning you won’t pay taxes until you withdraw the money. In other cases, you may not pay...

What is the tax impact of switching from a regular plan to a direct plan?

By PriyaSahu - Comment(s)

Switching from a regular plan to a direct plan does not directly affect your taxes. The only tax impact happens when you redeem your mutual fund units. This means the tax depends on the capital gains (short-term or long-term) from the redemption of those units, not from the switch itself.

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What is the tax implication of short-selling in India?

By PriyaSahu - Comment(s)

In India, the tax treatment of short-selling income depends on whether the trade is categorized as a capital gain or as business income. If short-selling is done as a part of your regular trading activity, it is considered business income and is taxed at the applicable income tax slab. However,...

What is the tax implication of trading in derivatives?

By PriyaSahu - Comment(s)

The tax treatment of derivatives in India depends on the type of derivative (futures or options) and whether the transaction is considered speculative or non-speculative. In general, the profit or loss from derivative trading is treated as business income and taxed according to the individual's...

What is the tax on mutual fund investments in India?

By PriyaSahu - Comment(s)

In India, mutual fund investments are subject to tax based on the type of income generated—dividends, capital gains, or interest income. The tax treatment varies depending on the type of mutual fund (equity or debt) and the holding period of the investment. Understanding the tax rates applicabl...

What is the tax treatment for non-resident investors in mutual funds?

By PriyaSahu - Comment(s)

Non-resident investors in India are subject to specific tax regulations when it comes to mutual fund investments. The tax treatment primarily depends on the type of income generated, such as dividend income, capital gains, and interest income. These investors may also benefit from tax treaties ...

What is the tax treatment of bond income?

By PriyaSahu - Comment(s)

The tax treatment of bond income depends on the type of bond and the nature of the income. Generally, bond income is taxable under the head 'Income from Other Sources'. Interest income from bonds is fully taxable in the hands of the investor at the applicable tax rate based on their income tax ...

What is the tax treatment of bonus units in mutual funds?

By PriyaSahu - Comment(s)

Bonus units in mutual funds are taxed when you sell them. There is no tax at the time of receiving bonus units. But when you sell, the cost of acquisition for bonus units is considered zero, which means the entire selling price is treated as capital gain. This gain is taxed as either short-term...

What is the tax treatment of cryptocurrency profits?

By PriyaSahu - Comment(s)

Profits made from selling cryptocurrency in India are taxed at a flat rate of 30% under Section 115BBH of the Income Tax Act. Additionally, a 4% cess is applied, making the effective tax rate 31.2%. You cannot claim any deductions except the cost of acquisition. Also, 1% TDS is deducted on...

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