Blog by PriyaSahu

Poison pills are strategies companies use to defend themselves against hostile takeovers. These mechanisms make it more difficult and expensive for an acquiring company to gain control, thereby discouraging unwanted takeover attempts. Here's how poison pills work and why they are used:

Commodity-linked mutual funds and direct commodity investments both provide exposure to the commodities market, but they operate in different ways. Understanding these differences can help you choose the right investment strategy for your financial goals. Here's how they compare:

Commodity-focused mutual funds are designed to give investors exposure to the commodities market without directly purchasing commodities like gold, oil, or agricultural products. These funds operate by pooling money from multiple investors and using it to invest in a range of commodities or commodi...

Commodity-focused mutual funds offer a unique way for investors to gain exposure to the commodities market without directly buying commodities like gold, oil, or agricultural products. But how exactly do these funds work, and what should you know before investing in them? Let’s dive in to unders...

Commodity prices have a major impact on stock investments. Whether it’s oil, gold, or agricultural products, the price fluctuations of these commodities can change how stock markets behave. But how exactly do these commodity price changes affect the stocks you're interested in? Let’s break it down ...

Commodity prices have a profound impact on emerging market equities. These markets are often more sensitive to fluctuations in commodity prices due to their reliance on exports of raw materials and other natural resources. This sensitivity can create significant volatility in stock prices as commod...

Commodity price shocks refer to sudden, unexpected fluctuations in the price of key commodities like oil, metals, and agricultural products. These shocks can significantly affect both equity markets and investor sentiment. Understanding how commodity price shocks influence the stock market is criti...

Commodity price cycles have a huge influence on stock markets. Changes in commodity prices—such as oil, metals, and agricultural products—can directly affect the profits of companies and, in turn, their stock prices. For investors, understanding how these cycles work is key to making informed s...

Commodity ETFs differ from regular stock ETFs in that they focus on commodities such as gold, oil, or agricultural products, while stock ETFs track equity indices or individual stocks. Commodity ETFs aim to provide exposure to commodity markets, either by holding physical commodities, futures co...

Commodities-based mutual funds manage price volatility by diversifying their investments across various commodities, using hedging strategies, and employing active management techniques to mitigate the impact of market fluctuations. These funds are designed to provide a hedge against inflation a...

Overconfidence bias is a common cognitive bias that affects stock traders. It occurs when traders overestimate their knowledge, skills, or ability to predict market movements, leading to excessive risk-taking and poor decision-making. Understanding and managing overconfidence can help traders ma...

Cognitive biases can significantly influence stock market decisions. These biases often lead investors to make irrational choices, such as overconfidence, loss aversion, or herd behavior, which can result in suboptimal investment outcomes. Understanding these biases helps investors make better, ...

Closed-end mutual funds and open-end mutual funds are two types of investment vehicles, each with its own structure and features. The key difference lies in how they are managed, traded, and priced. Closed-end funds have a fixed number of shares that are traded on stock exchanges like stocks, wh...

Closed-end funds and mutual funds are both popular investment options, but they differ in how they are structured and managed. The key difference lies in how shares are bought and sold, as well as their pricing mechanisms. Closed-end funds are traded on the stock exchange, with their price deter...

Circuit breakers are designed to temporarily halt trading in the stock market to prevent panic selling and excessive volatility. When the market experiences a sharp decline, these breaks give investors time to assess the situation, calming market fears and providing an opportunity to make more r...

Changing interest rates can significantly influence the stock market by affecting investor behavior, corporate profits, and economic growth. When interest rates rise, borrowing costs increase for businesses and consumers, which may lead to slower economic growth and lower corporate earnings. Con...

Interest rates have different effects on bonds and stocks. When interest rates rise, bond prices typically fall, while stocks may either rise or fall depending on the economic environment. This is because higher rates make borrowing more expensive, which can reduce corporate profits and stock pr...

Changing consumer preferences directly influence stock investments because when consumer tastes and behaviors shift, companies that adapt can see growth in their sales and stock prices. Investors track these changes to spot emerging trends and choose stocks in industries that are growing. Unders...

Changes in trade policies—like import duties, export bans, or new trade agreements—can strongly impact the stock market. These changes affect how companies do business, which in turn affects their stock prices.

Impact of tariffs and import duties

If the governm...

Changes in a country's trade balance—the difference between its exports and imports—can significantly influence its currency value. A trade surplus tends to strengthen the currency, while a deficit can lead to depreciation.

What is a trade balance?

The trade ba...