Author: findocc

A DEMAT or Dematerialised account is a digital depository for holding stocks, bonds, mutual funds, and exchange-traded funds (ETFs). It replaces the conventional tangible share certificates with electronic records. Since the entire process is digital, it enhances the efficiency and safety of securities operations in the financial markets. In India, around 25 million DEMAT accounts…

Stock trading offers investors the opportunity to buy and sell shares of companies on the stock market, aiming to profit from price fluctuations.

Foreign Portfolio Investment (FPI) comprises securities and wide-ranging financial assets owned by investors from different countries. However, the investor does not have the right of direct ownership over the company’s financial assets. FPI provides passive ownership only, which means that investors do not possess any stake or control in that company. This reduces the risk…

It outlines the process through which private businesses or companies make their shares available for sale to the public. The aim is to raise equity-based capital funds from retail public investors. However, a private company should convert into a public company to become eligible for launching an IPO in the market.

Derivatives are like financial contracts whose value is defined by the underlying asset or a group of assets. These include currencies, stocks, bonds, commodities, and market indices. The value of the underlying assets fluctuates according to market conditions.

Futures and Options are two important pillars of stock derivatives. These are financial contracts signed by buyer and a seller to trade the stock assets at a pre-defined price on a future date. The primary objective of these contracts is to mitigate market volatility by securing the stock price in advance.

Commodities are basic goods generally traded in large volumes. They can be interchangeable or exchanged with other goods or commodities of the same classification. In spot trading, commodities are instantly delivered, whereas, in futures trading, they are dealt with on a conveyance-later basis. The trading market for commodities can be in physical and virtual form,…

A sub-broker is an authorised person whose duties are comparable to that of a broker. However, a sub-broker acts like a middleman between the customer or investor and the main or head broker.