Never miss a great news story! Get instant notifications from Economic Times Allow Not now. Initial public offering is the process by which a private company can go public by sale of its stocks to general public.
It could be a new, young company or an old company which decides to be listed on an exchange and hence goes public.
Companies can raise equity capital with the help of an IPO by issuing new shares to the public or the existing shareholders can sell their shares to the public w. It is a place where shares of pubic listed companies are traded.
The primary market is where companies float shares to the general public in an initial public offering IPO to raise capital. Once new securities have been sold in the primary market, they are traded in the secondary market—where one investor buys shares from another investor at the prevailing market price or at whatev.
Management buyout MBO is a type of acquisition where a group led by people in the current management of a company buy out majority of the shares from existing shareholders and take control of the company. For example, company ABC is a listed entity where the management has a 25 per cent holding while the remaining portion is floated among public shareholders. In the case of an MBO, the current.
A 'trend' in financial markets can be defined as a direction in which the market moves. A bullish trend for a certain period of time indicates recovery of an economy. Stop-loss can be defined as an advance order to sell an asset when it reaches a particular price point.
It is used to limit loss or gain in a trade. The concept can be used for short-term as well as long-term trading. Stop-loss is also known as 'stop order' or 'stop-market order'. The Return On Equity ratio essentially measures the rate of return that the owners of common stock of a company receive on their shareholdings. Return on equity signifies how good the company is in generating returns on the investment it received from its shareholders.
The denominator is essentially the d. It is a temporary rally in the price of a security or an index after a major correction or downward trend.
The term is borrowed from a phrase, which says "even a dead cat will bounce if dropped from a height. The Iron Butterfly Option strategy, also called Ironfly, is a combination of four different kinds of option contracts, which together make one bull Call spread and bear Put spread. Together these spreads make a range to earn some profit with limited loss.
Ironfly belongs to the 'wingspread' options strategy group, which is defined as a limited risk strategy with potential to earn limited profit. Hedge fund is a private investment partnership and funds pool that uses varied and complex proprietary strategies and invests or trades in complex products, including listed and unlisted derivatives.
Put simply, a hedge fund is a pool of money that takes both short and long positions, buys and sells equities, initiates arbitrage, and trades bonds, currencies, convertible securities, commodities a. The loan can then be used for making purchases like real estate or personal items like cars.
The only thing that this loan cannot be used for is making further security purchases or using the same for depositing of margin.
In order to raise cash f. Choose your reason below and click on the Report button. This will alert our moderators to take action. Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings.
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Suggest a new Definition Proposed definitions will be considered for inclusion in the Economictimes. Put Option Put option is a derivative contract between two parties. The buyer of the put option earns a right to exercise his option to sell a particular asset.
Put-call ratio PCR is an indicator commonly used to determine the mood of the options market. Being a contrarian indicator, the ratio looks at options buildup, helps traders understand whether a recent fall or rise in the market is excessive and if the time has come to take a contrarian call.
The ratio is calculated either on the basis of options trading volumes or on the basis of options contracts on a given day or period. One way to calculate PCR is by dividing the number of open interest in a Put contract by the number of open interest in Call option at the same strike price and expiry date on any given day.
It signals that most market participants are betting on a likely bullish trend going forward. For contrarians, it is a signal to go against the wind. On the flip side, if the ratio is higher than 1, it suggests traders are buying more Puts than Calls. Unlike Call options, Put options are not initiated just for directional call. They are bought also to hedge against any decline in the market. The market sentiment is deemed excessively bearish when the PCR is at a relatively high level.
But for contrarian investors, it suggests that the market may soon bottom out. On the other hand, when the ratio falls to a relatively low level, it is deemed excessively bullish.
For contrarians, it would suggest a market top is in the making. The PCR can be calculated for indices, individual stocks and for the derivative segment as a whole. For example, suppose Nifty50 Put option at strike price 8, for December expiry saw a volume of 5, contracts on a day.
Suppose further that Call volume on that day at the same strike price and same expiry stood at 88, But a rise in the ratio in a rising market is considered a bullish signal. My Saved Definitions Sign in Sign up.
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