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Research - Angel One - Page 15

Why Option Buyers Lose Money?

27 July 2018

Did you know that globally nearly 80-85% of the options expire worthless. That means; the buyer of the option loses money on the option while the seller actually takes the premium. There could be two reasons for the same. Firstly, the option buyers are normally the smaller trades while the option sellers are normally large …

Buybacks Vs Dividends: Which is a Better Choice?

29 June 2018

When TCS announced its second round of buyback of shares worth Rs.16,000 crore, it has once again raised the debate on how should companies in India reward shareholders. Broadly, there are two ways of rewarding shareholders viz. dividends and share buybacks. After the Union Budget 2016 made dividends above Rs.1 million taxable at 10% in …

Can You Monetize Your Shares Without Selling Them?

29 June 2018

Over the last 10 years you have painstakingly created a solid equity portfolio consisting of a mix of blue chip stocks and quality mid cap stocks. Your portfolio value has multiplied and you realize that you have made big gains over the years. Your friends advise you to just take the profits and walk out, …

How to Evaluate the Working Capital of a Company?

18 July 2018

When we talk of company evaluation, most of us tend to get caught up in the big picture. Capital structure, fixed assets investment, borrowings, net worth, ROE, ROCE; these are the issues we normally consider most relevant to valuation. But did you know that most of these big picture items cannot really be of any …

Difference Between Risk and Uncertainty in Investments

2 January 2019

If you have seen investors getting confused between risk and uncertainty then they are not the only ones. Most people are unable to appreciate the difference between risk and uncertainty. When you invest in the markets or in any other asset class, there is an element of risk and also an element of uncertainty. In …

Understanding the Importance of Plowback Ratio

8 February 2019

Ploughing back profits is the exact opposite of paying out dividends. When a company makes net profits, a portion of the net profits are paid out to the shareholders in the form of dividends. After the dividends are paid, the residual profits are transferred to the reserves and surplus in the balance sheet of the …

Pharma Stocks Shine Amid Rising Coronavirus Cases in India

19 April 2020

The entire world has been under tremendous stress due to the COVID-19 pandemic. The coronavirus outbreak has not only caused severe damage to the health of the people, but also to their welfare. The year 2020 has also not been too kind, to say the least, to the financial markets and the world economy. Owing …

FIIs Flock In The Market As Indian Stocks Become Attractive

15 June 2020

As Indian economy has gradually started to function again after three months of extended lockdown; foreign institutional investors are also back in the economy; bringing back 40 percent investment what they had withdrawn during the lockdown. FIIs returning to India is a good news. It shows the faith investors have in the economy and will …

Why Should Traders Always Stay on the Right Side of Momentum?

18 April 2018

The legendary trader Jesse Livermore once said that when it comes to trading the market, there is no bull side and bear side. There is only the right side. What Livermore intended to convey was that it is not the job of a trader to judge whether the market will go up or the market …

Why will the use-cases determine the shape of the digital rupee

8 February 2022

The Reserve Bank of India (RBI) is anticipated to minimize operating expenses — such as producing, distributing, and storing currency notes – by replacing a part of the cash in circulation with online legal tender. According to a market estimate, the cost of each Rs 100 note in its four-year life cycle is about Rs …