Figyan

CA Bigyan Kumar Mishra

is a fellow member of the Institute of Chartered Accountants of India.He writes about personal finance, income tax, goods and services tax (GST), stock market, company law and other topics on finance. Follow him on linkedin or facebook or instagram or twitter.

Bear Trap

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Most often bear traps occur in a strongly uptrend. A bear is the one who always has a bearish mindset in the market. They think that the market is not going to go up, it will fall/reverse.When bears think that a trend reversal in an uptrend is imminent, they go short thinking that the market will reverse. If that downtrend never occurs or after a small correction bulls jump … [Read more...] about Bear Trap

Stock split

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Stock split means the company wants to lower its share price by splitting its existing shares of stock into smaller or less valuable shares. It's a corporate action for making a stock more attainable to smaller investors.After the stock split, the company's total number of outstanding shares increases and the stock price of a single share decreases. The total value of their … [Read more...] about Stock split

Buy the dip

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Buy the dip is a common phrase used by investors, TV journalists and traders which means purchasing stocks after they have dropped in price. It follows the basic investment principle of “buy low, sell high".When an investor or trader is buying the dips it means they are purchasing a stock after a drop hoping to profit if the market rebounds.When the market is in a long … [Read more...] about Buy the dip

Stock Float

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Stock Float is the number of total outstanding shares minus the restricted shares held by insiders and employees.In other words, it is the total number of shares that are free to trade in the open market.For example, a company may have 10,000 total outstanding shares but only 7,500 of those shares may actually be available to the public for trading in the stock … [Read more...] about Stock Float

Book closure

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Shares of a listed company invariably change hands during market hours while trading. Therefore, it is difficult to decide ownership of shares on a particular day. In case of delivery of shares, it has to undergo the stock exchange's clearing and settlement process before showing in the Demat account to know exactly who owns the shares.Therefore, there has to be a cut-off … [Read more...] about Book closure