Whenever a person spends money to buy a security with the expectation of making a profit, he is either investing or speculating. The main difference between investment and speculation is the level of risk that the person undertakes as they attempt to make a profit from transactions they make in the market. Before getting into the difference between investment and speculation, … [Read more...] about Investment Vs Speculation – Differences you must know
Finance
How limit order used when buying and selling stocks
While buying or selling stocks from the secondary market, you have the option to place different trading order types to get the best price. Limit order used in the stock market to control the buying and selling price of stocks.In this article, we will be discussing what is limit order and how to use limit orders while buying and selling stocks.What is a limit … [Read more...] about How limit order used when buying and selling stocks
What is market order and how its used to buy and sell stocks
Essentially we have two important type of orders in order to buy and sell stocks, the first one is "Market Orders" and the second one is "Limit order".Market order gives you whatever price is available in the stock exchange for a stock at the time of execution. If you place a request to buy 100 shares of XYZ limited without specifying a price, then the system will … [Read more...] about What is market order and how its used to buy and sell stocks
Penny stocks – Things you must know before investing
Penny stocks are those common stocks that trade at a very low price in the market. They cost as much as a few pennies. In the market, shares that trade below the price of Rs 5 are considered to be penny stocks. But in some cases, it includes those shares that are priced below Rs 10.There is no specific official definition or hard and fast rule to determine penny stocks. Due … [Read more...] about Penny stocks – Things you must know before investing
Why Diversification is important in stock market investing
You must have heard about the common fundamental principle of investment “not putting all of your eggs in one basket” or “don't put all your eggs in one basket”. Which means don't buy one or two stocks, instead buy a number of stocks of different companies from different industries. This is known as diversification.Does it mean you will be investing in more than 100 … [Read more...] about Why Diversification is important in stock market investing