A short squeeze is a situation that happens in the stock market when the price of a stock unexpectedly rises, forcing investors who were betting that the price would fall (called short sellers) to buy the stock back quickly to limit their losses. This buying action drives the price up even more, creating a cycle that pushes the price higher.In simpler terms, a short squeeze … [Read more...] about Understanding Short Squeeze: A Simple Explanation for Beginners
Finance
Bear Market Rally
Bear market rally is a short term upward price movement in a strong downtrend or bear market. The upward movement is just a temporary bounce before continuing the existing downtrend. You will see this type of rally in a bear market. It's a pause in a wider downtrend that will eventually take control again.In other words, it's considered as a counter trend recovery in … [Read more...] about Bear Market Rally
Domestic Company
In simple terms, a domestic company is an orgnisation that is incorporated in and conducts its affairs in its home country. They are registered and liable to follow all the rules and regulation of the country where they are registered.As per Section 2(22A) of the Income Tax Act, 1961, "domestic company" means an Indian company, or any other company which, in respect of its … [Read more...] about Domestic Company
Capital Asset
In India, Capital asset is defined to include:Any kind of property held by an assessee, whether or not connected with business or profession of the assesse.Any securities held by a FII which has invested in such securities in accordance with the regulations made under the SEBI Act, 1992. However, the following items are excluded from the definition of … [Read more...] about Capital Asset
Complete Guide to Short Term Capital Gains Tax in India FY 2024-25 (AY 2025-26)
Short Term Capital Gains (STCG) is the profit you make when you sell an asset, such as stocks, real estate, or mutual funds, within a short period, typically less than one year. This gain is taxed at a higher rate than long-term capital gains (LTCG).For example, if you buy a property for Rs. 10 lakh and sell it for Rs. 15 lakh within a year, your short-term capital gain is … [Read more...] about Complete Guide to Short Term Capital Gains Tax in India FY 2024-25 (AY 2025-26)