The relationship between policy rates and stock valuations is a fundamental concept in financial markets. Policy rates, set by central banks, directly influence the cost of borrowing and the overall level of liquidity in the economy. When policy...
The settlement cycle refers to the time it takes to complete a stock trade after it has been executed. When you buy or sell shares, the transaction does not finalise instantly. Instead, there is a short processing period during which the securities...
The 52-week low of a stock is the lowest price at which the stock has traded during the past 52 weeks (one year). It is a widely used technical and fundamental reference point that helps investors understand how far a stock has fallen from its recent...
The relationship between unemployment and cyclical stocks is closely tied to the overall health of the economy. Cyclical stocks belong to industries such as manufacturing, construction, travel, and retail, which are highly sensitive to economic...
Common indicators are quantitative analysis instruments used by analysts to identify stocks or the current market status and future trends. Based on past patterns, they are mathematical formulas and ratios that forecast how the market will move in...
Investing in gold shares, specifically in gold mining companies, offers distinct advantages over ETFs or mutual funds. One key benefit is the potential for greater returns. While ETFs and mutual funds track the price of gold, gold shares can...
The economy can be divided into several sectors in order to better understand and analyze its performance. The most commonly used method is to divide the economy into three sectors: the primary sector, the secondary sector, and the tertiary...
Investing in a stock that is trading at parity, meaning it is priced at its face value or its intrinsic worth, can offer several advantages to investors. Here are some of the key benefits:
The relationship between stock markets and banking is closely interconnected, as both play vital roles in a country’s financial system. Banks and stock markets serve as channels for mobilising savings and allocating capital efficiently, but they do...
Demand-pull inflation occurs when the overall demand for goods and services in an economy exceeds the available supply. In simple terms, too much money is chasing too few goods. This imbalance puts upward pressure on prices, causing inflation.