Finschool By 5paisa

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Private Banking

Private Banking

Private banking involves providing banking, investment, tax management, and other financial services to high-net-worth individuals (HNWIs). Unlike mass-market retail banking, private banking focuses on providing more personalized financial services to its clients, through banking personnel specifically dedicated to providing such individual services. How private banking works- Private banking includes common financial services like checking and … Read more

Penny Stocks

Penny stocks are those that trade at a very low price, have very low market capitalisation, are mostly illiquid, and are usually listed on a smaller exchange. Penny stocks in the Indian stock market can have prices below Rs 10. These stocks are very speculative in nature and are considered highly risky because of lack … Read more

Price-to-earnings ratio (P/E ratio)

Price-to-earnings ratio (P/E ratio)

About P/E ratio- The Price Earnings Ratio (P/E Ratio) is the relationship between a company’s stock price and EPS. It is a popular ratio that gives investors a better sense of the value of the company. The P/E ratio shows the expectations of the market and is the price you must pay per unit of current earnings. Earnings are … Read more

Large Cap Stocks

Large Cap Stocks

The term cap is short for market capitalisation. It is a measure of quantifying a company’s value with the help of the total number of existing shares multiplied by the price of each unit. Stocks are categorised based on their market capitalisation. Market capitalisation refers to the total worth of a company. A company’s market … Read more

High-Frequency Trading (HFT)

High-Frequency Trading (HFT)

High-frequency trading (HFT) is algorithmic trading characterized by high-speed trade execution, an extremely large number of transactions, and a very short-term investment horizon. HFT leverages special computers to achieve the highest speed of trade execution possible. It is very complex and, therefore, primarily a tool employed by large institutional investors such as investment banks and … Read more

Foreign Portfolio Investment (FPI)

Foreign Portfolio Investment

Foreign Portfolio Investment (FPI) involves an investor buying foreign financial assets. It involves an array of financial assets like fixed deposits, stocks, and mutual funds. All the investments are passively held by the investors. Investors who invest in foreign portfolios are known as Foreign Portfolio Investors. Foreign Portfolios increase the volatility. As a result, it … Read more

Equity fund

equity fund

Simply put, equity mutual fund schemes pool your money and invest in equity stocks after in-depth research. However, it is important to understand the basics of how equity funds work. This includes knowing the objective of the equity fund and mapping it to your risk profile. Next is the asset allocation of the fund followed … Read more

Debt Fund

debt fund

A debt fund is a Mutual Fund scheme that invests in fixed income instruments, such as Corporate and Government Bonds, corporate debt securities, and money market instruments etc. that offer capital appreciation. Debt funds are also referred to as Fixed Income Funds or Bond Funds. A few major advantages of investing in debt funds are … Read more

Derivatives Market

derivatives market

Derivatives Market     A derivative is a contract between two parties, which derives its value from an underlying asset. It gives certain rights and obligations to both the parties and has either linear or skewed payoffs. Underlying assets include shares, bonds, foreign exchange, gold, silver, energy resources etc. Derivatives can either be traded over-the-counter or … Read more

Bull Spread

A bull spread is an optimistic options strategy used when the investor expects a moderate rise in the price of the underlying asset. Bull spreads come in two types: bull call spreads, which use call options, and bull put spreads, which use put options. Bull spreads involve simultaneously buying and selling options with the same … Read more