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A complete guide to Reverse Stock Split

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 A reverse stock split is an unusual but useful tool for companies to use. A reverse stock split is when the company reduces the number of outstanding shares in order to increase the value of the stock. Reverse stock splits are also used to raise money by issuing new stock to existing stockholders at a discounted rate. A reverse stock split can also be used to lower the number of shares a company has to issue as it grows.   What is reverse stock split?   Reverse stock split is a mechanism for decreasing the number of outstanding shares of stock in a company. In practice, it is more like a stock dividend in reverse, where a larger number of shares are combined into a smaller number of shares. For example, a 1:3 reverse stock split means that if you started with 1,000 shares and had a 1:3 reverse stock split, the day after the reverse stock split you would have 3,000 shares. When a company is doing poorly, it may choose to do a reverse stock split to boost its stock pr
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Which is better? Saving or Investment

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 Are you wondering whether you should invest in the stock market or save your money in savings? There are a lot of people who wonder whether they should be investing in the stock market or if they should be saving the money that they have instead. There are many reasons why investing in the stock market is better than saving your money in a savings account.   What is saving?   Saving means is to set aside a portion of your income with the intention of using it in the future. It is a process that is supposed to provide a person with a financial cushion. Ideally, you want to be able to live on your primary source of income and save the money that is left over. The money that is saved is used for emergencies, an expansion of your current business, or to generate a passive income.   What is investment?   The term investment can have different meanings depending on the context it is used in. When used in the context of finance, an investment is the purchase of an asse
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What is the difference between IPO and FPO

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  There are many people who are just getting a hang of the term IPO's, but there are fewer people who are aware of the term FPO's and what the differences are between them. In this blog, we are going to look at the differences between the two.     What is Initial Public Offer?   Initial Public Offer (IPO) is a process where a company offers its shares to the public for the very first time. This is a very important event for a company, as it marks its transition from private to public entity. This transition is generally accompanied by a significant surge in the company's stock value. Once a company goes public, it’s subject to the rules, regulations, and reporting requirements of being a public company. The company’s stock also becomes available for trading on an established securities market.   What is Follow on Public Offer?   Follow on Public Offer is another type of public issue i.e. public issue by a listed company. The main objective of follow on
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What is the difference between Stock Trading and Commodity Trading

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 Trading is basically speculation with price movement and is based on a financial asset. Trading involves buying and selling of a financial instrument. Different people follow different ways for trading to earn profits. There are many ways to trade in the stock market. Everyone dreams of making profits in the stock market, but most of the times, people lose their money instead of making profits.   What is stock trading?   Stock trading is a financial term that describes the buying and selling of stocks. This is accomplished by several brokers and financial organizations or share market advisory company that buy and sell units of a stock from investors. The brokers act as a middleman between the investors and the company that is offering the stocks. They help the buyer and seller come together for the best possible price. Stock trading is a type of trading that involves the buying and selling of stocks of publicly owned companies. A stock is a part of ownership in a
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Important Factors to Consider Before Opening a Demat Account

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When you want to trade in shares, you need to open a demat account. However, a lot of people don't know what factors to consider when opening a demat account. Opening a demat account is one of the first steps for an individual who wants to trade in stocks and shares. However, before you do so, you need to understand the risks involved and make sure that the account that you open is the best one. This blog will look at the different aspects to consider before opening a demat account.                                  Security   Opening a Demat account is an important decision for every investor. Considering that stock market is an area where you can be very wealthy in a very short time, you need to be aware of everything that is happening to your wealth. But before you start opening a Demat account, you need to make sure that you are opening it in the right place. Security and safety are the most important factors that you need to consider while opening a Demat acco
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Investment Strategies to Diversify your Portfolio

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  Investing in stocks can be a great way to grow your wealth over time, but it can be risky if you do not diversify your portfolio. Investing is a great way to have your money working for you. It is a way to build your retirement fund, pay for your children's education, and increase your wealth without being involved with day to day operations. However, investing is not risk-free and can be quite complicated. One of the most important steps in investing is understanding risk and diversification.   What is diversification and why is it important?   Diversification is simply the practice of investing in more than one asset class. By doing this, you protect your portfolio from risk. Diversification can include investing in more than one type of asset, like stocks, bonds, and cash. But it can also involve investing in other types of assets, like real estate or commodities.   Diversification is a risk management strategy that involves spreading your investment acros
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Difference Between Penny Stocks and Small Capital Stocks

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  What is Penny Stocks   The term "penny stocks" refers to stocks that have a very low price per share. These stocks can be traded in the over-the-counter (OTC) market, which is characterized by low liquidity and wide bid-ask spreads. As a result, penny stocks are considered high risk investments that do not undergo the same level of scrutiny as other stocks listed in the major exchanges.   Penny stocks are often considered “higher risk” investments due to the lack of information about the company and the limited market for these stocks. Traders and investors take on this higher risk in hopes that the payoff will be large enough to offset the risks involved.   What is Small Capital Stocks   Small-cap stocks are stocks that usually have a market capitalization of between $300 million and $2 billion. Some people also refer to small-cap stocks as penny stocks. A stock is considered a small-cap stock if it falls within the top 3,000 stocks in total market
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