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What Affects the Price of a Stock? | Stock-Specific vs Market-Specific Factors

Have you ever wondered why the price of a stock goes up or down ? It’s not just numbers on a screen — there are real reasons behind every movement in the stock market. Today, we’ll break it down into two key categories : Stock-Specific Factors Market-Specific Factors 🔍 1. Stock-Specific Factors These are factors unique to a particular company . They’re based on: Public perception Future earning expectations Quality of management Marketing strategies Innovation and product appeal 🧠 In simple terms: It’s all about what people think will happen with that company — and how much they believe in its success . 📌 Example: Let’s say Company A launches a new sunglasses brand and uses Gen Z influencers and celebrities to promote it. What can happen? 📈 Option 1: Investors love the idea, see potential in Gen Z marketing, and start buying the stock . ➤ This increases demand , and the stock price goes up . 📉 Option 2: Some investors feel Gen Z is too niche...
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📢 IPO vs FPO Made Simple! | A Must-Know for CBSE IFM/FMM Students 💸

 Ever wondered how companies raise money from the public? Let’s break it down in a way that’s super easy to understand — whether you're an IFM/FMM student or just someone curious about the stock market. 🏛️ What is the Primary Market ? The primary market is where securities (like shares or bonds) are sold for the first time by a company or government directly to the public . This is where new money flows into a company — and it’s the first step in a company going public. 🔁 And the Secondary Market ? The secondary market is where investors buy and sell securities from each other , not from the company. This is where trading happens every day — like on the NSE (National Stock Exchange) or BSE (Bombay Stock Exchange) or NYSE ( New York Stock Exchange) 🎯 IPO vs FPO – What Are They? These are two popular ways companies raise funds in the primary market . 🟢 1. IPO – Initial Public Offering An IPO is when an unlisted company (not yet on the stock exchange) offers its sha...
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Think Global, Trade Global: ADRs & GDRs in 5 Minutes

  🌐 ADRs and GDRs: How Indian Companies Go Global Let’s break down these financial tools — no big words, no confusion.   📦 So, what are ADRs and GDRs? They’re just special certificates that let companies from one country (like India) sell their shares in other countries — without actually going there. This helps them raise money from global investors. Let’s look at both, one by one.   ADR – American Depository Receipt An ADR is like a receipt that shows you own shares in a non-U.S. company (like an Indian company), but it’s made for U.S. investors. These receipts are in U.S. dollars , which makes it easier for Americans to buy shares in companies outside the U.S. ADRs are issued by U.S. banks like JP Morgan Chase . They help investors avoid currency risks (no need to deal in rupees or other foreign money). These shares can be traded on U.S. stock markets like: NYSE (New York Stock Exchan...
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📊 Stock Markets Made Simple: How Stock Exchanges Actually Work

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Ever wondered how people buy shares, raise millions, or build wealth through stocks? It all starts with one powerful system: the stock exchange . Let’s break it down in the simplest way possible. 🏛️ What Is a Stock Exchange? A  stock exchange  is a marketplace where people buy and sell  securities —like shares of companies. It’s where you can own a piece of a business, all done in a  safe, legal, and transparent  way. 💰 Why Do Stock Exchanges Matter? Think of a stock exchange like a super-fast fundraiser. Instead of knocking on doors to find investors, companies can list their shares and raise huge amounts of money from thousands of people at once. This system helps move household savings into the hands of entrepreneurs and businesses that need money to grow. ✅ It’s faster, safer, and smarter than traditional fundraising. 🌍 Are All Stock Exchanges the Same? Nope! Every country has its own version—with different rules, systems, and regulators . Exampl...
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