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Showing posts from May, 2025

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 ? Itโ€™s not just numbers on a screen โ€” there are real reasons behind every movement in the stock market. Today, weโ€™ll break it down into two key categories : Stock-Specific Factors Market-Specific Factors ๐Ÿ” 1. Stock-Specific Factors These are factors unique to a particular company . Theyโ€™re based on: Public perception Future earning expectations Quality of management Marketing strategies Innovation and product appeal ๐Ÿง  In simple terms: Itโ€™s all about what people think will happen with that company โ€” and how much they believe in its success . ๐Ÿ“Œ Example: Letโ€™s say Company A launches a new sunglasses brand and uses Gen Z influencers and celebrities to promote it. What can happen? ๐Ÿ“ˆ Option 1: Investors love the idea, see potential in Gen Z marketing, and start buying the stock . โžค This increases demand , and the stock price goes up . ๐Ÿ“‰ Option 2: Some investors feel Gen Z is too niche...

๐Ÿ“ข IPO vs FPO Made Simple! | A Must-Know for CBSE IFM/FMM Students ๐Ÿ’ธ

 Ever wondered how companies raise money from the public? Letโ€™s break it down in a way thatโ€™s super easy to understand โ€” whether you're an IFM/FMM student or just someone curious about the stock market. ๐Ÿ›๏ธ 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 โ€” and itโ€™s the first step in a company going public. ๐Ÿ” 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 โ€” like on the NSE (National Stock Exchange) or BSE (Bombay Stock Exchange) or NYSE ( New York Stock Exchange) ๐ŸŽฏ IPO vs FPO โ€“ What Are They? These are two popular ways companies raise funds in the primary market . ๐ŸŸข 1. IPO โ€“ Initial Public Offering An IPO is when an unlisted company (not yet on the stock exchange) offers its sha...

Think Global, Trade Global: ADRs & GDRs in 5 Minutes

  ๐ŸŒ ADRs and GDRs: How Indian Companies Go Global Letโ€™s break down these financial tools โ€” no big words, no confusion.   ๐Ÿ“ฆ So, what are ADRs and GDRs? Theyโ€™re just special certificates that let companies from one country (like India) sell their shares in other countries โ€” without actually going there. This helps them raise money from global investors. Letโ€™s look at both, one by one.   ADR โ€“ 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 itโ€™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...