Real business cycle theory (RBCT) is an economic theory that suggests that fluctuations in the economy are primarily driven by changes in the supply side of the economy, rather than changes in demand. This theory suggests that economic cycles are driven by real factors such as technology, productivity, and natural resources, rather than by monetary …
Instruments of Secondary Market The secondary market is where securities that were initially sold in the primary market are traded among investors. This market plays a significant role in the financial system as it provides liquidity to investors, encourages efficient pricing of securities, and facilitates the transfer of funds from savers to borrowers. In this …
A regressive tax is a tax system in which the tax rate decreases as the taxable base increases. In other words, the more a person earns, the lower the percentage of their income they pay in taxes. This is in contrast to a progressive tax system, where the tax rate increases as the taxable base …
Nifty The Nifty is one of the most widely followed stock market indices in India. In this article, we will explain what Nifty is, how it is calculated, and its significance in the Indian stock market. What is Nifty? Nifty is an index of the National Stock Exchange (NSE) of India. It represents the performance …
Quantitative easing (QE) is a monetary policy tool used by central banks to stimulate the economy when traditional methods such as adjusting interest rates have been exhausted. It involves buying large amounts of government bonds or other securities from the market to increase the money supply and lower borrowing costs. The concept of quantitative easing …
Sensex The Sensex is an important stock market index that is widely followed by investors, traders, and financial analysts in India. In this article, we will explain what Sensex is, how it is calculated, and its significance in the Indian stock market. What is Sensex? The Sensex is a benchmark index of the Bombay Stock …
Major Stock Exchange in India India has two major stock exchanges – the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The Bombay Stock Exchange (BSE) was established in 1875, making it the oldest stock exchange in Asia. It is located in Mumbai and has over 5,500 listed companies. The BSE has a …
Secondary Market The secondary market is a financial market where previously issued securities such as stocks, bonds, and other financial instruments are traded among investors. Unlike the primary market, where securities are issued for the first time, in the secondary market, these securities are traded among investors, providing liquidity and enabling price discovery. In the …
Market capitalization, also known as market cap, is a measure of the total value of a company’s outstanding shares of stock. It is calculated by multiplying the current stock price by the total number of shares outstanding. The market capitalization is an important metric for investors and analysts as it provides an estimate of the …
Issues in Primary Market The primary market is the market where new securities are issued and sold to investors for the first time. There are two types of issues in the primary market: Public Issue: A public issue is an issue of securities that is offered to the general public for subscription. This is typically …
