What Are Corporate Actions? In language, corporate actions mean an action taken by a company or a corporate entity that lays a direct impact on a company’s share price. The Board of directors of the company initiates these actions which are approved by its shareholders. The majority of retail simply buys stocks on the announcement of a corporate action, which is wrong. Let’s dig deep into the realm of corporate actions as you would learn in a stock market institute in Noida Types of Corporate Action Bonus Issue Let’s understand bonuses through an example: If someone had bought 1,000 shares of Infosys in 2003, and not invested thereafter, his current shareholding is 16,000 shares of Infosys. Surprised? The number of shares increased because of the bonus shares issued by the company in the past 20 years. A bonus issue is a share given as a reward to existing shareholders to distribute gathered reserves instead of giving dividends. This also makes the share price a...
What is Risk Management and why it is important in trading? Is your trading account suffering from losses? Do you get emotional during the trade and feel like giving up on trading? Well, in today’s article we are going to discuss the solutions to all these problems and also risk management techniques used by traders to protect their accounts and get steady returns. You must have heard that 90 to 95 percent of people who trade in the markets end up on the losing side. This may happen due to many reasons, but the primary reason overshadowing all the other ones is very poor or no risk management. Often, traders fail to understand the importance and power of risk management techniques . Generally, traders want excellent trading systems but they fail to recognize that an excellent trading system with poor risk management is of no use because every trading system has its pros and cons. You will come to know the importance of risk management as you read below… “Plan t...