Does market cap / GDP ratio tell about market valuation

If you were to read analyst reports on market valuations, the most common measure is market P/E. Undervaluation and overvaluation does work quite well at a market level. For example, if you have bough...
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How to play the market gap ups and gap downs

One of the common terms you must have in markets quite often is a gap up or a gap down. Gaps are the space between the open and the closing prices of two consecutive days and such gaps normally get fi...
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How normal shares differ from DVR shares?

There was a lot of hype when the Differential Voting Rights (DVR) shares were first issued in the year 2008 by Tata Motors. Subsequently, other companies like Gujarat NRE Coke, Future Enterprises and ...
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How are capital gains on equities taxed?

When you own equity shares, there are two kinds of incomes that are generated. Firstly, there are dividends that are earned by you on a regular basis when the company pays out the dividends. Most prof...
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Why risk and uncertainty are different in markets?

We often use the terms risk and uncertainty interchangeably. Most investors equate risk and uncertainty when it comes to investments. In reality, there is a very significant difference between the two...
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8 services you must insist your broker to provide

So, you are finally planning to make your foray into equities and are planning to open your trading account and demat account with a broker. Before you sign up with the broker, you must have clarity o...
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7 reasons why options traders get it wrong…

Did you know that more than 80% of the traders who buy options tend to lose money. Of course, you can feel smug that you only lose the premium, but that is hardly any consolation. Remember, that an op...
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Common mistakes committed by futures traders…

When stock futures were first introduced in India in 2001, they became quite popular as futures were structurally similar to the Badla system on the BSE. However, the regulator has been worried (and r...
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It is so simple to hedge with options; here is how

If you thought trading in options little bit like rocket science, then you are not exactly to be blamed. That is what futures & options are made out to be in the markets. They are presented as som...
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It is possible to create zero-risk strategies in F&O

The very term zero-risk F&O strategy might look quite incongruous to you. After all, you always thought that futures and options were high risk products. So, how can there ever be a zero-risk F&am...
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