Swastika Investmart

  Gold is considered a very precious commodity and that’s why investors always prefer Gold as a   commodity trading   instrument because it acts as a safe investment. In India, gold holds a strong place in people’s hearts as Indian citizens believe it’s an auspicious metal that is being worn on every occasion.  Also, Indian citizens feel gold is a symbol of richness and power. It has been seen that the importance of gold has significantly increased over the years as investors keep this metal as a hedging tool during market volatility and inflation. The price of gold keeps on fluctuating due to several factors. It is interesting to know that the US dollar affects the gold price to a greater extent. Gold puts strong value not only on a state’s strong economy, but even on personal investments. Here are the factors that affect the gold price most: Demand and Supply Gold prices heavily depend on demand and supply. When there is a huge demand, the price of gold rises or vi...

The stock market plays a crucial role in developing the economy of a country. It can also be seen that without a stock market, many countries could not be considered as developed. The stock market not only helps people increase their wealth but also uplift the overall standard of the cost of living of a country. In this way, we can say that the stock market contributes a lot to a country’s economy.  Stock Market Trading Assists in Generating Personal Wealth One of the greatest advantages of stock market trading is that it helps individuals to build their wealth to a greater extent.  Share Trading Assists in Increasing Investment In the Economy GDP is considered one of the key drivers of the economy. Stock market trading increases the overall investment which in turn boosts up the economy of a country.  How Does the Stock Market Work? As stated above, the stock exchange conducts all the trading processes of financial instruments such as stocks and derivatives. The activit...

  When a company makes net profits, a portion of the net profits is paid out to the shareholders in dividends. This is usually referred to as paying some or all of your profits back to shareholders. Paying out dividends to shareholders of a company will normally receive a portion of those dividends as cash income. Ploughing back profits is the opposite of paying out dividends. When a company makes net profits, a portion of the net profits is paid out to the shareholders in dividends. On the other hand, ploughing back profits involves investing its money into its operations rather than distributing it to the shareholders. Example of Plough Back Ratio of X Ltd and Y Ltd X Ltd Amount Y Ltd Amount Total Equity Rs.10,00,00,000 Total Equity Rs.10,00,00,000 Net Profits 2017-18 Rs.3,30,00,000 Net Profits 2017-18 Rs.3,30,00,000 Dividend Paid Rs.66,00,000 Dividend Paid Rs.33,00,000 Dividend Ratio 20% Dividend Ratio 10% Plough Back Ratio 80% Plough Back Ratio 90% Market Capitalization Rs.52.8...

  India’s leading digital payments system company Paytm made history after successfully launching India’s biggest ever IPO in the current month. As per the sources, the total worth of this public offering was Rs 18,300 Crores with the fixed price band at Rs 2080 to Rs 2,150 for each share.  The company hit headlines when the shares of the company made their market debut after much anticipation on Thursday at a 9 per cent discount. Against the expectations, Paytm stock listed at Rs 1,955 dropped 9% from its issue price on the BSE. After some hours, the stock prices declined further and reached Rs 1,564 a share (a drop of 27.25%) & hit the lower circuit limit at the end of the day trade.  It has been seen that Paytm’s market capitalization dropped to about $13.6 billion from its IPO valuation of $20 billion.  Here comes a question: How did India’s greatest IPO fail to give an outstanding performance? Let’s figure it out. High Valuation  Led to Losses for the I...

  Any company who wants to go public, has multiple reasons for raising capital. For example; let's assume you are an entrepreneur who has just started an organisation. The organization operates with few members who are responsible for profit and loss of a company. As the company started to grow further, you would decide to make its business bigger than before.  To meet such requirements, the company needs to raise capital growth for its future perspective. Another reason for raising capital could be operational expenses.  For both the above terms, a company requires a huge capital. This includes issuing shares to the people. Hence, when a private company decides to issue its shares for the first time in the stock market, it is known as going public. And the process is called initial public offering or SME-IPO .  These IPO offers investors a great opportunity to become shareholders of a company and book profit whenever the company seeks its growth.  Although ther...