CAPM, or the Capital Asset Pricing Model, is widely used in finance to measure the relationship between risk and expected return. Have you ever wondered why some investments carry higher risks yet deliver eye-popping returns? Or why a ‘safe’ stock might underperform even when the market is booming? Whether you’re a finance student, an investor … Read more
Earnings Per Share (EPS) is often the secret behind understanding whether a company is truly making money and why some stocks are seen as better investments than others. Have you ever wondered how investors figure this out? Let’s unpack what EPS is, why it matters, and how to use it to make smarter financial decisions. … Read more
In the Indian stock market, blue-chip stocks are especially attractive to investors seeking long-term stability and consistent returns. These companies are well-established, financially strong, and often dominate their respective industries. Think of them as the “Tendulkars” or “Dravids” of the stock market—reliable, steady, and trusted by millions. If you’re curious about how blue-chip stocks work … Read more
If you’ve ever wondered how stock market indices like the Nifty50 or Sensex are calculated, you’re not alone. Behind the scenes, a method called free-float market capitalization determines how much influence each company has in the index. But what does that mean? Don’t worry—I’ll break it down in simple terms, complete with examples, so by … Read more
When investing in the Stock Market, penny stocks often catch the eye due to their low price tags. Generally, new investors easily get caught in this cheap price trap. Before investing in penny stocks, it’s crucial to understand what they are. Why are they called penny stocks? Also, it’s important to understand the potential rewards … Read more
What is an Investment Strategy? The Investment Strategy is defined as a time-tested strategic action plan to achieve your financial goal. “Investment strategy is much more important than individual investment decisions.” – David Dreman Here David Dreman says that we should not solely focus on our investment choices but also we should focus on investment … Read more