FAQ's

The commodity market is like the stock market that allows investors to buy or sell goods. In the commodity market, traders mainly invest in raw materials or primary goods where as in share market traders invest in shares issued by companies to raise money. Both markets provide an opportunity to build wealth.

Stock market is also known as a securities exchange. It is a place where one can buy, sell, and trade stocks/securities any business day.

It is the most important component of a stock market, where stockbrokers and traders can buy and sell securities.

Companies issue shares to raise money for their upcoming projects, ventures, growth and expansion. Companies use this money/fund to carry out mega projects and other operations. Company issues different types of shares such as preference shares, ordinary shares, etc.

People buy shares of different companies to make money, as a strategic investment, enhance or diversify their portfolio, and improve their wealth and profit margins. “Buying a business at a bargain price is great. However, buying a good business at a bargain price is even better.” – Warren Buffett

Today, traders can trade in multiple ways like active and day trading. Active trading is a trading when an investor places ten or more trades per month as per his risk taking capacity. On the other hand, day traders buy and sell stocks in a single trading day.

Return on investment is a financial metric that is used to measure the probability of gaining a return from an investment. How to Calculate ROI- ​ ROI= Current Value of Investment−Cost of Investment/ Cost of Investment

An equity market is a place, in which shares are issued and traded. It consists of primary market and secondary market. The beauty of these two markets is that they both are beneficial for investors. However, it is essential to understand that investing in equities is a long-term process. Primary market – In this market, securities are issued for the very first time to public. Secondary market – It is a well established market place where securities are traded. Both types of markets can maximize returns and help you to achieve your long-term financial goals. Hence, focus should remain on objectives.

According to Investopedia, portfolio management is the art & science of selecting and overseeing a group of investments that meet the long-term financial objectives and risk tolerance of a client, a company, or an institution. It has many phases, such as – security analysis, portfolio analysis, portfolio selection, portfolio revision and evaluation. “Choosing individual stocks without any idea of what you’re looking for is like running through a dynamite factory with a burning match. You may live, but you’re still an idiot.” – Joel Greenblatt Portfolio Management is a detailed process and requires extensive study and analysis. It is essential to follow almost all the phases of portfolio management to build wealth. It certainly helps to achieve long-term goals.

An option is a contract that allows (but doesn’t require) an investor to buy or sell an underlying instrument like a security, ETF or index at a certain price over a certain period of time. –Thestreet. There are two different types of options – call and put options. These options enable the investors to sell or buy securities. Indeed, it help investors to build a large corpus.