Word of the Day
Liquidity Trap
It is a situation where low interest rates fail to encourage spending or investment in an economy
Governments usually lower interest rates to encourage spending by people.
In a liquidity trap, people do not spend money despite central banks cutting interest rates and increasing the money supply. This slows down the economy.
It occurs when people expect prices to fall or lack confidence in the economy, leading them to save rather than spend.
Example: Japan faced a liquidity trap even with its low interest rates.
Liquidity Trap
It is a situation where low interest rates fail to encourage spending or investment in an economy
Governments usually lower interest rates to encourage spending by people.
In a liquidity trap, people do not spend money despite central banks cutting interest rates and increasing the money supply. This slows down the economy.
It occurs when people expect prices to fall or lack confidence in the economy, leading them to save rather than spend.
Example: Japan faced a liquidity trap even with its low interest rates.
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Word of the Day
Credit Default Swap (CDS)
It is a contract that acts as an insurance against the risk of default
If a lender is worried about the risk of default, they can buy a CDS from a financial institution.
Periodic payments (premiums) are made to the seller of the CDS.
If a default happens, then the lender is compensated for the loss because of the CDS. With this, risk is mitigated.
Example: During the 2008 financial crisis, CDS played a huge role in destabilising the US housing market.
Credit Default Swap (CDS)
It is a contract that acts as an insurance against the risk of default
If a lender is worried about the risk of default, they can buy a CDS from a financial institution.
Periodic payments (premiums) are made to the seller of the CDS.
If a default happens, then the lender is compensated for the loss because of the CDS. With this, risk is mitigated.
Example: During the 2008 financial crisis, CDS played a huge role in destabilising the US housing market.
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Word of the Day
Green Shoe Option (in IPO)
It is a provision in an IPO that allows a company to sell extra shares than initially planned
Companies are allowed to issue additional shares – usually 15% more than than the original number.
This is done to maintain a stable stock price, if the demand is more than expected.
If demand is strong, companies can sell more shares to meet it. If the price falls, they can buy back the shares to stabilize the price.
The term comes from Green Shoe Manufacturing Company, the first company to use this option.
Green Shoe Option (in IPO)
It is a provision in an IPO that allows a company to sell extra shares than initially planned
Companies are allowed to issue additional shares – usually 15% more than than the original number.
This is done to maintain a stable stock price, if the demand is more than expected.
If demand is strong, companies can sell more shares to meet it. If the price falls, they can buy back the shares to stabilize the price.
The term comes from Green Shoe Manufacturing Company, the first company to use this option.
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Market view for next 4-6 weeks
https://x.com/Stockstudy8/status/1907633578894098942?t=ehlEPj-3agYk9mmHPXfvJA&s=19
https://x.com/Stockstudy8/status/1907633578894098942?t=ehlEPj-3agYk9mmHPXfvJA&s=19
X (formerly Twitter)
Ravi Prasad (RSP) 🇮🇳 (@Stockstudy8) on X
#Nifty
No more panic next 4-6 weeks
Any gapdown panic will recover same day or in 1-2 days
Expect sideways to bullish 4-6 weeks #Nifty #StockMarket
No more panic next 4-6 weeks
Any gapdown panic will recover same day or in 1-2 days
Expect sideways to bullish 4-6 weeks #Nifty #StockMarket
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First #NiftyEnergy
Now Yesterday #NiftyIT tested 200weekly sma..
Slowly slowly sooner or later most of indices will Test 200weekly SMA (in next 6 months)
200wsma = REAL Opportunity..GRAB IT ☺️
#Cycle #StockMarket
Link:
https://x.com/Stockstudy8/status/1908375875508117811?t=Hqlm7w-ZCvk39k0L0Udx8A&s=19
Now Yesterday #NiftyIT tested 200weekly sma..
Slowly slowly sooner or later most of indices will Test 200weekly SMA (in next 6 months)
200wsma = REAL Opportunity..GRAB IT ☺️
#Cycle #StockMarket
Link:
https://x.com/Stockstudy8/status/1908375875508117811?t=Hqlm7w-ZCvk39k0L0Udx8A&s=19
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Average Bear Market Duration In india: 8-12 Months
Read:
https://x.com/Stockstudy8/status/1908761795738694005?t=7OoPwIcDR-7Fy13WACRVAA&s=19
Read:
https://x.com/Stockstudy8/status/1908761795738694005?t=7OoPwIcDR-7Fy13WACRVAA&s=19
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🚨 Benefits of Investing at 200 weekly Sma ✅👍 😊
Last time we got nasdaq100 & Spx500 at 200weekly avg
Rest is history 😊✅
Power of ValueBuyingZone 👍
#Equity #Trend
Chart :
https://x.com/Stockstudy8/status/1908823441110605859?t=oD2SyyEufZ6OXpGYWEOeeA&s=19
Last time we got nasdaq100 & Spx500 at 200weekly avg
Rest is history 😊✅
Power of ValueBuyingZone 👍
#Equity #Trend
Chart :
https://x.com/Stockstudy8/status/1908823441110605859?t=oD2SyyEufZ6OXpGYWEOeeA&s=19
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Stockmarket cycle
https://x.com/Stockstudy8/status/1889534787641131266?t=VKprQJ4tw4nxEpSrLjSwLw&s=19
https://x.com/Stockstudy8/status/1889534787641131266?t=VKprQJ4tw4nxEpSrLjSwLw&s=19
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#Bsemetal
Exactly bounce till 31500
Gave breakout in daily & Trap once again
Now made low 25888
Destination 200weeklysma
Link:
https://x.com/Stockstudy8/status/1877765996267634907?t=USMz0z0cM68H8LoL03J5CA&s=19
Exactly bounce till 31500
Gave breakout in daily & Trap once again
Now made low 25888
Destination 200weeklysma
Link:
https://x.com/Stockstudy8/status/1877765996267634907?t=USMz0z0cM68H8LoL03J5CA&s=19
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Paisa nahi banega mtlb nahi banega...
No matter who are you?
#StockMarketIndia
https://x.com/Stockstudy8/status/1909112065467293867?t=-3-SkHF54fRHGdBq6oRC-Q&s=19
No matter who are you?
#StockMarketIndia
https://x.com/Stockstudy8/status/1909112065467293867?t=-3-SkHF54fRHGdBq6oRC-Q&s=19
X (formerly Twitter)
Ravi Prasad (RSP) 🇮🇳 (@Stockstudy8) on X
Paisa nahi banega mtlb nahi banega...
No matter who are you?
#StockMarketIndia
No matter who are you?
#StockMarketIndia
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Spx500 : Mother of all index near key lvl
Watchout
Chart 📉
https://x.com/Stockstudy8/status/1909471232346505285?t=xQzuo4fWE7ukH7AN7PxT9Q&s=19
Watchout
Chart 📉
https://x.com/Stockstudy8/status/1909471232346505285?t=xQzuo4fWE7ukH7AN7PxT9Q&s=19
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#SPX500 5481 High 👍🤞🤞Up 10%
Short-term rebound almost done
❤️❤️
LawOfPolarity workss 🤞
#Spx500
Twitter chart :
https://x.com/Stockstudy8/status/1910174266584129976?t=oNH3o59w5QltgHP9oYVpUA&s=19
Short-term rebound almost done
❤️❤️
LawOfPolarity workss 🤞
#Spx500
Twitter chart :
https://x.com/Stockstudy8/status/1910174266584129976?t=oNH3o59w5QltgHP9oYVpUA&s=19
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