Share Market

Bear market Introduction Bear market is  a situation when the stock market experiences price declines over a period of time . Generally, a bear market is declared when the price of an investment falls at least 20% from its high. In other words, a trend of falling stock prices for an extended period is considered a bear market. Bear market is the industry specific jargon which indicates a download trend in the overall condition of the market. It means that the cumulative market price of the stocks, listed on the stock market are declining .if the stock price of a particular stock is plunging it's considered to be bearish.Bear market is typically caused by investors pessimism,fear and negative sentiment about the market or the economy. Why call is bear market . The bear market phenomenon is  thought to get its name from the way in which a bear attacks its prey—swiping its paws downward . This is why markets with falling stock prices are called bear markets. ...

Put option value   A Put  option represents the right (but not the requirement) to sell a set number of shares of stock (which you do not yet own) at a pre-determined 'strike price' before the option reaches its expiration date. A put option is purchased in hopes that the underlying stock price will drop well below the strike price, at which point you may choose to exercise the option. A put option (or “put”) is a contract giving the option buyer the right, but not the obligation, to sell—or sell short—a specified amount of an underlying security. at a predetermined price within a specified time frame. This predetermined price at which the buyer of the put option can sell the underlying security is called the strike price. Put options are traded on various underlying assets, including stocks, currencies, bonds, commodities, futures, and indexes. A put option can be contrasted with a call option, which gives the holder the right to buy the underl...

Dividend yield The Divident yield ,expressed as a percentage, is a finacial ratio that show how much a company pays out in dividend each year relative to  it's stock price. Dividend yield is  the financial ratio that measures the quantum of cash dividends paid out to shareholders relative to the market value per share . It is computed by dividing the dividend per share by the market price per share and multiplying the result by 100.                         Annual dividend per share Dividend yield=------------------------------------*100                           Current share price How does the stock market work and who decides the price of stock? In the modern world of stock exchange is an electronic market palace  where buyer and sellers come together to buy and sell shares.The stock market is mainly of function...

Types of Call Options A call option is a contract that gives an investor the right, but not obligation, to buy a certain amount of shares of a security or commodity at a specified price at a later time. Unlike put options, call options are banking on the price of a security or commodity to go up, thereby making a profit on the shares by being able to buy them later at a lower price.  There are two types of call options as described below. How do call option work? How a call option works. Call options are “in the money” when the stock price is above the strike price at expiration . The call owner can exercise the option, putting up cash to buy the stock at the strike price. Or the owner can simply sell the option at its fair market value to another buyer before it expires. Long call option :  A long call option is, simply, your standard call option in which the buyer has the right, but not the obligation, to buy a stock at a strike price in the future. The adva...

Call Option Definition A collection gives the buyer the right the buyer the right but not the obligation to buy an underlying asset at the strike price on or before the expiry date.The buyer of a call option speculates that the market is bullish and the prices of the underlying asset will increase. If at the expiry date the price the underlying asset is below the strike price the buyer refuse to exercise his right.His loss is limited to the premium paid. If  the price of underlying asset is above the strike price the profit is current stock price minus the strike price, multiples by the lot size,with premium deducted as a cost of the call option. Call options are financial contracts that give the option buyer the right but not the obligation to buy a stock, bond, commodity , or other asset or instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset . A call buyer profits when the underlying asset in...

  Option value Introduction Option value is an important idea in cost-benefit analysis which can account for the costs and benefits of irreversible decisions. In such cases, there can be value in delaying a decision, and this is what option value intends to measure. In EA discussions, it has been used to argue for the importance of   reducing existential risk , for deciding what choice  EA should make as a community, and for choosing a career . Option value may also be useful for looking at problems such as differential progress  and climate change .    Term, however, is often generalized and rarely used in a precise manner within the EA community. The aim of this post is to introduce the concept of option value and explore some of its finer details. Definition of Options value👇 Option Value   means the value of  a Common   stock Equivalent  based on black   Scoles  Option Pricing model  obtained from the “OV ...