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Open Market Operations of RBI – What Does It Mean
Open Market Operations or OMO refers to one of the activities undertaken by the Reserve Bank of India to control the amount of liquidity in the economy. Open Market Operations consists of the sale/purchase of Government Securities to/from the market by the Reserve Bank of India with an objective to control the…
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What Are Call Option Contracts And How To Trade In Them?
A call option is a derivative contract that gives you the right but not the obligation to buy (go long) a specified quantity of a security (a.k.a the underlying) at a pre-determined price on or before the contract expiry date. The pre-determined price at which the call option can be exercised is…
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What Are Put Option Contracts And How To Trade In Them?
A put option is a derivative contract that gives you the right but not the obligation to sell (i.e short sell) a specified quantity of a security (a.k.a the underlying) at a pre-determined price on or before the contract expiry date. The pre-determined price at which the call option can be exercised…
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What Are Option Contracts?
Option contracts or simply ‘options’ are derivative contracts that give you the option (a right but not an obligation) to buy/sell a particular security or a ‘lot’ of securities at a predetermined price. Options come with an expiry date on/before which they need to be exercised. Option contracts are standardised products and…
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What is CRR and SLR?
The Reserve Bank of India (RBI) uses instruments like the Cash Reserve Ratio (CRR) and the Statutory Liquidity Ratio (SLR) to regulate the availability, cost and use of money and credit as a part of its Monetary Policy. 1. Cash Reserve Ratio (CRR): The CRR or the Cash Reserve Ratio is percentage…
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Understanding the Role of Social Media in B2B Marketing
Despite the fact that most people think of social media as a form of B2C (business to consumer) marketing, it plays an important role in B2B (business to business) marketing as well. After all, the businesses you want to connect with are likely marketing using social media, so it is reasonable you…
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How To Apply To An Equity IPO Using SBI Net Banking
Did you know that you can now apply to an Equity IPO (Initial Public Offer) using the SBI Net Banking or Internet Banking service?In this post I will provide you with a step by step guide on how you can apply to an Equity IPO using the State Bank Of India Net…
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Why Do Bond Prices Move Up or Down?
Ever wondered why the market price of a bond fluctuates from time to time? Bonds are generally issued with a fixed interest rate known as the coupon rate. While this coupon rate is fixed, interest rates in general are not. They keep moving up and down. It is this movement in interest…
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What Are Annuity Bonds
Annuity Bonds, also known as self liquidating bonds, are bonds that pay out a fixed sum every year till maturity. This fixed payout incorporates both the interest payment and the principal repayment. The principal repayment is not made in lump-sum but throughout the tenure of the bond. So for example, if you…
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Top 10 Business Meeting Tips
Here is our list of the top business meeting tips to ensure the proper organisation and efficient conduct of all your business meetings. 1. Give notice in advanceIn an ideal scenario, inform all participants of the meeting at least three days in advance. Ask the participants whether the date or the time…
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Stock Price Movements – Expectations Matter
The ups and downs of the stock markers are driven by events or rather by information regarding those events. These events can be both internal or external to a firm. Examples of internal events could be the winning of a contract, the declaration of quarterly results or even allegations of fraud against…
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How Does Good Monsoons Impact the Indian Stock Markets
With a majority of the Indian Rural population dependent on agriculture as the primary means of livelihood, a strong monsoon means good news for the agricultural sector as well as for the economy as a whole. Even today, owning to the lack of penetration of irrigation facilities, the Indian Farmers still heavily…
