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Understand the market, one concept at a time. Start with the basics or jump to a topic.
Basics
Reading Financials
What is market capitalisation?
The total value of a company on the market. Multiply the share price by the number of shares, and you have it.
3 min read
Large-cap, mid-cap and small-cap explained
Companies are grouped by size. That grouping is a rough proxy for stability, growth potential and risk.
3 min read
What is the P/E ratio?
Price-to-earnings is the most quoted valuation number. It tells you what you pay for each rupee of profit.
5 min read
What is EPS (earnings per share)?
EPS slices a company's profit down to a single share. It is the building block behind the P/E ratio.
3 min read
What is industry P/E?
The average P/E of a company's peers. It turns a lonely number into a comparison that actually means something.
3 min read
Reading a balance sheet without the jargon
Assets, liabilities and equity. Three words that describe everything a company owns and owes.
5 min read
Revenue vs profit: the difference that trips everyone up
Revenue is what comes in. Profit is what is left after the bills. Confusing the two is the most common beginner error.
3 min read
Market Mechanics
What are the Nifty and the Sensex?
Two index numbers that summarise the mood of the market in a single figure. Here is what they actually track.
4 min read
What are bulk and block deals?
Large trades by big investors, disclosed to the exchange. They offer a peek at what the big money is doing.
3 min read
FII and DII: who moves Indian markets?
Two groups of big investors, foreign and domestic, whose daily buying and selling shapes the market's direction.
4 min read
IPO Basics
What is an IPO?
An Initial Public Offering is the moment a private company first sells shares to the public. Here is how it works.
4 min read
What are listing gains?
The jump between an IPO's issue price and where it first trades. Exciting, but not the whole story.
3 min read
What does 'IPO subscribed 40 times' mean?
Subscription measures demand. When an IPO is subscribed many times over, far more people applied than there are shares.
3 min read