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Discovery of the new market after the blood bath of the Traumpnomics

  The gumption I possess may not be enough to concur. The trump has bombed the market which we have never seen as of now, markets are in unprecented area, and it is too early to comment where the market will go as per many fund managers. Indian markets has performed as compare their global market peers, however, there has been witnesseed of the heaby sell off lately. We do not know where will the market go, but we can make the stong reckon what may happen in the future. 1. Global trade routes will be recreated, there are many economic players who gonna gonna get more market share, and many players also gonna lose a lot of market share. 2. Discovery of the supply chain, as the conventional supply chain has been disrupted, there will be the discovery of the new rotutes to provide he economic benefits. 3. There will be countries that negotiate and change the policies, to do more business and get the most benefits from the mould that they have created. 4. There will be a lot of capital...

Introduction to Commodities

  Introduction to Commodities Commodities are the basic items that we use and consume in our daily lives, such as food, energy, and metals. You can think of commodities as the raw materials for many of the products we use, such as wheat for bread, oil for gasoline, and gold for jewelry. Commodity Market The commodity market is where various types of commodities are traded while being regulated by the country’s exchange board. Types of Commodities Hard Commodities : These are natural resources such as metals and energy that are mined and extracted. Examples include: Metals : Gold, silver, copper, zinc, etc. Energy : Crude oil, natural gas, etc. Soft Commodities : These are agricultural products that are grown with care. Examples include: Agriculture-based products : Rice, wheat, soybeans, etc. Livestock and meat : Various types of meat products. Key Difference from Stock Market In other exchanges, there is usually no time limit to hold a stock. However, in the ...

Derivative

 A derivative is a financial contract between two parties that derives its value from an underlying asset. The value of the derivative is dependent on the performance of the underlying asset, such as its price, interest rate, or exchange rate Imagine a letter or piece of paper. You know what the value of a piece of paper is, right? It is the value of a piece of paper, which is equal to the value of a piece of paper. You know the value of assets is influenced by market conditions, so if there is a contract based on those underlying assets, that would be Financial Derivatives. Please note that the value of contracts is based on the underlying value of those assets plus the value of that contract. Now we talk about how derivatives work. There is Vivek, who wants 5000 Kg oranges today, so he has to buy the oranges at 1 USD a kg today, what if, he wants to buy 5000 Kg in the future, let's just say 3 months ahead, he wanna pay the price at today’s rate, so he will go to Mr. ...

Monetary policy

 We all have heard about the central bank printing money like crazy which dilutes the value of the country, or money printing is bad, in this blog you will have an idea of how these things actually work. Monetary policy is a set of actions taken by a country's central bank to influence the supply of money to keep the economy humming, understandable? if not then do not worry, you will get it.. Main Objectives of Monetary Policy Maintain price stability (control inflation). so yessir, inflation is bad, it just that extreme rates of inflation can create a crisis in the country, so the big boss has to maintain it. Achieve growth while managing inflation, yes so maintaining the inflation is not enough, they also have to maintain it. Monetary policy is the responsibility of the central bank. The bank achieves its goals by regulating the amount of money circulating in the economy, which is determined by the rate of interest. Let’s explore why interest rates are important. If you deposit m...

Fiscal policy

There are people who all the time yap about fiscal policy and fiscal deficits. What is that? Today, you can read about it in this blog. Oh yeah, it's going to be interesting. There are two main ways by which the government manages the economy Fiscal policy and monetary policy, two big names, right, but, today we can read about only one, you can read about the monetary policy later. Fiscal policy is about the decision govt make regarding income(tax) and expenditure(spending), something like your parents or big business do regarding the budget, but when govt do, we call it fiscal policy, double standards right. Govt needs to ensure that its spending is in line with the spending income, and then when the government expenditure is more than the income of the government it causes a deficit which is called a fiscal deficit,  if not then, there is a need to borrow the money or sell the assets,   imagine your parents has to take loan to send you to big university or start a busine...

Interest rate and Inflation

Why do they care so much, why should you? You must have been hearing that the Federal Reserve, national banks, or “Banks” have reduced or increased the interest rate. Have you ever wondered why people care about this and why you should? Let's just start from the basics. We deposit the money in the bank that provides the highest interest rate, and if we want to take a loan, we search to get a loan with the lowest interest rate possible. If you think about it and think about the major chunk of the population will be affected if National banks decrease the rate of interest, which leads to a rise in consumption in the economy as there will be people who tend to get loans at a lower rate of interest now, and people tend to deposit less money in the bank as they will be getting less interest on the money. If you are someone who is kinda into economics you will say  “Bro, what about the government expenditure, and what about the demographic of the country, what if people do not ...

EBITDA

 EBITDA This, or EBITA that, we all have been hearing about the EBITA for about 2 or 3 years(for the context of the people who are not very familiar with the stock market world) or more so, but do not worry after reading the whole blog you will be able to understand the entire concept of the EBITA and will be able to understand how to see it, how to look at the EBITA of the company, what are the limitation of the EBITA to use it as the major tool to analysis the company fundamentals. Here we began. So, Earnings before interest, taxes, and amortization (EBITA) is the measure of company profitability used by investors, I know what your reaction is, you perhaps be like Bro you just spoke Greek to me, how do I even understand the EBITDA. So it is just a way to find the profitability of the money, if the company is making a loss, profit, so just barely surviving. Hear me out on a very layman's terms, it is the money a company has after deducting the cost of goods sold, and p...