Participatory notes (PNs) are derivative instruments used by foreign investors to invest in Indian securities without registering themselves with the Securities and Exchange Board of India (SEBI). PNs are issued by registered foreign institutional investors (FII) to overseas investors who wish to invest in Indian markets but cannot do so directly due to regulatory restrictions. … Read more
A CINS number, or Central Index Number, is a unique identifier assigned to each security that trades on the OTC markets. The CINS number is used by market participants to track and settle trades in these securities. What is ISIN code for stocks? An ISIN code is a 12-digit code that identifies a specific security. … Read more
A safe haven is an investment that is expected to retain its value or even appreciate in value during times of market uncertainty. Safe havens are typically found in assets that are not directly correlated with the stock market, such as gold, government bonds, and certain currencies. What is the number 1 rule of investing? … Read more
When a company’s stock is delisted, it is no longer traded on a major exchange. This can happen for a number of reasons, including bankruptcy, failure to meet exchange listing requirements, or voluntarily delisting. Once a stock is delisted, it becomes much harder to sell, and the price is likely to drop significantly. For investors, … Read more
The net long definition is the number of contracts for a particular security or commodity that a trader has bought minus the number of contracts that the trader has sold. A net long position indicates that the trader expects the price of the security or commodity to increase. What is bearish vs bullish? A bearish … Read more
What are Mortgage-Backed Securities (MBS)? Mortgage-backed securities (MBS) are a type of debt security that is backed by a pool of mortgages. MBS are created when a lender sells a group of mortgages to an investment bank, which then packages the mortgages into a security and sells it to investors. MBS are attractive to investors … Read more
A third party is an entity that is not directly involved in a transaction but may be affected by it. In the context of investing, a third party may be a company or individual that provides services or products to the companies or individuals involved in the investment. For example, a broker may be a … Read more
A financial guarantee is a contract that protects the purchaser of a financial product from the risk of loss if the issuer of the product defaults. The guarantee can be issued by a financial institution, such as a bank, or by a government entity. Financial guarantees are often used to protect investors in bonds and … Read more
The market conversion price is the price at which a convertible security can be converted into common stock. This price is typically determined by the market value of the underlying common stock at the time of conversion. For example, let’s say a company has a convertible bond with a $1,000 face value and a 5% … Read more
What is Holding Period Return/Yield? The holding period return (HPR) or yield is a measure of the performance of an investment over a given period of time. It is calculated by taking the difference between the initial value of the investment and the final value of the investment, divided by the initial value of the … Read more
