Wise Investing

 Hello friends why company issue shares  Why does a Company Issues IPO shares? A company issues an IPO for a number of reasons. Let us look at each of these reasons in detail: Raising Capital One of the main reasons for IPO is to raise capital for expansion, growth, debt repayment, and for the future. A company needs capital at every stage of its life cycle. It cannot go public immediately after it is established. A company goes through various financing phases to meet its capital needs before going public. Funding stages in a company's life cycle: Self-funding, funding from family and friends. Angel Investors Venture Capitalists Private Equity Investors Bank Loan When the above sources of funding have been exhausted, a company chooses an IPO over another source of funding for the following reasons: Angel investors have already exhausted their capacity. Raising more funds from Venture Capitalists or private equity investors would mean losing control over the company with the m...

 How to use Bollinger Bands: A powerful technical tool for traders Bollinger Bands are a popular  technical analysis  tool used by stock market traders to assess price volatility and identify potential buy or sell signals. Developed in the early 1980s by John Bollinger, a renowned trader and Chartered Market Technician (CMT), Bollinger Bands provide insights into market conditions by combining the concepts of a moving average and a volatility measure in one indicator. According to Bollinger, his namesake indicator is not just for stocks, but can also be used for  futures ,  commodities , and  currency trading . In addition, Bollinger Bands are time frame agnostic, meaning they apply to all time period charts. The mechanics of Bollinger Bands Bollinger Bands combine a simple moving average (SMA) and a measure of price volatility via standard deviations (SD). The calculation of Bollinger Bands involves three main components: Simple moving average.   The ...

Hello friends lets understand most important part of trading  The demand and supply zone is useful in technical analysis to determine the potential areas of selling and buying the shares. The indicators which determine demand and supply zone is as follows: Pivot points:  Traders use pivot points to determine the supply and demand zone, which refers to support and resistance levels. These pivot points indicate the traders’ average low, high, and closing prices from the last trading days. Support and resistance levels:  Traders can use this concept to understand how support levels indicate the price levels where downward movement stops due to increasing asset demand and how  resistance levels cause the price moves upward and reverses with a sell-off. Fibonacci levels:  Fibonacci levels determine the turning point at demand and supply zones. These retracements are based on crucial buying or selling pressure levels, such as 50% and 61% retracements. Moving Averages:...

 How does the US market influence the Indian stock market ? Indian and US stock market comparisons Market size The US stock market is significantly larger than the Indian stock market. The Total Market Capitalization of Indian Stock Market BSE is about $5 trillion, while that of US Stock Market is about $50.8 trillion . It's often said, "When the US sneezes, the world catches a cold." This metaphor holds particularly true for the  stock market Global incidents, such as the dot-com bubble, 9/11, the US subprime crisis, COVID-19, recent US economic challenges and geopolitical tensions like the Russia-Ukraine conflict and the Israel-Gaza crisis have all significantly impacted the Indian stock market. Let’s explore the relationship between these two economic powerhouses, and understand how the US market’s ebbs and flows can dictate the tempo of the  Indian stock market How the US market influences the world The US market serves as a barometer for the global Econom...