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Showing posts from November, 2022

What is Options Trading?

What is Options Trading? Investment portfolios are often composed of diverse asset classes. These usually are stocks, mutual funds, ETFs, and bonds. Options are an additional asset class. If used appropriately, options trading offers numerous advantages that dealing in stocks and bonds alone do not. Before we address these benefits, what are options? What are Options? An ‘option’ is a contract that permits (but doesn’t necessitate) an investor to purchase or trade instruments like securities, ETFs or index funds at a pre-decided rate after a specified period. Selling and purchasing options are carried out in the options market. An option that permits you to acquire shares sometime in the future is referred to as a “call option.” On the other hand, an option that enables you to sell shares sometime in the future is a “put option.” Difference between Options Trading and Other Instruments Options are considered lower risk instruments than traditional futures contracts used in stock, index

How Ratan Tata brought life to Jaguar Land Rover

  The XF and XJ sedans got more efficient engines in no time. Andy Vine said in a report, "Things that before we were told would take three, four, five years, by the time Mr Tata was done, we were seeing in 12 to 24 months.” Moreover, it lacked efficient engines at the time when fuel prices were touching the sky. During 2009 to 2012, Jaguar could barely sell 50,000 units across the world. Andy Vine, Jaguar Land Rover dealer in Louisville, Ky., US recalled Ratan Tata was directly involved in the business. Ratan Tata, along with Ralph Speth, travelled across the US meeting dealers and taking the feedback on Jaguar Land Rover brand. Tata bought Jaguar and Land Rover in all-cash transaction of $2.3 billion from Ford in June 2008. Nearly half of what Ford Motor paid to acquire both brands. At that time JLR's retro designs was getting outdated, and competing with new efficient diesel engines was just making the British carmaker redundant. It's not that the American car manufactu

What is the Gross Domestic Product of a country

  Definition : GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year. GDP growth rate is an important indicator of the economic performance of a country. Description : It can be measured by three methods, namely, 1. Output Method : This measures the monetary or market value of all the goods and services produced within the borders of the country. In order to avoid a distorted measure of GDP due to price level changes, GDP at constant prices o real GDP is computed. GDP (as per output method) = Real GDP (GDP at constant prices) – Taxes + Subsidies. 2. Expenditure Method : This measures the total expenditure incurred by all entities on goods and services within the domestic boundaries of a country. GDP (as per expenditure method) = C + I + G + (X-IM) C: Consumption expenditure, I: Investment expenditure, G: Government spending and (X-IM): Exports minus imports, that is, net exports. 3. Inc