You can determine a company’s value (and also, the value of its stock) in many ways. The most basic way is to look at the company’s market value, also known as market capitalisation (or market cap).

There are ample ways in which investors can be classified. The most common ones are based on the amount of time an investor is willing to commit, the amount of risk one is will to bear and also, on the philosophy, which an individual chooses to follow.

Liquidity is simply a company’s ability to meet obligations on time. Liquidity is important because it sustains the ability of an enterprise to meet its obligations in a timely manner. 

When you open an option position, you have two choices: Buy it or sell it. The actual orders used would rather be ‘buy to open’ or ‘sell to open’. Once you are long or short of an option, there are a number of things you can do to close the position.

The relationship between the spot price of the underlying and the strike price is described by the moneyness of an option.

The option premium (i.e. the price of the calls and puts that you see on your trading screen) has two components:

The art (or science, as some would like to call it) of balancing our infinite needs with resources that are finite in nature is called Economics.

Several categories of stocks are available in the market that may fit your goal. The following literature provides you with the attributes of these different categories of stocks.

Risk is simply the probability of losing money on an investment. A more technical definition of risk would be the volatility of return on the investment. An asset with erratic returns is considered to be riskier than an asset, whose value stays rather static or moves slowly.

Companies are in business for one purpose i.e. to make profits. If a company accumulates considerable losses year after year, it will not stay in business for long. Profits are the driving force of growth and also, the main source of repaying loans, making new investments along with providing an adequate return to owners so that they retain their interest and financial backing.