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CBSE - Class 11 Mathematics Conic Sections Worksheet
United Spirits announced a stock split of 5:1. One of the goals for companies to split stocks is to increase liquidity in the secondary market.
JP Infra hit 52 weeks low so an astute trade would look at it and say that the stock is clearly...
very bearish
b.a great buying opportunity
Grey market premium is based on unofficial and illegal market- especially one that can be manipulated by operators. Therefore, one should ignore this value altogether.
For an active trader, which of these is the biggest part of his trading expense (assuming trading with a discount broker like Zerodha)?
Brokerage
b.STT
c.GST
d.Service Tax
Public sentiment about an IPO can be judged by (select all that applies):
Grey market premium
b.Media coverage
c.informal discussions in office, or with friends etc.
d.Oversubscription
This is the listing day of Bandhan Bank IPO (listed at about 30% premium). What phenomenon is most likely happening here:
Excessive Shorting
b.Long term investors are disappointed
c.IPO subscribers are booking profits from "Listing Gains"
For an IPO which of these is a must-have for an intraday trading opportunity? (pick one)
Listing gains
b.Substantial grey market premium/Kostak rate
c.Liquidity
d.Short covering
While analyzing an IPO one should consider which of these aspects? (select all that apply)
How are the competitors doing?
b.How are the promoter's previously listed companies doing?
c.How will the IPO money be used?
d.What is the ranking of the company among its peer?
e.How are the financials of the company?
The pre-market and listing time for an IPO is respectively..
9:00-9:15; 10:00
b.9:00-9:45; 10:00
c.9:00-9:45; 9:45
d.9:00-9:15; 9:15
Lodha group (real estate developer) plans to come up with a 5,000 crore IPO and the main objective is to raise funds for settling previous loans/debts. Without knowing anything else about this IPO, would you be inclined to subscribe to it?
Yes, because Lodha is a premium builder with a very strong reputation for luxury projects
b.No, because I would rather subscribe to an IPO where the company is going to use funds for future expansion
c.Yes, because of the IPO size and the possible listing gains
d.No, because real estate companies don't do well in the share market
Worksheet Answers
Solution:
Not every stock that has fallen to 52 weeks low is a great buying opportunity. It may or may not be the case in case of JP Infra but you are a trader and not an investor. As a trader, your job is not to speculate but to understand what the market is telling you. If the stock has fallen to 52 weeks low, then you can safely infer that the stock is very bearish.
Don't try to become smarter than the market.
Solution:
We can take it with a pinch of salt but shouldn't completely ignore it. Especially, fror major IPOs.
Solution:
STT is the biggest component of expense for an active trader. That is why Sir actively discourages overtrading, which causes STT to go up very high
Solution:
A company that asks money for expansion and setting up factories, distribution channels, brand enhancement etc. is basically looking to grow. A growing company will always find more buyers in the stock market and hence the probability of the IPO doing well would be very high. Whereas the company who wants to just settle previous debts is already matured and just trying to dilute their stake. These kinds of IPOs usually don't show long term capital appreciation.
