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CBSE - Class 11 Mathematics Conic Sections Worksheet
What is the most important part of Red Herring Prospectus of an IPO?
Company's financials
b.Promoter's background and litigations
c.Risk factors
d.Financial projections
Which pattern is great for an intraday trader trading an IPO on the day of listing AND that carries lower risk ?
Narrow range after the initial round of volatility that breaks out in one direction
b.Gap ups (i.e. listing gains)
c.Gap downs (i.e. listing losses)
d.Increase in volatility
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
When a banking company comes out with a really bad quarterly earning and declares that they're "just sweep up every piece of bad news we've got, put it all in one place, take all of the flak and deal with it at the same time", it is called?
Custard Pudding
b.Rationalizing
c.Deconstructing
d.Kitchen Sinking
Overhyped IPOs give much better trading opportunities (especially intraday) as compared to little noticed/underhyped IPOs.
What is a Trader's expectations into an IPO (pick 2)?
Listing gains
b.Long term growth
c.Intraday & Swing trading opportunities
d.Adding a new sector to diversify the portfolio
Find the centre and radius of the circles. 8. $x^2$ + $y^2$ – 8$x$ + 10$y$ – 12 = 0
The allocated shares in an IPO go directly to which account?
DEMAT account
b.Trading account
c.Bank account from which the IPO was applied
d.They are mailed physically to the applicant's correspondence address
Select the following companies that can potentially go into F&O ban:
Bajaj Electricals
b.Bajaj Finserv
c.Bajaj Finance
d.Bajaj Auto
During the earnings season there is more action and trading opportunities in individual stocks (both swing and intraday) than indices.
Worksheet Answers
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.
Solution:
Kitchen sinking basically means that the bank (or any company) has put all the negative news out. One would think that all the negativity would crash the stock but sometimes the stock react very positively to such news because the mutual funds expect the company to turn around from this point. It happened in case of Axis Bank. It reported a really bad quarter in Q4 2017, the stock gapped down some 4-5% but bu the end of the trading session, the stock was up by 8% !
Read a similar case of Tesco, a few years back
http://www.bbc.com/news/magazine-32412594
Solution:
All except Bajaj Electricals because it is not traded in F&O segment.
Solution:
Yes, it is true. Therefore, it is better to focus on individual stocks and sectors during the earning season. Stocks run in the anticipation of good results, the react to their results both intraday and the days to follow. Also, the stocks of the same sector react to earnings of major companies in that sector. For example, good earnings in Infy might trigger a rally in TCS as well. A lot of such action is seen during earnings season.
Not to say that there are not any opportunities in indices- there are but generally fewer than that in stocks.
