RMoney » Author » Akriti Tomar

Akriti Tomar

• Gilt Funds vs. Corporate Bond Funds: A Comparison

  By : Akriti Tomar | March 11, 2025

  Gilt Funds vs. Corporate Bond Funds: A Comparison Disclaimer: Investments in the securities market are subject to market risks. This content is for educational purposes only and does not constitute financial advice. What are Gilt Funds? Gilt funds are mutual funds that primarily invest in government securities (G-Secs). These securities are debt instruments issued by the Central Government or State Governments to raise funds for public expenditure. Since they come with a sovereign guarantee, gilt funds carry no default risk

  Read More

• What is a Stock Split?

  By : Akriti Tomar | March 3, 2025

  What is a Stock Split? A stock split is a corporate action where a company increases the number of outstanding shares by reducing the face value of each share. Companies generally implement stock splits to improve liquidity and make shares more affordable for investors. Although the share price decreases after a split, the total investment value remains the same. The newly split shares are usually credited to the investor’s Demat Account within 2 days. Example Scenario If a stock with

  Read More

• What is consolidation of shares?

  By : Akriti Tomar | March 3, 2025

  What is consolidation of shares? Consolidation of shares, also known as a reverse stock split, is a corporate action where a company reduces the number of its outstanding shares by merging multiple shares into one while increasing the face value per share. This process does not change the overall value of a shareholder’s investment. Companies typically notify shareholders via email before executing a share consolidation. Example Scenario Let’s say Mr. A holds 10,000 shares of a company, each valued at

  Read More

• Impact of a Bonus Issue on Equity Holdings and F&O Positions

  By : Akriti Tomar | March 3, 2025

  Impact of a Bonus Issue on Equity Holdings and F&O Positions A bonus issue is when a company distributes additional shares to existing shareholders at no extra cost. The number of new shares is issued in a specific ratio, such as 2:1, meaning shareholders receive two bonus shares for every one share they own. Impact on Equity Holdings The share price adjusts downward based on the bonus ratio, but the overall value of holdings remains unchanged. RMoney displays the bonus

  Read More

• Why are split shares not visible in the holdings?

  By : Akriti Tomar | March 1, 2025

  Why are split shares not visible in the holdings? When a stock undergoes a split, the new shares may take up to two working days from the ex-date or record date to be credited to the Demat Account during this period, the split shares will not be visible in your holdings. As a result: Your Profit & Loss (P&L) statement may show an artificial decrease in profits or an increase in losses until the new shares are credited. Once the

  Read More

• Impact of Mergers and Spin-Offs on Shares

  By : Akriti Tomar | March 1, 2025

  Impact of Mergers and Spin-Offs on Shares Introduction Mergers and spin-offs are significant corporate actions that can affect a company’s stock price and shareholder value. A merger happens when two companies combine to form a single entity, while a spin-off occurs when a company separates a division into an independent business. These events impact shareholders in different ways, influencing stock prices, ownership structure, and future growth potential. Impact of Mergers on Shares In a merger, shareholders of the acquired company

  Read More

• How Short Selling Works in the Stock Market: Risks & Benefits

  By : Akriti Tomar | March 1, 2025

  How Short Selling Works in the Stock Market: Risks & Benefits Disclaimer: Investments in the securities market are subject to market risks. This content is for educational purposes only and does not constitute financial advice. What is Short Selling? Short selling is a trading strategy where an investor borrows shares and sells them on the open market, aiming to repurchase them at a lower price later. Short sellers profit from falling stock prices, unlike long investors who anticipate price increases.

  Read More

• What is Stock Exchange and how does it work?

  By : Akriti Tomar | March 1, 2025

  What is Stock Exchange and how does it work? Disclaimer: Investments in the securities market are subject to market risks. This content is for educational purposes only and does not constitute financial advice. A stock exchange is a crucial component of the financial market that facilitates transactions between traders of financial instruments and targeted buyers. In India, stock exchanges operate under the regulatory framework of the Securities and Exchange Board of India (SEBI), which aims to protect investors’ interests and

  Read More

• What is the Stock Lending and Borrowing Mechanism (SLBM)?

  By : Akriti Tomar | February 26, 2025

  What is the Stock Lending and Borrowing Mechanism (SLBM)?  Disclaimer: Investments in the securities market are subject to market risks. This content is for educational purposes only and does not constitute financial advice SLBM provides flexibility to investors by allowing them to lend or borrow equities for a specified period under a pre-determined price & agreement. The primary goal of this mechanism is to enhance market liquidity and improve trading efficiency. It is particularly useful for short-term trading opportunities, especially when

  Read More

• SLBM FAQs

  By : Akriti Tomar | February 26, 2025

  SLBM FAQs Q: What is SLBM in the stock market? A: SLBM is a system that allows investors to lend or borrow securities for a specified duration and fee. Participants can place orders by specifying the lending fee and quantity, and the transaction is executed when matching quotes are found on the exchange. Q: What is the full form of SLBM? A: The full form of SLBM is Stock Lending and Borrowing Mechanism. Q: What is the use of SLBM?

  Read More