Monthly stock return data of 470 BSE listed stocks over the sample period from January 1997 to March 2013 were used to create extreme portfolios (winner and loser).
The returns of extreme portfolios were evaluated using The study provides support in favor of momentum profitability in the Indian stock market.
Throughout the 1600s, British, French, and Dutch governments provided charters to a number of companies that included East India in the name.
All goods brought back from the east were transported by sea, involving risky trips often threatened by severe storms and pirates.
The stock market serves two very important purposes.
The first is to provide Net Working Capital (NWC) is the difference between a company's current assets (net of cash) and current liabilities (net of debt) on its balance sheet.
For example, if an investor buys shares of a company’s stock at a share and the price of the stock subsequently rises to a share, the investor can then realize a 50% profit on their investment by selling their shares.
Although stock trading dates back as far as the mid-1500s in Antwerp, modern stock trading is generally recognized as starting with the trading of shares in the East India Company in London.
If a company issues one million shares of stock that initially sell for a share, then that provides the company with million of capital that it can use to grow its business (minus whatever fees the company pays for an investment bank to manage the stock offering).
By offering stock shares instead of borrowing the capital needed for expansion, the company avoids incurring debt and paying interest charges on that debt.