Stock market Volatility is one of the most important factors concerned by investors before investing in the stock market. Volatility refers to the degree of price variation during a particular period, the expected return from an investment is determined by the risk associated with the same. Investors interpret an increase in stock market volatility as an increase in the risk of equity investment and consequently they shift their funds to less risky assets. It puts a downward pressure on the stock prices making room for higher expected future returns to compensate for the excess risk. The volatility is one of the crucial inputs in all the investment decisions including portfolio construction, pricing of assets and their derivatives, designing hedging strategies, determining capital adequacy and margin requirements besides other tools of risk management. The flow of information is the main determinant of volatility; more the amount of unexpected information (news) reaching the market, th...
The blog aims to spread financial literacy awareness especially among youngsters from their early age of life, as it is to be believed that many people today are struggling with financial issues so one has to be strong financial planning in view of their present and future goals.