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DYK: Difference between bulk and block deals - Livemint

Get instant notifications from Economic Times Allow Not now. It is a single transaction, of a minimum quantity of five lakh shares or a minimum value of Rs 5 crore, between two parties which are mostly institutional players. The transaction happens through a separate trading window.

The deals happen in the beginning of trading hours for a time span of 35 minutes. Block deal order consists of the following attributes: An order may be placed for a minimum quantity of 5 lakh equity shares or minimum value of Rs 5 crore.

Every trade has to result in delivery and "Block Deal" orders cannot be squared off or reversed.

The exchange has to furnish all the transaction-related information to the public markets on the same day of the block deal transaction, after the closing of trading hours. As this transaction involves trading of a large quantity of shares, the risk factors entailing to this transaction are immense. Thereby, the exchange on which trading will happen, allocates a separate trading window for these two investors to exhibit a block deal, with the prime focus of prohibiting risk.

Bulk Deals, FII, SEBI. Management buyout MBO is a type of acquisition where a group led by people in the current management of a company buy out majority of the shares from existing shareholders and take control of the company. For example, company ABC is a listed entity where the management has a 25 per cent holding while the remaining portion is floated among public shareholders.

In the case of an MBO, the current.

NSE - National Stock Exchange of India Ltd.

QIP or Qualified Institutional Placement is largely a fund raising tool for the listed companies. QIP is a process which was introduced by SEBI so as to enable the listed companies to raise finance through the issue of securities to qualified institutional buyers QIBs.

Earlier, since raising finance in the domestic market involved a lot of complications, Indian companies used to. Hedge fund is a private investment partnership and funds pool that uses varied and complex proprietary strategies and invests or trades in complex products, including listed and unlisted derivatives.

Put simply, a hedge fund is a pool of money that takes both short and long positions, buys and sells equities, initiates arbitrage, and trades bonds, currencies, convertible securities, commodities a.

Black-Scholes is a pricing model used to determine the fair price or theoretical value for a call or a put option based on six variables such as volatility, type of option, underlying stock price, time, strike price, and risk-free rate.

The quantum of speculation is more in case of stock market derivatives, and hence proper pricing of options eliminates the opportunity for any arbitrage. Required Rate of return is the minimum acceptable return on investment sought by individuals or companies considering an investment opportunity. Investors across the world use the required rate of return to calculate the minimum return they would accept on an investment, after taking into consideration all available options.

When calculating the required rate of return, investors lo. Prices of commodities, securities and stocks fluctuate frequently, recording highest and lowest figures at different points of time in the market. It is an important ukrainian stock market etf for investors as they compare the forex manipulation chat tradi.

For raising funds, it is not always preferable or feasible for a company to issue securities to the public at large as it is time consuming as well as an expensive option. In such situations, the securities can be offered to a comparatively sm. Basis Risk is a type of systematic risk that arises where perfect hedging is not possible. Basis is simply the relationship between the cash price and future price of an underlying. Net worth is the difference between the asset and the liability of an individual or a company.

A high net worth relates to good financial strength and ultimately good credit rating of an individual or a company. Similarly a low or negative net worth will relate to a weaker financial strength and a lower credit rating, thus directly affecting the individual's or the company's ability.

Intraday Large Deals, Large Deals on NSE/BSE, Intraday Bulk Deals, Live Large Deals in NSE/BSE, Market Stats

Insider trading is defined as a malpractice wherein trade of a company's securities is undertaken by people who by virtue of their work have access to the otherwise non public information which can be crucial for making investment decisions. Choose your reason below and click on the Report button. This will alert our moderators to take action. Get instant what is block deal session in stock market from Economic Times Allow Not now You can switch off notifications anytime using browser settings.

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Subscribe for Newsletters Subscribe. Suggest a new Definition Proposed definitions will be considered for inclusion in the Economictimes. There are two important models for option pricing — Binomial Model and Black-Scholes Model.

The model is used to determine the price of a European call option, which simply means that the option can only be exercised on the expiration date. Black-Scholes pricing model is largely used by option traders who buy options that are priced under the formula calculated value, and sell options that are priced higher than the Black-Schole calculated value 1. The formula for computing option price is as under 2: Blue Chip Stocks Definition: Blue chip stocks are shares of very large and well-recognised companies with a long history of sound financial performance.

These stocks are known to have capabilities to endure tough market conditions and give high returns in good market conditions. Blue chip stocks generally cost high, as they have good reputation and are often market leaders in their respective industries. Since then the term has been used to refer to highly-priced stocks, but now it is used more commonly to refer to high-quality stocks.

Definition of 'Block Deal' - The Economic Times

These are stocks that generally deliver superior returns in the long run. Some people also relate blue chip stocks to blue betting disks in the game of poker, where the blue disk has the highest value while the white one has the lowest. Several parameters can be considered to identify blue chip companies. They include consistent annual revenue over a long period, stable debt-to-equity ratio, average return on equity RoE and interest coverage ratio besides market capitalisation and price-to-earnings ratio PE.

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