FinTech Today

Read Time: 4 mins In the simplest way possible, let's learn how a stock market works, what drives the price of a share price, what are indices, how indices represent the position/health of a market, and how the overall market gets affected when an event such as a global pandemic occurs. So what is a stock market? A stock market is a place where people buy and sell shares, a subliminal analogy will be exchange websites such as eBay, OLX etc. What happens there is that person A is selling a share of company X and person B is buying that share from person A, but the catch is that the trading platforms(Zerodha, Angel Broking) act as an intermediate for regulation purposes & much more but those details are out of the scope of this blog. So what makes one person sell a share and another person buy that same share. Let's assume that Company X's share price is $10 and I think that the performance of the last few years is good so the price might go up to $12(guesstimate) in 1 ye...

Read Time: 4 mins We all are well aware that the coronavirus pandemic has led us to state wherein we are worried about our health, food, essentials, money, and even our jobs. In this time wherein we need each other's support, we also need to understand the numbers clearly rather than just insinuating. Also, we need to understand the chances of a recession alongside the size of the recession. Spoiler Alert : Chances of recession within 12 months as per Bloomberg Economies = 100%. Source: Bloomberg Business Week I guess, now you'll be heeding to this blog even more carefully. So first let's see how big the Pandemic can be and as we have already seen how the GFC (shorted for Global Finacial Crisis) of 2008, how this one compares to that. First, to understand what happened during GFC, I would like you to read this blog . Now since we know what happened in the period 2007 to 2009 during the GFC. Let's focus on the coronavirus pandemic. As of now, what we kno...

Read Time: 4 mins Amid the pandemic of the coronavirus, we are all aware the economy is falling across all regions of the world and the world is currently under chaos and the economic downfall can be well explained by the healthcare issues we are facing. But the question remains, are we going to see a recession? A quick spoiler - this blog doesn't have a definite answer to that but it'll help you understand the probability of it happening over the next few weeks. First of all, let's understand how and when do we officially term that a recession has come and who defines that? A recession is a significant decline in general economic activity of a region. This macroeconomic term is typically recognized as two consecutive quarters of economic decline, this decline is reflected by GDP in conjunction with monthly indicators such as a rise in unemployment. The National Bureau of Economic Research (NBER) is the one that officially declares recessions. However, the NBER def...

Read Time: 4 mins As we all know amid the coronavirus crisis, the USA has cut the Fed rate to 0% to increase liquidity and furthermore to prevent the market to fall, whose probability currently stands at more than 50%. Let's have a look at what the current scenarios are in the global market and let's understand what this rate cut from the very basics. Market Volatility  Currently, the market stands at a very thin rope and can head to any direction based on the changes in the global circumstances. In brief, the factors such as the pandemic coronavirus, the oil price war between Russia and OPEC, the conflicts between US and Mexico, the Isreal-Palestine issue and many more stand as the core reason behind such volatility in the market and especially the lockdowns due to Coronavirus is affecting a lot of markets globally. To understand more about the factors affecting the market, I'll suggest a read to this blog on "Why the market is plunging" .  With such ...