MUDRABIZ TASK DAY 4

Submitted By- Shubhangi Sharma

• I’ve bought a stock at Rs 200. Right now, it’s trading at Rs 160.

What should I do next?
Ans- It's better to wait until stock reaches 200 or above. And then sell the stocks. there is
some chance of bounce back if know about the stock. The decision should take on the some
basis of fundamentals and technicals. As I always suggest whenever buy stock must define
your target and stop loss. Never enter the stock without keeping target and stop loss. Most
of the people hope that price will go up but many time price never returns at old price.

• What do you mean by bid and ask?

Ans- The Bid price represents the maximum price that a buyer is willing to pay for a share of
stock or other security.

The ask price represents the minimum price that a seller is willing to take for that same
security.

• What does price band in IPO mean?

Ans- A price band is a value-setting method in which a seller indicates an upper and lower
limit of where buyers are able to bid. This pricing technique is often used with initial public
offerings (IPOs).

• what is spread ?
Ans- The bid–ask spread is the difference between the prices quoted for an immediate sale
and an immediate purchase for stocks, futures contracts, options, or currency pairs. The size
of the bid–ask spread in a security is one measure of the liquidity of the market and of the
size of the transaction cost.

• what is supply and demand in stock market?

Ans- “Supply” refers to the total number of stock holders who would be willing to sell their
shares at any price. For example, lets say we have 10 shareholders, each of which would be
willing to sell their share at a certain price: All these sellers “value” their share differently.
“Demand” refers to the total amount of stock potential buyers would be willing to buy at
any price. magine we have 10 people who want to buy 1 share each, but are only willing to
pay a certain price Unlike supply, this means that as the price goes up, fewer people are
willing to buy a share.

• choose any stock and give BUY - SELL example.

i) one should be in profit

Ans- The cost of a stock on each day is given in an array, find the max profit that you can
make by buying and selling in those days. For example, if the given array is {100, 180, 260,
310, 400, 535, 695}, the maximum profit can earned by buying on day 0, selling on day 3.
Again buy on day 4 and sell on day 6. If the given array of prices is sorted in decreasing
order, then profit cannot be earned at all.

ii) second should be in loss

Ans- It is a concept of stop loss.

For example, setting a stop-loss order for 10% below the price at which you bought the
stock will limit your loss to 10%. Suppose you just purchased Microsoft (MSFT) at Rs.1500
per share. Right after buying the stock, you enter a stop-loss order for Rs.1300. If the stock
falls below Rs.1300, your shares will then be sold at the prevailing market price.

• choose any stock and give SELL - BUY example.

i) one should be in profit

Ans- For example, if an investor thinks that Tesla (TSLA) stock is overvalued at $625 per
share, and is going to drop in price, the investor may "borrow" 10 shares of TSLA from their
broker, who then sells it for the current market price of $625. If the stock goes down to
$500, the investor could buy the 10 shares back at this price, return the shares to their
broker, and net a profit of $1,250 ($6,250 - $5,000).

ii) second should be in loss

For example, if an investor thinks that Tesla (TSLA) stock is overvalued at $625 per share,
and is going to drop in price, the investor may "borrow" 10 shares of TSLA from their broker,
who then sells it for the current market price of $625. if the TSLA price rises to $700, the
investor would lose $750 ($6,250 - $7,000).
• Can we sell stocks in cash? if yes then can we carry for next day?
Ans- Yes, you can sell your share on the next day in cash/delivery trading. The share would
be at your broker's pool account on next day and not transferred to your demat yet.

• difference between bullish and bearish market?

Ans- A bull market is a market that is on the rise and where the economy is sound; while a
bear market exists in an economy that is receding, where most stocks are declining in value.

Although some investors can be "bearish," the majority of investors are typically "bullish."
The stock market, as a whole, has tended to post positive returns over long time horizons.

• what is volatility index?

Ans- Volatility Index, VIX is the ticker symbol and the popular name for the Chicago Board
Options Exchange's CBOE Volatility Index, a popular measure of the stock market's
expectation of volatility based on S&P 500 index options.

• How does open interest affect stock price?

Ans- Price action increasing during an uptrend and open interest on the rise are interpreted
as new money coming into the market. That reflects new buying, which is considered
bullish. Now, if the price action is rising and the open interest is on the decline, short sellers
covering their positions are causing the rally.

• What causes stock market volatility?

Ans- Stock market volatility is largely caused by uncertainty, which can be influenced by
interest rates tax changes, inflation rates, and other monetary policies but it is also affected
by industry changes and national and global events.

• How do volatility stocks work?

Ans- For an intraday volatility breakout system, you need to first measure the range of the
previous day's trading. The range is simply the difference between the highest and lowest
prices of the stock you are analyzing. Next, decide on a percentage of this range at which
you will enter.