The stock market can be a complex and intimidating place, especially for beginners. There are many terms and concepts that can be confusing, making it difficult to understand how things work. This blog post aims to demystify some of the most basic stock market terms, so you can feel more confident navigating the investment world. 1. P/E Ratio (Price-to-Earnings Ratio) The P/E ratio is a metric used to compare a company's stock price to its earnings per share (EPS). It essentially tells you how much you are paying for each rupee of a company's earnings. A higher P/E ratio can indicate that a stock is more expensive relative to its earnings, while a lower P/E ratio can indicate that a stock is cheaper. However, it is important to remember that the P/E ratio is just one factor to consider when evaluating a stock, and it should be compared to similar companies within the same industry. 2. Dividends Dividends are a portion of a company's profits that are paid out to its sharehol
Gross Domestic Product (GDP) is a widely-used economic indicator that measures the total monetary value of all goods and services produced within a country's borders in a specific period of time. It is often considered as one of the primary measures of a country's economic performance. In this blog, we will discuss in detail how GDP of a country is calculated. The calculation of GDP involves adding up the value of all final goods and services produced within a country's borders during a specific time period, typically a year or a quarter. The calculation can be done in three different ways: the expenditure approach, the income approach, and the production approach. 1.The Expenditure Approach: The expenditure approach calculates GDP by adding up the total expenditure on goods and services within the economy. This includes four main components: a) Consumer Spending (C): This includes all the spending by households on goods and services, such as food, clothing