Spreading insight, not tips.

 Article 9: Farm laws, Source: Economic times Farm laws= 1. First farm law says that farmers can now engage in a trade of their agricultural stock with anyone outside the government's decided markets. 2. Second farm law says that farmers can engage in an agreement like contract farming direct with the buyer to sell the produced corps with a pre-determined price. 3. Third farm law says that it restricts the power of government with respect to production, supply, and distribution of commodity essentials. Earlier when farmers were to sell their crops, they had two options. The first is to directly sell it to the government. The second is to sell it in a government-decided Mandis in the presence of state officials at a minimum support price. MSP is usually higher than the market price. The problem here is if the farmers try to sell their crops before or after the specified date, GoI would not buy, and not every village has government-designed Mandis. Also sometimes the government annou...

  Article 7: Pump and dump,  Source: economic times As the economy is reviving, the stock market is running like a Ferrari. Therefore SEBI has stepped up its surveillance on companies who indulge in somewhat shenanigans. SEBI has asked exchanges to closely watch on any misstatement in financials, Accounting policies, the resignation of key managerial personnel, a sharp jump in profits, etc. to push up the stock prices. For this, a separate team has been formed to monitor the following checks mentioned in the previous point. SEBI’s finance investigation department is also responsible for carrying out probes on fraud, diversion, laundering, or misappropriation of funds. Pump and Dump | FinnacleShahClasses Article: 8 Gee ST,  Source: economic times Inverted duty structure- a situation where inputs attract a higher duty than the one applicable on finished goods. Because of this GST credit has increased where busines...

  Article 5: SVR, DVR,  Source: economic times, the Hindu business line  Superior voting right (SVR): These special shares have a higher voting power than ordinary shares.  Generally, any promoter grows its business with hard work and dedication. At some point promoter needed to raise funds to expand the business. To expand the business, the promoter will take either debt or dilute its stake in the business. The risk here is if the promoter dilutes its stake more to expand, he/she may lose control of the company that he/she has built over time. Many incidents have happened in the past that due to dilution of the stake, promoters have been kicked out of the company as they lost control. To overcome such instances, the concept of DVR/SVR has been introduced. In short, the company is owned by others and controlled by others. This can be a bad thing for capital providers also. There is a risk in everything. ...

  Article 3: backwardation in metals,  Source: economic times and live metal What is backwardation? Backwardation means when the current price of an underlying asset is higher than prices trading in the futures market. The reason behind this tight supply is majorly lockdown due to the covid-19 pandemic. Hence supply chain got disturbed. The supply chain has multiple aspects like labor, transportation, regulatory authority, etc. The majority of the countries have initiated Go green activities, for example, China. They decided to reduce pollutions by closing the copper melting activities. As a result, the supply chain got disrupted. Another reason is, because of the pandemic, a hit to a transportation activity, and people being locked in their houses for a long period, they started spending crazily after the lift of the lockdown. Hence demand rose crazily and businesses needed to do Capex. For CAPEX, metals are neede...

  Article 1: Demerger,  Source: Economic times Demerger: Demerger means sometimes businesses tend to separate one of the entity/divisions into an independent business. There are 5 reasons why businesses perform demerger: Sometimes company performs demerger because they want to separate its core operational division into a whole and non-core division into an independent business so that its core operational business can run smoothly without any impediment caused by non-operational division. The company performs demerger because sometimes its non-operational divisions are loss-making and because of it its core activity is getting affected. Therefore company demerges its loss-making division. The company performs demerger because sometimes its one of the entities that started performing so well that it leaves another segment behind and the company wants to make this segment as a whole. The company performs demerger b...