Income earned as a result of investments may be taxable. The impact of taxes on investment returns can be substantial and can potentially play a significant role in investment strategy. It is possible to minimize the impact of taxes through tax-planning. Thus, all investors should understand the basics of taxation and the tax laws [...]

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Asset Allocation
Asset Allocation is the process by which the total investble capital is distributed across different asset classes. As discussed in the previous article, asset classes are sets of assets that behave similarly and have similar characteristics, e.g. Stocks, Fixed Income Securities, Commodities and Cash (Cash Equivalents).
Investors typically do not invest all their money in [...]

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Assets and Asset Classes
An asset is anything that is expected to provide positive cashflow in the future. This is a rather broad definition and thus encompasses securities (e.g. stocks, bonds), real estate (e.g. land, houses), intellectual property (e.g. copyrights, patents) etc.
Asset classes are assets that have similar features and behave similarly. The main asset classes [...]

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A position
In trader parlance, one takes a “long position” in an asset if he/she buys that asset and takes a “short position” if he/she borrows that asset and sells it.
The difference between investing and trading
Investors are people who buy assets (in this case, stocks) in anticipation of long term appreciation in their value. Traders are [...]

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Buying/Selling stocks
Stocks are traded on stock exchanges. Individual investors generally need to make use of the services of a stock broker to buy/sell shares. Stock brokers carry out transactions on the behalf of clients for a commission. Individuals who want to transact in shares should open an account with a stock broker.
Bid-Ask Spread
Stock brokers [...]

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Definition
Equity Shares, commonly known as stocks are small parts of a company (corporation). Stocks represent ownership of the issuing company and typically entitle the holder to voting rights when major corporate decisions of the issuing company are put to vote.
Rights of the shareholder
Shareholders collectively also appoint the board of directors of the issuing company and [...]

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In this context, leverage is simply the practice of using borrowed money to make investments. Let us suppose that you have a strong feeling that a particular stock(say the stock of Goldman Sachs) is going to increase in value. You also want to earn insane amounts of money by investing in that stock but only [...]

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