What do the bollinger bands mean

What do the bollinger bands mean

By: Lyudmila0307 Date: 06.07.2017

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Management buyout MBO is a type of acquisition where a group led by people in the current management of a company buy out majority of the shares from existing shareholders and take control of the company. For example, company ABC is a listed entity where the management has a 25 per cent holding while the remaining portion is floated among public shareholders.

In the case of an MBO, the current.

QIP or Qualified Institutional Placement is largely a fund raising tool for the listed companies. QIP is a process which was introduced by SEBI so as to enable the listed companies to raise finance through the issue of securities to qualified institutional buyers QIBs.

Earlier, since raising finance in the domestic market involved a lot of complications, Indian companies used to. Hedge fund is a private investment partnership and funds pool that uses varied and complex proprietary strategies and invests or trades in complex products, including listed and unlisted derivatives. Put simply, a hedge fund is a pool of money that takes both short and long positions, buys and sells equities, initiates arbitrage, and trades bonds, currencies, convertible securities, commodities a.

Black-Scholes is a pricing model used to determine the fair price or theoretical value for a call or a put option based on six variables such as volatility, type of option, underlying stock price, time, strike price, and risk-free rate. The quantum of speculation is more in case of stock market derivatives, and hence proper pricing of options eliminates the opportunity for any arbitrage. Required Rate of return is the minimum acceptable return on investment sought by individuals or companies considering an investment opportunity.

Investors across the world use the required rate of return to calculate the minimum return they would accept on an investment, after taking into consideration all available options. When calculating the required rate of return, investors lo. Prices of commodities, securities and stocks fluctuate frequently, recording highest and lowest figures at different points of time in the market. It is an important parameter for investors as they compare the current tradi.

For raising funds, it is not always preferable or feasible for a company to issue securities to the public at large as it is time consuming as well as an expensive option. In such situations, the securities can be offered to a comparatively sm.

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Basis Risk is a type of systematic risk that arises where perfect hedging is not possible. Basis is simply the relationship between the cash price and future price of an underlying. Net worth is the difference between the asset and the liability of an individual or a company. A high net worth relates to good financial strength and ultimately good credit rating of an individual or a company. Similarly a low or negative net worth will relate to a weaker financial strength and a lower credit rating, thus directly affecting the individual's or the company's ability.

Insider trading is defined as a malpractice wherein trade of a company's securities is undertaken by people who by virtue of their work have access to the otherwise non public information which can be crucial for making investment decisions.

Bollinger Band®

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what do the bollinger bands mean

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Bollinger Bands [ChartSchool]

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Drag according to your convenience. Categories Glossary Economy Equity Insurance Budget Marketing Mutual Fund Space Technology Testing Human Resource Finance Real Estate Security Sports Commodity Software Development Analytics HR Entertainment Retail Shipping Astronomy Transportation Education Mathematics. Subscribe for Newsletters Subscribe. Suggest a new Definition Proposed definitions will be considered for inclusion in the Economictimes. Blue Chip Stocks Definition: Blue chip stocks are shares of very large and well-recognised companies with a long history of sound financial performance.

These stocks are known to have capabilities to endure tough market conditions and give high returns in good market conditions. Blue chip stocks generally cost high, as they have good reputation and are often market leaders in their respective industries. Since then the term has been used to refer to highly-priced stocks, but now it is used more commonly to refer to high-quality stocks.

These are stocks that generally deliver superior returns in the long run. Some people also relate blue chip stocks to blue betting disks in the game of poker, where the blue disk has the highest value while the white one has the lowest. Several parameters can be considered to identify blue chip companies.

They include consistent annual revenue over a long period, stable debt-to-equity ratio, average return on equity RoE and interest coverage ratio besides market capitalisation and price-to-earnings ratio PE.

trading - How do I calculate two standard deviations away from the stock price? - Personal Finance & Money Stack Exchange

Bonus Share Bonus shares are additional shares given to the shareholders without any additional cost, based upon the number of shares that a shareholder owns. Bollinger Bands is one of the popular technical analysis tools, where three different lines are drawn, with one below and one above the security price line.

Its specific period moving average is denoted as midline to form an 'envelope'. These lines show a band or a volatility range in which a particular security price is moving up or down. Bollinger Bands was developed by John Bollinger in the mid s and he trademarked this term in Initially, it was called trading bands, but later on, John Bollinger evolved this concept and called it Bollinger Bands.

Bollinger Bands shows the levels of different highs and lows that a security price has reached in a particular duration and also its relative strength, where highs are near to the upper line and lows are near to lower line.

In other words, the price points near the edges of the 'envelope' formed can help us recognise a pattern at a particular moment. The bandwidth widens and narrows depending on volatility. If it's high, the band would widen and if the volatility decreases, then the band would narrow.

These bands show oversold and overbought conditions in relation to a selected time period moving average. Bollinger Bands are somewhat like moving average envelopes, but drawing calculations for both is different.

In Bollinger Bands, standard deviation levels are considered to draw the upper and lower lines, whereas for Moving Average Envelopes, the lines are plotted by taking a fixed percentage.

For calculation of Bollinger Bands, the following variables are required: Moving Average Line or Middle Band for 'N' period MA N. Refer average 'Moving Average' concept for calculation 2. Lower Band or line where in MA line is shifted below by price standard deviation for 'N' period multiplied by SD measure value 'D' MA - D s For different securities, different variable settings can be chosen.

Typically traders use day simple moving average with a standard deviation of 2. Some traders may use exponential moving average too. Taking normal parameters used for drawing Bollinger Bands, we choose: Some important points for interpretation of Bollinger Bands: Heading for an interview?

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