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swapnilkabra

@caswapnilkabra

25 Mar

As the earnings season will begin soon, I decided to write a simplified yet detailed thread on ‘How to read and understand the quarterly result of a company’.
Read patiently.
Bookmark if required.
RT if found useful. 👇🧵 (1/n)

1⃣Why are quarterly results important?
The shareholders have put their hard earned money in the company.
So, they must know about the affairs of the company. But, they can not have access to the books of accounts. (2/n)

Only and only the management of any company can access the books.
Hence, to give a snapshot of company’s financial performance, listed companies are required to publish ‘Quarterly Results’, which are available in public domain. (3/n)

Read 35 tweets

swapnilkabra

@caswapnilkabra

22 Mar

‘Why don’t central banks like RBI mint more money and pump in the economy to speed up the growth and solve nation’s basic problems?’
As a teacher, I have been asked this many times.
Here’s a simple thread to explain the basic economics behind why this is not so ideal. 🧵👇 (1/n)

RBI is not against the increasing demand and the growth. All RBI wants is 𝑠𝑢𝑠𝑡𝑎𝑖𝑛𝑒𝑑 𝑎𝑛𝑑 𝑐𝑜𝑛𝑡𝑟𝑜𝑙𝑙𝑒𝑑 growth.
Let us understand how things work from the very beginning, shall we? (2/n)

𝐑𝐁𝐈 𝐦𝐢𝐧𝐭𝐬 𝐦𝐨𝐫𝐞 𝐦𝐨𝐧𝐞𝐲
So, RBI decides to mint more money and increase the money supply in the economy. (3/n)

Read 25 tweets

swapnilkabra

@caswapnilkabra

19 Mar

I have seen people who are scared of the subject ‘Economics’. There are many others who find it boring!
But, I am sure everyone knows the basics of ‘Economics’. In our practical life, we apply them, unaware of the fact that it is ‘Economics’.
Here’s a thread. Read on. 👇🧵(1/n)

You go to a vegetable market, ask the vendor for the price of vegetable.
He says, he is willing to sell you at Rs.20/kg but you are adamant to buy at Rs.15/kg. You bargain and finally settle at Rs.18/kg. (2/n)

Hence, you both settle at Rs.18/kg where both are satisfied.
You have applied here the concept of 𝐞𝐪𝐮𝐢𝐥𝐢𝐛𝐫𝐢𝐮𝐦 𝐩𝐫𝐢𝐜𝐞 which is the intersection of demand and supply curve and it is the level where buyer and seller both are satisfied. (3/n)

Read 16 tweets

swapnilkabra

@caswapnilkabra

17 Mar

One of the many misconceptions people have about investing in stock market is that it is a zero-sum-game. They have this misunderstanding that one’s income is someone else’s loss.
But no, that is not how things work.
Here’s a simple thread to explain this🧵👇
(1/n)

To begin with, let us get this clear as to how a zero sum game theory works. (2/n)

Say, there are 7 people playing a simple game. Their names are Red, Purple, Royal blue, Sky blue, Sea green, Green and Yellow.
They all chip in Rs.100 and keep the money (Rs.700) on the table. (3/n)

Read 16 tweets

swapnilkabra

@caswapnilkabra

15 Mar

Have you ever wondered in case of stock market crash, where does the money go?
We often read and hear that investors lost crores of rupees whenever market falls, but where has the money gone?
Here’s a thread explaining the economics behind it 🧵👇
Read on (1/n)

Firstly, let us understand something fundamental.
‘Price’ of anything is actually more of a perception.
Yes, you read it right, ‘Price’ of a commodity is influenced by how it is perceived by the interested people. (2/n)

Let me explain this with these four cases. Let us observe them bit by bit. (3/n)

Read 19 tweets

swapnilkabra

@caswapnilkabra

13 Mar

As the FY 2020-21 is closing, I decided to write a simple thread on how equities are taxed in India and how you can save income tax by following simple logical steps.
Here’s a thread for the same. 🧵👇
Do retweet for better reach and help others save taxes.
#taxplanning

Firstly, let us understand the types of capital gains that are taxed in equities. These are,
a.Short term capital gains
b.Long term capital gains (1/n)

If an investor is holding shares listed on a recognized stock exchange (NSE, BSE) for more than 12 months, the gain/loss arising from the sale shall be ‘Long’ term. Else, it shall be ‘Short’ term. (2/n)

Read 25 tweets

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