Mezzanine capital is a type of financing that involves both debt and equity. It gives the lender the right to convert a loan into equity if the borrower doesn’t repay it. The unique feature of Mezannine capital is that it carries a warranty. Mezzanine capital is generally used for acquisitions and prioritises new owner's priority in case of bankruptcy. They can be a useful tool for companies with low working capital. Let’s learn the inner workings of mezzanine capital.

Backtesting is the process of testing a trading strategy using historical market data to determine how it would perform. Traders can use the technique to test and compare various trading strategies and employ successful strategies according to their needs. Back testing is an essential skill for individuals who want to regularly trade in the stock market. This article explains what is backtesting and its importance for investors.

In the auction process buyers submit competitive bids, and sellers submit competitive offers. Auction price is determined by the highest price that a buyer is willing to pay and the lowest price that a seller is willing to accept for a stock. Once the bid price and offer price match, orders are placed. You can understand more about an auction in the stock market in this article.

A value trap is a stock that appears undervalued but performs poorly in the long run. Such stocks are not cheap and act as traps with little chance of growth. Value trap could be caused by a company's lack of innovation, future product planning, competitive behaviour, inefficiency, or inability to manage costs. Therefore, consider the value trap stocks' historical performance and other factors. Read the article to learn the value trap definition and how to identify and avoid them.

An iceberg order is a special type of order that hides what traders buy and sell. Generally, large institutional investors use iceberg orders. They employ it as a strategy to get the best possible price for an asset while trading.Retail investors can also use it to decide whether to purchase or sell a stock. In this article, we will understand what an iceberg order is and how to take advantage of it.

There are many metrics through which you can gauge and analyse the risks of mutual funds. Combining these can help you understand a fund’s true risks.

Restricted stock units (RSUs) and stock options are two forms of equity compensation a company offers employees. The choice between the two depends on your goals and risk tolerance.

The money market and capital market are two vital components of the Indian financial system. While the money market fulfils short-term liquidity needs, the capital market offers a long-term investing platform. Though they may look the same at first glance, there are several differences between the money market and capital market. What are these? Let's find out.

TDS and TCS are tax collection mechanisms of the government imposed to thwart tax evasion and streamline the tax collection process. Understanding the differences between them is vital to avoid penalties.

While REITs allow you to invest in real estate without huge upfront investment, they have limited options and low liquidity.