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Finance GlossaryCapital Gains Exemption
Capital Gains Exemption
Definition of Capital Gains Exemption
Capital gains exemption is the tax break that a government offers on profits earned by selling assets. Generally, an investor must pay a tax on the short-term capital gains or long-term capital gains earned.
But in certain cases, the government allows investors to offset taxes. For example, if an investor sells property and reinvests the entire amount back again into another property, they can avail of capital gains exemption.
But in certain cases, the government allows investors to offset taxes. For example, if an investor sells property and reinvests the entire amount back again into another property, they can avail of capital gains exemption.
Related Terms
Nominee
Nominee is a person appointed by an investor to receive the assets or benefits of an investment in case of the primary investor’s death. Adding a nominee helps ensure the smooth transfer of securities, bank balances, or mutual fund units to the rightful beneficiaries.
Acceptance Credit
Acceptance Credit is a way for buyers to authorize fund transfers to sellers at a specific date when various terms & conditions are met.
This is done through a letter of credit which is a creditworthy bank’s promise that the payment will be made.
There are two types of Acceptance Credit:
This is done through a letter of credit which is a creditworthy bank’s promise that the payment will be made.
There are two types of Acceptance Credit:
- Confirmed: Bank guarantees payment in case the buyer defaults
- Unconfirmed: Bank does not guarantee payment in case the buyer defaults
Moving Average (SMA/EMA)
Moving Average (SMA/EMA) is a trend-following indicator that reduces noise by averaging past prices. Simple moving average (SMA) takes an equal average of prices over a chosen period, while Exponential moving average (EMA) emphasises recent prices, allowing it to react faster to changes in market direction.
Securities Lending
Securities Lending is a process through which investors can lend their shares to borrowers, usually for short selling. In return, they receive interest or fees. The lender continues to be the owner of the assets. The borrower needs to return the securities later. Securities lending helps in improving liquidity in the market. Long-term investors can also earn extra income on holdings that remain idle for a while.
Depository Participant
A depository participant is a financial institution that acts as a bridge between a depositories like NSDL/CDSL and investors. Moreover, a depository participant is responsible for holding shares in the Dematerialized format in a Demat account.
At the same time, a depository participant gives traders and investors access to an online trading account that can be used to buy and sell securities. The right depository participant will also ensure that your securities are safe.
At the same time, a depository participant gives traders and investors access to an online trading account that can be used to buy and sell securities. The right depository participant will also ensure that your securities are safe.
Hammer Candlestick Pattern
A Hammer Candlestick pattern occurs when a stock, commodity, or currency opens much lower than its previous closing price but moves close to or above the the same price at the close. The pattern looks like a hammer, hence the name “Hammer Candlestick”.
The candlestick can be read as follows:
The candlestick can be read as follows:
- The main body shows the difference between the financial security’s opening and closing price.
- The wick (shadow) of the candlestick shows the high and low prices of the security for the day.
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