Learn Economics by Dr. Swati Gupta

The key principles  Investors  should remember before Investing Investing in the stock market can be rewarding, but it requires careful preparation and strategy. Here’s the few points, a investor must remember: Preparation Steps Understand Your Financial Situation: A investor must ensure about the  disposable income for investment after covering essential expenses and building an emergency fund (at least, six months of expenses).  He should define his investment objectives (e.g., retirement, buying a house, or wealth accumulation) and time horizon. Educate Yourself: He must learn  the basics of the stock market, including how it works, key financial metrics, and market terminology (e.g., P/E ratio, dividends, market cap). and also should understand different types of investments (stocks, ETFs, mutual funds, etc.). Create a Strategy:   He must know his ability to withstand market volatility and risk tolerance. This depends on t...

Share Market, Main components and Functions of the Stock Market The share market or stock market plays a important role in the economy. It allows companies to raise capital and provides investment opportunities to individuals. What is the Share Market? The share market is a place where the shares or stocks of companies are bought and sold. It is a financial market where by purchasing shares, investors gain partial ownership of the company. The stock market is also known as a stock exchange.  The main purpose of the stock market is to provide  an opportunity to companies  to raise capital and give  fair chance to the investors to earn profits from their investments. It is a liquid market, where investors can easily buy and sell their shares and get their money. The stock market has two main components: Primary Market : It is the market where companies issue shares for the first time through Initial Public Offerings (IPOs) and allows businesses to raise capital for gro...

  MARGINAL PRODUCTIVITY THEORY OF DISTRIBUTION This concept of marginal productivity was taken from Ricardo and West. But both Ricardo and West applied the marginal productivity concept only to land. The references for the marginal productivity theory were taken from Thunen’s Der Isolierte Staat [1826], Longfield’s lectures on political economy , and in Henry George’s progress and poverty [1879]. This theory was rediscovered by economists like J.B. Clark, Jevons, Wicksteed, Walaras and later Marshall and J.R. Hicks popularised the doctrine of marginal productivity. Marginal productivity theory tries to explain how the price of the factor is determined. As we know that a firm motives to get profits that’s why it will not pay any factor more than its marginal productivity. Similarly, each factor will charge his price at least equal to his marginal productivity. That is how marginal productivity [not total productivity] determines the price of a factor of production. Since...