You might have heard the phrase ‘Cash is the king’. A cash-rich business means that the company has enough cash left after paying all its expenses and debts. For the company with high cash, it simply means more liquidity and opportunities for the business. However,...
What is Working Capital? Definition, Importance & More. Hello Readers. One of the most important factors to check while analyzing a company before making an investment decision is its working capital. In simple words, working capital can be defined as the funds...
If you want to make a significant amount of money from the stock market, it is crucial to develop a healthy stock investor mindset. However, the problem is that most people never learn this skill set as neither it is taught in schools nor colleges. Even the best...
A bond is a financial product which represents some debt. It is a debt security issued by an authorized issuer which can be a company, financial institution, or Government. The issuers offer returns on bonds to the lenders in the form of fixed payment of interest for...
Exchange Traded Fund or ETF is getting a lot of attention among the investing population lately because of the ease and flexibility it offers to the investors. It is a basket of securities like mutual funds but can be bought and sold through a brokerage firm on a...
Systematic transfer plan (STP) and Systematic withdrawal plan (SWP) In India, the Mutual Fund industry has started growing off late due to the immense efforts by Association of Mutual Funds in India (AMFI). Previously people used to be more interested in parking their...
Whether its buying ice-cream at Cold Stone or filling gas at a Shell petrol station, a large proportion of companies that we consume goods and services from is backed by a private-equity firm. This makes private equity a favorable investment option for many people. In...
What is the ‘Intrinsic Value’ of a Stock? What are its components? How do they affect the way the company’s Stock is likely to behave? We will attempt to answer these seemingly daunting questions in simple terms and with relevant, real-world...
Have you ever heard of DVR shares? In the year 2008, Tata Motors came out with the DVR shares for the first time in India. These DVR shares of Tata Motors trade at a discount of 50% compared to their normal shares. Later, this DVR issue approach of Tata Motors was...
A prominent question many people have about investing in stocks is, “Does the purchase price matter?” or “Should I value a stock before purchasing it”? A lot of financial theory argues that you shouldn’t. They say, markets are always...
