Investors can be classified as growth-oriented and value-oriented investors. Growth-oriented investors invests in the form of capital gains as the company grows over time. Value-oriented investors, on the other hand, expect stable returns in the form of dividends along with capital gains over the long term. The dividend yield ratio is highly useful for value-oriented investors. […]
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Let’s say I am a stockiest of winter clothes. In anticipation of a severe winter, I have stocked clothes in excess. My biggest concern is whether I will be able to sell all these before the onset of summer. If summer steps in earlier than expected, then I will have to lower the price to
Let’s say there’s a farmer who cultivates wheat and there is a baker who needs wheat as an input for making bread. The farmer thinks that the price of wheat which is currently trading at Rs.100/- could fall to Rs.90/- in 3 months. The baker on the other hand feels that the price of wheat
Today, we have a loan for just about everything, be it a house, car, foreign trip and even a mobile. The \’loan culture\’ has caught on in a big way. A majority of people have availed of loans at some point or the other. But do we really know how the EMI on the loan
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Bonus share issue and stock splits are two common corporate measures used by companies to increase the number of shares available for trading. Both of these words are commonly misunderstood by investors. Shareholders are rewarded in a variety of ways by the companies. These benefits can come in the shape of dividends or additional shares.
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Imagine there are several farmers in a market. Some have a view that the price of Wheat is going to fall in the near future (bearish participants) Also, some bakers have a view that the price of wheat is going to rise in the near future (bullish participants) The market place has free flow of
You may have received communication from banks or telecom companies promising rewards in exchange for “going green” with monthly bills. Such incentives are advantageous to both the company as well as the customer. The customer gains from discounts and the banks or telecom companies save on printing and dispatching cost. Today\’s topic is somewhat similar.
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EPS or Earnings Per Share is the portion of the company’s distributable profit which is allocated to each outstanding equity share. A company’s EPS is calculated as: Net Profit for a period / Number of Shares That means, if
One of the most exotic terms in trading is “Futures”. A futures contract is a legal agreement to buy or sell a particular commodity asset, or security at a predetermined price at a specified time in the future. Futures contracts are standardized for quality and quantity to facilitate trading on a future exchange. The buyer of
The commodity markets are made up primarily of speculators and hedgers. While speculators are all about taking on risk in the markets to make money, the function of hedgers is to reduce their risk of losing money. Hedging is a way to reduce risk exposure by taking an offsetting position in a closely related product
