The Enterprise Value for an investor
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The Enterprise Value for an investor

What is Enterprise Value? Enterprise Value (EV) is simply the total price that you need to pay to acquire 100% of any company. EV is also known as the Total Enterprise Value (EV) or Firm Value (FV). 

Continue Reading about 6 years ago
Why is it important to understand your investments?
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Why is it important to understand your investments?

“Caveat Emptor” or “Buyers Beware” is the central theme that runs across the world of investing.  Every investor should have truckloads of knowledge about the investing world and where they are investing in. In this Monetary world, people want quick money.. easy money.. fast money.. And for this, they often resort to fraudulent activities, embezzlement, treachery, etc.

Continue Reading about 6 years ago
5 components of P&L that influence Investor
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5 components of P&L that influence Investor's Decisions

Ever wondered about what makes a person invest in one company and not in another?

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What is the Importance of Contingent Liability
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What is the Importance of Contingent Liability

To answer this question, first, we have to understand what contingent liability is. A contingent liability is the potential or uncertain loss that may occur at some point as an outcome of a specific event. It is not an absolute obligation; it may or may not happen depending on how the future unfolds itself. It is recorded only if the liability amount can be estimated relatively.   According to the practice of disclosure in the conservative approach of accounting, the liability may be disclosed as a footnote in the financial statements of a company or not reported if conditions are not met. Therefore, the contingent liability has no such accounting treatment — for example, potential lawsuits, product warranties, and pending investigation. Contingent liabilities are possible obligations, which may or may not occur in the future and disclosed in the notes to the accounts. 

Continue Reading about 6 years ago
5 components of Balance Sheet that influences Investment Decisions
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5 components of Balance Sheet that influences Investment Decisions

How do you go about investing in stocks? Obviously, the first thing to do would be industry analysis - growth prospects, competitive analysis, barriers to entry, etc. But, as we had quoted Warren Buffet in a previous article, “there is a lot more to picking stocks than to work out which is going to be the most wonderful industry in the future.”

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What are Moats and Floats?
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What are Moats and Floats?

A good business model and strong fundamentals are all fine and nice, but what differentiates a company from its competitors? Introducing - "Moat".

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Difference between market value and book value
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Difference between market value and book value

All of these terms are used for the financial market and signify a particular meaning to the financial instruments. These terms have a different value for every financial instrument and should be taken into consideration. So let us know about every term in detail:

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What is Beta in Finance?
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What is Beta in Finance?

In the dynamic world of finance, understanding the nuances of various metrics is crucial for making informed investment decisions. Among these metrics, Beta holds a significant position, serving as a key indicator of a stock's volatility relative to the overall market.

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What is Debt to Equity Ratio?
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What is Debt to Equity Ratio?

It is imperative and a task of paramount importance for an investor to examine the financial performance of a company from every angle before investing a single penny in that company. The true worth of the company can be detected by analyzing its financial ratios.

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What is the Rule of 72?
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What is the Rule of 72?

In the field of investing, it is imperative to realize the magic of compounding. So, wondering what magic has got to do with your money? It is not a magic mantra to make you rich overnight; rather, it is just prudent investment advice.

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What is Margin of Safety?
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What is Margin of Safety?

Origin of ‘Margin of Safety’

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 Factors Influence Market Trends
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Factors Influence Market Trends

There is a massive panic surrounded the markets, where Nifty fell from a record high of 12,003 (on June 3) to 10,990 plunging nearly 9% in the span of 2 months, majorly dragged by auto, banking & financials, energy, infra, and metals stocks.  Mid-capsand small caps stocks have gone through a free fall, which is more exhaustive when compared to large caps.  So much is the agony in the mid-cap sector that since January 2018, investors have lost more than ₹28 trillion in all the corrected stocks. The BSE MidCap and the BSE Small-capindices lost 21% and 31%, respectively, since January 2018. More than 1,976 stocks traded on BSE have dropped since January - that’s 86% of all traded stocks. Chances are, if you owned 20 stocks, 17 of them would have suffered losses. One of the reasons for Midcap& Small cap downturn:  

Continue Reading about 6 years ago
Special purpose vehicle (SPV)
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Special purpose vehicle (SPV)

In the current financial market, there exists numerous enterprises and entities who are working towards providing goods and services to the nation and contribute to the growth of the economy.

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What is Inflation and Index fund
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What is Inflation and Index fund

With the opening up of the economies and the growth in various sectors, numerous enterprises spread over sectors like FMCG, education, banking, automobile, healthcare etc. have been set up which provide the people with goods and services which are needed and essential for the survival as well as improvement in the standard of living. As these enterprises set up and grow, they require funds to operate which can be in the form of equities or debt from the outside investors for a specified or an unlimited period of time. The sources from where such organizations can raise funds can be: equities, loans, mutual funds, debentures, bonds etc.

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Term policy and endowment policy
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Term policy and endowment policy

“A life insurance policy is something that provides a dedicated sum of money on the demise of the policyholder or after a certain period of time.”

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How to choose right Insurance policy?
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How to choose right Insurance policy?

Choosing a life insurance policy is a great challenge for many individuals as there are many insurance companies offering different plans and to pick the best one out of all is pretty much difficult.

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Wipro Limited: An Overview
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Wipro Limited: An Overview

Wipro is the fourth largest Indian player in the global IT services outsourcing industry in terms of revenue, after Tata Consultancy Services (TCS), Infosys Limited (Infosys) and HCL Technologies Limited.

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Sector Funds: What are sector Funds?
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Sector Funds: What are sector Funds?

These are equity mutual funds that give you access to a very small part of the overall market; they majorly invest in a particular type of business, industry or a sector of the economy. It can be any sector such as the Education sector, Automobile sector, Health care sector, IT sector, FMCG sector, etc.

Continue Reading about 6 years ago