Investment RSS

Straddle involves buying and selling a combination of one at or near the money call option and one at or near the money put option, having same maturity. This position is taken by stock traders who are uncertain…

[Read more →]

When investing in stock market, many investors have a herd mentality i.e. they just follow the trend in the market and invest without conducting any analysis of their own. Although it is human to follow the crowd and base your…

[Read more →]

Recently, the global economy experienced the worst economic downturn in many years. Economies like the U.S. and UK suffered from recession. The fate of other developed economies such as Germany and Japan was also the same. Emerging economies like Brazil…

[Read more →]

Financial Speculation can be defined as a financial transaction that aims at considerable profit accompanied by high risk. Speculation is a process of making more profit by taking large exposure of risk in the price fluctuation. This involves buying and…

[Read more →]

One of the most widely used profitability ratios by Analysts and investors to judge a company’s performance is P/E ratio. It is the ratio of the stock market price of the stock and the earnings per share (EPS).
P/E ratio…

[Read more →]

Hedge is a investment strategy by which one can enter in an offsetting trade to minimize the risk arising due to market volatility.
Hedge is a term quite often used in the stock markets. Risk as we all know is…

[Read more →]

Financial Performance Ratios is used to depict the performance of a business. These ratios are derived from the items of a financial statement. To derive a financial ratio, one variable of the financial statement is divided by the other. It…

[Read more →]

An organization employs different types of funding to run a business smoothly. Capital Structure is a composition of different types of financing employed by a firm to acquire resources necessary for its operations and growth. Capital Structure primarily comprises of…

[Read more →]

Stock split is a corporate action which involves splitting of the existing share(s) into smaller units of lesser par value. Stock split is an involuntary corporate action which is decided by the board of directors.
For example, a company decides…

[Read more →]

Dividend is the distribution of profit among the shareholders. Dividend Yield (DY) is the ratio of annual dividend received and the current price per share. It is a financial ratio which shows the amount of cash flow received for each…

[Read more →]