This is a statement we often use in our regular usage. If markets are volatile get into defensive stocks. If markets are difficult to understand, then get into defensive stocks. If there are cyclical risks to the market, then get into defensive stocks. But, what exactly do we understand by the concept of defensive stocks? […]
BEHAVIOURAL FINANCE AND INVESTORS Behavioural finance is a new and rapidly growing field of study & research. Studies on behavioural finance try to understand human behaviour when it comes to money. These studies try to understand why rational people can often make irrational decisions when it comes to investing. Behavioural finance includes psychological theories, particularly […]
A day out with your family, having dinner in the restaurant. But, at the back of the mind, you keep on thinking about your work and tasks you have to complete in the speculated time. This showcases the impression of you being – “Workaholic”. Being workaholic means you end up working till the godly hours […]
Within a few months country will participate in the 2019 election process, which means that the ruling government may phase out and a new government or the same government with new alliances may assume the parliament. Hence this year instead of a full budget, an interim budget will be passed in the assembly. Let us […]
What is Return On Capital Employed (ROCE) Return on capital employed (ROCE) is a financial ratio that measures a company’s profitability and the efficiency with which its capital is employed. ROCE is calculated as: ROCE = Earnings Before Interest and Tax (EBIT) / Capital Employed Return On Capital Employed – ROCE Components of Return On […]
What is Short Selling Short selling is the sale of a security that the seller has borrowed. A short seller profits if a security’s price declines. In other words, the trader sells to open the position and expects to buy it back later at a lower price and will keep the difference as a gain. […]
Debentures and fixed deposits are two different ways of investing money through financial instruments. A debenture is an unsecured bond. Essentially, it is a bond that is not backed by a physical asset or collateral. Meanwhile, a fixed deposit is an arrangement with a bank where a depositor places money in the bank and is […]
What is an ‘Ex-Dividend’ Ex-dividend is a stock trading term that specifies when a declared dividend is owned by the seller rather than the buyer. The term literally means “without the dividend” because once a share trades ex-dividend, the buyer no longer has the right to receive the most recently declared dividend. BREAKING DOWN ‘Ex-Dividend’ A stock trades ex-dividend on […]
What is ‘Active Trading’ Active trading refers to buying and selling securities for quick profit based on short-term movements in price. BREAKING DOWN ‘Active Trading’ Active trading seeks profit from price movements in highly liquid markets. For this reason, active traders generally focus on volatile stocks, foreign currency trades, or derivatives. Active trading requires a more […]
What are ‘Financial Statements’ Financial statements are written records that convey the financial activities and conditions of a business or entity and consist of four major components. Financial statements are meant to present the financial information of the entity in question as clearly and concisely as possible for both the entity and for readers. Financial […]