Distinguish Between Business risk and financial risk. Business risk is the risk that a business faces in not being able to generate adequate income to cover operating expenses. Financial risk is the risk that a business will not be able to generate enough cash flow and income to pay their debts and meet their other financial obligations. Distinguish Between Business risk … [Read more...] about Distinguish Between Business risk and Financial risk
Relationship between the stock price and its determinants
Relationship between the stock price and its determinants The relationship between the stock price and its determinants are summarized below: The notion of the determinants Impact on stock price Interest rates rise (fall). Stock prices fall (rise). An increase (decrease) in expected corporate earnings. Stock prices tend to increase (decrease). A change in government … [Read more...] about Relationship between the stock price and its determinants
Discuss on Bond Duration and Bond Volatility with Example
Discuss on Bond Duration and Bond Volatility with Example. A bond will face interest rate risk if the holding period differs from duration. For any bond, there is a holding period at which the effect of reinvestment risk and price risk balances each other. The lose of reinvestment of interest can be compensated by a capital gain on the sale of the bond and vice versa. For this … [Read more...] about Discuss on Bond Duration and Bond Volatility with Example
What are the risks of investing in a bond?
What are the risks of investing in a bond? As compared to other financial assets or securities fixed income securities are considered to be less risky. Though they are less risky, they are not entirely risk-free securities. Therefore, the investment in bonds is a function of various types and sources of risk. The actual return from a bond may differ from the expected return … [Read more...] about What are the risks of investing in a bond?
List of banks in India
List of banks in India List of banks in India List of banks in India. List of banks in India Public-sector banks There are currently 27 public sector banks in India out of which 19 are nationalized banks and 6 are SBI and its associate banks and rest two are IDBI Bank and Bharatiya Mahila Bank, which are categorized as other public sector banks. There are a total of 93 … [Read more...] about List of banks in India
Warren Buffett – A Great Business Leader
Warren Buffett Warren Buffett - A Great Business Leader, Philanthropist (1930–) Warren Buffett is known as the "Oracle of Omaha,". He is an investment guru and one of the richest and most respected people in the business world. Summing-Up Warren Buffett born in Nebraska in 1930. Buffett demonstrated keen business abilities at a young age. He formed Buffett Partnership Ltd. … [Read more...] about Warren Buffett – A Great Business Leader
Time is a Great Healer
Time is a Great Healer - Disappointment and sadness may come into one's life !! Time is a Great Healer According to William Sydney Porter, " Life is made up of sobs, sniffles, and smiles. " In this regard, we can say that weal and woe come by turns. So the disappointment or sadness reduces with the passage of time. Disappointment or sadness may come if our body and soul … [Read more...] about Time is a Great Healer
We Live in Deeds Not in Years
We Live in Deeds Not in Years. Human life is very short. But man can add value to it if he/she makes proper use of time. By doing frequent good deeds, he defeats the limitation of a short life. We Live in Deeds Not in Years For example a large oak tree lives for three hundred years. At last, it is used as firewood. A lily lives for a day but it scatters sweet fragrance. … [Read more...] about We Live in Deeds Not in Years
Factors Determining Stock Price
Factors Determining Stock Price: Literature hypothesizes that the fluctuations in earnings are much more pronounced than the fluctuations in dividends. A downturn in earnings is not followed by a downturn in dividends unless the downturn in earnings persists for a long period. As result management knows that the market reacts negatively to dividend downturns, hence they are … [Read more...] about Factors Determining Stock Price
Bond Markets
Bond Markets. Understanding of fixed income securities. Fixed income securities are the investment alternatives generating predetermined fixed income to the investors. Bonds and debentures offer the investors the opportunity to earn stable nominal returns with low risk of loss of principal if held to maturity. Nevertheless, bonds also offer investors the chance to earn more … [Read more...] about Bond Markets