Bond Pricing Theorems. Being fixed income securities bonds are issued with a fixed rate of interest known as the coupon rate. The calculation of coupon rate is based on the face value and maturity of the bond. Bond Pricing Theorems At the time of issuance, the coupon rate seems to be equal to the prevailing market interest rate. Based on the market condition, the interest … [Read more...] about Bond Pricing Theorems
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Factors Influencing Valuation Process
Factors Influencing Valuation Process. Generally speaking, the value of the firm should depend upon the expected return, measured in terms of net cash inflows generated by the firm’s assets and future returns. Factors Influencing Valuation Process Specifically, the following factors influence the value of a firm: The comparative position The first important factor … [Read more...] about Factors Influencing Valuation Process
Warrants vs Convertible Bonds – Meaning & Differences
Warrants vs Convertible Bonds Warrants Warrants are financial assets giving the holder the right but not obligation to buy shares of common stocks directly from the issuing authority at a fixed price for a given period of time. Each warrant specifies the number of shares of common stock a holder can purchase at the exercise price at the expiration date. Some features of … [Read more...] about Warrants vs Convertible Bonds – Meaning & Differences
Valuation Techniques – 3 Methods of Valuation of Securities, Shares, Stocks
Valuation Techniques - 3 Methods of Valuation of Securities, Shares, Stocks, and Debentures. The methods of security valuation can be considered under three main heads viz., Those that are based on physical assets, Those that emphasize earning power, and Those that stress actual or imputed market prices. Valuation Techniques There is no single reliable method … [Read more...] about Valuation Techniques – 3 Methods of Valuation of Securities, Shares, Stocks
Common Stock Valuation – Fundamental Security Analysis Suggests Two Basic Approaches
Common Stock Valuation. The fundamental concept of valuation of shares or stocks is that of present value. A study of the present value concept is a sine-qua-non for the evaluation process. Time value of money states that money today is more desirable than those in the future. Common Stock Valuation. Fundamental security analysis suggests two basic approaches to the … [Read more...] about Common Stock Valuation – Fundamental Security Analysis Suggests Two Basic Approaches
Futures vs Forward Contracts – Futures Contracts commonly known as futures
Futures vs Forward Contracts Futures vs Forward Contracts Futures Contract Futures Contracts commonly known as futures are also financial derivatives constituting an instrument for hedging the risk in the financial markets due to the price fluctuation of the assets. The features of a futures contract are the same as that of a forward contract. However, these are two … [Read more...] about Futures vs Forward Contracts – Futures Contracts commonly known as futures
Income from Fixed Income Securities and Stocks
Income from Fixed Income Securities and Stocks. You can own stocks, and you can own bonds, but only stocks give you ownership in the underlying company. Each share of stock represents an equal level of ownership in the company with every other share of stock. Income from Fixed Income Securities and Stocks Ownership Since you are a part owner in the company, you are entitled … [Read more...] about Income from Fixed Income Securities and Stocks
Suggestions to Improve The Activities of Stock Market
Suggestions to Improve The Activities of Stock Market. The unexpected rise and fall in share prices mostly followed from the general confidence of the investors about political stability, euphoria of investment in shares, prospect of quick capital gains, a vacuum in respect of institutional presence in the share market, monopolistic dominance of member brokers, inefficiency of … [Read more...] about Suggestions to Improve The Activities of Stock Market
Problems leading to Regulation in SEC
Problems leading to Regulation in SEC. After the commencement of the Securities and Exchange Commission (SEC) , various laws, rules, regulations, and numerous policies implication become sine-qua-non to govern the securities markets and the investment industries in the country. Problems leading to Regulation in SEC The followings are major abuses regarding securities … [Read more...] about Problems leading to Regulation in SEC
Management of Stock Exchange in Bangladesh – DSE
Management of Stock Exchange in Bangladesh Management of Stock Exchange in Bangladesh. Management: The management and operation of Dhaka Stock Exchange is entrusted on a 25 members Board of Director. Among them 12 are elected from DSE members, another 12 are selected from different trade bodies and relevant organizations. The CEO is the 25th ex-official member of the … [Read more...] about Management of Stock Exchange in Bangladesh – DSE