Stocks: Your Gateway to Financial Growth and Freedom. In today's fast-paced and ever-changing economic landscape, it is becoming increasingly important for individuals to take control of their financial future. Gone are the days when relying solely on a stable job and traditional savings accounts were enough to secure a comfortable retirement. Instead, the new reality demands a … [Read more...] about Stocks: Your Gateway to Financial Growth and Freedom
Financial Market
Share Market of Bangladesh | DSE | CSE
Share Market of Bangladesh. Share; In plain and simple, the share is the ownership of a company. A share represents a claim on the company's assets and earnings. As you acquire more shares, your ownership stake in the company becomes greater. Whether you say shares, equity or stock, it all means the same thing. Share Market of Bangladesh Why does a company issue share? A … [Read more...] about Share Market of Bangladesh | DSE | CSE
Individual Stock and Market Portfolio
Individual Stock and Market Portfolio. At this stage, we are going to discuss the relationship between the returns on an individual stock and the market portfolio. Individual Stock and Market Portfolio Characteristic Line The pairs of returns can be plotted in the figure. The line passing through the observations is the line of best fit. This line helps in describing the … [Read more...] about Individual Stock and Market Portfolio
Yield to Maturity-YTM and Yield to Call-YTC
Yield to Maturity-YTM and Yield to Call-YTC Yield to Maturity-YTM and Yield to Call-YTC Yield to Maturity-YTM Yield to maturity (YTM) is the most widely used measure of return on the bond. It is the compounded rate of return an investor expects to receive from a bond purchased at the current market price which he holds till maturity. On the other hand, it may be termed as an … [Read more...] about Yield to Maturity-YTM and Yield to Call-YTC
General Expressions of Bond Returns
General Expressions of Bond Returns. Bond Yields and Prices: Bond returns can be calculated in many ways though they are prefixed. The followings are general expressions of bond returns which are usually found in the securities markets. General Expressions of Bond Returns Coupon Rate It is the fixed annual interest rate affixed on the face of the bond and is calculated on … [Read more...] about General Expressions of Bond Returns
On Price Earning Ratio – Most Widely Used Tools for Stock Selection
On Price Earning Ratio. Price earning ratio is the more widely used method of estimating stock price. PE ratio / Price Earning Ratio is one of the most widely used tools for stock selection. It is calculated by dividing the current market price of the stock by its earning per share (EPS). A stock is said to be worth some multiple of its future earnings indicating that an … [Read more...] about On Price Earning Ratio – Most Widely Used Tools for Stock Selection
Difference between Money Market and Capital Market
Difference between Money Market and Capital Market. Money Market can be defined as financial instruments with high liquidity and very short maturities are traded. Basically used by participants as a means for borrowing and lending in the short term, from several days to just under a year. Money market is treated as a safe place due to the highly liquid nature of securities … [Read more...] about Difference between Money Market and Capital Market
Vocabulary associated with Option
Vocabulary associated with Option. The will use exercise the option only if it is profitable, otherwise, the option can be thrown away. Followings are the vocabulary associated with the option: Vocabulary associated with Option Strike price: The fixed price specified in the option contract at which the option holder can buy or sell the underlying asset can be defined as a … [Read more...] about Vocabulary associated with Option
Types of Options in Finance
Types of Options in Finance: Let start with a definition of Option. An option can be defined as the right to the holder, (but not the obligation) to buy or sell a given quantity of an asset on or before a given date in future, at prices agreed upon today. Many corporate securities are similar to the stock options that are traded on organized exchanges. Almost every issue of … [Read more...] about Types of Options in Finance
Term Structure of Interest Rates Theories
Term Structure of Interest Rates Theories: The term structure of interest rate refers to the relationship between time to maturity and yields for a particular category of bonds at a particular point in time. Particular theories are developed to explain the nature of bond yields over time. Term Structure of Interest Rates Theories The following Term Structure of Interest Rates … [Read more...] about Term Structure of Interest Rates Theories