Investment & Finance Portal

Debt Ratios Caluculation

2011-10-09T20:08:00.000-07:00

Debt Ratios Debt ratios are calculated to assess that how much a firm is using financial leverage for profit maximization with the combination of total assets. These also reflect that how much the firm has the ability to service debt to make the payments required on a scheduled basis over the life of debt. In debt ratios, coverage ratios also

Investment Risk and Return

2011-10-07T18:46:00.000-07:00

Investment Risk and Return Risk means uncertainty. In investment risk, when there is uncertainty attached with the outcomes of investment opportunity. In global markets there are lot of risk attached with the securities that can negatively affect the return of an investment opportunity. There are basically two types of risks: 1. Systematic Risks These risks occur inside the organization

Capital Budgeting

2011-10-06T23:15:00.000-07:00

Capital Budgeting Capital budgeting is the process of evaluating and selecting long-term investments opportunities that are parallel with the firm's objectives. And to fulfill these objectives different investment opportunities are evaluated and then finally one is selected. And, firm generally made capital expenditure in earning assets that could increase their earning capacity. Following

Time Value of Money

2011-10-05T21:21:00.000-07:00

Time Value of Money Financial managers and investors are always confronted with the opportunities to earn positive rates of return on their funds. And we always know that in every single investment opportunity their are always number of cash flows (inflows or outflows). And these cash flows are either same or vary from time to time. We also know that every time there is the uncertainty in the

DuPont System Of Analysis (EXTENDED)

2011-10-04T19:19:00.000-07:00

DuPont System (Extended)We use extended DuPont system because it provides the additional insights into the effect of financial leverage. The concept and use of the model is the same as the basic DuPont system except for a further breakdown of components.Combining the Operating profit margin and total asset turnover; EBIT Net Sales EBIT

Forex Bill Killer

2011-08-24T00:06:00.000-07:00

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Numerology for Pets

2011-08-21T20:21:00.000-07:00

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Worry Free Car Care Manual

2011-08-20T21:59:00.000-07:00

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Fat Free Forever

2011-08-20T21:50:00.000-07:00

Diversification of Portfolio

2011-08-17T19:04:00.000-07:00

DiversificationBefore discussing diversification, we should first understand the correlation between the different investment opportunities. Correlation is the statistical measure of the relationship between any two series of numbers. The two series moving parallel in same direction will be positively correlated. And if two series are moving in opposite directions they will be negatively

The Active Strategy

2011-08-16T21:53:00.000-07:00

Portfolio Management Strategy 3. The Active Strategy Most of the techniques discussed in this text involve an active approach to investing. In the area of common stocks, the use of valuation models to value and select stocks indicates that investors are analyzing and valuing stocks in an attempt to improve their performance relative to some benchmark such as a market index. They assume or expect

Buy Hold Strategy

2011-08-16T21:47:00.000-07:00

Portfolio Management Strategy2. Buy-And-Hold Strategy A buy-and-hold strategy means exactly that an investor buys stocks and basically holds them until some future time in order to meet some objective. The emphasis is on avoiding transaction costs, additional search costs, and so forth. The investor believes that such a strategy will, over some period; of time, produce results as good as

The Passive Strategy

2011-08-16T21:42:00.000-07:00

Portfolio Management Strategy1. The Passive Strategy A natural outcome of a belief in efficient markets is to employ some type of passive strategy in owning and managing common stocks. If the market is highly efficient, impounding information into prices quickly and on balance accurately, no active strategy should be able to outperform the market on a risk-adjusted basis. The efficient market

Open & Closed End Investment Companies

2011-08-08T04:07:00.000-07:00

Closed-End Investment Companies One of the two types of managed investment companies, the closed-end investment company, usually sells no additional shares of its own stock after the initial public offering. Therefore, their capitalizations are fixed, unless a new public offering is made. The shares of a closed-end fund trade in the secondary markets (e.g., on the-exchanges) xactly like any

Investment Companies

2011-08-08T04:05:00.000-07:00

Investment Companies All investment companies begin by selling shares in themselves to the public. The proceeds are then used to buy a portfolio of securities. Most investment companies are managed companies, offering professional management of the portfolio as one of the benefits. One less well-known type of Investment Company is unmanaged. We begin here with the unmanaged type and then discuss

Other Stock Indexes

2011-08-06T20:44:00.000-07:00

Other Stock IndexesThe New York Stock Exchange publishes its own indexes based on the industrial firms, transportation firms, and utilities, among others, traded at the exchange. The most widely quoted is the NYSE Composite an average of all NYSE listed stocks. The American Stock Exchange prepares a similar index on its securities as does the NASDAQ market. Value Line publishes an index based on

Stock Market Indexes

2011-08-06T20:41:00.000-07:00

IndexesIndexes are useful in assessing investment results. They provide a benchmark against which performance can be compared. They also useful in financial research, through which an investigator seeks to discover the relationship between certain economic variables and market results. In fact, most of us keep abreast of developments in “the market” by watching the indexes. Most popular indexes

Degrees of Informational Efficiency

2011-08-06T20:33:00.000-07:00

Degrees of Informational Efficiency 1. Weak form Efficiency: The least restrictive form of the EMH (Efficient Market Hypothesis) is weak form efficiency, which states that future stock prices cannot be predicted by analyzing price from the past.2. Semi-strong Form: The weak form of the EMH states that security prices fully reflect any information contained in the past series of stock prices.

Efficiency of Markets

2011-08-01T23:00:00.000-07:00

Efficiency of MarketLike technical analysis, market efficiency is a controversial part of finance. In an efficient market security prices are based on the available information so as to offer and expected return consistent with their level of risk.Types of Efficiency The two types of efficiency are operational efficiency and informational efficiency. Operational efficiency is a measure of how

What is Finance

2011-08-01T22:44:00.000-07:00

What is FinanceFinance is the art and science of managing money. Art in the sense that because we have to get the money from the individual and organization. Means we have to use others money for our benefit. So, convincing others to give us money is an art because it require the perceptions and thinking from other point of view. Science in the sense that we use different internationally accepted

What is Investment

2011-07-30T19:48:00.000-07:00

What is Investment Investment generally means the allocation of extra money in an opportunity for future stream of cash inflows. The main objective of the investment is to earn some future return. This return may be of material or of non-material nature. Material means investment return in money. Non-material means the allocated money have some objective other than money i.e. for charitable