People have misconception that mutual fund is like a share or stock of a company where you invest to make profit. To get clarity on this topic let us understand what is mutual fund and how to make money out of it. Mutual fund is a company that has set some portfolio of stocks, bonds and other securities of different listed companies traded in stock market or available in … [Read more...] about What Is a Mutual Fund and how it works
Finance
What is Credit Reserve Ratio and Statutory Liquidity Ratio – CRR vs. SLR
RBI being a central bank of India has the responsibility to control supply of money as well as cost of credit in India. In the process of controlling or managing money in India, RBI maintains Credit Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) of banks. In this article, we will learn the meaning of Credit Reserve Ratio, Statutory Liquidity Ratio and the difference … [Read more...] about What is Credit Reserve Ratio and Statutory Liquidity Ratio – CRR vs. SLR
What Is Defensive stocks for investors?
Defensive stocks are those types of stocks which are consistently showing stable and predictable earnings irrespective of economic instability. Owners of these companies always get constant dividend and stable earnings. During a bad economic conditions, generally consumers use to avoid costly items, entertainment, travel or any other luxury items. They only buy necessary … [Read more...] about What Is Defensive stocks for investors?
How to define financial goals for your future
Financial success requires thought and planning. Setting financial goals in advance will help you to define where you want to go and how you are going to achieve it. If you do not have a clear view on your financial goals, then your aim is very less likely to be achieved. There are three major types of financial goals: near-term or short term, Mid-term or intermediate … [Read more...] about How to define financial goals for your future
Understanding reverse stock split for investors
In reverse stock split, total numbers of outstanding shares are reduced to a lower number and the share price is proportionately increased to compensate the shareholders. This process takes multiple shares from investors and replaces them with a smaller number of shares in return. Reverse stock split does not add any real value to the company and investors. It’s also known … [Read more...] about Understanding reverse stock split for investors
What Is Stock Split for investors ?
To have a wide investor base, companies attract individual investors to invest in their company. If shareholder base is bigger, chances of getting companies ownership to small group of investors is less. In order to attract small investors, companies go for stock split. Stock split means dividing company’s current outstanding number shares into multiple numbers of shares and … [Read more...] about What Is Stock Split for investors ?
Dividend Payout Ratio – DPR Calculation with Example
In our previous article, we have discussed how to calculate dividend per share and the difference between DPS & EPS. In this article, we will be discussing how to calculate dividend payout ratio and what DPR tells you. A company either pays a portion of its net profit as dividend to its shareholders in proportion to the number of shares held and retains a balance amount to … [Read more...] about Dividend Payout Ratio – DPR Calculation with Example
How to Calculate Dividend per Share – DPS
When companies make a profit they often declare to share a portion of it with shareholders in the form of dividend. Dividend per share as declared by the company will represent how much money a company pays in dividends for each share of issued common stock. This means dividend per share is calculated to find out the payment to shareholders for each share of stock owned. How … [Read more...] about How to Calculate Dividend per Share – DPS
Interim dividend – Definition and Meaning
Generally, companies distribute a portion of its profit known as dividend among the shareholders in proportion to the amount paid-up on the shares held by them after obtaining approval from the Annual General Meeting (AGM) and finalizing the financial statement. However, it’s not obligatory for a company to wait for the finalization of financial statements and completion of … [Read more...] about Interim dividend – Definition and Meaning
Applicability of Ind AS – Indian Accounting Standards
Ministry of corporate affairs has notified phases for convergence to Ind AS from the current accounting standards to the Indian Accounting Standards (Ind AS). As per the notification, The Companies and their auditors shall comply with the Indian Accounting Standards (Ind AS) in the preparation of their financial statements and audit respectively. Applicability of Ind As … [Read more...] about Applicability of Ind AS – Indian Accounting Standards