by admin | May 11, 2024 | Stocks
When a company decides to raise capital by issuing shares, it needs to determine the amount of money it wants to raise and the number of shares it will issue to achieve that goal. In doing so, the company must understand the difference between issued share capital and...
by admin | May 11, 2024 | Stocks
Preference shares, also known as preferred stock or preferred shares, are a type of equity security that gives holders priority over common shareholders in terms of dividend payments and liquidation proceeds. In this article, we will explore the advantages and...
by admin | May 11, 2024 | Stocks
Cyclical stocks are a type of equity security that tends to follow the cyclical movements of the broader economy. These stocks are particularly sensitive to changes in macroeconomic factors such as interest rates, GDP growth, and consumer sentiment. In this article,...
by admin | May 11, 2024 | Stocks
Efficient Market Hypothesis (EMH) is a theory that has been hotly debated in the world of finance and investing for decades. The theory suggests that the stock market is efficient and that it is impossible to beat the market consistently through either fundamental or...
by admin | May 11, 2024 | Stocks
Investing in the stock market can be an intimidating and overwhelming experience, especially for those who are new to the game. One way to ease into the world of stock investing is by understanding the S&P 500 Index. The S&P 500 is a market index that tracks...
by admin | May 11, 2024 | Risk Management
Risk is an essential concept in investing that refers to the probability of losing money or not achieving your desired returns. It’s an inherent part of investing as no investment is entirely risk-free. Understanding how to measure and manage risk is critical...
by admin | May 11, 2024 | Risk Management
The formula for calculating the equity risk premium using the expected return approach is: Equity Risk Premium = Expected Return on Stocks – Risk-Free Rate of Return To calculate the expected return on stocks, you can use various models, such as the dividend...
by admin | May 11, 2024 | Risk Management
Margin trading can be a great way to increase the potential return on your investment. However, it also involves higher risk, and investors must be aware of the potential consequences. One of these consequences is a margin call. In this article, we will discuss what a...
by admin | May 11, 2024 | Risk Management
When it comes to investing, it’s essential to understand the concept of immunization. Immunization is a strategy used by investors to protect their portfolios from changes in interest rates. In this article, we will define immunization, provide investing...
by admin | May 11, 2024 | Risk Management
When it comes to investing, understanding and managing risk is crucial. One key type of risk to consider is downside risk, which refers to the potential for an investment to experience a loss. In this article, we will define downside risk, provide an example, and...
