Category: Finance
-
How To Increase The Accounts Receivable Turnover Of A Company
What is Accounts Receivable Turnover Accounts receivable turnover is a ratio that is used to determine if a company is actually receiving the cash or cash equivalent in their bank account after selling their products / services. Accountants and analysts use accounts receivable turnover to determine how well a company collects on the credit it…
-
What Are The 3 Basic Structure Of Mutual Funds
Introduction Before understanding the structure of mutual funds, let us get a quick introduction. Mutual funds are investment tools for people from the non financial background in order to aid them in their investment in the securities markets. These funds are managed by Asset Management Company on behalf of the investors. Mutual funds indirectly invest…
-
Why Are Mid Cap Mutual Funds Better For Long Term Investment
Introduction Mutual funds provide a great tool for investors from non-financial background. These tools allow such investors to participate indirectly in the stock markets. One needs to ensure that an investor has some of its investments parked in mutual funds for long term wealth creation. What are mutual funds Mutual funds are investment tools set…
-
How Can Book Value Of A Company Be Negative
Introduction Book value is a financial ratio to identify the fundamentals of the company. Although there are several criteria that investors can use to determine the worth of a company’s shares, one of the most prominent way is book value. The book value of a company can be used to determine whether a stock is…
-
What Is The Difference Between Preferential Issue And Rights Issue
Introduction Preferential issue and rights issue are some of the ways equities are introduced for sale in the primary market. From the primary markets, the investors can decide whether they want to sell off in the stock exchange or hold for further capital appreciation. What is preferential issue Under Section 81 of the Companies Act,…
-
How Does Asset Management Company (AMC) Make Money
What is Asset Management Company Asset management company, typically called AMC are an organization that take investment decision on the pool of money collected through mutual funds and pubic funds and plan a strategic investment on behalf of the investors. Asset management company are a group of people held responsible and hold accountable for the…