Category: Finance
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4 Reasons Why Companies Go For Rights Issue
What is rights issue Rights issue is an offer made by the company to its existing stakeholders to provide a right, but not an obligation to participate in re-investing in the company. It is to be noted that only the existing shareholders get the opportunity to participate for investing in the company through rights issue.…
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What Is The Advantage Of Investing In A Zero Coupon Bond
What is zero coupon bond Zero Coupon Bond is a type of bond issued to the investors with zero interest rate. The edge of investing in these bond is that they are issued on a value lower than the face value of the bond. Explanation with an example Imagine you are given an opportunity to…
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5 Reasons Why Companies Buy Back Their Own Shares
Introduction Public companies that are traded on the stock market have collected money from the people of the country in exchange for a part of company ownership. They take money from the public against part company ownership. In case of a buy back, the company pays back the money to the investors and takes back…
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How Do Mortgage Backed Securities Make Money
Introduction to Mortgage Backed Securities Mortgage Backed Securities (MBS) are bonds issued by banks and financial institutions to individual investors as a means of liquidating assets that have been frozen with them in the form of loans. When you want to buy a house, you go to a bank and ask for a loan. The…
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How To Achieve Optimal Asset Allocation
What is asset allocation Asset allocation is a process of diversifying your investment portfolio in different asset classes of varying risk in order to mitigate the overall risk of the investment and procure higher returns. It is an investing strategy that divides an investment portfolio across several asset classes such as stock, fixed income, debt…
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What Is The Difference Between Intrinsic Value And Market Value
Introduction Intrinsic value and market value are forms of identifying the valuation of the company in real time basis. The major difference between intrinsic value and market value is the driving force behind the valuations. Market value is dependent mostly on the external factors like demand / supply, national economy, sector performance etc. On the…
