Category: Investments

  • How Do Mortgage Backed Securities Make Money

    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…

  • How To Achieve Optimal Asset Allocation

    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…

  • What Is The Difference Between Intrinsic Value And Market Value

    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…

  • Why Are Growth Stocks Better Than Dividend Payout Stocks

    Why Are Growth Stocks Better Than Dividend Payout Stocks

    Introduction Growth stocks and dividend payout stocks are stocks that are divided based on what they do with their Profit After tax. A growth stock re-invests its money back into the business for expansion or try to diversify the other reach of market segments. A dividend payout stock on the other hand, takes the profits…

  • How To Identify A Business Model Of A Company

    How To Identify A Business Model Of A Company

    Introduction A business model can be defined as a methodology a business or a company is in existence for it to generate profits for an infinite duration. A model of revenue generation that can sustain itself to remain in business, handle the expenditure and keep the share holders content. There are times where a company…

  • Things You Need To Know About Investment And Speculation

    Things You Need To Know About Investment And Speculation

    Introduction An Investor and a speculator are broadly two types of participants in the stock market. The basic difference between the two is the approach they look at the assets and equities. An investor looks at the stock market like a business and a speculator looks it like a gamble. From the book The Intelligent…