Tag: Fundamental Analysis

  • 4 Reasons Why Companies Go For Rights Issue

    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.…

  • What Is The Advantage Of Investing In A Zero Coupon Bond

    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…

  • 5 Reasons Why Companies Buy Back Their Own Shares

    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…

  • 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…

  • How To Value Stocks Using Sum Of The Parts (SOTP) Valuation Model

    How To Value Stocks Using Sum Of The Parts (SOTP) Valuation Model

    Introduction Sum of the parts (SOTP) is a type of valuation model for valuing the overall valuations of the company by breaking the business model into several small entities or smaller business models. These collections of business are valued independently and then clubbed to form a singular valuation model for the stock. Mathematical representation SOTP…