Tag: Investment Advice
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How To Reduce Liquidity Risk On Real Estate Investments
What is liquidity risk Liquidity risk is a type of investment risk that arises when there are no desired amount of buyers and sellers in the market. As an investor, it is critical to consider the liquidity of your assets. As a matter of fact, the liquidity of your investments will have a consistent impact…
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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…
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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…
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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…
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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…