Tag: Investment Risk
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5 Reasons Why Bonds Are Better Investment Than Debentures
Introduction There are different ways on how the government and corporate raise funds to run their business. Out of the all, bonds and debentures are a popular means for raising funds. Also read: What Is The Advantage Of Investing In A Zero Coupon Bond What are bonds A bond is a contract between the investor…
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How To Calculate The Benefit Cost Ratio Of A Project (With Example)
What is Benefit Cost Ratio (BCR) Benefit Cost Ratio (BCR) is defined as a ratio between a project’s proposed total cash benefit to it’s planned total cost. Benefit Cost Ratio is used to determine the profitability of a project. The expenses, overall duration and revenue generated by the project are the main factors on which…
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Why is SIP Better Than Lump Sum In Mutual Fund Investment
Introduction Before understanding why are SIP better than lump sum in mutual fund Investment, let’s have a quick revision of the basic concepts. What are mutual funds Mutual funds are a group of organization that pool the money from the investors and collectively invest it in the stock market. Since investing in equity markets requires…
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What Is The Difference Between Arbitrage And Trading
Introduction Before understanding the difference between arbitrage and trading, let us revise their basic definition. What is arbitrage Arbitrage is defined as the simultaneous buying and selling of the same item in multiple marketplaces, in order to profit from small price differentiation. It takes advantage of short-term price fluctuations in same or comparable financial products…
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How To Analyze A Startup Using Porter’s Five Forces Model
What is Porter’s Five Forces Model Porter’s Five Forces Model is a qualitative way for analyzing a company and studying its business model in order to understand its position of the business in the market. It is also a mode for setting a valuation for a startup in the early stage when the fundamental numbers…
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What Are The 5 Important Macro Economic Variables
Introduction Macro economic variables are factors that affect the economy of a country to a large scale. In fact, the citizens needs to be aware of these economic variables as they can predict the future potential of a country. Thus, these factors help in shaping the financial stability of a country. The 5 Important Macro…
