This category covers all kinds of topics in finance including corporate finance and financial management. The topics on financial institution and stock exchange will also be included.
The P/E ratio and earnings yield ratio of a stock can reveal much about the pricing and growth prospects. Both these measures are widely used by investors in stock valuations and company performance analysis. Let us discuss what is the P/E ratio, Earnings Yield, their key differences, and which one is a better measure. What …
P/E Ratio Vs Earnings Yield – Which One is a Better Financial Ratio? Read More »
Interest tax shield means savings taxes through interest cost deductions from profits. It effectively lowers the tax amount that you pay with a debt instrument. Let us discuss what is a tax interest shield and how to calculate it. What is Interest Tax Shield? Interest tax shield refers to savings on taxes by reducing taxable …
What Does Interest Tax Shield Mean and How to Calculate it? Read More »
Scrip dividends are taxable in most cases as cash dividends. However, these special dividends offer shareholders a chance to retain additional stocks and avoid immediate tax liabilities. Let us discuss what are scrip dividends and their tax treatment in different scenarios. What are Scrip Dividends? Scrip dividends are new stocks issued to shareholders by a …
The applicable federal rate (AFR) is a reference interest rate issued by the IRS. It is used as a benchmark rate for family loans and private lending arrangements. A lender must charge a minimum interest rate on loans to keep the arrangement consistent with the IRS tax avoidance rules. Hence, they use AFR as a …
A scrip issue and a rights issue are both alternative funding methods for listed companies. These methods provide additional equity capital in different ways. Let us discuss what are scrip and rights issues and their key differences. What is Scrip Issue? A scrip or bonus issue refers to additional shares being issued to existing shareholders …
Scrip Issue Vs Rights Issue – What’s the Difference? Read More »
The indifference curve describes consumer behavior when they are indifferent between two goods with budget constraints. It links the relationship of choosing one good over the other by keeping the total utility constant at any point. Let us explain what is indifference curve, what are its characteristics, and its limitations in the practical world. What …
Gross annual income is the total value of money received by an individual or a business during a fiscal year. It includes fixed or variable income sources and these can be active or passive income sources. Let us discuss what is gross annual income and how to calculate it using a simple step-by-step guide. What …
What is Gross Annual Income and How to Calculate it? Read More »
The capital infusion is a widely used term for investments made in entities under financial difficulties. It comes in the form of debt and equity. Let us discuss what is capital infusion and how it works. What is Capital Infusion? Capital Infusion refers to investment in a company or project through debt, equity, or both. …
When a financial market is appreciating generally, it is termed a bull market. Contrarily, when it is depreciating, it is termed a bear market. Both these terms are commonly used in the stock markets. These market conditions come with contrasting features and causes. Therefore, investors deploy different investing strategies during these contrasting times. Let us …
Bull Market Vs Bear Market – What’s the Difference? Read More »
What is a Bull Market? A Bull Market is a phenomenon in financial markets when asset prices rise continuously and the investor sentiment remains optimistic. In simple words, it is a market condition when stocks and other assets appreciate regularly. This happens for an extended period and with an established trend. A bull market is …
