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 vertical analysis provides a correlation between one line item in a financial statement and its top-line or baseline item. It is calculated by adding a column in the financial statement and the results are shown in percentage terms. It offers valuable information to internal and external stakeholders and can be used in different situations.
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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
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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
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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.
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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
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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
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What is Closed-End Credit? Closed-end credit is a facility where the borrower can draw the available amount once and must repay by a specific date including interest. It comes with a specified term, interest rate, installment method, and repayment terms. The borrower can only withdraw the available funds once and will repay over the loan
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Compulsory liquidation is the process of following court orders to dissolve a company and sell its assets to satisfy creditors. This process often takes place with creditors appearing in court. However, other stakeholders like regulators and shareholders can also apply for it. Let us discuss what is compulsory liquidation, how it works, and what are
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Debt financing fee is amortized over the life of the debt under the GAAP rules. The borrower incurs different types of debt issuing or financing costs. Let us discuss what are financing costs and how they should be amortized over the period of the debt instrument. What are Financing Costs? Financing costs refer to the
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