Book value of a company represents assets minus liabilities of the business. It's the amount that will be distributed to stockholders in case the company is liquidated. If Book value is negative, it means company's liabilities exceeds assets. Its also called shareholders equity or net assets of a company. To calculate Book value per share or BVPS, you need to divide … [Read more...] about How to calculate Book value per share of a company – BVPS
Archives for January 2019
How to start a Systematic Investment Plan or SIP in Mutual Fund
There are two ways to invest in a mutual fund. One is the one-time outright payment directly to the mutual fund and the other one is periodic payments to a predefined mutual fund scheme. The First type of investment is called Lump Sum investment and the second one is called SIP or Systematic Investment Plan of a mutual fund. In this article we will be discussing how to invest … [Read more...] about How to start a Systematic Investment Plan or SIP in Mutual Fund
How to calculate Price to earnings (PE) ratio and its importance in Investing
Price to earnings (PE) ratio simply describes the relationship between the current market price and the earnings per share (EPS) of the stock. You will get a stock’s current Price to earnings ratio by dividing the price by the current earnings per share. PE ratio is also popularly known as earnings multiple. Here is the mathematical formula to calculate PE … [Read more...] about How to calculate Price to earnings (PE) ratio and its importance in Investing
Repo rate vs. Reverse Repo rate: What is the difference
In this article, we will be discussing the difference between repo and reverse-repo rate. To understand reverse repo rate, we first have to understand what repo rate is. For short term requirements, banks in India can borrow money from the Reserve Bank of India (RBI) to lend money to customers. When banks borrow money from the the Reserve Bank of India (RBI), they pay … [Read more...] about Repo rate vs. Reverse Repo rate: What is the difference
What is Net Asset Value of Mutual Fund – NAV
Net Asset Value of a mutual fund is the price at which one unit of mutual fund is traded between investors. It’s very easy to calculate. You need to divide the total net value of the assets held by mutual fund with the total number of shares outstanding. Net Asset Value or NAV = Net Assets / Outstanding Units Net Assets as shown in the above equation is calculated by … [Read more...] about What is Net Asset Value of Mutual Fund – NAV
What Is a Mutual Fund and how it works
People have misconception that mutual fund is like a share or stock of a company where you invest to make profit. To get clarity on this topic let us understand what is mutual fund and how to make money out of it. Mutual fund is a company that has set some portfolio of stocks, bonds and other securities of different listed companies traded in stock market or available in … [Read more...] about What Is a Mutual Fund and how it works
What is Credit Reserve Ratio and Statutory Liquidity Ratio – CRR vs. SLR
RBI being a central bank of India has the responsibility to control supply of money as well as cost of credit in India. In the process of controlling or managing money in India, RBI maintains Credit Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) of banks. In this article, we will learn the meaning of Credit Reserve Ratio, Statutory Liquidity Ratio and the difference … [Read more...] about What is Credit Reserve Ratio and Statutory Liquidity Ratio – CRR vs. SLR
Balance sheet: A beginners guide to understand company’s financial position
Balance sheet is prepared by accountants to present the balances of company's asset, liabilities and owner's equity on the last day of the profit period. Therefore, Balance Sheet can be defined as a snapshot statement that shows what a company’s assets are, what its liabilities are, and what its equity is at a specific point in time. Balance sheet show the financial … [Read more...] about Balance sheet: A beginners guide to understand company’s financial position