Return on Equity (ROE) is a critical metric used to assess a bank's profitability relative to its equity. Understanding ROE can provide valuable insights for investors, analysts, and bank management. ROE measures how effectively a bank is using shareholders' equity to generate profits. In this article, we will discuss the concept of ROE, its importance, calculation, and … [Read more...] about Decoding Bank’s Return on Equity (ROE): A Comprehensive Guide for Investors
Why Long-Term Stock Holding Pays Off: The Power of Patience
Many value investors prefer to buy-and-hold selected stocks by not considering short term price movements and technical indicators. Buy-and-hold is considered as a long term passive investment strategy where value investors keep a relatively stable portfolio over time regardless of short term price movements of stocks. In this article, we will be discussing the benefits … [Read more...] about Why Long-Term Stock Holding Pays Off: The Power of Patience
Shareholding Patterns: A Guide to Analyzing Company Ownership
A company disclose its shareholding patterns in the financial reports and regulatory filings. Analyzing a company's shareholdings pattern is important for an investor as it shows the control dynamics within the company. Shareholders of a company refers to individuals or entities invested their money in the company's business. Every individual or entity holding at least … [Read more...] about Shareholding Patterns: A Guide to Analyzing Company Ownership
Bottom-Line Growth vs. Top-Line Growth: What’s the Difference?
Analysts use both bottom-line growth and top-line growth to evaluate a company’s performance and financial health. In a company’s income statement, the top-line refers to revenues or gross sales. The bottom-line of a company is the net profit as it reflects at the bottom of an income statement. Net profit is arrived after all expenses have been deducted from … [Read more...] about Bottom-Line Growth vs. Top-Line Growth: What’s the Difference?
Why Net Profit and Cash Flows Are Different Bottom Lines
Many non-finance professionals think that a business earning a profit means its cash balance went up by the same amount. If you are one of them, then we suggest you read this article in which we have explained why a company's net profit and cash flow are two different bottom lines. A company can have higher profits while having a poor cash flow. A healthy cash flow does … [Read more...] about Why Net Profit and Cash Flows Are Different Bottom Lines
Option trading in India: What is it and how traders are making money?
If you're new to the world of investing and trading, terms like "options" and "premium" can seem confusing. But don't worry! This article will explain options trading in a simple, easy-to-understand way. By the end, you'll have a basic understanding of how call options, put options, and option strategies work, and how you can use them in your trading journey. What is an … [Read more...] about Option trading in India: What is it and how traders are making money?
When Securities Transaction Tax (STT) is levied in India
Securities Transaction Tax (STT) in India was introduced by the former finance minister of India P. Chidambaram with effect from October 1, 2004. Securities Transaction Tax (STT) is a kind of turnover tax that is levied by the central government on the total consideration paid or received in a transaction. As the name implies, Securities Transaction Tax (STT) is levied on … [Read more...] about When Securities Transaction Tax (STT) is levied in India
Why do companies go public and launch IPO
In an initial public offering (IPO), a privately owned company for the first time made its shares available to the general public. Companies take the root of IPO to fund their growth, expansion and future investments. Every year new companies are getting listed their stocks on the National Stock Exchange (NSE) and BSE. Before investing your hard earned money in any of the … [Read more...] about Why do companies go public and launch IPO
Common Day trading myths Versus Reality in stock market
Day trading means buying and selling of financial instruments such as stocks, forex, options, future contracts, commodities and other financial securities within a trading session. This means, if you are day trading, then all your positions must be closed before the end of each trading session. Day trading is also referred to as Intraday. The main objective of day trading is … [Read more...] about Common Day trading myths Versus Reality in stock market
Equity vs Debt Financing: What’s the Difference?
Before getting into the difference between equity financing and debt financing, let us first understand what is the meaning of "financing". The term financing means a process in which an entity arranges funds for its business activities such as for making purchases, investing etc.. In other words, It's a process of funding an entity’s business activities. For instance, … [Read more...] about Equity vs Debt Financing: What’s the Difference?