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
Finance
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?
Best online discount stock brokers in India to trade in 2024
If you are looking to open a Demat and trading account with a stock broker, but are confused about which online stock broker to choose, then this article is for you. In this article, we have listed almost all online discount stock brokers to help you know their charges to open a Demat and trading account. In the old days, one of the best ways to trade in the stock market was … [Read more...] about Best online discount stock brokers in India to trade in 2024
Free cash flow (FCF): How to calculate and interpret
Free cash flow (FCF) means the amount of cash remaining with the company after paying for its operating costs, inventory and to buy fixed assets. Which means the cash flow from operating activities minus capital expenditures during the financial year. We can also define free cash flow as the amount of money the company has generated after accounting all cash outflows that … [Read more...] about Free cash flow (FCF): How to calculate and interpret
How segment wise revenue and results are reported and analyzed
In this article, you will learn what is a segment and how companies report segment wise revenue and results in their annual report and financial statements. As per law, all listed companies must report their segment wise revenue and results for the reporting period. It will enable the stakeholders to have insight into the entity’s operations from the perspective of that … [Read more...] about How segment wise revenue and results are reported and analyzed
How to calculate the annual return of an investment
Every investor has one goal in mind when they invest: to make money. Due to this reason many investors are interested to know what kind of return they are going to get before investing in anything. In this regard, annual return is used as a measure to report the historical rate of return of investments. Here is a list of the most important tools used to measure rate of … [Read more...] about How to calculate the annual return of an investment
CAGR: How to calculate Compound Annual Growth Rate
If you are following financial news channels, websites and research reports, then by now, you must have heard about the term CAGR. In case till now, you are not able to figure out what is the CAGR and how compound annual growth rate is calculated, then this article might be a great help. CAGR stands for the Compound Annual Growth Rate. Compound Annual Growth Rate (CAGR) … [Read more...] about CAGR: How to calculate Compound Annual Growth Rate
Operating Profit: Definition, Formula and Use
Profit is vital for monitoring a company's performance as it represents positive net cash flow to the business. In business, profits, earnings and incomes are used interchangeably. It's the amount that is left over after accounting all the expenses against revenue. We have different types of profits calculated based on how expenses are incurred by the company. One of such … [Read more...] about Operating Profit: Definition, Formula and Use
EBITDA: What it is and how it’s calculated
EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization. While conducting financial analysis, the EBITDA to sales ratio is used as a financial metric to know the company's operational efficiency. EBITDA margin is calculated by dividing earnings before interest, tax, depreciation and amortization by total sales. It's used as a … [Read more...] about EBITDA: What it is and how it’s calculated
What is profit after tax (PAT) and how is it calculated
PAT stands for Profit After Tax. One of the main objectives of a company is to increase shareholders wealth. It will increase only when the company earns money from its business. More money means more wealth. Due to this reason a company prepares periodical income statement to present before the shareholders. Income statement shows how efficiently the management has … [Read more...] about What is profit after tax (PAT) and how is it calculated