Investors need to evaluate stocks to know their value. By finding the value of a stock, investors can compare them with other stocks and determine whether the investment is worthwhile. Investors can also find the fair value, or intrinsic value, of a stock to determine whether a stock is overvalued, undervalued or fairly valued in …
What Are the Equity Valuation Methods? 5 Methods And 2 Categories Read More »
The money market is the place where the purchase and sale of large volumes of short-term debt products take place. The main transactions of the money market are wholesale transactions between financial institutions and companies. It plays an important role in the global financial system by enabling economic units to manage their liquidity position. Money …
Investors looking to invest in a company’s stock can find the price of the stock in the stock market. Stock markets such as the New York Stock Exchange (NYSE), London Stock Exchange, NASDAQ etc. all deal in thousands of companies’ stocks. There are millions of transactions around the world’s stock exchanges every day. An investor …
How to calculate the fair value of a stock? Detail Explanation Read More »
Overview Companies can decide to increase the number of outstanding shares while at the same time decreasing the nominal share price proportionately. A stock split is a corporate procedure that increases or decreases a corporate’s total number of shares outstanding without changing the firm’s market value or the proportionate ownership interest of existing shareholders. The …
What are the Stock Splits? Reasons and They are Matter? Read More »
Definition: Bonus shares are additional shares given to the existing shareholders in proportion to the shares they already hold. Bonus shares are given based upon the number of shares that a shareholder owns without any additional cost. Sometimes, the company may decide to give bonus shares in the form of dividends. When companies are short …
Bonus Issue of Shares: Definition, Effect, Accounting, Advantages Read More »
The share issue is the method of offering securities to raise funds from investors. Companies use various methods of issuing shares. 7 methods of issuing shares are described below: 1) Public Offering A public offering known as Initial Public Offer (IPO) involves a company inviting the general public to subscribe or purchase its shares. It …
