A company can finance its activities through either equity finance or debt finance or both. The combination of equity finance and long-term debt finance that a company uses is known as its capital structure. Equity finance can include instruments such as share capital, preference share capital, retained earnings, etc. while debt finance can include loans, …
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The dividend growth rate of a stock is the percentage of annual growth of its dividends that it has gone over a period of time. This growth rate can be a decisive factor for investors looking to invest in stocks. Companies try to increase the dividend they pay to investors annually to keep their stockholders …
What is the Dividend Growth Rate? Importance, Usages, and Calculation Read More »
Investors need to determine a stock’s value before investing in a company’s stock. By using proper equity valuation methods, investors can find the fair value of a stock. The fair value of the stock is not the real worth of the stock but an estimate of what the stock is actually worth. The fair value …
What is Equity Valuation? Definition, Importance, and Process (with 4 Steps) Read More »
Financial services mean the services offered by financial and banking institutions. It also means money management by organizations like banks, investment banks, insurance companies, and stock exchanges. Financial services help individuals and organizations in the management of their finance-related problems. Financial services are intangible and customer-oriented. Financial services act as a link between the investor …
9 Types of Financial Services: What Are They? And How Do They Work? 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 …
A financial instrument is a financial contract between two parties. It is a document that represents an asset to one party and liability to another. It carries financial value and represents a binding agreement between two or more parties. It is used by investors to predict future value. Examples of financial instruments are bills of …
Types of Financial Instruments: 4 Main Types, Advantages, and Disadvantages Read More »
A financial market is an intermediary between the buyer and seller for trading assets like stocks, bonds, derivatives, commodities, and foreign exchange at a determined price. The financial market plays an important role in the economy by allocating limited resources. It helps in the mobilization of savings and determines the price of the securities. It …
Financial assets are those liquid assets that arise from contractual agreements from owning equity instruments of another organization. Financial assets get their value from a contractual right and do not necessarily have a physical worth. There are two types of financial assets including current or non-current assets. The common types of financial assets are bank …
Types of Financial Assets: 11 Types That Mostly Use Read More »
Introduction Generally, liability is anything that a company or an individual owes to another company or individual. International Financial Reporting Standards (IFRS) Framework defines liability: “A liability is a present obligation arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits.“ Liabilities can be divided …
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Financial analysis is the process of assessing the company’s performance and making recommendations about how it will perform in the future. Financial analysts, for this purpose, use excel in carrying out their work to analyze historical data and make projections on future performances. There are twelve types of financial analysis, which are extremely important and …
Types of Financial Analysis: 11 Difference Types Read More »
