Month: May 2008

Below are all the posts archived for the month.

Value Investing
in Articles

The concept of value investing was established by Benjamin Graham and David Dodd who were both Columbia professors. At its core, value investing means buying into securities whose price is lower than their ‘underlying value’. There are various measures to judge the underlying value and primary among them are P/E ratio, price to book ratio,
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Growth Investing
in Articles

Growth investing is the name given to the kind of investment where the investor buys a stock because the company is in a high growth industry. Such companies are expected to grow at a high rate for the next few years and are generally characterized by a high P/E multiple. This type of investing became
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Value at Risk
in Articles

Most lenders including financial institutions use the value at risk assessment to determine how much risk is involved in a given scenario. Since they are in business to make money, they have to reduce the amount of risk they involve themselves in. Losing money due to people not paying what is owed can result in
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Rolling Settlement
in Articles

A rolling settlement is one that you will get your return on after a set period of time. This concept refers to trades that take place with any of the various stock exchange locations. The number of trading days will be known and therefore investors can determine exactly when they will be receiving any funds
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Entry and Exit Load
in IPO/NFO

The terms entry and exit load refer to mutual funds. They refer to the fact that you will be charged fees when you invest in mutual funds. These fees are to offset the overhead costs of the companies you work with to obtain such investments. The fees are generally a percentage of the amount you
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Authorised Capital
in Articles

Authorised capital is the total dollar amount that a company is legally able to raise through the process of issuing shares of the company. This is often done when they company need to raise capital in order to finance some type of addition or change of direction for the company. The company can choose to
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ESOP
in Articles

Many business owners offer ESOP for their employees to take part in. This is short for Employee Stock Ownership Plan. This is a great way to get employees to take more pride in their work. They will view it as more than just a job as they now know that if the company makes money
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Lock in period
in Articles

During a lock in period, an investor is prevented from selling the shares he holds. There are certain types of stocks that a person can buy that have this stipulation attached to them. The amount of time that the person can’t sell the stocks has to be disclosed. That information can’t be hidden and then
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Reinvestment Risk Rate
in Articles

There is often a significant risk involved for the holders of bonds when it comes to reinvesting. It is important to understand that the rate of return is going to be less if the rates drop. This is because that process prevents most investors from successfully being about to invest at the assumed rate. Investors
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