5 Important Types of Technical Analysis
Technical analysis serves as a vital tool in financial markets, providing investors with valuable insights to guide their decision-making process. Among the numerous approaches in technical analysis, understanding the different types and their significance is crucial for effectively managing the uncertainties of the market. Trend Analysis Trend analysis is a method of technical analysis used […]
Benefits of Issuing Shares as Source of Capital
In the world of business, having access to sufficient capital is crucial for growth and expansion. However, traditional methods of raising capital, such as taking on debt or securing loans, may not always be the most suitable or sustainable option for every business. That is where issuing shares comes to the forefront as a powerful […]
What is a Forward Exchange Contract?
A Forward Exchange Contract is a financial agreement where two parties agree to exchange currencies at a predetermined rate on a future date. FECs allow individuals and businesses to lock in exchange rates for future transactions, providing certainty in an unpredictable international market. These contracts specify a fixed exchange rate and a predetermined maturity date, […]
What is the difference between a merger and a demerger?
A merger and a demerger are two different processes in corporate restructuring that involve the redistribution of assets, liabilities, and ownership of companies. But both terms have some fundamental differences from each other which we will try to understand in this post. What is a Merger? A merger is a business strategy where two or […]
What is the Swap Ratio?
A swap ratio is a term commonly used in mergers and acquisitions to determine the exchange ratio of shares between the acquiring and target companies. It is essentially the proportionate value at which the stocks of one company will be traded for the stocks of another company during a merger or acquisition. The swap ratio […]
Differences Between Equity and Preference Shares
Equity shares and preference shares are both types of stocks or shares that represent ownership in a company. However, they differ in terms of rights, dividend payments, and risk profiles. This article will disclose the difference between equity shares & preference shares in detail to give our readers a better understanding of the subject. To […]
Difference Between Shares and Debentures
While both shares and debentures represent ownership in a company, they differ substantially in their characteristics. Shares and debentures are essential components of the capital structure of a company that help it raise funds for business operations. In this article, we will explore the fundamental differences between shares and debentures that every investor should know […]
What is the Buyback of Shares? Purpose and Benefits
Within finance and investing, companies employ many strategies and techniques to increase shareholder value and optimize capital structures. One such technique is known as share buyback repurchase: this practice sees companies purchase their outstanding shares either from open market sellers or shareholders directly at discounted rates. We will explore what is buyback of shares and […]
What is Capital Asset Pricing Model (CAPM)?
The Capital Asset Pricing Model (CAPM) is a financial model that helps investors understand the expected return on an investment relative to its risk. It was developed by William Sharpe in 1964 and has become one of the most widely used models for pricing assets in finance. The central idea behind CAPM is that investors […]
Impacts of Inflation on Working Capital Management
Inflation is an economic phenomenon characterized by a general increase in the price level of goods and services in an economy over time. While inflation can signify a growing economy, it can also significantly impact working capital management, particularly for small and medium-sized enterprises (SMEs). In this article, we will explore the effects of inflation […]