Dividend Policy Ratios
March 6th, 2014
Dividend policy ratios provide insight into the dividend policy of the firm and the prospects for future growth. Dividend policy ratios measure how much a company pays out in dividends relative to its earnings and market value of its ...
Liquidity Ratios
March 6th, 2014
Does your firm have enough cash on an ongoing basis to meet its operational obligations? This is an important indication of financial health. Liquidity ratios provide information about a firm’s ability to meet its short-term financial obligations. They are ...
Financial ratio
March 6th, 2014
A financial ratio can be defined as a comparative magnitude of two selected statistical values taken from the financial statements of a business enterprise. Being used in accounting very often, numerous standard ratios are used for evaluation of the ...
Repo (Repurchase agreement)
March 6th, 2014
Repo is an agreement in which one party sells a security to another party and agrees to repurchase it on a specified date for a specified price. In other words it is an agreement with a commitment by the ...
Mutual Funds
March 6th, 2014
An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to ...
Structure products
March 6th, 2014
Structured products are synthetic investment instruments specially created to meet specific needs that cannot be met from the standardized financial instruments available in the markets. Structured products can be used: as an alternative to a direct investment; as part ...
Forward Contracts
March 6th, 2014
A forward contract is an agreement to buy or sell an asset at a certain future time for a certain price. It can be contrasted with a spot contract, which is an agreement to buy or sell an asset ...
Options
March 6th, 2014
Options on stocks were first traded on an organized exchange in 1973. Since then there has been a dramatic growth in options markets. Options are now traded on many exchanges throughout the world. Huge volumes of options are also ...
Rights
March 6th, 2014
A security that gives the company’s shareholder the option, but not the obligation, to purchase a predetermined number of the company’s shares at a predetermined price (normally less than the current market price) in proportion to the number of ...
Warrants
March 6th, 2014
A warrant is a time-limited right to subscribe for shares, debentures, loan stock or government securities and is exercisable against the original issuer of the underlying securities. It is an interest and dividend-free securities, granting the holder the right ...
