Right issue is an issue of rights to a company’s existing shareholders that entitles them to buy additional shares directly from the company in proportion to their existing holdings, within fixed period of time. What is right issue as per…
Bonus issue means an issue of additional shares to existing shareholders free of cost in proportion of their existing holding. What are bonus shares? It is defined as issue of shares at no cost to current shareholders in a company…
Commercial paper (CP) ha its origin in the financial markets of America and Europe . The concept of CPs was originated in USA in early 19th centaury when commercial banks monopolized and charged high rate of interest on loans and…
ABC analysis in cost accounting is an accounting methodology that assigns cost to activities rather than products or services. This helps resources & overhead costs to be more accurately assigned to products & services that consume them. Meaning and definition…
Section 10(1) of income tax act provides that agriculture income is not to be included in total income of assessee. Further, the reason for total exemption of agriculture income from scope of central income tax is that the under constitution…
A mutual funds is a trust that pools the savings of a number of investors who share a commonfinancial goal. Index 1. What is mutual funds? 2.Who can invest in mutual funds? 3.Classification of mutual funds 4.What are the advantages…
Money market instruments is an important source of finance to industry , trade, commerce, and government sector for meeting their short term requirement for both national and international trade. These financial instruments provide also an investment opportunity to banks and…
Fundamental analysis is based on the assumption that the share prices depends upon future dividends expected by the shareholders. Further, there are basically two approaches of security analysis- Fundamental analysis and technical analysis. In this blog we will learn the…
Efficient Market Theory is developed by the University of Chicago professor Eugen Fama in the 1960s. As per this theory , at any given time, all available prices sensitive information fully reflected in the securities’ prices . Thus, this theory…
Discount Rate is the rate used to calculate present value of future cash flows . It is rate which depends on the risk free rate and risk premium of an investment. Further, actually each cash flow stream coming from different…