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Showing posts from June, 2021

Investment awareness in Financial Instruments

Article by :- Shivani Jaju In today’s era we all need some savings and investments. Investment is very important for everyone for their future benefit and welfare, it is an activity which is done by people through their savings. As a research we have seen that investment is growing aggressively and will be on the blooming side in future. Investments is done through various instruments, as follows: ·         Equity ·         Bonds ·         Gold ·         Derivatives ·         Mutual funds ·         Fixed deposits ·         And many more   Financial market is a market where trading of financial Assets like shares, debts, etc are take place. It is divided into 2 parts i.e. Money market and Capital Market. Money Market ...

Why should you start investing now?

Article by :- Sonia Taneja  You must have seen the various advertisements that say you should invest but in those advertisements, they must invite you to invest basically to increase their sales or get you registered with them. But do you actually know why you should invest? Let us know about the facts and reasons that clear about why we should start investing now. These are the reasons that can make you to go for investments: 1.        Real Learning about the field of Investment:  whatever the courses we done or through physical classes, but the real learning is got after spending some pennies on investments. If you make the investments and don’t have the idea about anything either to increase it or not, then even you learn about how the market works and that gives you the knowledge of market and give the courage to make better investment in future and even if once made investment reaches to the loss, at least second times you know like where to sto...

Why Book Value can’t be the perfect floor price of a company?

  Why Book Value can’t be the perfect floor price of a company? Is there any better measurement? What is the way to compute that better option/s? Author:- Sonia Taneja(NIT Kurukshetra) Before answering the statement that book value can’t be the floor price, let us first know what the book value is: Book Value: Book value is the value at which the assets and liabilities are mentioned in the financial statements of an entity. In the book value, the values of the assets are mentioned after deducting the depreciation from them and goodwill is not mentioned. For example, if in an entity, there is machine worth Rs. 600,000 and its life has been estimated for 10 years and every year it is depreciated at 10% in the straight down method. In every year, 60,000 will be deducted from the assets value and remaining value would be mentioned in the balance sheet’s asset side for the 10 years and in the 11 th year, the value asset would be nil. Now let us understand what the Floor Pric...