Difference Between Life Assurance and Life Insurance

Nowadays taking life insurance policy has become a need for everyone. But till date average man assumes that life insurance and life assurance are names for the same form of insurance. So before going to buy any life assurance or life insurance policy, first of all a person should understand what is life assurance and life insurance policy, and what …

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What Is Issuing Debt?

When companies want to raise their money to finance their operations, they issue debt. Companies can raise there funds either by borrowing money from banks or by issuing shares or bonds. Sometimes instead of borrowing money from banks or selling shares, they issue bonds. When an organization offers bonds for sale to investors, this is often referred to colloquially as …

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What Are ETF’s?

Exchange Traded Funds (ETFs) as name suggest are funds that trade on open exchanges. EFT is defined as a security that tracks an index, a commodity or a basket of assets like an index fund but trades like a stock on an exchange and experiences price changes throughout the day as it is bought and sold. ETFs are created to …

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What Is Day Trading?

Day Trading, also know as Intra-Day trading, is the system where traders buy’s financial securities and sell the same before the end of that day’s trading session. In other words it is the act of buying and selling of various securities within the same day with the expectation making a profit for yourself in that buy-sell or sell-buy exercise. All …

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Difference Between Freehold & Leasehold

The terms ‘Freehold’ and ‘Leasehold’ are used in connection with land property, these are two different ways in which properties can be owned. This is one of the first problems people come across when buying a house is understanding the difference between leasehold and freehold. They make take wrong purchasing decisions without taking in consideration the difference between them. These …

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What Is Margin Trading?

When an investor borrows money from his broker to buy stocks, the process is called margin trading. Margin is a way of increasing your purchasing power for investments. Buying on margin means that you take a loan from your broker to increase the amount of funds you have at your disposal to invest. The loan comes with its own costs …

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Types Of Corporate Actions

Corporate actions are the actions initiated at the corporate level having material impact on the companies financial structure and ultimately the stakeholders who are the owners of company.  In other words corporate actions are events initiated by issuer of securities that directly or indirectly effects its shareholders or bondholders, whether positively or Negatively. It is important that the investor has …

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What Is Credit Rating?

Credit rating estimates the credit worthiness of an individual, corporation or even a country. In other words a credit rating helps a lender or investor the probability of the subject (borrower) being able to pay back a loan in full and on time. A simple alphanumeric symbol is normally used to convey a credit rating. Credit rating agency (CRA) evaluates …

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What Are Derivatives?

The term “Derivative” as the name indicate is a financial instrument that has no independent value, i.e. its value is entirely “derived” from the value of other financial instruments called as “underlying asset”. This underlying asset can be gold, currency, stock or any commodity. In short, derivative is not an asset in itself but an agreement or a contract to …

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Different Kinds Of Mutual Funds

Mutual funds is a trust that pools money from a group of investors sharing common financial goals and invest the money. In other words, a mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. Financial intermediaries or investment companies carry out detailed …

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Overview Of United Stock Exchange (USE)

United Stock Exchange (USE) of India , is an Indian newest Stock Exchange. USE has launched its operations on 20th Sep 2010, after the final approval from the market regulator Stock Exchange Board Of India, SEBI to start Currency Futures Trading (it is a contract to exchange one currency for another currency at a specified date and a specified rate …

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Difference Between Depreciation And Amortization

Every business invest in some equipment’s, furniture, machinery, vehicles, building, land, patents etc in order to operate. Major assets last for more than one year, but will not last indefinitely. Major assets that will be used in your business for more than a year are known as “capital assets” and are subject to special treatment under the tax laws. Most …

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What Is Private Mortgage Insurance (PMI)?

PMI stands for Private Mortgage Insurance, It is a special kind of insurance that lenders may require the borrower to purchase if the loan they are taking out is 80% or higher of the value of the real estate. In other words, buyers with less than a 20% down payment are normally required to pay PMI. This protects the lender …

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What Is Systematic Investment Plan (SIP)?

A systematic investment plan or SIP (as it is more commonly known) is a way to invest in mutual funds regularly. It is just like a recurring deposit with the post office or bank where you put in a small amount every month. The difference here is that the amount is invested in a mutual fund (indirectly in stocks etc). …

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What Is Stock Beta?

Beta is the statistical measure of the risk of an investment. Beta is a calculation that compares a stock’s historical performance against the overall performance of the entire stock market. Investors use beta to measure the volatility of any stock. Investment analysts use the Greek letter ‘ß’ to represent beta. Since stocks are characterized by their dynamic nature in terms …

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