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Growth stocks A growth stock is a company that is expected to grow at a rate significantly higher than the average growth of the stock market and consequently, generates earnings more rapidly. Growth stocks often look expensive, trading at a high P/E ratio, but such valuations could actually be cheap if the company continues to … Read more
What Are Income Stocks? A stock which regularly pays dividend to its shareholders of the company is known as income stock. Understanding income stocks- Income stocks usually have a high yield and diluted earnings per share (DPS). Most income stocks usually have very low growth opportunities. They are very stable organisations and of low risk. … Read more
What Are Earnings Per Share (EPS)? Earnings per share is the portion of shareholder’s profit in relation to total profit of the company. EPS measures each common shares profit allocation in relation to the company’s total profit. It is an important ration that is used in analysis of company’s performance, to predict the future earnings … Read more
What Is Meant By A Undervalued Stock: – A stock is called undervalued when the selling price of a security is lower than that of its intrinsic value. Undervalued security can be analysed by evaluating the financial statements of the underlying and other financial aspects, such as the company’s balance sheet, cash flow, profits, return on assets and management … Read more
Key Rates are used by banks or other institution to determine the interest rate on debt. What Are Key Rates? The specific interest rate that determines bank lending rates and the cost of credit for borrowers is known as Key Rate or Repo Rate. The two key interest rates in India are the Repo rate … Read more
What Is A Zero Coupon Bond? Zero coupon bonds are bonds that do not pay interest during the life of the bonds. Instead, investors buy zero coupon bonds at a deep discount from their face value, which is the amount the investor will receive when the bond “matures” or comes due. So that’s how you … Read more
In financial terms, yield is used to describe a certain amount earned on a security, over a particular period of time. It refers to the interest or dividend earned on debt or equity, respectively, and is conventionally expressed annually as a percentage based on the current market value or face value of the security. It … Read more
Volatility is defined as the rate at which the price of a security increases or decreases for a given set of returns. It indicates the risk associated with the changing price of the security and is measured by calculating the standard deviation of the annualized returns over a given period of time. In other words- … Read more
Introduction Unsystematic Risks are risk that are not shared with the wider market or industry. Unsystematic risk are often specific to an individual company due to their management, financial obligation or location. Unsystematic risk can be reduced by diversifying one’s investments. Unsystematic risk is unique and is caused due to internal factors. It cannot be … Read more
What Is Retention Ratio? The retention ratio (also known as the net income retention ratio) is the ratio of a company’s retained income to its net income. The retention ratio measures the percentage of a company’s profits that are reinvested into the company in some way, rather than being paid out to investors as dividends. It is … Read more
