FED RATE HIKE AND ITS EFFECT ON GLOBAL MARKETS

US bonds are believed to be the safest debt instruments in the world. If there is a hike in the interest rate there, that will definitely affect the global markets in proportion. Here, markets mean not only the bond markets, but also include currency, derivative and equity. What Is FED Rate Hike? Us Fed plays the similar [...]

WHAT IS FITL /FUNDED INTEREST TERM LOAN AND WCTL /WORKING CAPITAL TERM-LOAN

Due to the burden of non-performing assets and debt problems, companies may fail to perform well, irrespective of their best performance track record. In-order to tackle this problem and provide the companies, a breathing space, RBI has bought a fixing tool called a 'Funded Interest Term-Loan' (FITL). At times, when businesses feel the need for [...]

2017-11-14T17:27:12+00:00 June 11th, 2017|Categories: Debt, Growth Stocks, STOCK NEWS, Stocks|Tags: , |

PREFERENTIAL ALLOTMENT OF SHARES AND ITS EFFECT ON THE CURRENT STOCK PRICE

When a company has a debt, and wants to reduce it or would like to expand the existing business, there are many methods to raise the required funds. But of all, the easiest one is the allotment of preferential shares. Through the allotment of preferential shares companies can raise debt, without much must to [...]

CORPORATE DEBT AND ITS VARIATIONS

There are four basic activities that companies usually show as the  sources of generation and use of cash. They are - the income from operations, cash generated by selling assets and /investments (if any), capital generated by issuing new shares and finally the cash flow due to debt. Most of the companies generate cash flows [...]

2017-07-23T00:29:42+00:00 May 14th, 2017|Categories: Debt|Tags: , , , |

WHAT IS THE IMPORTANCE OF ‘EARNINGS PER SHARE /EPS’ AND HOW ‘THE CASH EARNINGS PER SHARE /CEPS’ IS DIFFERENT FROM THE ‘EPS’

Earnings Per Share (EPS) different from the Cash Earnings Per Share (CEPS) in the similar manner as that of Cash Flow is different from the Net Income. Basic Earnings Per Share is the function of Net Income of a Company. Whereas, CEPS is a function of the Cash Flow generated by a company. But, both are calculated on a per share [...]

HOW TO CHOOSE A BEST MUTUAL FUND FOR YOUR PORTFOLIO

Plenty of Mutual Fund offers. Plethora of information. But, of no use. When it's time to invest, it's a common man's common problem to choose the right one. Try to investigate. Most of the people are stuck in Funds, that were performed well in the past. But currently, not even meeting the benchmark index. All this happens, [...]

2017-03-13T10:15:03+00:00 March 5th, 2017|Categories: Debt, Equity, Mutual Funds|Tags: , , , |

WHY FMPs ARE NOT GUARANTEED RETURN SCHEMES

Fixed Maturity Plans /FMPS are also known as 'Fixed Term Plans'. These are 'Close Ended Schemes' floated by various Mutual Funds. The maturity period ranges from 1 month to three/five years. The tenure is fixed. Even though, almost all the FMPs are predominantly debt oriented, some of them may have small equity component. The objective behind [...]

2017-03-20T19:34:05+00:00 February 19th, 2017|Categories: Debt, Mutual Funds|Tags: , , , , , |

WHAT IS ‘RETURN ON DEBT’ AND ITS IMPACT ON THE COMPANY PERFORMANCE

'Return On Debt'. Spells short. But it's as important as any other financial ratio, and also tells a  lot about the financial health of a company. Especially when there are big number of debts that peeps out of the balance sheet. So easy to analyze, but difficult to manage, ROD ratio has its own impact on any [...]

2017-03-13T10:12:28+00:00 February 12th, 2017|Categories: Debt, Equity|Tags: , , , , , , , |