COMPOUND GROWTH RATE compound growth rate is an important indicator of a company’s long-term prospects. it is the year-over-year growth rate of an investment over a specified period of time. A company’s growth rate of profits is compounded over a number of years, at least five, to see how it has growth and what is likely to lie for it in the future. The compound annual … [Read more...]
basics terms of shares and bonds
APPLICATION MONEY Application money is the amount that investors are asked to pay with the application for a new share issue . the amount is usually les than the full value of the shares, the remaining amount is collected at the time of allotment or per call bases. The amount an investor must pay at the time of making an application under a public offering of … [Read more...]
meaning: automated screen trading
Electronic trading in stocks is an electronic trading system for the sale and purchase of securities. Customers' orders are entered via a keyboard; a computer system matches and executes the deals; and prices and deals are shown on monitors, thus dispensing with the need for face-to-face contact on a trading floor.this trading is done through visual display units. It makes … [Read more...]
the auction market
auction is A public sale of a security, typically a bond, where the issuer invites authorised dealers to bid in yield or price terms for the security.it is a method a method of structuring an issue, which involves auctioning an issue to the investor. An issue can be marketed with a floor premium and a maximum premium, say, Rs 10 and Rs 60. The person or the investor who offers … [Read more...]
amortization- meaning
Amotization is different from depreciation . writing off is not based on life expectancy of the asset but it can also be for the purpose of renewal or replacement. it has two definitions : 1. The paying off of debt in regular installments over a period of time. 2. The deduction of capital expenses over a specific period of time (usually over the asset's life). More … [Read more...]