In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals.Bonds are a long-term investment strategy, which are … [Read more...]
Tax Theory of Dividends
Putting together a dividend tax theory to match a buy-and-hold investment strategy is much complicated by shifting tax laws. Types If you have held a stock for 60 days, dividends paid from the profits of a domestic publicly traded company are "qualified" dividends and currently are taxed at a maximum 15 percent, which is lower than the marginal tax rate for most investors. … [Read more...]
How to Find if a Stock is Marginable
Nowadays , many brokerage and investment firms allows their customer to have Margin on their account. Margin is a simple way to increase your buying power and cash available by simply pledging your current investments as collateral. Below are the most basic rules : First, a stock has to trade above the set limit per share for 5 consecutive days before it can be bought … [Read more...]
How to Buy Goverment Bonds Directly
Investors buy such bonds because they offer return with practically no risk on capital. Since stocks fluctuate, the bonds percentage in portflio will rise when stock market falls, if interest rates do not change. There is also the effect of the return of bonds which contributes additional money to your portfolio. You can invest in bonds in a a variety of mutual funds. The … [Read more...]
STOCK UPDATE ;Indian Hotels Company
Indian Hotels Company Cluster: Apple Green Recommendation: Buy Price target: Rs100 Current market price: Rs85 Price target revised to Rs100 Key points Hotel occupancies across the key domestic markets including Mumbai, Delhi and Bangalore went up in Q2FY2010 as compared with Q1FY2010, which is quite surprising because the second quarter is normally dull for the hotel … [Read more...]