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ratio analysis and related terms

23/10/2009 by admin

Radar Alert

it is a Close monitoring of the stock market activity in a company’s shares by a SHARK WATCHER appointed by the company for that purpose.The watcher will keep stock of the buying and selling of the company’s shares and determine if an ACCUMULATION is taking place or not . If such a thing begins to happen the company will be immediately alert so that it can take suitable defensive measures.

Ratio Analysis

A tool used by individuals to conduct a quantitative analysis of information in a company’s financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis.it is an important, but not the only, tool for fundamental analysis

Ratio Writer

When a call write has only a part of his sale covered by securities in possession he is said to be a ratio writer. If he has only half of his write, i.e. sale, covered he has a 2 for 1 ratio write.

Real Assets

Land , houses, gems, gold and silver, and collectibles are some examples of real assets. All these appreciate in value faster than equity shares.

Real Rate of Return

Return on an investment adjusted for the inflation.

Recapitalization

Changing a company’s capital structure, by bringing in fresh capital, either by creating new shares through issues, or by long – term borrowing, or converting debentures into shares . Recapitalization is necessary when a company is in a state of bankruptcy, or when it needs fresh capital to support its expansion plan

Record Date

For the purposes of dividend distribution and entitlements to BONUS or RIGHTS ISSUES, a company fixes a date on which a shareholder must officially own shares to qualify. If a share has changed hands after the declaration of dividend, bonus, or rights before this date but the transfer has not been entered in the register of the company, the transferee can get the benefit of the dividend etc., only through the stockbroker.

Recovery Stock

A share that has fallen in price, but which has potential to rise again to the previous level.

Filed Under: General Tagged With: rader alert, ratio analysis, ratio writer, real assets, real rate of return, recapitalization, record date, recovery stock

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