Issue Price It is the price at which new issues are offered to the public, at par, or at a premium, i.e., at a price above the face value. The issue price is fixed in consultation with the lead manager, which may be a bank or a financial institution. If there is a premium, the company is required to state in the prospectus for the public and in issue advertisement as well what … [Read more...]
DIVIDEND AND SHARES
Dividend cover Dividend cover is a measure of the ability of a company to maintain the level of dividend paid out. The higher the cover, the better the ability to maintain dividends if profits drop. For example, if the dividend cover is 3, this means that the firm's profit attributable to shareholders was three times the amount of dividend paid out. Dividend Play Buying … [Read more...]
DEPRECIATION AND SHARES
DEPRECIATION In simple words we can say that depreciation is the reduction in the value of an asset due to usage, passage of time, wear and tear, technological outdating or obsolescence, depletion, inadequacy, rot, rust, decay or other such factors. . In straight – line depreciation the asset’s notional life divides the asset value in equal parts, i.e., for a 10 – year life … [Read more...]
DELISTING – BASIC TERMS
DEFLATION deflation arises when supply is more than demand resulting in reduction in national income and output, accompanied by a general fall in prices. it can be brought about by reduced imports, higher taxation, and high interest rates, among other measures. During a deflationary period the stock market usually suffers from DEPRESSION. DELIVERY ORDER after a … [Read more...]