Basic of Investing

DEMERITS OF EXCESSIVE CASH FLOWS IN BUSINESSES

Cash flow is the net amount of cash and cash equivalents being transferred into and out of a business. At the most fundamental viewpoint, a company’s ability to create shareholder value is determined by its ability to generate positive cash flows, or more precisely, maximize free cash flow. Cash Flows in businesses refer to bloodline[…]

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UNDERSTANDING INVESTING IN MUTUAL FUNDS

Mutual Funds: What does it mean? A mutual fund is an investment vehicle made up of a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who allocate the fund’s investments and[…]

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WHY INVESTORS SHOULD BE RISK FOCUSED INSTEAD OF RETURN

‘Risk’ a common word become one of the prime contexts in today’s business arena. Billions of dollars are spent to deal with the word with a view to control over plan in different economies, industries & businesses as well. By definition, it’s nothing but the deviation between expectation and the actual outcome. As we don’t[…]

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Securities Market Turnover Ratio (TRO)

Part: A Market Tracker to find buy & sell points: Turnover Ratio(TRO)!!! This research intends to explore sell & buy points in the market by turnover ratio and measures the performance& relationships of the ratio along with market return & risk that of regular active trading days based on DSEmarket data from June 2004 to[…]

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PRICE TO EARNINGS (P/E) RATIO: HOW USEFUL IT IS?

PART: A KNOWING ABOUT P/E RATIO INTRODUCTION TO PRICE EARNINGS RATIO (P/E): Almost all the investors know Price Earning Ratio (P/E). It is the most readily available and understandable stock market tool. By historical P/E an investor can gain a primary knowledge about the stock. Price Earnings Ratio (P/E) is a price multiple. It is[…]

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