The cost of capital is the minimum return a company must earn on its investments to satisfy its investors and maintain its market value. Table of Contents Cost of Capital is the minimum required return that investors expect for providing capital to the business, whether through equity, debt, or a combination of both. The cost […]
Capital is wealth in the form of money, assets, or resources used to generate income or support business operations. Table of Contents Whether you’re an entrepreneur planning a startup, an investor building wealth, or a student diving into finance, understanding capital is essential. It’s not just about money; it’s about creating value and driving progress.
An Initial Public Offering (IPO) is the process by which a private company offers its shares to the public for the first time to raise capital by selling equity. Table of Contents What is an IPO? An IPO, or initial public offering, is the term for the first time that a private company sells shares
The P/E ratio (Price-to-Earnings ratio) measures a company’s stock price relative to its earnings per share (EPS). It shows how much investors are willing to pay for each unit of earnings, often used to assess valuation. Table of Contents What Is the Price-to-Earnings (P/E) Ratio? The Price-to-Earnings (P/E) Ratio is a financial metric that compares a
Options is a financial contract that gives you the right, but not the obligation, to buy or sell an asset (like a stock) at a specific price, within a certain time period. Table of Contents What Is Options? Â Options are financial derivatives which offer buyers the right, but not the obligation, to purchase or sell
Fair value is the estimated price at which an asset or liability would be exchanged between a willing buyer and seller in a neutral transaction under normal market conditions. Table of Contents What Is Fair Value? Fair value is a measure of an asset’s or liability’s worth based on its current market price or an
Short selling is an investment strategy where an investor borrows and sells a stock, aiming to buy it back later at a lower price to profit from the price decline. Table of Contents What is Short Selling? Short selling is an investment strategy in which an investor borrows shares of a stock and then sells
You’ve probably heard about financials, audit reports, and those intriguing financial ratios like profitability, liquidity, and solvency. These are the tools that help us assess a company’s performance, but have you ever wondered how they come to life? Behind every number in an annual report, every ratio in an analysis, and every audit conclusion lies
Net Asset Value (NAV) is the per-unit value of a mutual fund, calculated by dividing the fund’s total assets minus liabilities by the number of outstanding units. Table of Contents Net Asset Value (NAV) is a mutual fund’s or exchange-traded fund’s per-unit value. It is the market value of the fund’s assets minus its liabilities,
Fixed Income refers to investments, like bonds, that provide regular interest payments and return the principal at maturity, offering stable and predictable income with lower risk than equities. Table of Contents What is Fixed Income Fixed income is a type of investment that makes regular, predictable payments, usually in the form of interest, until maturity,
