A MutualFund is a body corporate registered with SEBI (Securities Exchange Board of India) that pools money from individuals/corporate investors and invests the same in a variety of different financial instruments or securities such as equity shares, Government securities, Bonds,…
Simple Interest: Simple Interest is the interest paid only on the principal amount borrowed. No interest is paid on the interest accrued during the term of the loan. There are three components to calculate simple interest: principal, interest rate and…
Compound interest means that, the interest will include interest calculated on interest. The interest accrued on a principal amount is added back to the principal sum, and the whole amount is then treated as new principal, for the calculation of…
Money has time value. The idea behind time value of money is that a rupee now is worth more than rupee in the future. The relationship between value of a rupee today and value of a rupee in future is…
The time value of money may be computed in the following circumstances: 1. Future value of a single cash flow 2. Future value of an annuity 3. Present value of a single cash flow 4. Present value of an annuity…
The present value of annuity is the sum of the present values of all the cashinflows of this annuity. Present value of an annuity (in case of discrete discounting) PVA = FV [{(1+r)t – 1 }/ {r * (1+r)t}] The term…
Present value of (PV) of the future sum (FV) to be received after a period ‘t’ for which discounting is done at an interest rate of ‘r’, is given by the equation In case of discrete discounting: PV = FV…
The biggest difference between them is the length of time you hold onto the assets. An investor is more interested in the long-term appreciation of his assets, counting on that historical rise in market equity. He’s not generally concerned about…
Here are the kinds of Market. PRIMARY MARKET Market for new issues of securities, as distinguished from the Secondary Market, where previously issued securities are bought and sold. A market is primary if the proceeds of sales go to the…
Technical Analysis is a method of evaluating future security prices and market directions based on statistical analysis of variables such as trading volume, price changes, etc., to identify patterns. A stock market term – The attempt to look for numerical…