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Types of Derivatives
1. Forward Contracts Definition: A forward contract is a private and customizable agreement betwe...
CAPM and types of leverages
CAPM, Leverage, and Risk: A Practical Guide Let's break down these financial concepts in a simple...
Cost of capital - meaning,significance and components
Understanding Cost of Capital What is Cost of Capital? Imagine you need money to start or grow a...
Roles of a Financial Manager
Functions of a Financial Manager (Management) Imagine the financial manager as the money manager ...
Financial management
Functions or Role of Financial Managers All decisions involving management of funds come under t...
Ethics
What is Ethics? Ethics is a set of moral principles that guide our behavior, helping us distingu...
Introduction to financial management
What is Finance? Finance, at its core, is the art and science of managing money. It encompasses a...
Point of Indifference
Understanding the Point of Indifference The point of indifference, in the context of capital stru...
Effect of capital structure on EPS, EBIT-EPS Analysis
The Link Between Capital Structure and EPS As we've discussed before, a company's capital structu...
Capital gearing and theories of capital structure
What is the Capital Gearing Ratio? The capital gearing ratio, also known as the debt-to-equity ra...
Capital Structure: Meaning, Importance, and Determinants
What is Capital Structure? Think of a building's framework. It's not made of just one material; i...
Watered stock, under trading and over trading
Watered Stock Watered stock is an illegal practice where a company issues shares at a value that ...
Over capitalization and Under capitalization
Over-Capitalization Concept of Over-Capitalization Over-capitalization is a situation where a co...
Other sources of finance
Bootstrapping is the process of starting and growing a business using your own resources, rather ...
Capitalization and its theories
Understanding Capitalization in Business Introduction Every business aims to maximize its value. ...
Ploughing back profits and loan financing
Understanding Ploughing Back of Profits and Loan Financing This document explores two important c...
Debentures and Bonds
Understanding Debentures and Corporate Bonds Debentures Definition: A debenture is a formal docu...
Ownership Securities
Business Funds: Understanding Equity, Preference, and Other Share Types Businesses require a cont...
Payoff from Options
The payoff from an option at expiration depends on the relationship between the strike price and ...
Options Basics
Exercise Price (Strike Price) Definition: The predetermined price at which the underlying asset...