Rights of a Stockholder

Whenever you buy a stock, there are certain rights that the owner of the stock is granted upon the ownership of the stock. You should keep in mind that some companies offer various classes of stocks and the company may offer various rights apart from the standard rights of a stockholder. Stock Splits = ‘Stock … Continue reading Rights of a Stockholder

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Types of Capital Gains

Types of Capital Gains You know that capital gains are taxed differently depending on how long you had owned the stock. The following are the various types of capital gains: Realized: These are gains that are realized when shares are sold. Unrealized: These are unrealized paper gains where the shares have not been sold. Realized … Continue reading Types of Capital Gains

Key Tems of Stock and Investment

Key Terms of Stocks and Investments There are various terms associated with stocks and investing that you need to understand to get a better understanding of stocks and investments. 1) Zero-coupon Bond: ‘Zero-coupon Bond’ is a bond that doesn’t make interest payments but instead is discounted at the time of sale. 2) Yield to Maturity … Continue reading Key Tems of Stock and Investment

Benefits of Buying Bonds

As an investor it is always advisable that you should definitely include ‘bonds’ in your investment portfolio. It has been found that most individual investors underperform the market. So, it is better for you to invest in a globally diversified portfolio of low management fee index funds in an asset allocation appropriate for you. This … Continue reading Benefits of Buying Bonds

Classifications of Bonds

Bond’ is a certificate of debt, usually interest-bearing or discounted, that is issued by a government or corporation in order to raise money. The issuer of the bond is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal. Bonds can be classified into the following based … Continue reading Classifications of Bonds

What is meant by Debt

The debt instrument clearly states the repayment terms and also the interest requirements. Every debt instrument form comes with a promise and all imply intent to pay back an amount owed by a specific date, which is set forth in the repayment terms. Debt is used by businesses as well as individuals to make large … Continue reading What is meant by Debt

What is meant by Equity

What is meant by Equity ‘Equity’ is the ownership interest in a corporation in the form of ‘common stock’ or ‘preferred stock’. Hence, it can also be defined as the total assets minus total liabilities. So, when seen from the point of view of a company's balance sheet, equity is the amount of funds contributed … Continue reading What is meant by Equity