Tag Archives | Investment

Calculation of Returns on Investment | Financial Economics

Lending of money is for a return in the form of interest. The rates of interest vary with the purpose and maturity and a host of other factors. Thus, advances made by banks and financial institutions are at varying rates of interest and Reserve Bank has allowed freedom to banks to fix their prime lending rates, which are the rates [...]

By |2017-12-15T11:15:54+05:30December 15, 2017|Returns|Comments Off on Calculation of Returns on Investment | Financial Economics

Valuation of Securities in a Company | Investment | Financial Economics

The following points highlight the three main types of fundamental valuation of securities in a company. The types are:- 1. Valuation of Convertible Bonds/Debentures 2. Valuation of 'Rights' 3. Valuation of Bonds. Type # 1. Valuation of Convertible Bonds/Debentures: Convertibles enjoy the benefits of both debt (initially) and equity (later). The terms of conversion will decide the pricing of these [...]

By |2017-12-15T11:15:54+05:30December 15, 2017|Securities|Comments Off on Valuation of Securities in a Company | Investment | Financial Economics

Theories of Investment Analysis | Company | Financial Economics

Read this article to learn about the top seven theories of investment analysis. The theories are: 1. Flow of Funds Theory 2. Market Efficiency and Random Walk Theory 3. Efficient Market Theory 4. Random Walk Theory 5. Trend Walk Theory 6. Capital Asset Pricing (CAP) Theory 7. Modern Portfolio Theory. Theory # 1. Flow of Funds Theory: To start with, [...]

By |2017-12-15T11:15:54+05:30December 15, 2017|Theories|Comments Off on Theories of Investment Analysis | Company | Financial Economics
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