What's it: A valuation ratio is a financial ratio in which we relate a company's financial soundness to its market value. We use it to determine how attractive a company's stock is. To calculate a valuation ratio, we
Investment
Venture Capitalist: Meaning, How it Works
What's it: A venture capitalist is a professional investor who invests in a new company, startup, or young company, in exchange for ownership. They are risk-takers because they invest money in high-risk businesses. New companies are
Going Private: Meaning, Reasons, Methods, Benefits
What's it: Going private is when a company's stock is no longer traded for the public. It is the opposite of going public, i.e., a company lists its shares on a stock exchange for trading by the public. And, when it is listed on the
Sovereign Wealth Funds: Purposes, Source of Funds, Top-10 Lists
What's it: Sovereign wealth funds (SWFs) is a state-owned investment fund. The allocation may be in real assets or in financial assets such as stocks, bonds, and real estate. It is a pooled investment vehicle in global financial
Spot Market: Meaning, Features, Examples, Advantages
What's it: Spot market is a market in which trading takes place for immediate delivery. Examples of spot markets are the market for securities, commodities, and foreign exchange (forex). Ideally, delivery takes place a few seconds after
Option: Meaning, Characteristics, Types, How it Works, Examples
What's it: An option is the right to buy or sell a certain number of commodities, currencies, or securities on a specific date for a specified price. Traded options can be bought or sold at any time on any exchange, in contrast to
Bear Market: Causes, and Investing Strategies
What's it: A bear market refers to a capital market experiencing a period of decline in performance. Bear is a term applied to an investor who is pessimistic about a particular security price prospect. Such a downturn in the market we
Sovereign Risk: Meaning, Indicators, How It is Measured
What's it: Sovereign risk is credit risk attached to the sovereign debt where the government in a country will not pay its debt. It may be because the government doesn't have the ability or will to do so. Long story short, it is the default
Stock: Types, Risk, Return, Advantages, and Disadvantages
Stock is the ownership certificates of a company. When you buy stocks of a company, you own the company's shares and are entitled to the assets and income of the company. Stock is also known as share or equity. Specifically, the term
Bonds: Types, Features, Risk, Pros and Cons to Investing In It
A bond is a debt. It is similar to bank loan but works in reverse. In bank loan, the bank lends you some money. But, in bonds, you give money to the bond issuer. You do it by buying bonds. When buying bonds, money flows from your pocket
Real Estate: Meaning, Types, How to Invest
Real estate comprises land and buildings. They became an investment alternative, both directly and indirectly. This asset class offers the potential for capital appreciation and stable income. Investors hold it as diversified and as an
Preferred Stock: Meaning, Characteristics, Pros and Cons
Preferred stock (or preferred share) is an equity security that ranks between debt securities and common stock. It usually does not has voting rights but has priority over ordinary shares in receiving dividends and liquidated assets. In
Capital Markets: Meanings, Intruments, Importance
Capital markets are financial markets for long-term financial instruments. New York Stock Exchange, NASDAQ Stock Market, Tokyo Stock Exchange, Shanghai Stock Exchange, Hong Kong Stock Exchange, Euronext, London Stock Exchange, are among the
Capital Markets: Meanings, Intruments, Importance
Capital markets are financial markets for long-term financial instruments. New York Stock Exchange, NASDAQ Stock Market, Tokyo Stock Exchange, Shanghai Stock Exchange, Hong Kong Stock Exchange, Euronext, London Stock Exchange, are among the