CA Bigyan Kumar Mishra

A company's stock can be divided into two major types: Common stock or equity shares and Preferred stock or preference shares.Both type of stocks are split into smaller pieces known as shares. Owners of theses shares are known as shareholders or stockholders. In this article, we will discuss what is preferred stock and how it's different from common shares.Common stock … [Read more...] about What is Preferred stock and how it’s different from common stock

Intangible assets are those identifiable assets which have no physical substance and are not a financial instrument. This means you can not touch it.Intangible assets are disclosed under the head non-current assets on the company's balance sheet as these are long-term resources of the organization. The opposite of intangible asset is tangible or physical assets such as … [Read more...] about Understanding intangible assets on the balance sheet

Vertical analysis is a technique used to express line items of financial statements in relation to a single item or base. For vertical analysis of income statement, revenue is considered as a base and for balance sheet, total assets is considered as a base.It's also referred as vertical common-size analysis of financial statements or common-size vertical analysis of … [Read more...] about What is common-size vertical analysis of financial statements

Horizontal analysis of financial statements is a technique used to evaluate trends and growth pattern of financial performance over time by comparing historical data such as line items and financial ratios over a number of accounting period.It's also referred to as trend analysis or time series analysis of financial statements.You can use horizontal analysis to … [Read more...] about How horizontal analysis of financial statements can help you in investing

It’s important to carefully research fundamentals of every company in which you are planning to invest or invested to know its true value. In this article we will be discussing how an investor can sense when a stock is overvalued or undervalued by using Price to earnings or P/E ratio. Before we start, let us understand the meaning of overvalued or undervalued.What is … [Read more...] about How to sense when stock is overvalued or undervalued by using P/E ratio