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Finance

The difference between Absolute and relative returns in stock market

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Before getting into investment, you should understand the difference between absolute return and relative return. In this article, we will be discussing the meaning of absolute return, relative return and the difference between these two.Absolute returnAbsolute return means the return that an asset achieved over a certain period of time. It’s expressed as a percentage … [Read more...] about The difference between Absolute and relative returns in stock market

What is DuPont analysis of a company

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Return on equity capital (ROE) is a measure that shows how a company has generated return on its equity capital. To understand what are the factors that has increased or decreased the company's ROE, a useful technique is to decompose ROE into its component parts. DuPont analysis is a method of breaking down return on equity (ROE) into their components to measure which areas are … [Read more...] about What is DuPont analysis of a company

Price to cash flow ratio: How to use cash to determine value

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In fundamental analysis, financial ratios work like a tool in order to find out whether a stock is cheap or not. One of such ratios is price to cash flow ratio or P/CF multiple.Price to cash flow ratio is a comparison of current market price per share with operating cash flow per share. It's considered as part of the profitability ratio.In the first step you have to … [Read more...] about Price to cash flow ratio: How to use cash to determine value

Beginner’s guide to different trading order types in stock market

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When you call your broker to place an order or execute on your own online, you need to be familiar with different kinds of buy and sell orders that you are allowed to place.A trade is completed with a buy and sell order.This means, if a trade is entered by buying stocks of a company, then it will be exited by selling those stocks.Similarly if its entered by … [Read more...] about Beginner’s guide to different trading order types in stock market

What is short selling in the stock market and how it works

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In the stock market, traders buy common stocks to sell them at a higher price to make a profit. This type of trade is completed with a buy order and then followed by a sell order. This means, if a trade is entered with a buy order, then it will be exited with a sell order. Short selling is opposite to this process. This means a person takes a short position if he expects that … [Read more...] about What is short selling in the stock market and how it works