1/ Let’s understand the meaning of Emergency Fund, it is a fund that will help you at the time of financial crisis or unplanned scenarios. It is also known as contingency funds.
An Emergency Fund is the first step towards financial freedom.
2/ For example, when the Covid-19 hits many people lose their jobs which results in loss of financial support and people find difficulties buying basic necessities for themselves. So, having emergency funds helps you to sustain the period.
What is Operating Leverage ? How does leverage affect the company’s profit ?
A Thread 🧵👇
While doing companies or sectors research, one must have come across companies saying we are facing pressure on profit margin due to high operating leverage? or the company’s operating leverage will kick-off with recovery in the economy.
1/ What company is trying to say? Why does an investor here need to look into company's operating leverage?
In this thread you will understand:
(a) What is operating leverage?
(b) What determines high or low operating leverage?
(c) How leverage can impact a company’s profit?
What is Right Issue ? How does it impact the share price ?
A Thread 🧵👇
You will understand:
- What is a right issue?
- Types & Features
- Why company comes out with a right issue?
- Right issue Eligibility criteria and options available to investors.
- How right issue work? Calculation of Theoretical ex-rights price (TERP)
- Impact on share price
1/ Right issue is an offer in which the company raised additional capital via equity in the primary market after already having shares listed in the secondary market. It provides an opportunity to existing shareholders to purchase an additional share at a discount price.
What is the difference between Dividend and Buyback ? Which is important ?
1/ Today's thread on Dividend vs Buyback. What is the difference?
You will understand:
- Dividend and Buyback
- Time frame
- Eligibility criteria with Important dates
- Tax implications
- Types and methods
- Reasons company opt for pay dividend or buyback
2/ Dividend and Buyback are two main ways through which the company rewards its shareholders and also help to boost the shareholders returns. Let us understand dividend and buyback on various factors.
What is the difference between full service broker and discount broker? Which one is best and why?
A Thread 🧵👇
1/ Any transaction in the stock market, whether it is a buy or sell transaction, requires a broker’s intervention. They work like an agent between the stock market and market participants.
2/ Brokers are registered members of exchanges regulated by the Security and Exchange board of India (SEBI).