Archive for the ‘Share Market Terms’ Category

WHAT IS A PREMIUM ISSUE ?

Generally, most shares have a face value (i.e. the value as in a balance sheet of Rs.10 though not always offered to the public at this price. Companies can offer a share with a face value of Rs.10 to the public at a higher price. Read more »

DIFFERENT KIND OF INVESTMENTS

These days, you can’t retire without using the returns from investments. You can’t count on your social security checks to cover your expenses when you retire. It’s barely enough for people who are receiving it now to have food, shelter and utilities. That doesn’t account for any care you may need or in the even that you need to take advantage of such funds much earlier in life. It is important to have your own financial plan. There are many kinds of investments you can make that will make your life much easier down the road. Read more »

Zurich Axioms

The Zurich Axioms are actually the rules used to define the risks and benefits used by Swiss bankers for generations. There are 12 major and 16 minor Zurich axioms and they provide a practical philosophy for management of risks realistically. These rules can be followed by anyone and you need not be an expert to follow them. It has been seen that the enterprising Swiss speculators who have followed them have become rich and many investors who followed the traditional rules did not. Max Gunther, whose father played a major role in devising the Axioms, earned his first major gain on the stock market only when he was 13. To go through the Axioms is really very entertaining and they are invaluable to any investor. If you are willing to invest in stock, commodities, real estate, art or antiques, then there is certainly a lot to learn from the Axioms.

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Edited and Updated 31st May 2014

Zero – Rated Debentures

Zero – Rated Debentures Debenture which carry no interest and which may be issued at a discount to attract investors who hope to gain from capital appreciation, rather than interest income. Read more »

Zero – Coupon Bond

The term coupon bond is used to define a bond that features coupons, which must be presented to the user so that interest payments are received by him. Read more »

Yield to Maturity

Yield to Maturity Calculation of the rate of return to an investor in a long – term bond if it is held till maturity. Several elements are taken into consideration in this calculation: the investment, the redemption value, the interest yield, the periodicity of interest payments, Read more »

Yield Spread

Yield Spread It is the differential between the DIVIDEND YIELD on shares and the CURRENT YIELD on bonds.

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Yield Gap

Yield Gap The difference between the average annual yield on equity dividends and the average annual yield of long – term gilt – edged securities. Equities carry a greater risk, over a period of time they have always served as a hedge against inflation. With rising equity prices Read more »

Yield Curve

Yield Curve A graph showing yield on the axis Y and period of maturity on the axis X, for fixed – income investments of the same kind, i.e., government bonds, debentures, or other loan instruments. These curves may be ascending, i.e., long – term securities yielding more than Read more »

Yield Advantage

Yield Advantage As between shares and convertible debentures of the same company, the yield on the debentures may be higher than the dividend on shares; one may therefore go in for the convertible debentures for the yield advantage.

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