Generally, companies buy back their shares when they perceive their own shares to be undervalued or when they have surplus cash for which there is no ready capital investment need. For example, Essar Oil, Reliance, Siemens and Infosys are some examples of companies that have bought back their shares....

Most stock market investors don’t have a clear understanding of what bonus issue means to them and what happens when spocks split. Here is an attempt to clarify the difference between bonus shares and stock splits and what they mean to ordinary investors. Bonus Issue In a bonus issue, a company...

As we discussed earlier, a futures contract is an agreement to buy or sell an asset on a specific future date. Futures are exchange traded, highly regulated, and usually liquid. They offer individuals an easy way to invest in currencies, commodities, stock indices, and individual stocks. Now let try...

Historically, Equity markets have been giving highest annual returns than all others asset classes for disciplined long term investors. Equities are even more rewarding and can create serious wealth for you, if you can identify right stocks at right price and stay invested in those for long term. So...

The Board of Directors is a group of people elected by the stockholders (the owners) to represent their interest. The primary responsibility of the board of directors is to protect the shareholders’ assets and ensure they receive a decent return on their investment. The board is responsible for...

As the name suggests, derivative is a financial instrument that derives its value from another financial asset. For example, a gold derivative’s value depends on the price of gold. There are various types of derivatives such as, futures, forwards, options, and swaps. Futures Futures are the most...

Most of the large companies were building new capacities before the breakout of the recession. This new capacities led to excess supply and falling demand at a time when the demand was hit on account of slowdown and crisis. This led to plunge in the operating margins of the refiners who were stuck with...

If the economy is an emerging one like India which is a laggard on the infrastructural front, the growth in the infrastructure industry gains all the more importance. High transaction costs arising from inadequate and inefficient enabling infrastructure can go a long way in stunting the growth rate of...

Here is a quick synopsis of the major business news and stock market news in the quarter that’s just gone by. Major Business Reforms The much awaited 3G auction was completed with Indian goverment getting a bonanza of a trillion rupees (Rs 1 lakh crore), much above the expected revenues from the...

Here is a selection of 7 growth stocks for Indian long term investors. The idea here is not to suggest the next multibagger, but to highlight stocks with proven track records which will most likely keep delivering in the medium-to-long term. These stocks are selected based on a few parameters.