Commonly used ratios As there are different measures of profit (such as gross profit, operating profit and net profit), we can calculate one profitability ratio corresponding to each measure of profit. These ratios are gross profit margin (GPM), operating profit margin (OPM) and net profit margin (NPM). Other...

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...

The stock market is essentially an auction market where shares, which represent an ownership in the company, are bought and sold. The markets where stocks are traded are called stock exchanges. In India, National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are two big stock exchanges. At these...

Investing in the stock markets is both risky and profitable venture. On one hand, the returns on investment are usually higher than traditional investments, while on the other, the risk of loss is also higher. A detailed analysis of the company’s financial statements is important for two reasons: 1....

Here is an interesting article published in Rediff Business that talks about how to judge the performance of the company in which you hold your investments. With the year-end results just kicked in and companies started announcing results, it becomes imperitive that you know howto read those earnings...

Mutual Funds are increasingly becoming the preferred investment option for retail investors who don’t have the time and knowledge to compete and make profits from the dynamic stock market that changes every day. So for such people its naturally a good idea to opt for Mutual Funds. But the key challenge...

In this video, the tutor advices the beginners who are looking to invest or trade in stock markets what to do and what not to do - like he advises not to buy hot tips, penny stocks, partnership stocks etc and not to do day trading etc. This is esp. for the beginners and people with no experience. He...

Here is an excellent video for the beginners to learn the basics of investing or trading in the stock markets. Here the tutor explains about the very basics of Stock Market trading like opening an account, the trading charges and profit margins etc.

Stock Market offers excellent returns when compared to any other asset class for investors who has enough knowledge, patience and emotional balance.  A successful stock market investor should have a very good reason for all his investments and should be convinced that his investments will perform better...

Source: financial-education.com Depreciation can be a component of both cost of sales (depreciation on manufacturing equipment) and selling, general, and administrative expenses (depreciation on sales offices). Depreciation is the allocation of the cost of assets that are expected to provide benefits...