What you should know to invest in gold (Jun 22, 2012)Gold is an asset that has dazzled investors in recent times. And investors have all the reasons to be happy about owning gold. Since the end of 1978, the yellow metal has delivered nearly 620% in terms of returns. The following graph is a testimony to the good times that gold has given to people who believed in it and held it for a long time.
Your stock has crashed. Should you blindly buy more? (May 7, 2012)Opportunity cost is defined as the cost of an alternative that must be forgone in order to pursue a certain action. It's the benefits one could have received by taking the next best alternative action.
What stock screeners will not tell you? (Apr 18, 2012)The process of Stock selection is more often called an art than science. While there is no sure method to get it right, this art is not without its element of logic. With so many listed stocks, it is a baffling task to pick up the best that promises strong performance.
When FCCBs turns ugly: Part II (Apr 10, 2012)This is the second and last article in our series on Foreign Currency Conversion Bonds (FCCBs) in India.
Beware before investing in complex fin.products (Apr 4, 2012)When investor sentiments are positive and the overall investment environment is vibrant, the manufacturers of financial products try to make hay when the sun shines.
When FCCB turns ugly: Part I (Mar 28, 2012)This is a first of a two article series on Foreign Currency Convertible Bonds (FCCBs). Many Indian companies issued FCCBs in 2007 which are due to redeem in 2012, and this has challenging implications.
3 Intelligent Personal Finance Thumb Rules (Mar 26, 2012)With the plethora of personal finance sites and the wealth of advice floating around on the web, given by your bank, or insisted upon by your advisor, sometimes it helps to take a step back and do a broad check to see if overall, you're doing the right things.
Do you skip these while reading annual reports? (Mar 13, 2012)The very prospects of hiring a new employee, getting married or seeking business partners compel us to have thorough knowledge of the individual we are to get associated with. Hence it is not just the curriculum vitae (CV) that we rely on.
Rule of '9-9-9' to make you rich (Nov 25, 2011)US Presidential nominate, Herman Cain, had come up with a program titled '9-9-9' aimed at reforming the US tax system.
Understanding Working capital - Part 1 (Nov 21, 2011)Working capital is a critical component in the functioning of any business. Working capital is akin to the oxygen supply for a business.
Understanding the basics of yield curves (Jun 14, 2011)Very often you may come across the term 'yield curve' and wonder what it implicates for a common investor. In this article we will try and understand the basics of bond yield curves. Let's start off with a simple example. Say your office colleague, wants to urgently borrow Rs 5,000 from you. He promises to repay you the very next day.
Buyback: What should a retail investor do? (Mar 3, 2011)An investor buys a stock with the intention to earn returns. These returns accrue over a period of time. So why would a company buy its own stock? To earn returns on itself? Sounds confusing? Well read on to understand more.
Equity or Debt: Which is cheaper? (Oct 13, 2010)Put yourself in the shoes of the CFO of a company. One major aspect you will be confronted with in your job will relate to the financing of your company's assets. Just like a plant needs water to grow, businesses need capital in order to expand.
Investing and the 'rule of 72' (Sep 27, 2010)As an investor, the dream is to grow the money invested over years. Investors specifically look for opportunities that double their money or even earn more than double.
Exotic Derivatives (Sep 2, 2010)This is the final article in the derivatives tutorial. So far, we have looked in detail at futures and options, how they are priced, and how they can be traded. Today, we’ll take a look at some of the exotic derivatives that have come up in financial markets today.
Options Trading Strategies - Part 2 (Aug 26, 2010)Previously we examined some commonly used option trading strategies. These included outright directional strategies, protective puts, and covered calls.
Options Trading Strategies - Part 1 (Aug 19, 2010)In the last two weeks, we discussed how options are priced and the various factors that affect option prices. In this and next week's article, we’ll discuss some commonly used option trading strategies.
Option Pricing - Part II (Aug 12, 2010)In the previous week's article, we discussed some of the basic tenets of options. These included how they operate, and the concepts of intrinsic and time value.
Option Pricing - Part I (Aug 5, 2010)Option pricing is a very popular topic for any students studying finance; it can get extremely technical and sometimes divorced from reality. Over the next two articles, my aim is to provide you with the tools to understand how options are priced, and what are the risks involved.