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Showing posts from September, 2023

Dividend Days Announcement date, Record Date , Ex-Dividend Date For Dividend...

To receive dividends, we need to be aware of specific days.  This is because the answers to dividend-related questions are provided on these particular days. 1.Announcement Date (or Declaration Date):   The Announcement Date or Declaration Date is when a company's Board of Directors decides and announces how much dividend they will give to their shareholders and when. This is an important day because it provides answers to the following questions: • How much dividend will we receive? • When will the dividend be available? • Who will be eligible to receive the dividend? 2. Record Date:   The Record Date is the most crucial day to know about when it comes to dividends. This is because on this day, we can only receive the dividend from a company if we hold the company's shares in our Demat Account (a type of electronic securities account).  The company determines the eligibility for dividend payment on this day based on the ownership of shares. 3.Ex Dividend Date: ...

What is Dividend Yield, Definition, Formula and Example.....

 We want to invest in a company that provides good dividends. It is important to understand the concept of Dividend Yield. Dividend Yield helps us identify companies that offer substantial dividends. So, what exactly is Dividend Yield?... It is the percentage of a company's current market price that is paid out as dividends to its shareholders .   Let's take an example to understand this better. Suppose a company has a market price of $200, and it pays out $20 as dividends to its shareholders. In this case, the company's Dividend Yield would be 10%. This means that the company is paying out 10% of its market price as dividends. Calculating Dividend Yield is simple. We divide the dividend amount by the market price of the company. In our example, the calculation would be: Dividend = $20 Market price = $200 Dividend Yield = Dividend / Market price  $20 / $200 = 0.1 = 10% Dividend Yield Now, let's talk about how we can use Dividend Yield...  As mentioned earlier, Divide...

What is Dividend ??, Definition of Dividend, Dividend Meaning,

Dividend  is a benefit of investing in the stock market.    It is a portion of a company's profit that is shared with shareholders who have invested in that company. When we buy shares of a company, we become shareholders. If the company makes a profit and doesn't need all of it for new investments or company expansion, they may distribute the remaining profit to shareholders as dividends. The decision to pay dividends is made by the company's board of directors.  Dividends can be given in the form of cash or additional shares. Not  all companies are required to pay dividends. It  is entirely up to the company to decide. If we want to earn a small income from our stock market investments, we can choose to invest in companies that pay dividends. Let's make our investment choices clear.

What is PE ratio? Price - to - Earning Ratio Formula and Uses...

When we purchase a company's shares in the stock market, it's important to buy them at the correct price. Even if the company is good, buying it at a high price can result in a loss for us. The PE Ratio is a useful tool for determining the appropriate share price of a company. Today, we will discuss what the PE Ratio is, how to calculate it, and its uses. What is the PE Ratio? The PE Ratio indicates how many times the profit of a single share (Earnings Per Share - EPS) is reflected in the current market price of a company's shares . For instance, if a company's current market price is $10 and its earnings per share (EPS) is $2, the PE Ratio of the company would be 5.   This means that the current market price per share is five times the company's earnings per share. To buy a share of that company, we would have to pay five times the profit per share. How to calculate the PE Ratio? We can calculate the PE Ratio of a company using the following formula: PE Rati...

What is PB ratio, How to calculate and it's Benifits...

When we buy something, it's important to know its true value and purchase it at the right price. Paying more than its actual value would result in a loss for us. Today, we'll learn about a ratio called the P/B ratio, which stands for Price to Book Value Ratio. The "P" in the P/B ratio represents the market value of a company, while the "B" represents the book value of the company.  Essentially, the P/B ratio is the ratio of a company's market value to its book value. To calculate the P/B ratio, we divide the market value by the book value.  For example, if a company has a market value of Rs 200 and a book value of Rs 100, the P/B ratio would be 2. In this case: P/B Ratio = Market Value / Book Value   200 / 100 = 2 This means that the market value of the company is twice its book value.  Therefore, we should consider buying the company for twice its book value. The application of the P/B ratio is as follows: If a company's P/B ratio is greater...