Many fast-growing private companies have been resorting to IPO (Initial Public Offering) for raising capital to accelerate their growth. An IPO is basically the first sale of shares to the public. As a result, this company becomes publicly traded. There are certain benefits that come with going public. It allows a company to quickly raise… [Read More]
What Happens to Your Stock when a Company Goes Bust?
It’s the part of being a stockholder that no one really wants to think about. But what does happen to your stocks if the company you invested in goes bankrupt? The good news is there is a possibility you could get some money back or the business could be saved. The bad news is that… [Read More]
How do You Value a Business? Which Method do You Use and Why?
Value Stock Guide is listed as one of the top investing blogs on the planet for 2018 by The Acquirer’s Multiple I was asked this question recently. Valuing a business correctly depends on the state you find the business in, and this will differ for every business. A proper and complete answer to this question… [Read More]
Why does the present value equation appear to be more useful for the bond investor than for the common stock investor?
This question was asked on Quora If a company has a solid history of paying consistent dividends, either steady or increasing at a steady known pace, you can model the value of these dividend payments in perpetuity using the dividend discount model. The present value of these dividends should be close to the stock price… [Read More]
Question: How do I start investing in the share market? How should one start if I have no prior knowledge of it?
This question was asked of me on Quora Read, read, read. As much as you can, read about the markets and how they work. GB listed some excellent books below. Buy or borrow, just read them. You don’t need to understand everything at this point. Just read. Take an interest in a few companies and… [Read More]
