Investment has different meanings in finance and economics. In economics, investment is related to saving and deferring consumption. Investment is involved in many areas of the economy, such as business management and finance whether for households, firms, or governments. In finance, investment is putting money into something with the expectation of gain, usually over a… [Read More]
Value investing is an investment paradigm that derives from the ideas on investment that Ben Graham and David Dodd began teaching at Columbia Business School in 1928 and subsequently developed in their 1934 text Security Analysis. Although value investing has taken many forms since its inception, it generally involves buying securities that appear underpriced by… [Read More]
Definition of Stocks Stock, equity or share as used in finance represents a part ownership in a company. Ownership of a stock entitles the owner (stockholder or shareholder) with all the profits distributed in form of dividends in direct proportion to the amount of shares owned. For example, consider a hypothetical company that has issued… [Read More]
An investor is someone who allocates capital with the expectation of a financial return. The types of investments include, — gambling and speculation, equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc. This definition makes no distinction between those in the primary and secondary markets. That is, someone who… [Read More]
A business (also known as enterprise or firm) is an organization involved in the trade of goods, services, or both to consumers. Business plan and Business model determine the outcome of an active business operation. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase… [Read More]
Businesses are more than just what they produce and put out to the public. While the end goal is to provide a service or a product that will be consumed it takes a lot of input and support resources to achieve that end. Those resources are the assets owned by the company and they provide… [Read More]
A market in economics is a place where goods and services are exchanged for money or other equivalent goods or services. Goods and services can range from everyday staples to luxury goods. An organized market where shares of companies are sold and bought is called the stock market THE REAL SECRET TO BEATING THE MARKET… [Read More]
In finance, valuation is the process of estimating what something is worth. Items that are usually valued are a financial asset or liability. Valuations can be done on assets or on liabilities (e.g. , bonds issued by a company). Valuations are needed for many reasons such as investment analysis, capital budgeting, merger and acquisition transactions,… [Read More]
A company is an association or collection of individuals people or “warm-bodies” or else contrived “legal persons” (or a mixture of both). Company members share a common purpose and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals.
Portfolio is a financial term denoting a collection of investments held by an investment company, hedge fund, financial institution or individual.