What are the ordinary shares or equity shares?

What are the Ordinary Shares or Equity Shares? Features, Benefits, Limitations

Ordinary shares, or equity shares, are the most common type of stock issued by a company. When you buy ordinary shares, you’re essentially purchasing a piece of ownership in the company. This ownership comes with certain rights and potential rewards, but also some risks.

What are the preference shares?

What are the Preference Shares or Preferred Stock? Advantages and disadvantages, Features, Similarities and Differences

Think of preference shares as a special class of stock that grants investors certain privileges over common stockholders. The key benefit lies in dividends. Preference shareholders have the right to receive dividend payouts before any dividends are distributed to common shareholders. These dividends are typically fixed, meaning they represent a set percentage of the face value of the share.

what is business valuation

What is Company Valuation? How to Calculate it? Objectives and Limitations [PDF Inside]

Business valuation, also known as company valuation, is the process of estimating the fair market value of a company. It involves analyzing various financial and non-financial factors to determine the intrinsic worth of the business, not just its current market price.

who are the barefoot entrepreneurs?

Who are the Barefoot Entrepreneurs? Why They Struggle to Succeed?

The term “barefoot entrepreneur” evokes a distinct image: resourceful individuals operating small businesses outside the formal regulatory and tax frameworks. They navigate the bustling streets, dusty markets, and vibrant communities of the informal economy, driven by the desire for self-reliance and economic opportunity. These entrepreneurs, often overlooked in traditional economic models, play a crucial role in providing essential goods, services, and employment, particularly in developing countries.

What is monetary policy?

What is Monetary Policy? [PDF Included] Tools, Challenges, & Objectives

monetary policy is simply a set of tools used by a nation’s central bank to manage the money supply and achieve specific economic goals. Think of it as a conductor, wielding a baton to influence the orchestra of the economy, aiming for a harmonious balance between growth, stability, and price control.

The Multiplier Effect essentially amplifies the initial change in spending like ripples on a pond. Each round of spending and income generation contributes to a cumulative effect, ultimately leading to a significantly larger increase in total economic output compared to the initial injection. This makes the Multiplier Effect a crucial concept in understanding economic policy and its potential impact on key metrics like national income, employment, and economic growth.  Demystifying the Mechanism: How the Multiplier Effect Works its Magic

What is Multiplier Effect in Economics? [PDF Inside] How it Works, Practical Implications & Debates

The Multiplier Effect essentially amplifies the initial change in spending like ripples on a pond. Each round of spending and income generation contributes to a cumulative effect, ultimately leading to a significantly larger increase in total economic output compared to the initial injection. This makes the Multiplier Effect a crucial concept in understanding economic policy and its potential impact on key metrics like national income, employment, and economic growth.

 Demystifying the Mechanism: How the Multiplier Effect Works its Magic

What is EBITDA?

What is EBITDA? Why it Matters? [PDF Inside] Calculation, Limitations, Interpretation, & Case Studies

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s essentially a way of looking at a company’s financial health through a specific lens. Imagine it as a financial x-ray that strips away financing choices, tax complexities, and accounting estimates, allowing us to focus on the core operational muscle of the business. By excluding these non-operating factors, EBITDA gives us a clearer picture of how efficiently a company generates cash through its core business activities.

What is depreciation?

What is Depreciation? Understand Depreciation in Simple Words. (PDF Inside)

Depreciation is an accounting practice that recognizes the gradual wearing down or obsolescence of assets. Instead of considering their purchase price as a one-time expense, it spreads that cost over their estimated useful life. This allows businesses to accurately represent their financial health and profitability, reflecting the declining value of their assets and preventing misrepresentation of their real worth.