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Q:

Distinguish between speculator and hedger?

Answer

The main difference lies in the motive of the two parties. The main motive of the hedger is to hedge(minimize) the risk from the occurence of some events. 


The motive of the speculator is to gamble in the market in order to make the profit by buying/selling the derivative products.


 

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Subject: Finance

Q:

What is Retained Earnings?

Answer

When a company or corporation earns a profit or surplus, that money can be put to two uses it can either be re-invested in the business called retained earnings or it can be paid to the shareholders as a dividends.

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Subject: Finance

Q:

What Is Inflaition?

Answer

In economic terms, inflation is the rise in the prices of goods and services in the given economy over a period of time. As the prices rise, each unit of the country's currency will buy fewer goods and services.


when the purchasing power of a currency go down then more money comes to the market it is called inflation.

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Subject: Finance

Q:

What Is EFT?

Answer

Exchange Traded Funds (ETFs) are a relatively new phenomenon and are gaining popularity rapidly. This post outlines the key features of an ETF.


ETFs are like mutual funds because they hold an underlying asset like stocks, debt, commodities future contracts etc. If you are new to the concept of an ETF, think of it as a mutual fund, and build your understanding from thereon. An example of an ETF is the SBI Gold ETF, which holds physical gold as its underlying asset.

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Subject: Finance

Q:

Explain derivatives in terms of capital markets ?

Answer

The term derivative indicates that it has no independent value that is its value is entirely derived from the values of the underlying assets. The underlying asset can be securities, commodities , bullion, currency, livestock or anything else.

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Subject: Finance

Q:

what is the internal rate of return(IRR) of eurekaforbes?

Answer

Internal Rate of Return is that rate of Return at which the net present value is equal to Zero or it is the Rate which equates the present value of the cash inflows to the cash outflows.


NPV = Cash Inflow - Cash outflow


NPV = Zero


 

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Subject: Finance

Q:

What Is EBIDTA?

Answer

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. EBITDA came into wide use among private capital firms, wanting to calculate what they should pay for a business.

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Subject: Finance

Q:

What is Demat Account? what is the use of it?

Answer

Demat means Dematerialisation of share, in simple it is an account with which a person can trade in security market without which a person cannot buy or sell any share in security market. 

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Subject: Finance