INVESTING ESSENTIALS

Definition: Undervalued refers to a company, asset, or security that is not currently trading at its true market value. The underlying assets or future prospects of the asset are considered to be greater than its current market price. Characteristics: Reasons for Undervaluation: Examples: Risks: Conclusion: Undervaluation can be a valuable investment strategy, but it is […]

Bharat Bill Payment System (BBPS) is a National Payments System (NPS) in India that facilitates online payments for various bills and services. Launched in 2016 by the National Payments Corporation of India (NPCI), BBPS has revolutionized the bill payment process in the country. Key Features of BBPS: Benefits of BBPS: Target Audience: BBPS is primarily […]

A prospectus is a document that provides a detailed overview of a company’s business, operations, and prospects to potential investors. It is a public offering document that is prepared by a company in accordance with securities regulations. Key Elements of a Prospectus: 1. Company Overview:– Company name, address, and contact information.- Brief history of the […]

A clearing house is a financial institution that acts as an intermediary between buyers and sellers in a transaction. It facilitates the settlement of payments and the clearing of checks and other instruments. In other words, a clearing house acts as a central point where all parties to a transaction converge to complete the necessary […]

The time horizon refers to the length of time over which a particular financial statement or economic projection is made. It is used to indicate the future date or period to which the forecast or projection applies. Key factors affecting time horizon: Common time horizons: Examples: Importance: Note: The time horizon is a key concept […]

Investment Management Investment management is the process of making financial decisions on behalf of individuals, institutions, or other investors. It involves developing and implementing investment strategies that are aligned with the investor’s goals and risk tolerance. Key Components of Investment Management: 1. Investment Objectives: Determining the investor’s specific goals and risk tolerance, such as saving […]

Securitization Securitization is the process of transforming illiquid assets into tradable securities. It involves bundling together a pool of assets, such as mortgages or consumer loans, and creating a new security that represents ownership in the pool. Process of Securitization: Asset Pool: A pool of assets is selected that are similar in risk and maturity. […]

Sure, here is the full form of GIC: Guaranteed Investment Certificate. GIC stands for Guaranteed Investment Certificate. It is a type of fixed deposit offered by banks and other financial institutions in India.

Revaluation Revaluation is a process of reassessing and revising the carrying value of long-term assets, such as land or buildings, at a specific point in time. It is typically performed when there has been a significant change in market conditions or other factors that may have affected the value of the asset. Purpose of Revaluation: […]

Sure, here is the meaning of the word “basis”: basis – the foundation or starting point from which something is built or derived. Key points: Foundation: The basis is the underlying framework or structure that supports the entire structure. Starting point: The basis is the point from which something originates, develops, or is derived. Composition: […]