Significance of Debt to Equity Ratio

What is debt to equity ratio? Before I start discussing about the meaning and significance of debt to equity ratio, the best place to start is to define financial ratio. The reason is that, without having a basic knowledge of financial ratios, you may find it difficult to understand what the debt to equity ratio is all about. What is financial ratio? Financial ratios are the tools used in establishing relationship between a company’s financial information for the purpose of comparison. Financial ratios can be used to compare a company’s past performance or with the performance of other companies within Continue ReadingSignificance of Debt to Equity Ratio

How not to fall victim of pump and dump scheme

Have you heard about pump and dump scheme? Possibly yes! But if I may ask you, what do you understand by pump and dump stocks? If you are an avid investor, you might probably know the meaning. But there are many beginner investors here who may want to understand its meaning. Therefore, before I go to the thrust of the article which is “how not to fall victim of pump and dump scheme” it is important that you understand the term. The reason is simple. If you are running on a road and you don’t know that there is a Continue ReadingHow not to fall victim of pump and dump scheme

Stock Market: Bear Market Explained

What is a bear market? Bear market is a term used to describe downward movement in stock prices over an extended period. In another word, when there is a downward trend in stock prices, it will be said that the market is bearish. Bearish market can last for months or years depending on the prevailing circumstances. Baer market can happen within one or more specific sectors. It can even cut across the entire stock market.  Please note that bear market is not restricted to stock market only. The term is used in financial markets generally and it means the same Continue ReadingStock Market: Bear Market Explained