Dividend related terms all investors should know

What is a dividend? Dividend is the payment that a company makes to shareholders as part of their rewards for holding shares in the company.  This payment is usually made from the earnings of a company in a particular period. However, dividend is dependent on a company’s earnings. This means that a company may choose not to pay dividends in a particular year if its performance is not impressive. However, there is a class of stocks that entitle its holder a guaranteed dividends every year. This type of stocks is called preferred stocks. Preferred shareholders enjoy fixed income every year. Continue ReadingDividend related terms all investors should know

Bull Market: How Investors React Differently

What is Bull market? Bull market can be described as when prices of stocks listed in the stock exchange rise consistently for a period of time. The period may last for months or years. Before a market can be described as a bull market, it is expected that the prices of nothing less than eighty per cent of the stocks listed in the particular exchange should be on the rise. As a result of the rise in prices of most of the stocks in the market, this is expected to force the market index to rise too. The extent to Continue ReadingBull Market: How Investors React Differently

How to Use Present Value Calculator

Present Value Calculator seems to have come to the rescue of those people who cannot successfully apply the complex formula that was developed for the calculation of present value of annuity. But whether you are using the present value calculator or the formula to work out what the present value of an annuity is, the variables still remain the same. Without your understanding of these variables, you may not actually know how to apply them correctly. The danger is that, if you don’t get the variables right, you will always get the wrong result. This can result to a wrong Continue ReadingHow to Use Present Value Calculator