Articles

There exists a wide range of investment options that an individual can consider. While evaluating various investment options, debentures may emerge as a compelling alternative to more conventional choices, such as fixed deposits, or even shares. 

Flow of Funds (FOF) are financial accounts that trace the inflow and outflow of funds between sectors in an economy. 

A non-operating expense is a type of expense incurred by a business or organization which is not directly related to its primary operations or core business activities. These expenses typically arise from sources outside of the company’s normal operations.

To understand what is Convertible Bond Arbitrage, let’s quickly brush up ‘convertible bonds’ and ‘arbitrage.’ Companies looking to raise short-term capital do so by issuing bonds. In return for investing in them, companies pay a fixed percentage as an interest to their investors. 

Before investing in stocks of any company you must have a clear picture of its financial position. This helps you determine if it is profitable to invest or not. Only if the company has its finances in order, it will be able to manage its operations and earn profits for you. It is critical to invest in a company that is financially healthy.

Any profit-making company has two choices – it can either retain its profits and use them to pay off its financial obligations and reinvest or it can distribute them among its shareholders. Dividend is the share of the company’s profit it distributes among its shareholders.