Understanding SIP

You Earn Regularly… You Spend Regularly… Do You Invest Regularly? Systematic Investment Plan (SIP), is a is a simple and time honored investment strategy for accumulation of wealth in a disciplined manner over long term period. SIP or systematic investment planning is method through which you can invest in mutual funds through small and periodic installments. Infact you can invest as low as Rs. 1000/- on a monthly basis. Moreover you...

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4 Key Ratios for Fundamental Analysis of stocks

Hi Friends, It has been quite a few days that I last wrote about the Fundamental Analysis (see EPS). I was pretty busy with the regular work and couldn't devote time to this blog. Today, I have decided to give a shot at other important financial ratios that should be considered while buying/selling stocks. I have decided to put 4 of them in a single post as against my original wish to devote a separate post for each one. This is to avoid...

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What happened in Dubai?

We suddenly found our markets go deep in red this Friday (11/27/2009). There was some buzz about something happening in Dubai that sent the entire world financial markets on a downward spiral. Every minister in Indian government was talking about this. RBI asks all the banks to declare their exposure in Dubai. So what was it that could transpire in something so big? Let's try and ind out. Dubai has been one of the many economies...

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Earnings Per Share (EPS)

It has been quite a few days that I posted here. I was actually not able to decide where to start.After due diligence, I decided to start with the most basic of the fundamental tools: THE EPS a.k.a. Earnings per Share. Why is EPS so Important While evaluating two companies, one needs to compare the companies on a common basis. We can't compare them on the basis of their market price as that changes daily and also doesn't represent...

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Evaluating Shares

We will try to understand few of the key methods to find out if a company is worth investing or not. With the number of companies in the market today, it is really tough to figure out which is worth investing. This is a time consuming exercise but if followed, it can provide rich dividends. There are mainly 2 ways of selecting stocks. Fundamental Analysis - This is to know how good is a company and to invest in it for a long term. Fundamental...

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What is Face value and book value?

Past few posts we have been metioning this word (face value) a lot. So, what is face value? How is it different from the market value of the share? Why do we need this? How does it matter to me as a share holder? We will try to answer some of these in this post. Face Value By the definition of it, Face value is the value of a coin, stamp or paper money, as printed on the coin, stamp or bill itself by the minting authority. While...

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Results of the Poll

Hello Readers!!! Time for the results of the poll we've been running for the past one month. The poll was to see what should we post more on? There were 21 votes in total. The results are as follows: Financial Literacy (Accounting) 5 (23%) Insurance 1 (4%) Investments (Mutual Funds, Stocks) 11 (52%) Taxation 4 (19%) For your information, we have already started posting on Investments. This would be more of a fundamental basics series. Please see Investments on the blog. Thanks a lot for your responses and showing interest....

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Did your company just Split Shares?

Thought to do a separate post on share splits after getting a lot of comments/questions on this. see comments at http://taxingsalaried.blogspot.com/2009/10/what-is-bonus-share.html.So here is a humble try to explain what a share split is. What is a share split When a company splits its shares, it agrees to issue additional shares to the existing share holders, but it doesn't intend to issue new shares like in a Follow-on Public...

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Recession Over???

The last one and a half year has been like hell for every one. The economy of the entire world slowed down drastically forcing organizations to cut jobs and sending the economy in a downward spiral. Some of the most common questions these days are: Is recession coming to and end? Is economy showing an improvement? Has the employment rate recovered? Recession is generally described as "a period of economic decline". Lets find out some...

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Dividend Explained...

To carry on what we started with "what is a bonus share?", let's discuss dividends today. Definition of Dividend That part of the earnings of a corporation that is distributed to its shareholders; usually paid quarterly. When a 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 dividend. Many corporations...

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5 investing lessons from the T20 loss

There can be quite a few similarities between Cricket and Investments. Let us see what we, as investors, can learn from this: 1. Past perfect, future tense In the T20 format, it is far more difficult to predict than in other longer formats. In the equity markets too, the shorter the time duration, the more difficult it is to predict. Just as how no fund manager knew at 21,000 sensex that the market can come down to 9,000, even those...

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What is a Bonus Share

Reliance Industries has declared a Bonus issue of 1:1. WoW!!! But what does it mean? How does it affect me? Should I purchase RIL shares now? We will try to get answers to these questions today. What is a Bonus? Free shares of stock given to current shareholders, based upon the number of shares that a shareholder owns. While this stock action increases the number of shares owned, it does not increase the total value. This is...

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RIL announces 1:1 bonus issue

Mukesh Ambani group firm Reliance Industries (RIL) today said it will issue one bonus share for every share held in the company.The board of directors of the company at its meeting held today, recommended issuance of bonus shares in the ratio of one equity share of Rs 10 each for each share held, RIL said in a filing to the Bombay Stock Exchange (BSE). The issue of bonus shares is subject to the shareholders' approval, it added. The board has also declared a dividend of Rs 13 per fully paid-up equity share of Rs 10 of the company...

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Taxing Salaried is back

It has been quite a long time since I posted here. I know this was wrong on my part to leave the blog orphaned but I was busy with some of the other issues which are generally not in anyone's control.Now, I'm back and am determined to not let this happen again. I was thinking of where to start again? So guys, please help me. Suggest a few topics that we can take up here and discuss. Please visit the blog, share your comments or vote on so that I can decide on what to take u...

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