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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