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What is the Current Account Deficit? Current Account Deficit is the measures the flow of excellent services and investment into and out of the country. We run into a deficit if the value of goods and services we import exceeds the benefit of those we export. Now before understanding it in detail let’s know what the current account transactions are? What is the Current Account Transaction? Current account transactions are the transaction which requires foreign…

After reading this post you will understand what smart contracts are? How does it work and why it is viewed as revolutionary? I’ll explain in very easy terms that how smart contracts work, the benefits they offer and the challenges they face. I’ll give you a short summary near the end with some visuals to help you get your head around the concept. What are Smart Contracts? A Smart Contract is very similar to a normal…

What are the Bonus Shares? Whenever a company announces a bonus shares issue, the number of shares held by investors increase in a proportion. Example: 1:1 Bonus Shares means your no. of shares that for every share held by you, you will get an additional share. The no. of share will double. For example, let’s say before the bonus share issue if you had a 100 share in a certain company and the company announces…

What is Term Insurance? Term insurance is pure life insurance policy that is effective for a specific period. So, when the policyholder dies in the time of policy period, then sum assured legal hire or nominee is paused. If the policyholder survives till the time of policy, then no money can be repaid on the term end. So, term insurance is the same as a vehicle insurance. This is a Purest Life Insurance Policy. You…

In this article, we are going to talk about the matrics which help you to evaluate a company. The metrics are EBITDA. It is nothing but earnings before interest, taxes, depreciation, and amortization. Here earning is nothing but the net profit of the company that total income – total expenses give you the net profit. EBITDA Formula EBITDA = Net Profit + Interest + Taxes + Depreciation + Amortization Net Profit = Total Income – Total Expenses…

What are the Debentures? Whenever a company needs funding for its extension and development, in such a situation, the company issue his shares. But if the company does not want to increase its share capital, then the company can borrow money from the public, by issuing some certificates, we call the debentures. These certificates are for fixed period times and the rate of interest is also fixed on it. Features of Debentures 1. A debenture holder…

If you read these inspirational books then I’m sure that your mind will change instantly. Regardless of how different we are, each and every single of us is trying to become financially free, that’s like an international objective that everyone has, especially those who say that money isn’t important at all. Because, in most of the cases, these are the people who work 9 to 5 for all of their life! And that’s why you…

What is EPS? Most people call it Earning Per Share or EPS. It will tell you how much profit will be on each share of the company if the profits are divided. Therefore formula of Earning Per Share becomes EPS= Net Profit ÷ Total No. of Shares For example, if one assumes that a company has earned 1 crore in the net profit of 1 crore and if there are 1 lakh shares of this company…

Most of us look for tax saving options only in the month of March i.e the end of the financial year. At that point in time, you must be heard about the acronym ELSS. But instead of digging into waters ELSS, we make some random tax saving investment decisions. What is ELSS? It is a diversified equity mutual fund where the majority of the corpus is invested into equities. Investor enjoys two benefits one is he…

Money Market Instruments Money Market instruments include the debt of securities that are supposed to be redeemed within the very short period and there is no risk of default. Features of Money Market Instruments Highly liquid and can be encashed easily. Very close substitutes for money. Very low-risk securities. Short-term debt Instruments. 10 Popular Types of Money Market Instruments 1. Treasury Bills – (T-Bills) Treasury bills are issued by the central government. It is known to…