When investing, the most important rule to remember is to diversify. Diversification of investment portfolio is very important as it helps spread the risk and bring stability in the long term. While most investors are already diversifying their investments across...

What is Dividend Yield? Dividend Yield is a financial ratio that measures the quantum of dividends that the company pays to its shareholders each year relative to its current market price per share. In simple terms, it is a percentage...

What are Common Stocks? Common stock, also known as ordinary shares or common shares, is a security that reflects the investor's ownership of a company. Holding this stock offers investors the power to elect the company's board of directors and...

Whenever investors talk about the stock markets in North America or around the world, two major exchanges come to mind - NYSE and NASDAQ. Both are the world's largest stock exchanges with the largest market capitalisation. The buying and selling...

Both Dow Jones and NASDAQ index are popular US Stock Market indices that list stocks across various sectors that investors can track. Both are popular indices, and most investors use them with similar connotations. However, there are certain differences between...

What is Liquidity Trap? In economics, liquidity means a state of having more cash. While liquidity trap means a situation where too much cash circulating in the economy becomes a problem. Here, cash does not mean physical cash. It refers...

What are Bond Funds? Bond funds are a type of debt mutual fund that invests solely in bonds. These funds pool money from investors and invest in one form of bond (for example, government bonds) or a mix of bonds...

There are different ways in which a company, business, legal entity or government can raise capital for different purposes for their operations. In other words, there are distinct forms of capital structure that can be formed by any business based...