An ESOP or an employee stock ownership plan is a strategic employee benefits plan. It is designed to reward employees with an ownership interest in the company. In other words, it is a profit-sharing plan devised by the company to...

Equity shares are popular investment options among investors. Equity shares offer fraction ownership of the company. Therefore, equity shareholders are considered as part owners. Equity shares are issued to the general public for the first time through an Initial Public...

The total amount of equity shares associated with ownership of the company is the equity share capital. The equity share capital is also the difference between the total assets owned by the company minus all the liabilities on the balance sheet.

What is Equity Ratio? The equity ratio is an accounting ratio. It compares the entire equity in the company to the total assets to determine how much of the assets are financed by the owners' capital. The equity ratio emphasizes...

Various financial ratios help analyze a company fundamentally before investing. One of those financial ratios is Earnings Per Share (EPS). EPS compares the company's profit and the number of outstanding shares. What is Earnings Per Share? Earnings per share refer...

What is Draft Red Herring Prospectus? A Draft Red Herring Prospectus (DRHP) is an 'offer document' or 'preliminary registration document' that a company files with the Securities and Exchange Board of India (SEBI). The document introduces a new business or...

Dividend is the amount distributed to shareholders of a company. Companies use it as a mode to distribute the company's profits to its shareholders. Mature companies with consistent earnings over the past few years pay dividends to their shareholders. Also,...

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...