What is the Fair Market Value? Fair market value FMV is the price at which one can purchase an asset under normal market conditions. The fair market value represents the accurate valuation of asset under the following conditions: Both the...

What is Face Value of Share? Face value is the original value of a share shown on the share certificate. In other words, it refers to the value listed on share certificates, digital records, and books. The face value is...

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...