Personal Finance Articles

What is Financial Planning? Financial planning is a step-by-step approach in determining how you would meet your life goals with your money. A good financial plan will help you to remain in control of your expenses and investments at all...

What are Financial Instruments? A financial instrument is a legal contract between the parties who are a part of the transaction that holds a monetary value. The monetary assets can be traded, created, modified or settled as per the parties'...

​​Financial derivatives are contracts whose value is derived from the underlying asset. Hedgers and speculators widely use these contracts to take advantage of market volatility. The buyer of the contract agrees to buy the asset at a specific price on...

A country needs funds to grow its economy. While approaching domestic sources is one way, approaching international sources is another way. There are two ways a country can get capital through international sources. Namely, Foreign Direct Investment (FDI) and Foreign...

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...

What are Exchange Traded Derivatives? Exchange Traded Derivatives (ETD) are standardised contracts that trade on the stock exchange in a regulated conduct. The exchange determines the expiration date, settlement process, and lot size and explicitly states the underlying instrument of...

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...