Introduction Investing in shares that disburse dividends may be a strategic way to create a reliable income stream and build wealth. While investors are absorbing a higher degree of risk, there’s also the potential for greater returns.Dividends aren’t mandatory payments. Unlike bond coupons, they can be cancelled or lowered. When considering dividend safety, you cannot … Read more
What is The Altman Z Score? Altman Z-Score is a score that indicates the solvency and debt repaying capacity of a company listed on a public exchange. This technique/template is usually used for publicly traded companies in the manufacturing sector. It is a barometer of the credit strength of a particular company. New York University’s … Read more
A leverage ratio is a financial measurement to check out what proportion of capital comes within in the kind of debt (loans) and assess the ability of a corporation to satisfy its financial obligations. The leverage ratio category is vital because companies rely on a mix of equity and debt to finance their operations, and … Read more
What is Technical Analysis? Technical Analysis is a method for estimating the direction and trend of prices of different stocks by studying historical prices, volumes, charts, and various technical indicators. So, in technical analysis, you are only concerned about past market data, prices, and volumes. You are not concerned with the fundamentals of the company. … Read more
Introduction Portfolio Optimization is the technique of choosing the best portfolio from a set of standard portfolios based on their investment objective and investment style. The main difference in these portfolios is the risk-return ratio. The financial risk offered by each portfolio is different. Also, as we know, that, higher the risk, the higher is … Read more
Introduction Monte Carlo Simulation, in simple words, is a risk analysis technique that builds models of potentials results of portfolio returns. It is an excellent risk analysis technique used by many investors of The Wall Street to rate their portfolio on a risk-return basis. The result of this model would be an array of possible … Read more
Before we go into vertical options spread, we need to understand what a spread and an option spread are. A spread is a measure of the difference between two different stocks, yields, prices, or interest rates. An option spread is purchasing two or more options of the same class and the same security but with … Read more
What is Quantitative Analysis? Quantitative Analysis of stocks is a technique that uses mathematical and statistical modeling, functions, formulas, and measurements to understand the behavior of a particular set of data or a variable. It is an approach that uses mathematical and statistical analysis to help determine the value of a financial asset, such as … Read more
Discounted cash flow or DCF is the method for estimating the current value of an investment by taking into account its future cash flows. It can be used to determine the estimated investment required to be made in order to receive predetermined returns. In short, DCF analysis attempts to figure out the value of an … Read more
Introduction In 1988 Geraldine Weiss, renowned as ‘The Dividend Detective,’ wrote the classic ‘Dividends Don’t Lie’, which centralized on the Dividend-Yield Theory as a method of mastering Value Investing. According to her, dividends determine the actual value of a blue-chip company. She disagreed with the theory of valuing a company based on its P/E (earnings) … Read more
