What are the different types of issues in Primary capital Market?
Who are the parties involved in Capital Market?
There are different ways for offering new issues in the primary capital market. Primary issues made by Indian Companies can be classified as follows: a. Public Issue This is one of the important and commonly used methods for issuing new issues in the primary capital market. When an existing company offers its shares in the […]
Functions and Significance of a Capital Market
Capital Market is a market for long-term funds. It requires a well-structured market to enhance the financial capability of the country. The market consists of a number of players. They are categorised as: 1. Companies Generally every public company can access the capital market. The companies which are in need of finance for their projects […]
Why Capital market is important?
Capital market plays a vital role in the development by mobilising the savings to the needy corporate sector. In recent years there has been a substantial growth in the Capital Market. The Capital Market involves in various functions and significance. They are presented below: Coordinator The Capital Market functions as coordinator between savers and investors. […]
What is DuPont analysis? Formula and practice
Capital market plays a vital role in a country’s economy. Capital market deals with long-term funds. These funds are subject to uncertainty and risk. It supplies long and medium term funds to the corporate sector. It provides the mechanism for facilitating capital fund transactions. It deals in ordinary shares, bond debentures and stocks and securities […]
Capital Gearing Ratio And It’s Formula/Calculation
The DuPont Corporation developed this analysis in the 1920s. The name has stuck with it ever since. The DuPont analysis is also called the DuPont model. It is a financial ratio based on the return on equity ratio that is used to analyse a company’s ability to increase its return on equity. In other words, […]
Stock-working capital ratio And It’s Formula/Calculation
Capital Gearing ratio brings out the relationship between capital carrying fixed rate of interest or fixed dividend and capital that doesn’t carry fixed rate of interest or fixed dividend. This ratio indicates degree to which capital has been geared in the capital structure of the company. Alternatively this ratio is also known as "Leverage ratio" […]
Proprietary Ratio And It’s Formula/Calculation
Stock-working capital ratio establishes relationship between stock and working capital. Alternatively it is known as "Inventory-working capital ratio". This ratio shows the extent to which the working capital is blocked in inventories. This ratio highlights the predominance of stocks in current financial position of organization. A higher ratio indicates week working capital. This ratio is […]
Liquid ratio And It’s Formula/Calculation
Proprietary ratio is a test of the financial and credit strength of the business. It establishes relationship between proprietors to total assets. This ratio determines the long term solvency of the company. Alternatively this ratio is also known as Worth Debt Ratio. Net worth to Total Assets Ratio, Equity Ratio, Net worth Ratio or Assets […]
Current Ratio and it’s formula/Calculation
Liquid ratio expresses the relationship between liquid assets and liquid liabilities. This ratio is also known as quick ratio or acid test ratio. It is calculated by dividing liquid assets by liquid liabilities. Standard quick ratio is 1:1. This ratio indicate immediate solvency of enterprise. Unlike Current Ratio this is more qualitative concept. As it […]
Current ratio is also known as working capital ratio. It expresses the relationship between current assets and current liabilities. This ratio is calculated by dividing current assets by current liabilities. It is expressed as pure ratio, standard current ratio is 2:1. Means current assets should be double the current liabilities. This ratio tests the credit […]