Mina Mar Group

Equity Shares  They are categorized under long-term sources of finance because legally they are irredeemable in nature. For an investor, these shares are a certificate of ownership in the company by virtue of which investors are entitled to share the net profits and have a residual claim over the assets of the company in the event of liquidation. Various Prices of Equity Shares: - Par or Face Value - Issue Price - Share Premium and Share at Discount - Book Value - Market Value Types of Equity Shares: - Authorized Share Capital - Issued Share Capital - Subscribed Share Capital - Paid-up Capital - Rights Share - Bonus Share - Sweat Equity Share  Equity Share Investment Advantages: - Dividend - Capital Gain - Limited Liability - Exercise Control - Right Shares - Bonus Shares - Liquidity - Stock Split Disadvantages: - Dividend is not fixed/controllable - High Risk - Fluctuation in market price - Limited control - Residual Claim  Equity Financing refers to raising capital by g...

1. Blue Chip Stocks Stocks of a large and well established company that is consistently profitable. 2. Income Stocks Stocks that pay consistent and growing dividends in good and bad times. 3. Growth Stocks Stocks that are anticipated to grow at a rate above the average of the market cyclical. 4. Defensive Stocks  Stocks that pay a constant dividend regardless of the market conditions. 5. Cyclical Stocks Stocks affected by changes in the overall economy. 6. Penny Stocks Stocks with prices under $5 and are know to be volatile.

Futures contract or just futures is an agreement between two parties to buy or sell assets at a predetermined price at a specified date in the future. Underlying asset can be stock market index, currencies or most common commodities - oil. gasoline and gold. Buyer of the future has the obligation to buy the underlying asset when the future contract expires just like the seller has the obligation to provide the asset at the expiration date. Futures that are traded on commodity future exchanges are more standardized and regulated like Chicago Mercantile Exchange or  New York Mercantile Exchange. Standardized contract means that for instance, one future oil contract is for 1,000 of oil and one gold contract is for 100 troy ounces of gold. The Commodities Futures Trading Commission regulates the exchanges and require buyers and sellers to be registered. Futures are used by two types of market participants - hedgers and speculators. Guarantees to buy or sell at a cert...

Roll -Up is a type of Merger&Acquisition strategy. It happens when smaller companies in the same market or industry sector are merged into one large entity. Reasons for consolidation include economy of scale, expanded geographical coverage, better name recognition and increase in value. Merger of smaller companies happens in fragmented industries where there is no dominant company or where is one dominant player and none of the small companies can challenge its dominance. Usually it is the private equity firm that does investment thesis, using analysis to identify target companies for an acquisition. If you as an owner want to buy more smaller companies and merge them into one entity the deal is most often done as a combination of cash and equity in exchange for ownership stake at the acquired company. Before the deal is done there are several very important questions that need to be answered. Are the target companies good match? What additional products/services/value...

Many beginners in investing dream about getting rich and becoming a seasoned investors. It is not an easy task but it is not impossible. If you are serious about investing the first thing you need to do is stop dreaming about becoming rich and successful overnight. You probably heard it many times but that's because it true- patience is the key. You will have to learn how to think long term and not make hasty decisions that you will regret later. Another thing that you have to do before you start is to get to know yourself - what is your goal, what motivates you and also very important your fears and limitations. Knowing what you want will help you devise an investing plan and stick to it as well as knowing your limitation. So far it is a good start but it is not enough because you will have to educate yourself continually about investing, but don't let your lack of knowledge hold you back. Stock market is ever changing and learning about it is a lifelong journey so if...

Special purpose vehicle/entity (SPV/SPE) is separate legal entity created by an  organization for specific, often narrow and temporary purpose, typically to isolate company from financial risk, including bankruptcy.It can be understood as subsidiary of larger company but it has its own assets and liabilities. There are several uses of special purpose vehicles. Because every project carries certain amount of risk parent company will use SPV to shield itself from risk in a legal way. This way companies can execute large financial projects without putting the whole firm at risk. Securitization of loan is another common usage of SPVs. It is used when banks that issue mortgage-backed securities whose payment comes from pool of loans. In order to ensure that investors in mortgage-back securities are payed first bank will establish SPV, separating it from other obligations and giving it a priority in payment. Management of assets with exceptionally complex financial ...

In short, option gives the buyer the right but not the obligation to buy or sell an underlying asset at a set price during the life of the contract. They are considered financial derivative namely derivative is a financial instrument with a price that is based on an underlying asset. In other words price of the option derives its value from the underlying assets that can be futures, commodities, currencies, securities or indexes. Usually they are purchased through online or retail broker. We will discuss stock options where underlying asset is stock. For example option on stock ABC gives option holder the right to buy or sell ABC stock at a strike price up until expiration date. In this case underlying asset is ABC stock because the price of the option is based on the stock price. Writing an option refers to investment contract in which fee is paid for the right to buy or sell shares at a predetermined future date. The fee paid depends on several factors like current price...