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What Is Cryptocurrency's Purpose?

Many elements of our lives have altered as a result of the digital era, including how we access information and communication throughout the world. With the introduction of cryptocurrencies, this pervasive digitization has left its stamp on money as well. But, you could wonder, what is the purpose of cryptocurrencies. In many respects, the emergence of cryptocurrencies typifies the digital era: after all, money is an abstraction of value exchange between individuals, and cryptocurrencies have the ability to measure, record, and transmit value transactions on a wider scale than ever before. These coins are run on decentralized communal networks and are available 24 hours a day, 7 days a week, from anywhere. In other words, cryptocurrencies are digital assets that are widely accessible and suitable for use in a digital environment. The Rise of Cryptocurrencies  Look no farther than the evolution of Bitcoin, the world's first cryptocurrency, to understand why cryptocurrency markets ar...

Equity

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...

OTC Markets' Warning Symbols Explained

The OTC Markets, which are divided into three tiers: the OTCQX Best Market, the OTCQB Venture Market, and the Pink Market, trade over 10,000 securities. The Pink Market trades a wide range of firms, including overseas corporations with limited disclosure in the United States, penny stocks and shell companies, as well as troubled, delinquent, and dark companies who are unwilling or unable to offer information to investors. The amount of publicly available data varies from firm to company. OTC Markets has designed investor protection symbols to warn against firms that may entail greater risk than others, in order to assist investors to better understand the risks connected with these securities and to give more transparency. On otcmarkets.com, numerous of these symbols may show on a corporate quote page. Here's a breakdown of what each one represents.   BANKRUPTCY   This indicator denotes that the firm has filed for bankruptcy or has indicated its intention to do so. This w...

Ratios For Stock Picking

  1. Price to Earnings ratio The price to earnings ratio is one of the most widely used financial ratio analysis among the investors for a very long time. Price to Earning ratio= Price Per Share/Earnings Per Share  As a thumb rule, a low P/E ratio is preferred while buying a stock. 2. Price to Book value Price to book ratio (P/B) is calculated by dividing the current price of the stock by the latest quarter's book value per share. Price to Book ratio=Price per share/Book value per share A lower P/BV ratio could mean that the stock is undervalued, but again the definition of lower varies from sector to sector. 3. Debt to Equity ratio The debt-to-equity ratio measures the relationship between the amount of capital that has been borrowed (i.e. debt) and the amount of capital contributed by shareholders (i.e. equity). Debt to Equity ratio=Total Liabilities/Total Shareholder Equity As a thumb of rule, companies with a debt-to-equity ratio more than  1 are risky. 4. Return on E...

6 Types of Stocks

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.

Ratios for Stocks

P/E Ratio Price to earnings ratio is the share price to earnings per share. P/S Ratio  Price to sales ratio is the share price to revenue per share. P/FCF Ratio Current share price divided by the free cash flow per share. PEG Ratio  Similar to the P/E ratio but adjusted for expected growth. P/B Ratio  Company market value divided by net assets (book value). EV/EBITDA Enterprise value divided by earnings before interest, tax, dep & amort. MinaMarGroup.com

What is the role of transfer agent?

Transfer agent, usually trust company, bank or another financial institutions assigned by a corporation has several duties including maintaining issuer's security holder record, canceling/issuing certificates and distributing dividends among others. Because transfer agent stands between company that issues securities and security holders, transfer agent is crucial for successful completion of secondary sales. Pursuant to 1934 Act, transfer agent must be registered with the SEC or bank regulatory agency if transfer agent is a bank. The SEC also conducts inspections of transfer agent. Companies themselves can act as their own transfer agent. Transfer agent keeps record of who owns company's  stocks and bonds and how many each shareholder or bondholder owns. Also transfer agent issues and cancels certificates to reflect changes in ownership. In case of stock split or stock dividend transfer agent will issue new shares to shareholders. Just like stock transfer agent makes s...