Manoj Arora's Blog, page 6

Nominee Vs Legal Heir Vs Owner

We often confuse a nominee as the owner of our financial assets after our death. We cannot be more wrong than this.Let us understand the difference between a nominee, owner, and a legal heir.Meaning of 'Nominee'The literal meaning of a nominee is someone nominated for a job, position, or award.Why to appoint a nominee on your financial assetsAppointment of a nominee ensures that there is an

What is Short Selling of Stocks

Short-Selling, or Shorting is often in the news for all the wrong reasons. In contrast, short sellers make the market more efficient, balanced and matured. Let us understand what short selling is, and how does it help the markets.Before we understand short-selling, we must also understand what long-selling is.Long-Selling (Selling Long / Taking a long position / Going long)Selling long (or going

Mahila Samman Savings Certificate (MSSC Scheme)

 Mahila Samman Saving Certificate (MSSC) is a new small savings scheme was introduced in Budget 2023, specially designed for women investors to encourage investments. In line with other small savings schemes like PPF, SSY, NSC, and SCSS, this new MSSC scheme comes in to bridge the gap in the existing schemes, especially for adult and rural Indian women.Who can open Mahila Samman Savings

Evaluate Company Earnings using EBIT and EBIDTA

EBIT and EBITDA are alternate measures of profitability to net income (or Earnings). These are accounting terms which attempt to represent cash profit generated by the company’s operations.What are Earnings?Earnings of a company are simply their net profits, after taking care of the inflow of revenue and all outflow of taxes, interest to be paid out, depreciation of assets etc. Earnings are the

5 Key Learnings from the IWD Personal Finance Session at Delhi, India

Women are the torchbearers of any society. If you educate a man, you educate one person. But if you educate a woman, you educate one family - BIG difference!It was a room full of energy. It was the occasion of International Womens Day Celebration. Most of the 200 participants were young women who have been skilled at YWCA (Young Womens Christian Association) at Delhi. They were mostly from the

Portfolio Diversification via Gold or Silver?

While both gold and silver are precious metals, the demand-supply forces and the economic sensitivities of both metals are quite different. It is good to understand the difference between the two precious metals as portfolio diversifiers.Gold is God's money. It has virtually no perfect correlation with any other asset class. Many times, it does show reverse correlation with equity asset class,

Minimum Public Shareholding (MPS) Rule for Indian equities

Did you know that it is mandatory for all public companies to give a minimum participation to the public? Why was this rule needed? What advantages does it have? Read on...What is Minimum Public Shareholding (MPS) rule?As per the MPS rule, 25% of the outstanding equity shares of the company must be compulsorily held by the public. Here ‘public’ is defined as non-promoter shareholders. What if

Understanding Solvency Ratio

Before you select any insurance provider - be it vehicle, health or life insurer, make sure that you judge the financial strength of the company by looking at its Solvency Ratio.What Is a Solvency Ratio?A solvency ratio is a key metric used to measure an enterprise’s ability to meet its long-term debt obligations. A solvency ratio indicates whether a company’s cash flow is sufficient to meet its

Investing in International Markets: Pros & Cons

International investing - whether directly via foreign stock exchanges or with mutual funds FOFs (Fund of Funds) is trending with investors. But sane investors are also vary of certain facts before they go ahead with such trendy stuff.WHY International Investing?There is no need to follow the herd. The first question that any investor should be asked themselves is the value addition that any new

Investing in International Markets

International investing - whether directly via foreign stock exchanges or with mutual funds FOFs (Fund of Funds) is trending with investors. But sane investors are also vary of certain facts before they go ahead with such trendy stuff.WHY International Investing?There is no need to follow the herd. The first question that any investor should be asked themselves is the value addition that any new