The Face value, also known as par value, is the original price of a share or bond set by the issuing company. In the case of shares, it represents a fraction of the company’s share capital and has only a minimal impact on the market price, which is influenced by supply and demand. For bonds,
The price/earnings ratio (P/E ratio) compares a company’s share price with its earnings and helps investors to assess whether a share is overvalued or undervalued. It is calculated as market price per share ÷ earnings per share (EPS) and reflects market expectations. A high P/E ratio often signals growth potential, while a low P/E ratio
One advantage of investments is that they generate passive cash flow. Some companies share a percentage of their net profits with their investors. The distribution of ordinary shares is optional and yields on the market are relatively low. However, there is a method by which investors can achieve a consistent and high return. Let us
The market capitalization, or “market cap,” is the value of a company’s publicly traded shares multiplied by its current share price. According to their market caps, companies are classified as small-cap, mid-cap, and large-cap, with each category presenting varying levels of risk and growth potential. The market cap of a company does not directly affect