Right Issue – Practical Aspects

What will be the effect on issue of right shares? Why it is not issued in market directly? Will the shareholders be at any profit/loss? Let us move by defining it and the case onwards.


What is right issue of shares?

Right shares are simply the shares issued to the existing shareholders of the company at a discounted price by the company. It is called so because the existing shareholders have the “right” to buy it, sell it or ignore it. For e.g. – Say the market price of share is Rs. 1500, then the company will offer right shares at less than Rs. 1500 say Rs. 1000. Read More »


Making Money out of FOREX and IR Swaps

Arbitration in Forex

Arbitration in forex is the possibility that the profit can be made out of exchange trading on the basis of forward rate and prevailing interest rate in 2 different countries.
Profit can only be made if returns made by borrowing from one country and depositing in other country fetches more return that keeping money for conversion at a later date at forward exchange rate. Let me show you this with the help of an example: Read More »

Mutual Funds – Practical Aspects

What are Mutual Funds?

Mutual funds are nothing but units of investment, like of shares or debentures, issued by a Mutual fund company. They are professionally managed collective investment vehicle which pools investments to purchase securities. An investor can purchase units of Mutual fund instead of directly investing in stock market and get proportional return in the form of dividend. Read More »


XBRL Simplified

What is XBRL?

Standard definition – XBRL stands for eXtensible Business Reporting Language. It is a language for the electronic communication of business information, providing major benefits in the preparation, analysis and communication of business information.  It offers cost savings, greater efficiency and improved accuracy and reliability to all those involved in supplying or using business information.

Explanation 1 – What a company has in a non-XBRL world is a bunch of pdf files, excel and html files with it. And combining those we get monolithic information… (Means hard to analyze). Every company is filing in its own format. It will take much time to analyze those information. In XBRL world, each piece of information is assigned a particular (taxonomy) so that every company’s financial statement can look alike so it can be analyzed and can be even passed on to other company very easily. Globally it is very beneficial. Read More »

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