The following points highlight the four main types of shares offered by a company. The types are: 1. Equity Shares 2. Preference Shares 3. Non-Voting Shares (NVS) 4. Other Forms of Shares. Type # 1. Equity Shares: An equity interest in a company may be said to represent a share of the company's assets and a share of any profits [...]
Municipal bonds are bonds raised by municipal bodies or local governments for financing core urban infrastructure facilities like drinking water, sanitary systems, solid waste disposal systems, road, hospitals etc. Generally municipal bonds are broadly of two types. Municipal bonds are the ideal instruments for raising resources, channelling funds from capital market into infrastructure development. They are long-term in nature, unlike [...]
The following valuation methods are generally used basing on the industry averages or averages of a similar company in the same industry: 1. Dividend Yield Method 2. Earnings Yield Method 3. Return on Capital Employed Method 4. Price/Earning Method. 1. Dividend Yield Method: Ownership of shares in a company entails the holders of shares to receive dividends as and when [...]