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Paytm decides stock buyback — what's hot and what's not hot for you about stocks buyback policy.
As the board considers a buyback, Paytm shares increase in Dalal Street.
Paytm stock is down 60% in 2022 following a much-watched debut in the latter part of last year because of concerns about profitability and expenses associated with marketing and employee stock options.
When stock is repurchased, shareholders receive the market value of their shares plus a premium from the corporation, which is a benefit to all shareholders. Additionally, stockholders who sell their shares on the open market will profit directly if the stock price increases prior to the buyback.
An effective stock buyback can maintain stock prices, streamline ownership, and replace dividends, all of which are advantages for companies. Although a repurchase doesn't always benefit investors, it can since investors get their capital back.
Share repurchase plans have always had benefits and drawbacks. The real worth of stock buybacks has been questioned recently, though, since their frequency has increased. According to some corporate finance specialists, firms take advantage of them to artificially boost certain financial figures, such as EPS, in the name of benefiting shareholders.
Part II—Quarter profit or beating market estimates in sales may not enrich your stock portfolio
Continue from the previous post...
PAT or profit after tax does not always ensure a bullish run of stock performance
1) Debt dive
If a firm meets profits expectations, but analysts and investors see that the company has taken on a lot of debt during its last quarter, to the point where it might be regarded as risky for the company, this would undoubtedly lead the stock price to decline dramatically on market opening.
2) Stock buyback
A stock price decline following an earnings surprise may also be brought on by the corporation repurchasing outstanding shares. The stock price of the company normally rises when it repurchases its own shares, and the financial statements also get better.
3) Liquidity adjustment
Large hedge funds try to enter and leave equities when there is greater liquidity, or in other words when a specific stock is seeing significant volumes of trade. They do this because they hold a substantial percentage of the company's stock and do not want to affect a stock's movement at times when trading volume is low.
After an earnings beat, a stock's price may decline due to news that not many investors are following.
Kinds Investment options in India
Investing is a great way to teach kids about money management and financial literacy. Here are some investment options for kids in India:
1. Public Provident Fund (PPF): PPF is a government-backed savings scheme that offers a fixed rate of interest and tax benefits. Parents can open a PPF account for their child and contribute up to Rs. 1.5 lakh per year. The account has a lock-in period of 15 years, which makes it a good long-term investment option for kids.
2. Sukanya Samriddhi Yojana (SSY): SSY is a government-backed savings scheme that is designed to encourage parents to save for their daughter's education and marriage. The scheme offers a fixed rate of interest and tax benefits. Parents can open an SSY account for their daughter before she turns 10 years old and contribute up to Rs. 1.5 lakh per year. The account has a lock-in period of 21 years, which makes it a good long-term investment option for kids.
3. Mutual Funds: Mutual funds are a popular investment option for adults, but they can also be a good option for kids. Parents can invest in mutual funds on behalf of their child and choose from a variety of options, such as equity funds, debt funds, and balanced funds. Mutual funds offer the potential for higher returns, but they also come with higher risks.
4. Fixed Deposits (FDs): FDs are a low-risk investment option that offer a fixed rate of interest. Parents can open an FD account for their child and choose the tenure and interest rate. FDs are a good option for short-term investments, but they offer lower returns compared to other investment options.
5. Gold: Gold is a traditional investment option that has been popular in India for centuries. Parents can invest in gold on behalf of their child by buying gold coins, bars, or jewelry. Gold offers the potential for higher returns, but it also comes with higher risks.
Overall, these investment options can help kids learn about money management and financial literacy while also providing a good return on investment. Parents should consult with a financial advisor before making any investment decisions on behalf of their child.
JNUite, reader, explorer and writer with economics backgroun
#personalfinance #financialfreedom #crypto #realestateinvest ...
The best and simplest investment plans this Christmas Eve
Christmas is all about spending spree, who even cares about saving? Well, right you are. But we are talking about investing to let you have an even better Christmas in 5 years.
Without adding a heavy hit to your funds, let’s guide you with some very simple and incredible investment plans for which you don't need a fortune in your account. These will bear enough fruits for you, only if you are ready to hold them in your repository for a while.
1. Unit Linked Investment Plans – the money that you invest will be channelized into stock markets. It gives you life coverage and financial security plus lets you enter direct market investments. Hence, one of the best investment plans.
2. Direct equity – You get high returns in long term compared to other plans that are inflation adjusted.
3. Debt Mutual funds – Be a gainer with commercial paper, treasury bills, govt. securities and money market tools as fixed interest.
4. National pension scheme – Doesn’t matter when you plan to retire, keep some money into this account to help you in your superannuation days.
Not only RBI but make your asset management decision with the trend of Global Central Bank's November momentum— Save foreign portfolios.
The RBI increased interest rates by 35 bps today, the fifth time in a row.
"Will rise even more!" fund managers have been forewarned by S&P Global Ratings. There will be a big increase in borrowing costs worldwide in November. The central regulators of the top 6 traded currencies are imposing a significant 350 bps increase. In November, interest rates were raised by the US Federal Reserve, the BoE, the Australian Reserve Bank, and the Norway Bank.
The central banks of Sweden and New Zealand support the same tendency to control inflation, in addition to the other four banks.Irony is only Japan welcome inflation for growth!
Asia is under pressure, as evidenced by the past month's rate increases in South Korea, Malaysia, and Indonesia. In the previous month, rate-setting sessions were skipped by the ECB, the Bank of Canada, Japan, and the Swiss.
The rate adjustments force the G10 central banks to raise interest rates by 2400 basis points. However, there is a weak indication that the Russia-Ukraine conflict should be avoided, giving the world economy some optimism. The US is becoming more optimistic about a slight decline in inflation, which could change the Federal decision made in 2013 and 2014.
Important Investment Trends That Will Shape the Next Decade
A new decade with more opportunities for growth, personally and professionally, began in 2020. Several investment trends are emerging that are going to alter how the world operates. The next ten years are going to be full of new developments and technologies that will transform this planet into a whole new one, from the arrival of flying automobiles to AI taking over everything and everyone.
Global imaging satellites, drones, AR headsets, and LIDARs will provide people with instant access to information on everything happening in and outside of space. Through the Internet of Things, about 100 billion sensors will be able to monitor and detect every aspect of our surroundings at all times by the end of this decade.
As people look to invest in technologies that will enable seamless integration of our daily lives, AI is undoubtedly one of the other core investment trends. More like AR and VR, artificial intelligence is engulfing all relevant industries one by one. It has now reached parity with human intelligence and is gradually becoming capable of everything that humans can do.
From AIDS to Ebola, gene treatments and CRISPR are reducing diseases, and this is becoming an appealing sector for investors, whether they are funding or trading stocks.
JNUite, reader, explorer and writer with economics backgroun
#personalfinance #financialfreedom #crypto #realestateinvest ...
Eyeing a small startup in 2023? Best time to start planning for business finance in December 2022
Debt-free funds have an inflation-hedging trend— these small-cap debt-free stocks can advance your passive income ahead of the recession.
Expleo Solutions Ltd has a record of 171% growth in 5 years. The stock was ₹501 on the pandemic-hit January 2021 and made a double growth now at ₹1248. The low-profile stock stun the market. The 24-year old company deals with tech and engineering. It spread business in the UK, US, and Persian Gulf region.
Borosil Ltd scaled up 42% to ₹422 in one year, whereas in January 2021, it was almost half of the current price. Its 5-year growth was considered 126%. The stocks made an upward rally from mid-2020.
Promoters have the majority of shareholdings which is a good sign. The company had record revenue in the last three years, following the same trend in recent quarters, with nearly 644 cr revenue generated in 2022.
A debt-free low-profile stock, NOCIL Limited is a supplier of rubber chemicals. The 60 year old company has vast product portfolios, including antioxidants, antidegradants, and vulcanization stabilizers. The stocks returned 34% in 5 years; however, 2022 is set for marginal growth. Analysts issue a green signal to buy ahead of robust growth in FY23 quarters.
Financial Literacy for Kids
Financial literacy is an important life skill that every individual should possess, regardless of their age. In India, it is essential for kids to learn about financial literacy from an early age to help them make informed decisions about money management in the future. Here are some tips on how to teach financial literacy to Indian kids:
1. Start early: Financial literacy should be taught to kids as early as possible. Parents can start by teaching their kids about the value of money and how to save it.
2. Make it fun: Kids learn best when they are having fun. Parents can use games and activities to teach financial literacy. For example, they can play games like Monopoly or create a pretend store where kids can learn about money management.
3. Teach budgeting: Kids should learn how to budget their money. Parents can give them a weekly allowance and teach them how to allocate it for different expenses such as food, entertainment, and savings.
4. Encourage saving: Saving is an important part of financial literacy. Parents can encourage their kids to save by setting up a savings account for them and teaching them about the benefits of compound interest.
5. Teach about credit: Kids should learn about credit and how it works. Parents can teach them about credit cards, loans, and interest rates.
6. Lead by example: Parents should lead by example when it comes to financial literacy. They should practice good money management habits and teach their kids about the importance of saving and investing.
Overall, financial literacy is an important life skill that every Indian kid should learn. By teaching them about money management from an early age, parents can help their kids make informed decisions about their finances in the future.
Investment Lessons from Uncle Scrooge
Uncle Scrooge, the famous character from the Disney comics, is known for his wealth and business acumen. Here are some money lessons we can learn from him:
1. Save, save, save: Uncle Scrooge is famous for his frugality and his ability to save money. He always looks for ways to cut costs and save money wherever he can. This is a great lesson for all of us, as saving money is the first step towards building wealth.
2. Invest wisely: Uncle Scrooge is also a savvy investor. He knows how to spot a good opportunity and is not afraid to take risks when it comes to investing. This is an important lesson for all of us, as investing wisely is key to building long-term wealth.
3. Be patient: Uncle Scrooge knows that building wealth takes time and patience. He is willing to wait for the right opportunity to come along and is not afraid to hold onto his investments for the long-term. This is an important lesson for all of us, as it reminds us that building wealth is a marathon, not a sprint.
4. Be entrepreneurial: Uncle Scrooge is a successful businessman who is always looking for new opportunities to make money. He is not afraid to take risks and start new ventures. This is an important lesson for all of us, as it reminds us that being entrepreneurial and taking calculated risks can lead to great rewards.
5. Give back: Despite his wealth, Uncle Scrooge is not greedy. He is known for his generosity and his willingness to help others. This is an important lesson for all of us, as it reminds us that giving back to our communities and helping others is an important part of building a fulfilling life.
Overall, Uncle Scrooge teaches us that building wealth requires hard work, patience, and a willingness to take calculated risks. He also reminds us that being generous and giving back to others is an important part of building a fulfilling life.