In the context of stocks, float and low float refer to the number of shares of a company that are available for public trading. It plays a key role in determining the liquidity and volatility of a stock. 1. Float: Example: 2. Low Float: Example: Why Does Float Matter? Example of High Float vs. Low … Read more
Capex, short for Capital Expenditure, refers to the funds that a company spends to acquire, upgrade, or maintain physical assets such as property, buildings, technology, equipment, or industrial plants. It represents a company’s investment in long-term assets that will help generate revenue over time. Key Aspects of Capex: How Capex Impacts Financial Statements: Why Capex … Read more
Earnings Per Share (EPS) is a key financial metric that indicates the profitability of a company on a per-share basis. It represents the portion of a company’s profit that is allocated to each outstanding share of common stock. EPS is widely used by investors to assess a company’s financial health and performance. EPS Formula: EPS … Read more
The Price-to-Earnings (P/E) ratio is a financial metric used to evaluate whether a stock is overvalued or undervalued by comparing the current market price of a stock to its earnings per share (EPS). The P/E ratio is calculated as: P/E Ratio = Current Market Price per Share / Earnings per Share (EPS) Interpreting the P/E Ratio Example Table of Fictitious Companies Here’s an … Read more
When an Initial Public Offering (IPO) is announced, several factors related to the total number of shares, the face value, and the price per share are determined through a collaborative process involving the company, its underwriters, and regulatory bodies. Here’s how these aspects are decided and regulated: 1. Total Number of Shares 2. Face Value … Read more
The total shares in a company, which includes all publicly traded shares and those held by insiders or in treasury, typically remain constant unless corporate actions alter them. 1. Public Float 2. Restricted Shares 3. Treasury Shares Note: The total outstanding shares are fixed in the absence of corporate actions such as stock buybacks, new … Read more
These metrics are crucial for evaluating the financial health, performance, and valuation of the company in the stock market.
The Hyundai Motor IPO details indicate that this is an Offer for Sale (OFS) by existing shareholders. In an Offer for Sale, the company itself is not raising new capital. Instead, existing shareholders (such as promoters, early investors, or other stakeholders) are selling their shares to the public. Let’s analyze the implications of this IPO … Read more
Stock Category Market Capitalization Range Description Large-Cap Stocks ₹20,000 crore (₹200 billion) and above These are well-established companies with a large market share and stable revenues. Typically include blue-chip companies. Mid-Cap Stocks ₹5,000 crore to ₹20,000 crore These are medium-sized companies that are growing and have the potential to become large caps. They carry more … Read more