Tag: compound
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8. Mr Market
So far I concentrate my contents on the business and the importance of a good management, now we have to speak about the market price.The stock market is auction based. Roughly speaking; agents that compose the market (institutional investors like pension funds or retail investors like us) offer a price for any security exchanged (for…
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7. How the companies reward us
How far and apparently ethereals entities enter in touch with us? As I explained in the preceding chapters, businesses use the stock market to finance their activities.Basically there are two ways that companies use for financing themselves: debt and equity.My blog focuses on equity holders or also called shareholders.As shareholders we own a piece of…
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6. The eighth marvel of the world
Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” Attributed to Albert Einstein The concept behind the compound interest is very simple.Imagine you have a bank account that earn you an annual interest of 4% (it is an utopias today), if you put 1000USD in…