Archive for September, 2009
Term Of The Day - Rule Of 72
September 22nd, 2009
Mukesh Dedhia
What Does it Mean?
A way to estimate the number of years it takes for a certain variable to double. The rule of 72 states that in order to estimate the number of years for a variable to double, take the number 72 and divide it by the growth rate of the variable. This rule is commonly used with an annual compound interest rate to quickly determine how long it would take to double your money.
Term Of The Day - Private Equity
September 15th, 2009
Mukesh DedhiaWhat Does it Mean?
Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity. Capital for private equity is raised from retail and institutional investors, and can be used to fund new technologies, expand working capital within an owned company, make acquisitions, or to strengthen a balance sheet.
The majority of private equity consists of institutional investors and accredited investors who can commit large sums of money for long periods of time. Private equity investments often demand long holding periods to allow for a turnaround of a distressed company or a liquidity event such as an IPO or sale to a public company.
8 Signs Of A Doomed Stock
September 14th, 2009
Mukesh Dedhia
Few people seem to spot the early signs of a company in distress. Remember WorldCom and Enron? Not so long ago, these companies were worth hundreds of billions of dollars. Today, they no longer exist. Their collapses came as a surprise to most of the world, including their investors. Even large shareholders, many of them with an inside track, were caught off guard. So is there any way to know that your stock may be on a crash course to nowhere? The answer is yes. Read on to find out how.
PLANNING YOUR PERSONAL BACKUP
September 8th, 2009
Mukesh Dedhia
Planning a backup of all important aspects of your life is an activity that we all have to perform for our lives to ensure that information pertaining to us is easily available and accessible to key family members and ourselves at the time of need. The aspect of backup sounds daunting but it is really a one time effort that you can invest into and the incremental keeping track is very minimal in nature. The peace of mind and returns in provides us far outweigh the time and effort we have to invest into getting ready. Let us explore the mechanisms of backup and then understand specific aspects of our life and how you can back them up.