Definition: Forfeiture of shares is the annulment (cancellation) of the shares owned by a shareholder as a penalty because of the non-payment of allotment and calls due to the company. Along with the shares, the amount already paid to the company also get forfeited. The company can either Dispose of or Reissue the forfeited shares. Post forfeiture, the company removes … [Read more...] about Forfeiture of Shares
Search Results for: SHARES
Bonus Shares
Definition: Bonus Shares are the supplementary or extra shares distributed to the current stakeholders of the company without taking any extra amount from them, and these shares are issued out of free reserves created from the profits earned by the company. They do not make any impact on the stakeholder’s equity as they are allotted to relocate the retained earnings to the … [Read more...] about Bonus Shares
Shares
Definition: Shares are the smallest unit of the company's capital or can be said as a unit of equity. The holder of such shares in a company is known as "Shareholders" (the owners of the company). These shares can be issued to the public for raising the funds of the company for its expansion. The market used for trading of shares is known as “Share Market” which deals in … [Read more...] about Shares
Unit Linked Insurance Plan (ULIP)
Definition: Unit linked insurance plan (ULIP) is a bundled financial product proposed for those investors who need a life cover as well. It comprises of insurance benefit along with investment opportunity, to serve the dual purpose of safety and wealth maximization to the investors. ULIP was developed in India and is widely known for its tax-saving benefits among the … [Read more...] about Unit Linked Insurance Plan (ULIP)
Value Investing
Definition: Value investing is a trading strategy that entails identifying the potential yet undervalued stocks and purchasing them at a reduced price after doing a thorough fundamental study to generate good returns over the long run. In simple terms, purchasing stocks of an underestimated company on sale or at a sensible price. This concept was introduced by … [Read more...] about Value Investing
Cartel in Economics
Meaning: Cartel refers to a voluntary collaboration of two or more large independent businesses through formal agreements that effectively function as one entity with a uniform price-output policy to secure a monopoly in the market. In simple words, companies with large market shares join hands to control supply and manipulate prices. Economists call this sort of … [Read more...] about Cartel in Economics
Functions of an Entrepreneur
An entrepreneur contributes to the economy by undertaking a business activity. He integrates and regulates the 5 M's, i.e., Men, Material, Money, Machine and Method. During this while, he performs some critical functions that help the enterprise to grow and succeed. In this post, we will discuss some crucial Functions of an Entrepreneur. Entrepreneur performs all the essential … [Read more...] about Functions of an Entrepreneur
Demerger
Definition: Demerger is a powerful strategy and a restructuring technique wherein a company split-off its existing business into separate units to form a new self-operating company. Usually, it occurs in the case of large conglomerate businesses. Here, companies can split one or more undertakings into separate entities. Companies use it to reposition themselves and … [Read more...] about Demerger
Market Entry Strategies
Definition: Market Entry Strategies are the plan, methods or channels available with the firm to expand their business in the new target market within and across nations. It is one of the firms' most important decisions when entering new markets. Firms move to new markets to grab the growth opportunities prevailing in different markets. Note: The growth rate and … [Read more...] about Market Entry Strategies
Divestiture
Definition: Divestiture implies the strategic move taken by the business's management which involves discontinuation of a business unit either partially or fully by selling/separating a piece of asset, service, property or product line with the motive of being profitable and streamlining operations. Simply put, the management decides to cease the operations that cannot make … [Read more...] about Divestiture