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Financial Terms

Dividend Payout Ratio

This ratio is an important factor for investors as it indicates how much of the company's profits are being shared with shareholders. Generally, a higher dividend payout ratio is seen as favorable as it means that the company is distributing a larger portion of its profits to shareholders. However, a very high ratio may also suggest that the company is not retaining enough earnings for growth and future investments.

Welcome to our lecture on finance terminology. Today, we will be discussing the Dividend Payout Ratio, an essential concept in understanding shareholder payouts. This ratio represents the percentage of a company's net income that is distributed as dividends to its shareholders. It is a crucial factor for investors as it reflects the company's generosity towards its shareholders. A higher ratio is generally considered favorable, indicating a larger share of profits being shared with shareholders. However, an excessively high ratio may also suggest that the company is not retaining enough earnings for future growth and investments.

This usually happens when a company's assets are liquidated and the proceeds are distributed among shareholders. Another term commonly used in finance is Dividend Yield, whic...

Foreign Institutional Investors (FIIs)

These investors play a crucial role in global financial markets and can bring significant capital and expertise to emerging economies. A Foreign Institutional Investor, or ...

Blue Chip Companies

Blue Chip Companies are highly reputable multinational companies that have been in operation for a significant period. These companies have a substantial market capitalization...

Consolidated Fund of India

The Consolidated Fund of India serves as a central repository for all government revenues, including interest earned and borrowed funds. It is the primary source of funding ...

Intrinsic Value

Intrinsic value is calculated by analyzing the company's financials, future growth potential, and management. Understanding the true value of a stock is a fundamental conce...

Short-term Capital Gain / Loss

This is taxed at the ordinary income tax rate. When an investor sells a qualified investment before holding it for a full 12 months, it results in a Short-term Capital Gain...

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Currency

All terms related to the system of money in general use in a particular country, representing a medi

Financial Terms

A comprehensive resource containing definitions and explanations of terms, concepts, and jargon used

Taxes

All terminology and concepts related to various tax types, tax laws, and taxation principles.

Commodity

All terms related to the basic goods used in commerce that are interchangeable with other goods of t

Derivatives

All terms & concepts related to financial contracts whose value is based on an underlying asset,

Loans

All terms and concepts related to borrowing money, including different types of loans, interest rate

Corporate Actions

Terms related to decisions and events initiated by a company that can impact its stock, such as divi

Gold

All terms and concepts related to the precious metal gold, including its price, trading, investment,

Property

The "Property" category in finance encompasses all aspects related to real estate and tangible asset

Public Offerings

All terms related to a company selling its shares or bonds to the public for the first time (IPOs) o

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