Found 699 Articles for Companies/Organisations

The major differences between equity and commodity are as follows −EquityCommodityInvestment/capital invested in a firm/entity to acquire ownership.Known as shareholder.Have ownership of that particular firm.Less volatile.Long term investments.Less risk compared to commodity trading.They get dividends.Better liquidity.Very few regulations, free market.Don’t need margin.Risk is not diversified.Do not have lot size.Traded on stock exchanges.long duration.Infosys, reliance etc.Refers to undifferentiated product on which traders can invest.Known as an option holder.No privileges are available.Highly volatile.Highly risky.Not eligible for dividends.Low liquidity compared to equity.Supervised by SEBI, derivative market.High margins required.Risk is diversified.Traded in lot size.Short term trades.Traded on commodity exchanges.They have time frame because they ... Read More

The major differences between investing and trading are as follows −InvestingCreates wealth over a long period of time.Buying and holding.Market fluctuations has no effect.Add on benefits − bonus, dividends etc.Fundamental indicators are EPS, price to earnings, current ratio etc.Long term period.Creates wealth by compound interest and dividends.Low risk.Industry, economics, financials, competitors etc. will be affected.Very few brokerage charges.Makes sound investments.TradingGenerates profit frequently.Buying and selling of stocks.Daily market fluctuations will effect.No add on benefits.Technical indicators: moving averages, stochastic oscillators etc.Short term period.High risk.Psychology of market, money management, risk rewards etc. will be affected.Have brokerage charges.Requires active environment.Read More

The major differences between stock market and commodity market are as follows −Stock marketHave same security in same grades.All securities have same face value and characteristics.Doesn’t deteriorate over a period of time.Derive its value from an underlying asset.Supply is fixed.Commodity marketHave several grades/varieties of products/commodity.Grade may vary from other lots in same grade.Greater implications for buyers and sellers.Has basic role in future market.Supply is not fixed.

The major differences between stock market and stock exchange are as follows −Stock marketStock exchange will take place through different parkways.Without stock market, trades would have no motivation to exist.OTC, ECN, Stock exchange are types.Doesn’t work as cleaning house.Common for all form of stock trading.Conducts trading activities.Stock exchangeOrganisations have precise stream of stock purchasing and offerings.Without stock exchange, organisation have no formal system to rundown offers.NSE, BSE, DOW JONES, NYSE are types.Works as clearing house.Made up by an organization to promote stock trading.Operate under a profit motive.

The major differences between CAPEX and OPEX are as follows −CAPEXBenefits organization more than one year.Also called as capital expenditure, capital expense.One-time purchase.Long term tenure.They are depreciated or amortized over the time.Listed as property or equipment.Earns profits slowly/gradually.Lending institutions act as source of finance.CAPEX comes in balance sheet.Examples − buying of fixed assets, expansion of buildings, purchasing vehicles etc.OPEXOngoing expenses to run day to day operations.Also called as operating expenses, operating expenditure, revenue expenditure.Pay as you go.Relatively shorter term tenure.Fully deducted in the accounting period in which they were incurred.Listed as operating cost.Earned profits for shorter time.Personal saving act as ... Read More

The major differences between present value and future value are as follows −Present valueCurrent value of cash flow in future.Current value of an asset or an investment at starting of a particular time period.Inflation is considered.Discount rate and interest rate are considered.Helps investors in decision making.Discounted process/method is followed.Present value = (cash flow)/ (1 + r)^n.Future valueValue of future flow after certain future period.Value of an asset or an investment at the end of a particular time period.Inflation is not considered.Only interest rates are considered.Least considered by investors in making investment decisions.Capitalization process/method is followed.Future value = (present value) or ... Read More

The major differences between present value and net present value are as follows −Present valueSum of discounted value of cash flow at a particular discounting rate.Measures future cash flows today.Does not measures additional wealth.Does not provide any information about incremental value of a project/investment.Present value = Future value / (1 + r)^n.Calculates present value of future cash flow.Easier to use.Uses time value of money concept.Decision making by individuals.Net present valueSum of discounted value of future cash flows net of initial investments made by the company.Measures value of a project.Calculates additional wealth generated.Calculates incremental value.Net present value = present value of ... Read More

The major differences between invoice and bill are as follows −InvoiceWill have detail list of purchased products, their quantity, price, taxes (if any) etc.Handed over by seller to buyer at any time (before/after service or product).Advanced has to be paid.Records all the items placed.Invoices may arrive along with the goods or after they arrive.If invoice bills arrive late, it serves as a record to cross-checked the contents with the buyer.Examples − amazon, bike showrooms etc.BillServes as request for payment.Handed over directly to buyer from seller.Payment is made immediately.Records sold items, their price, total cost, services etc.For online goods, there will ... Read More

The major differences between private equity and venture capital are as follows −Private equityInvestments made in those companies which are not publicly listed on any stock exchange.Buys from mature and public companies.Focus will be on all kind of industries.Want to acquire almost full stake of the company in an LBO.Combination structure (debt + equity).Investments made in few companies.Mainly focus on corporate governance.Less risk involved.Venture capitalFinancing small business.Invest mostly in start-up or early stage companies.Focus on technology, biotech and clean tech companies.Acquires minority stake (

The major differences between American Depository Receipt (ADR) and Global Depository Receipt (GDR) are as follows −American Depository Receipt (ADR)Main purpose is to acquire resources in USA.Main objective is to attract investments from foreign companies.Issued by US domestic capital market.Foreign companies can trade in US markets.US dollar as currency.Listed in The New York Stock Exchange (NYSE) or NASDAQ.Retail investor market.Negotiation done in US only.Legally complicated.Onerous disclosure of terms.Global Depository Receipt (GDR)Main purpose is to acquire resources in different parts of the world.Main objective is to invest in different parts of the world.Issued by European capital market.Foreign companies can trade anywhere ... Read More