The major differences between rate of interest and internal rate of return are as follows −Rate of interestIt is used to calculate performance of the investment over a period of time.The formula to calculate the rate of interest is Rate of interest = [(excepted value – original value)/original value}*100.It can ... Read More

The major differences between company and firm are as follows −CompanyRegistration is mandatory to establish as a company.They have legal entity and can be sue/sued under its name.It requires minimum capital of 1 lakh for private company and 5 lakhs for public limited.It is certificate of incorporation and commencement.Maximum number ... Read More

The major differences between corporate strategy and business strategy are as follows −Corporate strategyIt helps the business to operate a whole organisation.Its main aim is to elevate profits and making company grow faster.It is formed by top level management.It deals with operations of total business organisation.It is long term strategy.It ... Read More

The major differences between National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are as follows −NSENational Stock Exchange was founded in 1992.Its vision is “Continue to be a leader, establish a global presence, facilitate the financial well-being of people”.It is largest stock exchange in India.It is 11th largest stock ... Read More

The major differences between NBFC and Bank are as follows −NBFCProvides banking services without holding banking license.Incorporated under companies Act 1956.Demand deposits are not accepted.100% foreign investments are accepted.Maintenance of reserve ratio are not compulsory.No deposit insurance facility is available.They don’t create credit creation.No transaction services are provided.BankIt is an ... Read More

The major differences between book value and market value are as follows −Book valueReal value of an asset.Reflects firm’s equity.Not related to financial market.Depreciation is taken into account.Book value = (assets – liabilities)/ number of outstanding shares.Book value = cost of asset – (depreciation + amortization).Frequency of fluctuations happens at ... Read More

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 ... 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, ... 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 ... Read More

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 ... Read More