Merchant banks are the most important division of financial assistance to financial institutions in developed nations. They help in improving and running the capital markets smoothly. Merchant banks, also known as investment banks, offer a variety of support and consultation services to corporate firms.In Europe, merchant banks are allowed to ... Read More

Gordon’s Growth Model, also known as the Dividend Discount Model, is a popular method to consider the value of a firm via the dividend valuation of a firm. It shows the strength of an investment project to run without any external support.As no external funds are used and the projects ... Read More

Secondary markets play a crucial role in the exchange of securities than the primary markets. Secondary markets are the place of exchange of second-hand securities, i.e., the securities that have already been issued. Therefore, these markets are the ones where the shares are bought and sold for a considerable long ... Read More

Until 1998, the share markets in India were paper-based. The securities were made of paper and during buying and selling process, these papers were exchanged from one individual to another. In 1998, computer-based exchange was used, thereby, almost all shares were converted to electronic forms and electronic transfer of shares ... Read More

It is known that there can be two types of stability of dividends. One is the constant payout, while the other is the constant payout ratio. The latter usually results in fluctuating payments at different instances of payout. So, what do managers of companies think about paying the dividends in ... Read More

Share buyback is the process by which a company repurchases its own shares from the investors. It results in a decrease in the total number of outstanding shares which in turn increases the value of shares.Companies may tend to buy shares back for a host of reasons. Some of the ... Read More

It has been observed that most shareholders prefer the stability of dividend payouts. The firms may choose to pay dividends in regular intervals to satisfy the needs of the shareholders. Although the amount of dividend paid may change a little from year to year, payouts made every year is usually ... Read More

Book Building is a method of pricing the shares in the market. There are usually two types of share pricing methods −The Fixed Priced Method −The price of shares when issued remains constant and fixed. The price is usually mentioned before the IPO and the investors are aware of the ... Read More

Walter's model is one of the most important theories of dividend in financial management. Proposed by Professor James E. Walter, the model states that the dividend policy is a precursor of the value of a company. As companies pay dividends depending on the earnings, the payout of dividends can show ... Read More

The companies that pay regular dividends generally use informational content to promote their status in the market. A company that pays regular dividends increasingly is appreciated more by investors which helps the company in collecting more benefits in terms of investment by the lenders, debtors, and investors in the market.Therefore, ... Read More