Callable Bonds

A normal bond can be issued with embedded options. One such bond is a callable bond. A callable bond is like a normal bond but with an embedded call …

Bonus Share

Bonus shares are the additional shares given to the current shareholders of the company free of cost, in proportion to their existing shareholding. Such an event is called a …

Options

An option is a derivative instrument which derives its value from another underlying asset. An option holder or buyer has a right to buy or sell the underlying asset from …

Warrants

A warrant is a derivative instrument which gives the warrant holder a right to buy the underlying stock at a pre-determined strike price. A warrant holder can exercise the warrant …

Margin of Safety

The margin of Safety is a measure of the profitability risk of a business. A business is profitable when revenue exceeds the costs. A part of the revenue is …