When people talk about the stock market, they sometimes use tricky words and ask questions like What is liquidity? Liquidity simply describes how easy it is to turn something you own into cash without losing a lot of value. Imagine you are at school with a bag of apples. You want to swap your apples for some candy. If lots…
Understanding intrinsic value can feel like trying to peek inside a treasure chest. Think about your favorite toy: it may have cost a small amount, yet the joy it gives you is priceless. This idea – the worth of something beyond its price tag – is what people call intrinsic value. The Cambridge Business English Dictionary defines it as the…
Investing is not easy to master and then when it comes to some of the key financial ratios in finance, it starts to feel like you need a finance degree to understand that. But nothing is farther from the truth. Investing can feel like stepping into a big market full of numbers and strange terms. When you buy a toy…
Fundamental analysis sounds like a very grown‑up term, but it simply means looking closely at a company to understand its true value and health. Instead of just watching how a stock’s price moves up and down, fundamental analysis asks: “Does this business make money? Does it have good leaders? Is it likely to grow in the future?” Think of it…
So, What is Active Investing ? What is Passive Investing ? And What exactly do we mean by Active vs Passive Investing ? Well, We’ll get to all that. But first let’s start with What Investing is ? Shall We ? Investing is like planting seeds or playing a board game. You put some money (the seed) into a company…