An important consideration for liquidity purposes. Whilst some businesses may show all the characteristics of an excellent investment, the small size of a business can sometimes prove a limiting investment factor. We only want to spend time researching businesses whose shares we can actually buy and sell.
11 June 2018
= Number of shares * Price per share
You probably sort of know how index linked gilts, or “linkers,” work. The redemption value is linked to the change in the retail price index, or RPI, that takes place over the life of the gilt.
Another word for duration could be the average life of a bond. Most bonds pay annual or semi-annual coupons and have a redemption date. So whilst a bond maturing in three years and with a £5 annual…
The most commonly used multiplier model is the price- to-earnings (P/E) multiple. Very simply, a company with a high P/E may be considered overvalued when measured relative to peers. There are many…
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