Vocabulary

Trade: To buy or sell a stock, bond, or option. Margin: The use of borrowed funds to purchase a stock; the (security) capital required to adequately pay for the risk on an option transaction. Volume: The total number of shares traded in a particular time period on a specific stock. Bull market: A market with […]

Bull and Bear Market

Bull vs. Bear The terms “bull market” and “bear market” describe upward and downward market trends, respectively, and can be used to describe either the market as a whole or specific sectors and securities. The names perhaps correspond to the fact that a bull attacks by lifting its horns upward, while a bear strikes with […]

Understanding Mutual Funds

A mutual fund refers to a portfolio of investments under organized management, with a pool of money from many investors used to invest in securities such as bonds and stocks. A portfolio is the combined holdings of the mutual fund. A mutual fund portfolio is geared towards and maintained to matching the investment objectives as […]

Psychology -Stock Market Crash

Tips to Stay Calm during the Stock Market Crash With the drastic changes in the economy, people have been looking for multiple investment opportunities. There are people who love to make extra money, and some people are also interested in making passive income. With such trends, people have been keenly interested in stock markets as […]

Options Bonds and Funds

An Introduction to Options, Bonds, and Funds In this world where there have been multiple shifts in the economy, people are trying their best to hone the earning capabilities. People have been considerate about a plethora of ways to make money, but they are hardly aware of the intricacies. The world of money might look […]

The Addis Ababa Share Dealing Group

International Journal of African and Asian Studies – An Open Access International Journal Vol.3 2014 Is Ethiopia Ready to Commence Capital Market? Analysis of Potential Beddings, Constraints and the Dubious Mebrahtu Leake Teklehaimanot, College of Business and Economics, Haramaya University. E-mail: mebratuleake@yahoo.com https://core.ac.uk/download/pdf/234689759.pdf Addis Ababa had opened up a stock market in the Imperial era […]

Ethiopia is Ready to Issue a Business License Online

The Ethiopian Government have been committed to improve “Ease of Doing Business” in the country. One mile stone is making the country more open for business is providing online business licence issuance and renewal services. Well, According to Reporter newspaper, it’s just a months away. The Ministry of Trade and Industry has announced that it […]

Foreign

10 years ago it would have been unheard of for an individual investor to be able to invest in foreign stocks. Now, because of both technology and globalization, any investor with an interest in owning shares in a foreign company or on a foreign exchange has the ability to do just that with little to […]

Terminal

Terminal value is the estimated value of a business beyond the explicit forecast period. It is a critical part of the financial model as it typically makes up a large percentage of the total value of a business.  There are two approaches to the terminal value formula: (1) perpetual growth, and (2) exit multiple. Why […]

Valuation

When valuing a company as a going concern, there are three main valuation methods used by industry practitioners: (1) DCF analysis, (2) comparable company analysis, and (3) precedent transactions.  These are the most common methods of valuation used in investment banking, equity research, private equity, corporate development, mergers & acquisitions (M&A), leveraged buyouts (LBO), and […]