Defensive Industries
What are Defensive Industries? Defensive industries comprise businesses that are relatively stable or relatively immune to economic fluctuations, i.e., economic expansions and recessions. Defensive businesses remain relatively unaffected in the event of an economic boom or recession in the sense that their earnings are uninfluenced by the economic fluctuations. The industry usually consists of businesses...
Volume vs Liquidity
What is Volume vs Liquidity? Investors need to differentiate between volume vs liquidity, as both terms are widely used in stock trading. Volume and liquidity are correlated; however, the two terms are also very different from each other. The term “volume” in trading refers to the total quantity or the total number of shares that...
Debt-to-Income Ratio
What is the Debt-to-Income Ratio? The debt-to-income (DTI) ratio is a metric used by creditors to determine the ability of a borrower to pay their debts and make interest payments. The DTI ratio compares an individual’s monthly debt payments to his or her monthly gross income. It is a key indicator that lenders use to measure...
Growth Stocks
What are Growth Stocks? Growth stocks are stocks that offer a substantially higher growth rate as opposed to the mean growth rate prevailing in the market. It means that a growth stock grows at a faster rate than the average stock in the market and consequently, generates earnings more rapidly. Characteristics of Growth Stocks 1....
Debt Refinancing
What is Debt Refinancing? Debt refinancing is the replacement of an existing debt by means of another debt with terms and/or conditions that are more favorable. In other words, debt refinancing refers to the replacement of existing debt with new debt. How Debt Refinancing Works Debt refinancing is commonly used to take advantage of new...
