What Is a Financial Ratio? Financial ratios are used to analyse a company’s financial statements and show its financial standing in terms of trends in the firm or in comparison with other firms. They help investors, creditors and the management of a company to know how…

What Is a Share Split? A share split is when a company divides its existing shares into multiple shares. The number of existing shares will increase but the total value of the shares will remain the same. Examples of common ratios for splits are 2 for…

What Is a Share?  A share is a unit of ownership interest in a corporation or financial asset. It entitles the shareholder to an equal distribution in any profits, if they are declared in the form of dividends. A corporation divides ownership of itself into shares, which are offered for…

What Is a Bonus Issue? A bonus issue (also known as scrip issue or capitalisation issue) is when a company gives an offer of free additional shares to its existing shareholders. The new shares are issued to the shareholders in proportion to their current share holdings.

What Is a Rights Issue? A rights issue is an invitation to existing shareholders of a company to buy additional shares in proportion to their current shareholding at a specified period at a discount to the market price. Companies have rights issues when they want to raise more money to fund…

An index as explained in our earlier article is a sample or portfolio of stocks representing the entire stock market. Investors use indexes to track the performance of the stock market. The NSE (Nairobi Securities Exchange) 20 share index is used to track the performance of the NSE equities (shares)…

A mutual fund pools money from hundreds and thousands of investors to construct a portfolio of stocks, bonds, real estate, or other securities, according to its charter. Each investor in the fund gets a slice of the total pie. Mutual funds make it easy to diversify. Most funds require only…

If you do your own investing, have you ever wondered whether you should turn things over to a professional advisor? This article attempts to shed some light on this topic and provide you with some things to think about so you can make the best decision. When the Time Comes…

Trend physics Newton’s First Law of Physics details that, “An object in motion stays in motion with the same speed and in the same direction unless acted upon by an unbalanced force.” This applies to trend trading. Trends have a natural bias to continue, which is why they are so…

Technical analysis – Relies solely on historical price action and computed indicators to forecast future stock price. Besides price action, a number of other related indicators such as oscillators, volume and moving averages are typically used in technical analysis. Technical analysis can be very helpful for calling short-term price movements…