Treasury Stock Accounting: Methods and Journal Entries

Treasury Stock Accounting: Methods and Journal Entries

Treasury stock, also known as treasury shares or reacquired stock, refers to shares that a company has repurchased from the open market or shareholders. These shares are no longer considered outstanding and do not have voting rights or receive dividends. Understanding treasury stock accounting is crucial for maintaining accurate financial records and complying with accounting ... Read more
The Impact of Treasury Stock on Financial Ratios: What Investors Should Know

The Impact of Treasury Stock on Financial Ratios: What Investors Should Know

When a company buys back its shares (treasury stock), it reduces the number of outstanding shares, impacting several key financial ratios. Below are the main ratios that can be improved through treasury stock transactions: 1. Earnings Per Share (EPS) Formula:EPS = (Net Income - Preferred Dividends) / Total Outstanding Shares Impact of Treasury Stock: Reducing ... Read more
How Treasury Stock Works: A Deep Dive into Share Buybacks

How Treasury Stock Works: A Deep Dive into Share Buybacks

What is Treasury Stock? Treasury stock (also known as treasury shares or reacquired stock) refers to shares that a company has repurchased from investors but has not retired. These shares are no longer considered outstanding in the market and do not have voting rights or pay dividends. Key Characteristics of Treasury Stock No Voting Rights ... Read more
The Magic of Compounding: Applications in Daily Life

The Magic of Compounding: Applications in Daily Life

Compounding is a concept that exemplifies the adage "small changes over time lead to big results." While often discussed in the context of finance and investments, its principles extend far beyond monetary gains, influencing various aspects of our daily lives. Understanding and harnessing the power of compounding can significantly impact personal growth, productivity, learning, and ... Read more
Unleashing the Remarkable Power of Compounding: A Pathway to Wealth Creation

Unleashing the Remarkable Power of Compounding: A Pathway to Wealth Creation

In the vast landscape of personal finance, few principles wield as much transformative power as compounding. Often dubbed the "eighth wonder of the world" by luminaries like Albert Einstein, compounding is a simple yet profound concept that lies at the heart of wealth creation and financial success. Fundamentally, compounding is the process where the value ... Read more
Is Investing in Flats or Apartments in Bangladesh a Prudent Financial Decision?

Is Investing in Flats or Apartments in Bangladesh a Prudent Financial Decision?

Investing in the real estate market for flats or apartments in Bangladesh may not always result in the expected rewards. The biggest disincentive is the significant disparity between rental yields and property prices across the country. To clarify, consider purchasing a 2,000 square-feet flat in Uttara for 2 crore taka. The expected rental income for ... Read more
Decoding the Psychology Behind Credit Cards: How They Influence Our Spending Habits

Decoding the Psychology Behind Credit Cards: How They Influence Our Spending Habits

In today's consumer-driven society, credit cards have become more than just a convenient payment tool – they're powerful instruments that shape our financial behavior in subtle yet significant ways. Behind the sleek designs and enticing rewards lies a complex interplay of human psychology and financial decision-making. Let's delve into the fascinating realm of how credit ... Read more
Is BEXIMCO’s Zero Coupon Bond Truly Zero Coupon?

Is BEXIMCO’s Zero Coupon Bond Truly Zero Coupon?

BEXIMCO has been granted authorization by the Bangladesh Securities and Exchange Commission (BSEC) to issue zero coupon bond worth Tk 1,500 crore on April 3, 2024. From the total amount of Tk 1,500 crore, a significant portion of Tk 1,000 crore will be allocated towards providing a loan to Sreepur Township Limited. This loan will ... Read more
Revitalizing Stock Market in Bangladesh: Strategies for Renewed Growth

Revitalizing Stock Market in Bangladesh: Strategies for Renewed Growth

The capital market, a vital component of any financial system, facilitates the raising of capital through the trading of shares, bonds, and other long-term investments. In Bangladesh, this market is represented by two main stock exchanges: the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE). Despite its potential, the development of the stock ... Read more