Analyzing a company's financials and future growth prospects involves a comprehensive evaluation of various aspects. Here's a step-by-step guide to help you get started: Step 1: Gather Financial Statements Obtain the company's financial statements, including the balance sheet, income statement, and cash flow statement. You can find these in the company's annual reports or on financial databases. Step 2: Understand the Financial Statements Familiarize yourself with the components of each financial statement. The balance sheet shows the company's assets, liabilities, and shareholders' equity at a specific point in time. The income statement displays the company's revenue, expenses, and profit over a specific period. The cash flow statement tracks the cash inflows and outflows during a period. Step 3: Calculate Financial Ratios Use financial ratios to assess the company's financial health and performance. Some essential ratios include: Liquidity Ratios: Cur
Basics of Stock Market Stock market is basically a marketor a place, where traders and investors buy and sell stocks for making profit and earn passive income through it. How stock market works? There is a main body which holds and manage every companies shares which are listed on the stock exchanges. This main body known as BSE and NSE in India, Dow Jones in America, Shanghai Stock Exchange in China, London Stock Exchange in UK. There is always some stock exchange for every country. Can an individual directly buy or sell shares with stock exchanges? No, an individual can't buy and sell stocks directly with stock exchanges because there are millions of people, who trade daily and stock exchanges can't manage all the transaction. So, there are middle man known as broker. There are so many broker in the stock market like zerodha, Groww, Angel Broking, Upstox etc. NSE - BROKER - TRADER How people earn Money through Stock Market. and why? There are many individuals, who earns