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Inflation Indexed Securities: Buy if at Lower Tax Slabs
Yes, you can now buy Inflation Protected Securities . RBI has announced that these bonds will be available for purchase between Dec 23 and Dec 31, 2013 . What are Inflation Protected Securities? At...
View ArticleWhat Are Forex Reserves?
We keep talking about our “Forex Reserves” and worry if they fall from $300 billion to $290 billion, as if some politician just enriched their pockets by taking that much money out of somewhere in the...
View ArticleQuick Note: 9000% Dividend Means Nothing
Arjun pointed me to this article: 9000% Dividend by Tamilnad Mercantile Bank . Hold your breath shareholders! Tamilnad Mercantile Bank (TMB) has declared an interim dividend of 9,000 per cent. Yes,...
View ArticleHow Do You Calculate “Contribution” of any item to Inflation?
Technical note: How do you see the contribution of any individual element to inflation? Assume we have two items, A and B , which are priced at Rs. 100 each, which form an index I that has 40% weight...
View Article“How Many Chances Do I Get”?
One stereotypical example quoted in behavioural finance is about our irrational risk aversion. Look at the Nobel Prize winning Kahneman “In my classes, I say: ‘I’m going to toss a coin, and if it’s...
View ArticleThe RBI Weekly Statistical Supplement: The What
For an RBI tracker like me, the central bank comes out with some fantastic stuff once in a while. Now they have released a detailed explanation of the Weekly Statistical Supplement (WSS) that the RBI...
View ArticleWhat is the “Balance of Payments”?
You’ve heard of the current account deficit and all that. But what, really, is the concept? Here’s a primer. Every country has to deal with other countries. It will trade in physical … (Read On…) [via...
View ArticleThe Concept of Dividend Stripping
Fooling the taxman isn’t easy. And it’s important to understand what they already know you will do to avoid taxes, and have created laws to disallow that. Dividend stripping is one … (Read On…) [via...
View ArticleConcepts: How the "Ex" Date and Record Date for Dividends, Splits and...
When stock demerge, give dividends, or have a bonus or split, there is always two dates give. One is a “Record” date, and the other is what is called an “Ex”- Date. It’s not apparent to investors what...
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Concepts: Why is the RBI Buying Rupee Bonds?
The RBI will buy Rs. 10,000 cr. of rupee bonds from banks in an Open Market Operation (OMO) Auction on Jan 20 . Why is the RBI buying bonds? Because it’s selling dollars. Let me explain. The rupee was...
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