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Financial Terms

Dividend Payout Ratio

This ratio is an important factor for investors as it indicates how much of the company's profits are being shared with shareholders. Generally, a higher dividend payout ratio is seen as favorable as it means that the company is distributing a larger portion of its profits to shareholders. However, a very high ratio may also suggest that the company is not retaining enough earnings for growth and future investments.

Welcome to our lecture on finance terminology. Today, we will be discussing the Dividend Payout Ratio, an essential concept in understanding shareholder payouts. This ratio represents the percentage of a company's net income that is distributed as dividends to its shareholders. It is a crucial factor for investors as it reflects the company's generosity towards its shareholders. A higher ratio is generally considered favorable, indicating a larger share of profits being shared with shareholders. However, an excessively high ratio may also suggest that the company is not retaining enough earnings for future growth and investments.

Domestic Trade Deficit

In the field of finance, we often come across the term "Domestic Trade Deficit". This concept refers to a situation where a country's imports exceed its exports, resulting i...

This action is usually taken to achieve a more favorable balance of trade and increase competitiveness in the international market. Devaluation, a term often used in the wo...

In the world of finance, we often refer to benchmarks as the standard by which we measure the performance of a market. They provide us with a way to evaluate the strengths a...

Interest Rate Futures

Interest Rate Futures, a derivative instrument, is designed to hedge against the risk of adverse changes in interest rates. It involves a contract where parties agree on a f...

Interim Dividend

An interim dividend, as its name suggests, is a dividend that is paid out before the company's Annual General Meeting (AGM) and the release of its financial statements. This...

Index of Industrial Production (IIP)

The Index of Industrial Production (IIP) is a vital tool used to measure the performance of the industrial sector. It comprises a diverse range of products and is updated on...

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Bank Deposits

All terms and concepts related to the placement of money in a bank account, including savings accoun

Currency

All terms related to the system of money in general use in a particular country, representing a medi

Technicals

All terms and concepts related to technical analysis in finance, which involves using historical pri

Financial Terms

A comprehensive resource containing definitions and explanations of terms, concepts, and jargon used

Corporate Actions

Terms related to decisions and events initiated by a company that can impact its stock, such as divi

Taxes

All terminology and concepts related to various tax types, tax laws, and taxation principles.

Fixed Income

Investments that provide regular, fixed payments, such as bonds and treasury bills.

Derivatives

All terms & concepts related to financial contracts whose value is based on an underlying asset,

Stocks

All terms and concepts related to stocks, also known as equities, which represent ownership shares i

Retirement Planning

All terms and concepts related to the process of saving and investing to ensure financial security a

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