What do you mean by dividend policy? Dividend policy of a company is the decision about the distribution of dividends to its shareholders. Dividend policy is a financial decision that involves deciding on the dividend payout ratio, the frequency of...

How often do dividends payout? Most companies pay dividends every quarter (four times a year). They often pay upon declaring their quarterly account. However, dividend payout frequency may vary from company to company. Some companies may pay every six months...

Should I buy a dividend ETF? Dividend ETFs are a type of Exchange Traded Funds that invest in stocks with a potential to offer a high dividend. These are passively managed funds and track a particular index. An individual doesn't...

What is debt in simple words? The definition of debt is 'an obligation that requires the debtor to pay the money to their creditor.' Debt is nothing but the amount of money one borrows. In other words, it is the...

How does a corporate bond work? A corporate bond is a type of fixed income security issued by corporations or companies to raise money from investors. The company issuing the bond gets the capital they need, and in return, they...

Which is better compounded daily or annually? Compounding means earning interest on interest. It doesn't matter when the investor receives the interest. However, the number of compounding periods do make a difference. The more the number of compounding periods, the...

What is meant by blue chip companies? Blue chip companies are well established and mature companies. These companies have made their mark in their industry or sector. People often consider them as pillars of the industry. The term blue chip...

How does an AIF work? Alternative Investment Funds (AIF) are privately pooled investments that collect money from sophisticated private investors. AIFs invest the money pooled from private investors according to the investment policy. They invest the money in start-ups, private...