Investing Basics - Feel free to ask the most basic questions


(sainkar) #776

Thanks Chandragupta & Yogesh_s

IRR including Dividend - How to calculate?

  • Where I need to put stock specific Dividend. [Should I suppose to include under Cash flow?]
  • From where I can get Nifty Dividend?

(sarthak kumar) #777

I have a question regarding buybacks.

If promoters are not participating, would that increase the acceptance ratio of retail shareholders or would it remain unaffected.

Also, when does a buyback have to be approved by shareholders.

Thanks


(EL) #778

Its not possible and not safe to hedge all your position.
Companies usually only hedge their receivables or payables or in most cases net exposure on their balance sheet

Future Revenue or future costs are usually is not hedged atleast not long term. There was a case of many companies in South America that went bankrupt during gulf oil crises when they hedged their oil revenue.
When a company hedges a position usually they have to provide 10 or 20pc margin for the hedge. Hence if you are forward selling $10m of oil, you pay a margin of say $1m
If the price goes a lot against you, then you have to come up with extra margin. Although your cost of production will still mean profit but in the short term the company has a big liquidity problem

Due to this generally its not considered wise to hedge a lot of forward revenue or cost. Around 3-6 months is probably safe

As rates increase or decrease, as revenues are not hedged, the companies margins will get affected and share prices reflect this


(Niraj) #779

Found a couple of articles. I think should help a little on clearing on buyback of shares.

Have put them in order from latest to oldest.


(suhagpatel) #780

Infosys announced buyback @ 800/Share. The buyback will be done through open market route and not typical tendering process.

While i am aware how tendering process works, i wanted to know how the buyback will work in open market case.

I did search and found out that we have to sell the shares in open market during the dates announce by company. My query is if i sell the shares in open market and the price on that day is say 700/share, how the company will come into picture to accept those shares and what price i will be paid considering max buyback price of Rs. 800/Share.

Regards,
Suhag


(sarthak kumar) #781

I went through the articles but couldn’t find the answer.


(sarthak kumar) #782

I have a question regarding buybacks.

If promoters are not participating, would that increase the acceptance ratio of retail shareholders or would it remain unaffected.

Also, when does a buyback have to be approved by shareholders.

Thanks


(sarthak kumar) #783

I want to know from where we can download audio of conference calls. One source I am aware of is stockadda. But shouldn’t they also be available on the company websites or some official source.

Thanks


(EL) #784

Does anyone know how record day and settlement for cash based trading works

So if record date for determining rights or dividend is 15th Feb and I sell on 15th Feb, does it mean I am still eligible to apply for rights issue as I have to only deliver the stock later on settlement date

Would appreciate if anyone knows how it works

Thanks