12-07-2012, 12:43 PM
equity analysis
equity analysis of it sector.doc2010.doc (Size: 457 KB / Downloads: 25)
EQUITY SHARES DEFINITION
Securities representing equity ownership in a corporation, providing voting rights, and entitling the holder to a share of the company's success through dividends and/or capital appreciation. In the event of liquidation, common shareholders have rights to a company's assets only after bondholders, other debt holders, and preferred shareholders have been satisfied. Typically, common shareholders receive one vote per share to elect the company's board of directors (although the number of votes is not always directly proportional to the number of shares owned). The board of directors is the group of individuals that represents the owners of the corporation and oversees major decisions for the company.
EQUITY ANALYSIS
The amount of capital that a company can issue as per its memorandum represents the authorized capital. The amount offered by the company to the investors is called the issued capital. That part of the issued capital that has been subscribed to by the investors is called the paid-up capital. Typically the issued, subscribed and paid-up capitals are the same
NEED OF THE STUDY
The significance of the study is to know IT companies performance, strengths, financial positions etc.
This study helps how the investment in IT sector giving returns to the investor’s.
And it helps how the major IT companies like mobilizing funds how they are allocating how are they are giving returns
LIMITATIONS OF THE STUDY
On This analysis covers only four companies in the IT sector i.e. TCS,INFOSYS,WIPRO
The study covers Both the fundamental and technical analysis of four companies but more emphasis is on fundamental analysis
The study is based secondary source has been calculated for the purpose of the study. The secondary data consists of extract of financial statement, from the companies records to possible extent for the period of five years stating from 2007-2011.
STEPS IN FUNDAMENTAL ANALYSIS
The essence of such an analysis is to project a firm’s sales in future years. For projecting the future of the firm, a sound understanding of the environment in which the firm is operating is a prerequisite. A typical analysis of a firm’s environment has three steps:
MACROECONOMIC ENVIRONMENT ANALYSIS:
Initially the firm’s macroeconomic environment is analyzed to project the future employment, inflation, income regulation, taxes, etc. The macro analysis is dined not only for the home country but also for foreign countries, which affects the firm’s operations.