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How Investors can gain from Stock Split


What is Stock Split?

A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

What are objectives behind stock split?

Stock split is undertaken to infuse liquidity and to make shares affordable for small investors who could not buy the shares of that company earlier due to high prices of share.

Does it dilute Value?

No. The underlying value of each share and the total market capitalization remain the same in spite of the number of shares increases. Unlike an issuance of new shares where the total number of shares and the total market capitalization also increase, thereby reducing an existing shareholder's value, a stock split does not dilute existing shareholders value. The ownership of existing shareholder does not get affected due to stock split.

Why do Companies opt for Stock Split?

Sometimes the price of a company's shares rise so much that it may discourage investors from buying them. So, the company decides to reduce the cost per share by way of a stock split. This also helps in increasing its overall liquidity as new investors may show interest in buying shares. 

How does it benefit investors? 

A stockholder will get two or three shares for one share without any additional cost, making it easier to carry out trades. Also, stock splits can be a best way for retail investors to accumulate a higher number of shares of blue-chip companies which are more expensive. 

Waht is effect of stock split on Share price?

When a stock split takes place, the share price of the stock is adjusted by the inverse of the split ratio. If the share price was $80 before the 2 for 1 split, the stock will start trading at $40 per share after the completion of stock split. The purpose behind a stock split is to bring the share price down to a range where the board of directors believes it will be more attractive to investors.Stock splits are viewed as a positive event and an investor who buys before the split may see a stock price increase after the split due to more investors buying the stock.

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Why would company buyback its own share




Buyback of Shares happens when a company purchases and retires some of its existing shares. Buy Shares can not be reissued in the market. This can be a great thing for shareholders because after the share buyback, they will own a bigger portion of the company, and therefore a bigger portion of its cash flow and earnings.


What happens to share price after buyback?

A buyback  is mean to reduces the number of shares in a company held by the public. In the short term, the stock price may rise by reason of shareholders who know that a buyback will immediately boost earnings per share. Over the long term, a buyback may or may not be beneficial to shareholders.

How will a share repurchase affect the value of the company?

On the balance sheet, a share repurchase will reduce the company's cash holdings, and consequently its total assets base, by the amount of the cash expended in the buyback. The buyback will simultaneously also shrink shareholders' equity on the liabilities side by the same amount. Therefore underlying value of share does not get affected.

Is buyback of shares good?

The theory behind share buybacks is that they reduce the number of shares available in the market and – all things being equal – thus increase EPS on the remaining shares, benefiting shareholders. ... The shareholder believes that stock is undervalued and a good buy at the current market price.

How will shareholders benefit from buyback of shares?

Stock repurchasing can allows companies to reinvest in themselves by reducing the number of existing shares in the market. ... From a financial perspective, buybacks benefit investors by improving shareholder value, increasing share prices, and creating tax beneficial opportunities.

What is objective behind buyback of shares?

  1. Through buyback, company increase promoters holdings, as a percentage of total outstanding shares, without additional investment.
  2. Company wants to change the capital structure.
  3. Management thinks that Company’s stock are available at bargain rate.
  4. Company have huge cash reserve and wants to return the excess cash to the share holders, in the absence of appropriate investment opportunities.

What are method of buyback of shares? 

Companies generally buy back share by the tender method or open market purchase method. Under tender method, the companies offer to buy back shares at a specific price during a species period. Under the open market purchase method, a company buys shares from the secondary market over a period of one year subject to maximum price fixed by the management.
Be the early bird to embrace opportunities available in buyback offer

Conclusion

Share repurchases are a great way for a company to create value for its shareholders, especially if the company has excess cash and little growth prospects, but only if they purchase their shares at a price below intrinsic value.
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Work Permit while you study in Canada

If you’d like to get a part-time job to help support yourself while studying in Canada, you can now qualify to work on or off-campus for up to 20 hours during university semesters and full-time during breaks such as the winter or summer holidays, without the need for a work permit.
To qualify, you must:
  • Have a valid study permit
  • Be a full-time student
  • Be enrolled at a designated learning institution at post-secondary level or, in Quebec, a vocational program at secondary level
  • Be studying in an academic, vocational or professional training program that leads to a degree, diploma or certificate that is at least six months in duration.
You will also need a Social Insurance Number (SIN) from Service Canada to work in Canada or to receive benefits and services from government programs.
Your study permit will become invalid 90 days after you have completed your study program, so you’ll need to acquire a post-graduation work permit if you want to stay in Canada after your studies and seek work. This is valid for three years. 
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How to get education visa for Canada





How much time will it take to get my visa?

Be sure to allow extra time for your visa application. Immediately after you've been accepted to and enrolled in the university of your choice, you can already start your application for the Canadian Study permit. You should apply at least 4-6 months before your university degree programme starts.
After you've applied, you can expect that you'll wait about 35 days for the decision.

Main steps to take for the Canadian student visa

Here is what Indian students have to do to get a student visa that will allow them to study in Canada:
You can apply for visa online or on paper. If you apply on paper you will have to visit a visa application centre in India to submit your documents. Depending on your situation, after your application is analysed, it is possible you will be called for a visa interview.
Indian students maybe have to provide biometrics during the visa application process. Your biometrics are, basically, extra identification (e.g. fingerprinting and pictures) that countries use for security purposes.
You will have to attend a visa interview during the application process.
The Study permit from Canada is valid for up to course duration + 3 months. So that you can stay during your entire degree programme, you may need to renew your visa every year. If you want to stay in Canada after your degree is over, you will have to apply for a different visa, or a visa renewal through the immigration office.

How much will I have to pay for the student visa?

To apply for the Canadian Study permit, you will also have to pay a fee of 150 CAD. Depending on your situation, Canadian authorities will allow you to pay this fee online, on location at a visa application centre in India, or through a bank transfer.
Indian students won't need to get health insurance for the Canadian visa.
If you apply for a visa at an application centre, you'll have to pay a medical exam fee and a visa application service fee of 15 CAD. Unknown CAD.

What documents will I need to get for my student visa?

When you apply for your visa, one of the most important things you need to prove is that you can support yourself during your study programme. For Canada, they require you to prove that if you are going to study in any province except Quebec you can pay 833 CAD/month, or if you are going to study in Quebec you can pay 917 CAD/ either from an external source, or already in your bank account.
Indian students won't have to prove they speak English well enough to study in an international university in Canada. These language skills ensure that you can succeed in your classes and manage your way around Canada.
Indian students will need to take a medical test before arriving in Canada.
Indian students won't need to set up a Restricted Bank Account. This type of bank account restricts the amount of money you can withdraw every month, and only allows you to access it when you arrive in Canada.
Look at the Canada immigration website for more detailed visa information.

Questions that would be ask
  • nationality
  • age
  • language ability
  • family members
  • education
  • work experience
  • income and/or net worth
  • details on any job offer

The process for obtaining a Canadian student visa is as follows
You must first obtain a standardized letter of acceptance from a recognized higher education provider. Students studying in Quebec must also apply for a certificate of acceptance, known as a CAQ, from the government of Quebec. You must acquire this before you are permitted to apply for a study permit. You can get this online, by printing out a form, or by requesting a paper form from your university, which will also provide advice on this subject.
The next stage is to get a Canadian student visa application package, either from the CIC website or by contacting your local visa office, or the Canadian embassy or consulate in your home country. You may also need to obtain a temporary residence permit if you are from a designated country (find out if you need to get one here), but this will not complicate matters too much as it’ll be processed at the same time as your study permit application.
In order to get your application package you’ll need to answer a few questions about yourself on the CIC website. These questions will determine whether you are eligible to apply online for a Canadian student permit, and what documents you’ll need to provide.
If you are found eligible, you will receive a personal checklist code, valid for 60 days, which you will need in order to submit your application online. Make sure to print out the page containing your code for future reference. The page will also include an application guide, an estimated tuition fees amount, a list of documents you will need to submit with your application, and guidelines for your next steps
When you are ready to apply, create a MyCIC account, where you will enter your personal checklist code. You will then receive your personal document checklist which allows you to upload and send your documents to CIC. You’ll need a printer or a scanner to do this.
Once you have your documents and application form ready and have paid your fees, you can submit your completed application to CIC.
Some applicants may have to attend an interview at their local visa office.

Additional Canadian student visa requirements 

Some or all of the following additional Canadian student visa requirements may also apply:
  • Applicants from Europe, the Middle East or Africa may need to provide biometrics (photograph and fingerprints).
  • Some applicants may also need to get a medical exam and/or police check before submitting their application. You will not be able to get a study permit if you have a criminal record – you may be asked to provide a Police Clearance Certificate as proof.
  • Unless you’re from the US or St. Pierre and Miquelon, you will need to prove you have a valid passport which allows you to return to your country of origin after your course is complete. Two passport-sized pictures are also required, with your name and date of birth written on the back.
  • Canadian student visa requirements also include proof of funds to support yourself. At present this is deemed to be CA$10,000 (~US$7,650) for every year of your stay (CA$11,000/~US$8,400 if you’re applying to study in Quebec) on top of your tuition fees. You will also need to make sure you have enough money to pay for transportation to return home.
To prove you have this money, you can provide any of the following documents: bank statements, evidence of a Canadian account in your name if the money’s been transferred, a bank draft in a convertible currency, proof of payment of tuition and accommodation fees, a letter from a person or institution providing you with money, or proof of funding paid from within Canada if you have a scholarship or are undertaking a Canadian-funded program.

Applying through the Student Direct Stream

Canada recently introduced the Student Direct Stream, which students from China, India, the Philippines or Vietnam can apply for in order to get their study permit faster. The requirements are similar to the regular study permit, although there are stricter language requirements – you need to have an IELTS score of at least 6, or a 7 in the Niveaux the Compétence Linguistique Canadiens for French, or have graduated from a Canadian-curriculum high school. If you don’t meet the requirements for the Student Direct Stream but do meet them for the regular study permit, your application will be reviewed for the regular study permit option and you won’t get faster processing.

Next steps after applying

If and when your Canadian student visa application is approved, you’ll receive a Port of Entry (POE) Letter of Introduction, while students from countries which require an Electronic Travel Authorization (eTA) and/or a temporary residence visa will be issued these if required. The eTA will be linked to your passport. It is important that you travel with the passport you used when you applied for your study permit. The eTA will be valid for five years or until your passport expires, whichever comes first.
Present these along with your passport, proof of your finances and your letter of acceptance (and any other documents that you’ve been advised to take) to the Canada Border Services Agency (CBSA) in Canada, who will then issue your Canadian study permit and allow you access into Canada.

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How to go canada for educational purpose



    
       Recently, craze for going to Canada and USA is increasing day by day. Someone may willing to go for higher education like IT, Computer Science, Engineering etc. for having future very rich.
          Canada is second largest country by area. Canada is known for its maple syrup, the Niagara Falls, and their excellent ice hockey teams. Canada is home to more than 3000 lakes. Canada is the world's most educated country, with over half of its residents having university degrees.
         Canada is actually a place where you can study a Master's degree abroad. some of the top universities in the world offer competitive Master's degrees in Canada, and students from all over the world reach out to Canada for joining the biggest names in their field.  Popular subjects you may choose for a Master's programme in Canada may include Journalism, Politics, Medicine, Engineering and Information Technology etc.

Study permit

If you're a student from India, you'll need the Study permit to study in Canada. This visa is made specifically for students like you who are ready to begin their study abroad adventure in Canada. Find out the best information about the process of getting the Study permit to decide if studying abroad in Canada is right for you.
How much time will it take to get my visa?
Be sure to allow extra time for your visa application. Immediately after you've been accepted to and enrolled in the university of your choice, you can already start your application for the Canadian Study permit. You should apply at least 4-6 months before your university degree programme starts.

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How to make money in share market



Everyone wants to have another source of income especially a salaried person because he has fixed obligation to pay like home loan etc. So it becomes important to make effort to earn extra income.
Generally most people choose stock market to earn extra income, but it is not easy to earn money out of share market. Because there are professional persons with whom you have to compete. So it requires extra quality in you. You can develop the required quality by experience of one or two year depends upon your observation power.

Minimum Requirement

1. Minimum Investment
2. Patience
3. Fundamental Analysis
4. Avoid Fake news

Very precious quotes by Warren Buffett (Greatest investing mind of our time)
“Be fearful when others are greedy and be greedy when others are fearful”
Here we will see in details

Here we will see in details

Minimum Investment

In law, there is no any minimum investment criteria, but it will be beneficial to have enough capital to earn profit otherwise you lose your money and also your precious time

Patience
The best investors has confidence in their discipline to make their strategy successful. Frequent trade by investors have high possibility of losing money and make brokerage house rich by giving away money on brokerage. The entry level and exit level should be pre-determined and implement very strictly.

Fundamental Analysis
In long term investment, Fundamental analysis of target company is very important aspect. Fundamental analysis gives you better idea of


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