Why Apple is a CASH COW?

A company that generates enough cash to pay for all investments is called “CASH COW”. For example: APPLE

Apple company generates plenty of cash through sales (iphones, Mac,Ipad, Ipod etc). That cash can be used for all operating expenses, investing activities, research and development, paying salaries etc.

Oil Vs Gas, Gasoline Vs Diesel, WTI Vs Brent

Oil Gas
1.   Oil is fuel that used as motor oil, crude oil and olive oil etc.

 

1.     Gas is a mixture of other gases that used for heating, cooking, producing electricity and drying clothes.

 

 

Crude Oil Natural Gas
1.     Crude Oil is source for petroleum products (Petrol, Diesel, Kerosene)

2.     Used for heating and electricity

3.     Cheaper

4.     Used for cosmetics, plastics and rubber

5.     Polluting fuel

6.     LPG in it

1.     It consists of methane, hydrocarbons and ethane

2.     Fossil fuel for heating and electricity

3.     Costlier

4.     Used for fertilizers

5.     Cleanest fuel

6.     CNG in it

 

WTI Crude Oil BRENT Crude Oil
1.     West Texas Intermediate is crude oil benchmark for oil pricing in US

2.     It is a Texas sweetest, lightest, low density and low Sulphur content

3.     WTI is used to refine larger portions of Gasoline

4.     It trades at Higher Price

5.     Huge demand in US

1.     Brent is crude oil benchmark for oil pricing in world wide

2.     It is sweet, lighter , lower density  and low Sulphur content

3.     Brent is used for making both gasoline and middle distillates (Diesel)

4.     It trades at Lower Price

5.     Huge demand in European Market

CNG Gas LPG Gas
1.     Gas for heating

2.     Compressed natural gas

3.     Composes of methane

4.     CNG lighter than air

5.     CNG less prone to accidents

6.     CNG is less polluting

1.     Gas for heating

2.     Liquefied petroleum gas

3.     Composed of propane and butane

4.     LPG heavier than air

5.     Prone to accidents

6.     Polluting

GASOLINE (PETROL) DIESEL
1.     Refined from crude oil

2.     Refined from crude oil U.S. refineries produce about 19 gallons of motor gasoline from 42 gallon barrel of crude oil

1.     Refined from crude oil

2.     U.S refiners produce about 2 gallons of diesel fuel from 42 gallon barrel of crude oil

 

Interest

Paying a charge for borrowing money is called “Interest” . Interests are two types

  1. Simple interest:  Paying a charge on principle borrowing money only.
  2. Compound interest:  Sum of prior interest and capital amount. It is interest on interest.

How to buy and sell a stock ? What is brokerage account?

  • If you want to invest your money in stock market, you need to open a brokerage account with a brokerage firm. Therefore, buying a stock and selling a stock will happen through brokerage account.
  • Brokerage account is a setup between investor and licensed brokerage firm to buy a stock and sell a stock in equity market. Opening a brokerage account as simple as opening a bank account (It is just an online application)
  • There are many brokerage firms in USA which offer brokerage account.  For example: Robinhood, Fidelity, Scotttrade, Interactive Brokers, Trade King and Speed Trader.
  • However, brokerage firms charge some commission fee for buying a stock and selling stock.
  • StockFires will suggest you to go for Robinhood brokerage account if you are a beginner because it does not charge anything for selling a stock and buying a stock (Absolutely zero commission).
  • It is just a mobile app that you need to download from Google store and Apple store.  (Remember Robinhood is not web user interface).

Brokerage Firms and Commission Fees:

Brokerage Firm Commission Fee
Robinhood $0
Fidelity $7.95 per trade (Buying  + Selling (7.95+7.95)=$15.95)
Interactive Brokers It depends on quantity of buying and selling shares
Scotttrade $7 per trade
Trade King $4.95 per trade
Speed Trader $5.95 per trade

Trade * – Buying a stock OR Selling a stock

 

What is Issue Price?

  • Selling a share to the public at certain price within IPO process called as “Issue Price”.
  • After stock is listed on stock exchanges, if stock trades above “Issue Price”, investor will be profitable.
  • If share value trades below “Issue Price”, invest will incur losses.

What is an IPO?

IPO – Stands for “Initial Public Offerings”.

Selling a stock or shares first time by company to the public is called “Initial Public Offerings”. Company offers 25 % of shares to the public. Shares offering are usually done with IPO application process. However, there is no guarantee whether public can get the company shares or not in this process.  IPO process happens before company is listed on stock exchanges.