Tag: reason

ESOPs provide many tax advantages.An ESOP is really a retirement plan under which a trust acquires the employers stock in trust for the employees.The ESOP trust will choose the employer's stock from the employer or the employer's shareholder.The ESOP will acquire this stock by finding a bank loan.The lender loan is guaranteed by the employer.The employer can make yearly tax deductible cash contributions to the ESOP...

We learnt the following the hard way! If any of these things applies to you, do not worry - there is a simple solution!Lack of Knowledge and No PlanIt amazes us that some people expect to trade the stock market successfully with no effort.Yet if they would like to take up golf, as an instance, they will gladly take some courses or read a book before going out on the program.The stock exchange isn't the place for the ill informed...

I use the P/E ratio as a secondary indicator for buying and selling stocks but I do not use the ratio in the same a manner as many value investors teach.I'll explain the difference in my methodology for using the P/E ratio to your advantage.Many value investors will pass on a growth stock which has a P/E ratio greater than a predetermined amount.By way of instance, they may discard all stocks with a ratio of 15 or greater, regardless of what industry group they come from...