Category: Corporate Finance

Moody’s, Standard & Poor, and Fitch are credit ranking agencies that assesses the creditworthiness of various entities, including countries and banks.  The creditworthiness of an entity, whether this is a bank or a country, refers to its ability to meet financial obligations, particularly with reference to repayment of borrowed money. It can be simplified as an assessment of the l entity’s likelihood of returning the money it owes.  Agencies like Moody’s, Fitch and S&P assess creditworthiness. These evaluate a country’s economic and financial situation, including factors like its GDP, fiscal policies and political stability and mainly government debt. Their credit rating reflects the risk associated with lending money to a country. The higher the credit ranking, the lower the risk of default. This makes it more likely that the country…

NVIDIA: Qualitative description NVIDIA Corporation, headquartered in Santa Clara, California, is a leading technology company specializing in the design and manufacture of graphics processing units (GPUs), as well as system-on-a-chip units for mobile computing and automotive applications.  Founded in 1993, NVIDIA operates in various segments, including Gaming, Professional Visualization, Data Center, and Automotive. Its mayor institutional investors, in order, are Vanguard Group Inc (203mln shares), Blackrock Inc (180mln shares) and FMR (129mln shares). In the fiscal year 2022, NVIDIA reported a total revenue of $26.97B (Y/Y % 0,22%).  The company achieved an impressive EBITDA margin of 21.38%, showcasing efficient cost management and profitability. The Gaming and Data Center segments were major contributors to revenue, with Gaming accounting for 49% and Data Center contributing 41%. NVIDIA has established itself as a…

An option, in finance, is a contract between two parties that gives the buyer the possibility, but not the obligation, to buy or sell an underlying asset at a specific price on a future date. The underlying asset can be of different types, some examples are: Equity Forex Commodities Bond Index The specific price at which the buyer has the right to buy or sell the underlying asset is called "strike price." (K). There are two main types of options: 1. Call Option: A call option gives the buyer the possibility to buy the underlying asset at the strike price at a future date. This type of option is preferred if you have upward expectations of the underlying security. 2. Put Option: A put option gives the buyer the possibility…