Glossary: Gearing

When computing how much debt a company is taking on as compared to its equity, the debt equity ratio is usually used. Debt equity ratio is the total mortgage taken by the company divided by the equity price of the company at the point where the ratio is calculated. These computations are useful for the REIT although the usual REIT measurement is the gearing ratio. The ratio is also known as Debt-to-Asset Ratio

Gearing – A fundamental analysis ratio of a company’s level of long-term debt compared to its equity capital.

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Guide: What is Passive Income?

Passive income is income that does not require your direct involvement. Unlike income that you earn via your normal day job where you have to be involved in doing work to earn the monthly income to pay for your food and bills.

A few kind of passive income that we are familar with includes Property Rental, Dividends from Shares and Interests from Banking Accounts

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