What is intangible asset? Why investors should focus on it?

1/ Well, everyone knows an Intangible asset is not physical in nature i.e., it is something that we cannot touch. Let explore more into the concept of intangible assets – a valuable driver for companies.

2/ Intangible assets include goodwill, brand value, patent, copyright, trademark, etc. It is important to evaluate these assets as they are a valuable contributor to a company for long-term success or failure. For instance, companies like Amazon, Apple, Google, Microsoft

3/ are successful due to significant brand recognition. Similarly, Indian FMCG companies like HUL, Coalgate, Britannia enjoy huge benefits due to investment in brand awareness. IT and Pharmaceutical companies protect their sales through patents, copyright, software licensing.

4/ Most internally created intangible assets are not recorded on the company’s balance sheet or have no recorded book value. For instance, even though a coca-cola logo carries huge brand value, it does not show on the balance sheet because it was created internally, and

Few terminologies you should know before you buy any share.

A Thread 🧵👇

When you're buying your first share, you placed an order than your Demat account. There are many terms should be aware of :

1/ Order - It is a show of intent to buy or sell shares in a given price range.

For example, you may place an order to buy up to 100 shares of Company A, at a maximum price of ₹80 per share.

2/ Bid - Your bid is the amount that you are willing to pay for a share.

3/ Bid-ask spread - This is the difference between the amount people are willing to spend to buy a share and the amount at which the shareholders are willing to sell a share. A trade can only happen when this spread is resolved.