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Reliance has equity reserves of ₹8 lakh crore! How does it use them?
A company usually creates reserves from share premiums and retained earnings. However, not all reserves are liquid. Companies use reserves for various purposes. If not used well, excessive reserves held in cash could be a drag on the company's ROE.
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Disclaimer: The stocks or financial instruments discussed in this podcast are meant for educational purposes only. Please do not consider them recommendations or financial advice of any form.
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By Zerodha VarsityA company usually creates reserves from share premiums and retained earnings. However, not all reserves are liquid. Companies use reserves for various purposes. If not used well, excessive reserves held in cash could be a drag on the company's ROE.
Zerodha Varsity on Social Media:
Instagram: https://www.instagram.com/zerodhavarsity/
X: https://x.com/ZerodhaVarsity
YouTube: https://www.youtube.com/@varsitybyzerodha
Disclaimer: The stocks or financial instruments discussed in this podcast are meant for educational purposes only. Please do not consider them recommendations or financial advice of any form.