Most of us buy life insurance plan to protect our households in
case we die. But even we buy a term plan that that will last for
years; we do not actually assume to pass away throughout that time.
If your program passed through underwriting, that is a good sign
that the life insurance company does n…
Bonds are a form of indebtedness that is sold to the public in set
increments, normally in the neighborhood of $1000. In return for
loaning the debtor the money, the lender gets a piece of paper that
stipulates how much was lent, the agreed-upon interest rate, how
often interest will be paid, and th…
FINANCIAL ADVISORS If the amount is truly large, you should start looking for a financial advisor (preferably a Certified Financial Planner). If the large sum is received as the result of an inheritance, the estate attorney should be able to recommend someone. For a fee, the financial planner will s…
You have to remember all the large investment banks have now either been absorbed by bank holding companies, filed for bankruptcy, and have reorganized into bank holding companies. The biggest problem in the past has been over leveraging investments, and running the risk of becoming illiquid and thi…
Concentration Banking is system whereby customers make payments to a regional collection center which transfers the funds to a the principal bank. Acceleration of cash collections from customers by having funds sent to several geographically situated regional banks and transferred to a main concent…
Yes. It's referred to as a living trust. An attorney can set one up
for a nominal fee.
another protection against law suits and bankrupcy are qualified
IRA's. These, I have heard, are protected against the above
DO NOT BUY ANYTHING FROM ANYONE WHO WANTS TO SELL YOU A "LIVING
A "living tru…
Most of the major Canadian online brokers charge very similar fees (why am I not surprised!) For example the TD-Waterhouse minimum trade is $29.00, which I find too expensive. There seem to be two alternatives - "Questrade" and "Canadian Interactive Brokers". The basic web-based platforms of these t…
A non-profit organization is one that, by law, is unable to hold or distribute profits like a "for-profit" organization can. This means that the non-profit company is required by law to redistribute any "profits" back into the company (in the form of salaries, new capital, etc), or to other non-pro…
Contact the issuers of the stock and ask them to put a tracer on them. Stock shares are (should) be sent by certified mail with a receipt of deliverance returned to the sender.
The name of the street derives from the fact that during the
17th Century, it formed the northern boundary of the New Amsterdam
settlement where the Dutch had constructed a crude wall of timer
and earthwork. The wall was meant as a defense against attack from
Lenape Indians, New England colonists, …
Basically the same way you'd would find funding for any small business, I would think.You can try finding investors, to take out a loan - either from family (but borrowing money from family or friends is never wise, IMO) or a loan institution.Visit the SBA's website sba.gov and check out the info th…
If you are asking as an industry for a possible career, then it is
possible to make a very good living in both. Some of the highest
paying jobs are in the financial and brokerage sector.
Remember, you almost always work as a broker- meaning that you are
a full time salesperson. Brokers ar…
Depreciation does not generate cash flow. If a million dollar piece of equipment is purchased, an accountant would reflect that the company now owns a million dollar asset. Without depreciation, the company would still show a million dollar asset on the books even though we all know the equipment's …
The behavior should not be governed by egoistic thinking but rather
by an understanding of what has future for the society (for nature,
for the planet) as a whole. We can call them moral rules. Also are
We have such rules already coded in our emotions as a result of
World War 2 had a negative effect on the stock market. Stock values
declined and did not increase until the war began to turn in favor
of the allied powers.
It's supposed to be a source for U.S. businesses to raise capital and grow the economy. In this function it is broken, it doesn't work. Naked shorting and other abusive practices have made the stock market one big, rigged, ponzi scheme. Currently banking stocks are being shorted by the big bucks …
Answer Shareholders are very sensitive to this and when changes take place that are negative a stock can fall in price (and keep falling for that matter). Astute investors pay attention to the details of the company seeking early clues to problems the company may acknowledge several weeks or month…
Hard to say, because a lot more than just the condition of the asset comes into play. But assuming condition was the ONLY factor, the better the condition of the asset is, the more likely you are to buy it and, in comparison to other similar assets, the higher the price of the asset will b…
A basketball team or operation can be divided into 23 different
administrative departments those departments include.
Administrative and benefits department, basketball operations,
broadcast and communication operations, events, finance. Then there
are the global departments they are global marketin…
"Why should we hire you" is the other side of "Why am I applying to
work here". You must want the job or you would not have applied.
Tell them of your ambitions and why their job advert attracted you.
Tell them why you and your skills will be of benefit to them. Do
not be boastful and if possible ba…
1. Interest rate at any given time. A. as determined by market factors. B. Influenced by Federal reserve. 2. time to maturity. short,intermediate, or long term. 3. Coupon, rate of interest at the time of issuance.Also of importance is whether or not the bond is Callable.That is redeemable by the iss…
As a rule of thumb, it never hurts to get rid of the loan early. The more credit you are trying to build, the more your score will increase if you pay the loan off with the regularly scheduled payments. This especially holds true for unsecured loans.That said, there are some loans that contain pre-p…
they did win the game they lost
What do you consider is the most important when working with customers?
Maybe it is because of the uncertainty of the economy ( the ups and downs of the stock market)
"How much importance should be given to the fact that (while the gains from the retirement of a loan can be estimated) (the returns from an investment always carry a risk?)" I sincerely apologi…
Although New York is home to Wall Street and the New York Stock Exchange many of the large banks, insurance companies, equity firms and other investment oriented companies are headquarted in or around Boston, MA making that the true Finance capital of America.Any city that is deserving of the title …
Well in any organization there needs to be a mix of financing sources, so even though you will choose debt over equity, in some instances to satisfy some interest parties equity must be used. So there lies your answer. there is no text book answer. it is more practical. The major reasons are: Thoug…
Sensex refers to "Sensitivity Index" and is generally associated
with the stock market indices. There are currently two major stock
exchanges in India, The Bombay Stock exchange (BSE) and The
National Stock Exchange (NSE).
The BSE Sensex is an indicator of all the major companies of the
BSE. The …
Nominal Interest A nominal interest rate is the interest rate that does not compensate for inflation. This is used in relation to "effective interest rate" or "real interest rate." " Real Interest Rate = Nominal Interest Rate - Inflation Rate " Improvement suggested by Palash Bagchi.
The stockholders ARE the owners of a corporation.
Technically no, because of what the earlier answer says, but it is possible for the board, majority shareholders, or officers to misappropriate the corporate assets to enrich themselves at the expense of the corporation and …
In my Point Of View Off antipode breadth usually bureau an asset or accountability or costs movement not on the accession antipode sheet. An analysis of costs in which abounding basal expenditures are kept off of a company's antipode breadth through different allocation methods. Companies will about…
Because debt is a fixed amount that can be repaid, with the owners of the business retaining full ownership after repayment. Equity makes one an owner of a (presumably) growing business and therefore of potentially huge value and an indeterminate loss to the original owners.
I am not sure I …
A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borr…
Most times in bankruptcy, the stock continues to trade on the open market, assuming it is already publicly traded. It is only when the company closes shop that the shareholders MAY be out of luck.
Common stock is lowest on the totem pole of paybacks. In other words, when a publicly tra…
The level of importance depends completely on how much you need the money you are talking about for some other use. If you have a pool of money to either pay back debt (risk-free) or invest in a money making project (risky) the importance is how you would feel if you could not pay back the debt if y…
Sure, profit maximization relates to profits *only* while shareholder wealth also involves total company equity, debt ratios and any of 15 other financial performance measure ratios. Management could focus on profit maximization over a longer period of time, say, 40 years (Toyota), while t…
The relationship is that present value is the current value of future cash flows discounted at the appropriate discount rate. Future values are the amount a present value investment is worth after one or more periods.
We learn everything we can in the present so we have some of the answers for the …
While there is no truly risk-free investment, bonds backed by the full faith and credit of the U.S. government are the closest thing to a risk-free investment. This would include Treasury Bills, Notes, or Bonds. You can buy these bonds yourself without using a broker by setti…
ETFs are exchange traded funds. They allow immediate diversification for smaller investors. Unlike mutual funds they allow diversity with fewer limitations - they, like stocks, can be traded intra-day (mutual funds don't allow this), are often optionable (and can therefore be both traded and hedged …
Depends on individual preference.I like Stocks, Stocks and more Stocks. Historically over the long term (20+ years) they have outperformed every other type of investment including real estate. The National Association of Investment Clubs (www.better-investing.org) has lots of good information.On the…
Earnings that are distributed to shareholders as dividends. They are stated in dollar amount per share and paid quarterly. Dividend Reinvestment Programs (DRP) give you the option of reinvesting dividends to purchase additional stock shares. Dividends are taxable income in the year they are paid. Di…
The collections and purchase schedules measure the speed at which receivables are collected and purchases are paid. To the extent collections do not cover purchasing costs and other financial requirements, the firm must look to borrowing to cover the deficit.
Cost of capital, i.e., interest payments and cash-flows out, impact the total cash available to invest in capital goods. For example if you borrow $100,000 to purchase a new pizza oven and it brings in an additional $1000/month of profit but the monthly interest on the loan payment is …
Headging: headging means making investment some where else,to over go risk in foreign transactions. forward exchange contracts:It means two partys go in to contract to exchange different currencys at some future date.
Business risks are financial risks that are specific to a business
entity. Financial risks are more general risks that can be taken by
either individuals or businesses.
Financial leverage offers many advantages for a firm to move forward. But like most things, there are some limitations that come with financial leverage as well. For example, when a company uses financial leverage they are technically borrowing funds. Borrowing money is always going to dev…
Here is useful information from Answers.com:
In terms of accounting, an expense is considered to be a capital expenditure when the asset is a newly purchased capital asset or an investment that improves the useful life of an existing capital asset. If an expense is a c…
1. The state of being liquid.2. The quality of being readily convertible into cash: an investment with high liquidity.3. Available cash or the capacity to obtain it on demand: a bank that is increasing its liquidity by shortening the average term of its loans.Liquidity, as a term, in the world of In…
International finance is a way to maximize shareholder wealth. The
features of international finance includes foreign exchange risk,
political risk, expanded opportunity sets and market imperfections.
Yes, many modern companies set a target dividend payout ratio. A
target dividend payout ratio is used to determine what ratio of
profits is paid out to the shareholders.
Here are a few definitions: A person who buys and sells securities on behalf of others in return for brokerage or commission. An agent who buys and sells securities on a stock exchange on behalf of clients. One who acts as an agent in the buying and selling of securities and charges a commission …
Cost of capital, i.e., interest payments and cash-flows out, impact
the total cash available to invest in capital goods. For example if
you borrow $100,000 to purchase a new pizza oven and it brings in
an additional $1000/month of profit but the monthly interest on the
loan payment is $1500, then it…
Common stockPreferred stockCommon stock is usually what is issued to the general public. The term common Stock doesn't carry any negative connotations, but rather indicates that it is the "standard" stock the company has offered. Common shareholders have voting rights. And as the word suggests, "Pre…
Benjamin Bernanke is the chairman of the board of the Federal Reserve. He was appointed in 2006 by President Bush. Bernanke was preceded by Alan Greenspan.
A cap is a type hat that you wear on your head.
If your in business it is best to lease and get the deduction. If not, buy and make it last.
Another Answer: Because there are advantages and disadvantages to both
leasing and buying, you need to know initial costs and future dollar value in both. The ROI (Return On Investment) will differ depend…
Types of Risk / How to Measure Risk
Risk takes many forms. You take risk everytime you act, from crossing the street to buying a stock to getting on an airplane to drinking a glass of pasteurized milk.
Generally when people talk about risk, however, they focus on financial risk. This answer ther…
Investment PortfoliosA portfolio is a diversified (hopefully) set of investments held by an individual or institutional investor.Any investment carries risk. For example, a particular company's stock value might go up or down. If you invest entirely in that one company, your fortunes will fluctuate …
Day Traders"Day trader" has taken on a negative connotation. Many people think of the amateur individual investors who started investing their own money via online trading sites such as eTrade during the Internet tech boom. Some of them made lots of money at first. Most of them lost a lot in the cra…
The value of shares in a company are affected by many things. It also depends on what kind of shares they are. Lets assume shares that are openly traded on the stock markets. In order to make these share prices rise the company needs to inform the stock market of some "good news" this can be a poten…
I would try psychiatric wards at expensive hospitals.
A stock market crash is a sudden dramatic loss of value of shares of stock in corporations. Crashes are driven by panic as much as by underlying economic factors. They often follow speculative stock market bubbles such as the dot-com boom.The most famous crash, the Stock Market Crash of 1929, starte…
Yes. Gold is a comodity that is traded in the markets like any other comodity.The recent rising price is a function of supply and demand. If for any reason demand for gold increased far beyond the ability to supply then the price would increase. Because gold is a finite natural resource, we've seen …
How to Make Money in the Stock MarketThe answer to this question depends on the amount you're starting with and what your time frame is.For example, if you are starting with 100,000, you only need a 1% return to make 1,000. If you do have this kind of money, and need a guaranteed return over a short…
Equity represents owners financial stake in the business. It is
normally believed that business belongs to those who have major
financial stake. It is also believed that those who are having more
financial stake will devote more time in futherence of the business
and will be involved in the business…
the Internal rate of return is the discount rate in the NPV formula which makes NPV equal to 0.
It is kind of the breakeven point for the NPV analysis. Though IRR is a relative measure and not an absolute measure like the NPV. Also there is a problem where a capital investment appraisal results in …
Trend analysis gives the owner an up, down, or flat trend, and
tells the owner whether he is doing better, worse or remaining the
same. Lets take for example a Liquidity ratio over a four year
Calendar Year period as displayed below:
CY 2000 = 3:1
CY 2001 = 2:1
Click on the link on the right for more info.
you all are hopeless!!!
Many times the money for a student loan is transfered directly from the lender to the University. Therefore you would be unable to do this. If your parents have high interest credit cards, the best thing to do would be to refinance your home or get a home equity loan. These are available to many peo…
Take some courses in investing. Better yet, take the securities course. In Canada it's called the Canadian Securities Course. This course is expensive, time consuming, arduous, and not for the faint of heart. When you pass this course (It will take about 12 to 24 months part time study) you will…
Accountants use impact analysis and financial ratios to analyse financial statements.
Some of the important ratios are:
Quick asset ratio
Gross profits to sales
Nett profit to sales
Return on shareholders' equity
Debt to equity
Capital market instruments Capital market instruments are those instruments which are not facilitate the transfer of capital in the financial markets (!).Let's start with a basic definition of capital markets. A capital market is where people (individuals, corporations, governments)lend or borrow mo…
1.Commansize Balence sheet analysis 2.Comparative Balence sheet analysis 3.Trend analysis 4.Ratio Analysis
Capital market instruments exist to generate funds for companies
and corporations. Some of those instruments are stocks, bonds,
debenture, treasury bills and fixed deposits.
The most important capital market instrument is the stock. The
stock market is instrumental in obtaining stock for new and
established companies and corporations.
What impact does WACC have on capital budgeting and structure?
An option is the right to buy or sell the underlying commodity (e.g., stock) during a specific future time at a predetermined price.
The price or cost of an option is called a "premium".
The factors which determine an option's value are:
1. Price of the underlying
2. Time to…
Indian partnership act of 1932. Sec-4 of this act defines partnership as "A relationship between persons who have agreed to share their profits and losses of a business carried on by all or any of them acting for all".
In a corporation a business is owned by more than 2 people, In a partnership a business is owned by only two people, and in sole proprietorship there is only one owner.Added by Stox723. The above answer is totally incorrect. You would be well advised to disregard it.
The corporation is like a…
based on accounting flows, depreciation is regarded as fixed cost; based on cash flows, depreciation is not included in fixed cost.so, break-even point by accounting flows is larger than cash break-even point.in the long term, depreciation should be counted. so, break-even by accounting flows is lon…
The U.S. Government will tell you that we are doing fine for money -but in reality we spend so much on other countries that we are about 11 trillion dollars in debt to no one except U.S. tax- paying citizens.
Average starting salary: $40,000Average salary after 5 years: $48,300Average salary after 10 to 15 years: $59,200 he he :) they are rich x
Bank Payroll Segmentation
Having prepared several business plans for niche banks, I can tell you that many segment payroll according to the following broad categories:
Operations & Compliance
Clerical & Administrative
There is no such animal as a short term capital gain or loss... When you hold the stock for a year or more it is treated as capital and the tax rate on your realized gains is (currently) 15%. If you sell out and had held for less than a year, your gain or loss is netted together with other ordinary …
Marginal or incremental cost of capital is cost of the additional capital raised in a given period
(1) in futures trading, a specific dollar amount, set by each exchange, that both buyers and sellers must deposit as a guarantee that both will perform as agreed to make or take delivery during a designated period of time. The deposit is held by the clearing organization of the exchange. (2) in stoc…
Securitization is the process of transforming collateral or obligations into traded securities.
An easy way to understand this is through example. The mortgage backed securities market is one of the largest and most liquid in the United States. Through the process of securi…
Goods that are purchased for use in a business can be depreciated to account for normal wear and tear. Most light equipment, such as computers, are depreciated over 3 years. It helps the business to prepare to replace the items after their normal life cycle by allowing them to deduct part …
Sensex and the Nifty
The Sensex is an "index". What is an index? An index is basically an indicator. It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down.
The Sensex is an indicator of all the major companies of the BSE.
Total Investment= $35000+ $40000=$75000 Portfolio Beta = [(35000/75000) X .08] + [(40000/75000) X 1.4] = 0.78
Answer I came up with was 350 + 25% = 437.5 - 40% = 262.5
pe's ratio is excess:size reduction
i think it stands for
PHYSICAL EDUCATION which means
education = learning
Buffet's Fortune Warren Buffet accumulated his fortune in the stock market.
accumulated deficit is the net loss which is carried everyyear from p&l to balance sheet under stock holder equity. the net loss carried everyyear collectively is known as accumulated deficit
Functions of the IMF
IMF describes itself as "an organization of 184 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty".
The primary mission of the IMF …
The IMF functions to improve the economies of its member countries. The organization's objectives are: to promote international economic cooperation, international trade, employment, and exchange-rate stability, including by making financial resources available to member countries to meet balance-of…
ADR is a three-letter acronym that may refer to:
* Acad�mie de Roberval, a school in Montreal, Canada
* Accord Dangereuse Routiers, regulations for the international movement of hazardous goods by road.
* Accord Dangereuses Route - short for "L'accord europeen au transport des merchan…