Investing in Property and Determining Its Value
ADVERTISEMENTS: After reading this article you will learn about the Principles of Investing in Property and Determining Its Value. Price: The price of property is most valuable for determination of real estate. The property must be evaluated with regard to its price in relation to its position and its use. ADVERTISEMENTS: Regarding position, it should […]
Actived: 9 days ago
Investment Account: Meaning, Transactions and Accounting
(4 days ago) ADVERTISEMENTS: Investment Account: Meaning, Transactions and Accounting Treatment! Meaning of Investment Account: Investment means to spend money outside the business in order to earn some income which are non-trading in nature. Usually, money is invested in Government Bonds, Securities, Shares and Debentures of companies etc. ADVERTISEMENTS: Investments are made in two ways: …
Finance and Investments: Interacting Decision Elements
(4 days ago) Finance and Investments: Interacting Decision Elements. Investment decisions and finance decisions interact with each other. Like the two blades of a pair of scissors, the investment (and savings) decision interacts with the finance (and spending) decision to cut the pie (called total income) into mutually satisfactory (optimal) proportions.
Screening Process for a Venture Investment Is Likely To
(2 days ago) Investors are typically looking for annualized growth rates at over 30 per cent. Some later-stage investing is done in firms that have growth rates around 20 per cent; but what really interests the venture capitalist are high-growth companies in booming industries envisaging growth …
Cash Flow Statement: Meaning, Classification and Formats
(3 days ago) Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents. The separate disclosure of cash flows arising from investing activities is important because the cash flows represent the extent to which expenditures have been made for resources intended to generate future income
Classification of Cash Inflows and Outflows (With Diagram)
(8 days ago) 2. Investing Activities (or Flows) 3. Financing Activities (or Flows). Figure 18.1 displays the classification of cash inflows and cash outflows relating to operating activities, investing activities and financing activities. 1. Operating Activities: Operating activities are those transactions which are considered in the determination of net
Preparation of Cash Flow Statement: Sources and Steps
(3 days ago) Step 3: Calculate the net cash flow from investing activities. Step 4: ADVERTISEMENTS: Calculate the net cash flow from financing activities. Step 5: Prepare a formal cash flow statement highlighting the net cash flow from (used in) operating, investing and financing activities separately. Step 6: ADVERTISEMENTS:
Bonds: Meaning, Objectives and Evaluation
(8 days ago) Before investing in a bond, the financial position of a company may be assessed. While it is difficult to find out the repayment of loans position of a company through its Balance Sheet or Profit and Loss Account, the market reputation of a company can be assessed through its dealings with a bank and its dealings with other business firms.
Cash Flow Statement: Definition and Provisions
(7 days ago) Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Financing activities are activities that result in changes in the size and composition of the owner’s capital (including preference share capital in the case of a company) and borrowings of the enterprise.
Presentation of Cash Flow Statement (2 Methods)
(7 days ago) ADVERTISEMENTS: A cash flow statement can be presented in either the direct or indirect format. The investing and financing sections will be the same under either format. However, the operating section will be different. Direct Method: Direct method is that method whereby major classes of gross cash receipts and gross cash payments are disclosed. Enterprises […]
Objectives of Investing in Unit Trust of India (UTI)
(8 days ago) Investing in UTI: Objective # 1. Safety: Unit Trust of India assures to the investor a safe return of the investment whenever the investor requires funds. The Trust provides daily price record and advertises it in the newspapers. Two prices are quoted daily, the purchase price as well as the sale price of the units.
Economic Value Added (EVA): Meaning, Components and …
(2 days ago) (n) EVA is a good guide for investors; as on the bias of EVA, they can decide whether a particular company is worth investing money in or not. (iii) EVA can be used as a basis for valuation of goodwill and shares. (iv) EVA is a good controlling device in a decentralised enterprise.
10 Different Ways in Which Political Risk Can Be Managed
(6 days ago) ADVERTISEMENTS: The different ways in which Political Risk can be managed are as follows: 1) Avoiding Investment: The simplest way to manage political risks is to avoid investing in a country ranked high on such risks. Where investment has already been made, plants may be wound up or transferred to some other country which is […]
Investment Modes of International Business Expansion
(6 days ago) The investing firm also acquires technical know-how, process, and management skills that add to its operational efficiency overseas. Acquisitions can be of the following three types: Minority: When a foreign firm acquires 10 per cent to 49 per cent interest in a firm’s voting stock .
4 Major Types of Stock Levels of Inventory (With Formula)
(4 days ago) ADVERTISEMENTS: This article throws light upon the four major types of stock levels of inventory. The types are: 1. Minimum Level 2. Maximum Level 3. Danger Level 4. Average Stock Level. Stock Level: Type # 1. Minimum Level: This represents the quantity which must be maintained in hand at all times. If stocks are less […]
Essay on Mutual Funds
(5 days ago) Essay # 1. Mutual Funds: Mutual fund is a mechanism of pooling resources by issuing units to investors and investing their funds in securities to get a good return. Out of the return received, the mutual fund keeps a margin for its costs and distributes the profits to the investors.
Transactions Relating to Investment Accounts (With Journal
(7 days ago) ADVERTISEMENTS: Read this article to learn about the transactions relating to investment account with its treatment. Purchase and Sale of Investments: Investments are made in various securities, e.g. Government, Semi-government, Corporation or Trust Securities, such as Shares, Bonds, Debentures, etc. in long or short-term. The long-term investment is normally made for earning interest or
Technology and Application Systems in National Stock
(1 days ago) ADVERTISEMENTS: Technology has been the backbone of the Exchange. Providing the services to the investing community and the market participants using technology at the cheapest possible cost has been its main thrust. NSE chose to harness technology in creating a new market design. It believes that technology provides the necessary impetus for the organisation to […]
Objectives of Cash Flow Statement: Top 8 Objectives
(2 days ago) ADVERTISEMENTS: Read this article to learn about the top eight objectives of cash flow statement. (a) Measurement of Cash: Inflows of cash and outflows of cash can be measured annually which arise from operating activities, investing activities and financial activities. (b) Generating Inflow of Cash: Timing and certainty of generating the inflow of cash can […]
New Issues Market (NIM) and Stock Exchange
(7 days ago) The long-term and short-term changes in these factors have an effect on the day-to-day changes in prices of stocks. The NIM depends on the stock exchange to find out these price movements and the general economic outlook to forecast the climate for investing …
Classification of Cash Inflows and Outflows (With Diagarm)
(8 days ago) The ICAI’s AS 3 ‘Cash Flow Statement’ has classified cash flows into three categories: ADVERTISEMENTS: (1) Operating Activities (or Flows) (2) Investing Activities (or Flows) (3) Financing Activities (or Flows) Exhibit 14.4 displays the classification of cash inflows and cash outflows relating to operating activities, investing activities
How to Become a Successful Investor
(6 days ago) The above analogy clears the distinction between winners and loser’s game. Probably, the investor can guess whether buying securities is a winner’s game or a loser’s game recently, buying securities has become a loser’s game even for professionals engaged in institutional investing.
Globalization Types: Economic and Cultural Globalization
(Just Now) The businessmen of one country are freely investing money in manufacturing, service, knowledge and other sectors of other countries. Multinational companies are mushrooming and dominating the indigenous manufacturing sector of the less developed countries. 2. Cultural Globalization:
Stock Exchange: Concept, Features and Its Role in Market
(8 days ago) In the absence of stock exchange, investing public might be deceived or cheated by shrewd unscrupulous brokers. (iii) Evaluation of Securities: Stock exchange determines prices of various securities (in terms of their real worth) through the interplay of demand and supply forces.
Cash Flow Statement (Revised) AS-3: A Close View
(7 days ago) Investing Activities: The separate disclosure of cash flows arising from investing activities is important because the cash flows represent the extent to which expenditure have been made for resources intended to generate future income and cash flows. Examples of cash flows arising from investing …
Government Securities: Operations and Yields
(7 days ago) ADVERTISEMENTS: After reading this article you will learn about Government Securities:- 1. Operations of the Government Securities Market 2. Prices and Yields on Government Securities. Operations of the Government Securities Market: Government securities market in India is narrow and unlike other countries inactive. The general investors do not buy these securities. The Reserve Bank of […]
Top 5 Economic Forecasting Techniques Investment
(9 days ago) ADVERTISEMENTS: This article throws light upon the top five economic forecasting techniques. The economic forecasting techniques are: 1. Surveys 2. Indicators 3. Diffusion Indexes 4. Economic Model Building 5. Opportunistic Model Building. Economic Forecasting Technique # 1. Surveys: One of the methods of short-term forecasting is to make a survey of the type of business […]
Financial Leverage: Meaning, Impact and Importance (With
(6 days ago) Leverage is an important technique that helps the management to take sound and prudent financing and investing decisions. The task of choosing most suitable combinations of different securities for financing fund requirements in the light of the firm’s anticipated earnings is facilitated by it.
Internal Diversification of Investment
(Just Now) International diversification is possible by investing in multinational companies or in foreign companies as this will induce investor to make a combination of risk and return in a manner to make the portfolio superior to the stocks which are confined only to one stock market. International investment of money means to investors to combat
8 Important Natures of Equity Shares
(6 days ago) The former case is basically voluntary’ rights issue because the company has the other options open to it of raising the necessary cash by selling equity to the investing public, or by arranging a term loan. (c) What about the Shareholders: Normally, rights issues are …
Certainty, Risk and Uncertainty in Investment Decision
(5 days ago) Thus, certainty is a state of nature which arises when outcomes are known and determinate. Riskiness of an investment project is defined as the variability of its cash flows from those that are expected. The greater the variability, the riskier the project is said to be. In risky situations the probabilities of an event occurring are known and
Financing Working Capital of a Firm: Types and Policies
(2 days ago) Under this policy, permanent assets and a part of temporary current assets are financed with long-term financing. Therefore, if the firm has no temporary current assets at any period, it stores liquidity by investing surplus funds into marketable securities. A firm wants to be safe by resorting to this technique since it is less risky.
Useful Notes on the Deep Cervical Fascia of Human Neck
(9 days ago) The deep cervical fascia is generally described to possess three layers from outside inwards— investing, pretracheal and prevertebral. The space between the pretracheal and prevertebral layers forms the visceral compartment around the trachea, oesophagus and thyroid gland, with the carotid sheath forming a neurovascular compartment (Fig. 4.9).
Mutual Funds in India (Project Report)
(Just Now) The SEBI (Mutual Funds) Regulations, 1996 were amended in 1998. The new regulations bar mutual funds from investing in unlisted or privately placed securities by associate or group companies of the sponsors. A limit of 25% of the NAV of the fund has been imposed on their investment in listed securities of the group companies of the sponsors.
International Capital Asset Pricing Model (CAPM) Forex
(1 days ago) The Capital Asset Pricing Model (CAPM) indicates that the investors in a security are compensated only for the systematic risk of the security. And it is assumed that the unsystematic risk can be diversified by the investor by investing in different group of assets. The unsystematic risk is a unique risk pertains to a specific firm, for example
6 Treatments Used for Some Typical Items in Cash Flows
(5 days ago) Investing and financing transactions that do not require the use of cash or cash equivalents should be excluded from a cash flow statement. Such transactions should be disclosed elsewhere in the financial statements in a way that provides all the relevant information about these investing …
Risks Involved in Treasury Activities: 3 Types
(6 days ago) Investing only in rated instruments. 3. Risk pricing. 4. Credit enhancement through margin arrangements, escrow accounts etc. ADVERTISEMENTS: 5. Guarantees/letters of credit from rated entities. 6. Adequate financial and/or physical assets as security. 7. Exposure limits by counterparty, industry, location, business group, on and off balance
Financial System and Legislative Measures
(2 days ago) The introduction of new innovative financial instruments, development of commercial banks into universal banking and legislative enactments have vastly reorganized the system and have brought confidence in the minds of the investing public and some order in the Indian capital market.