World Of Finance

          World Of Finance by Vijaya Sai.M It seems that nothing can stop the relentless rise of China's export machine. Whether that counts as good news depends on where you live and what you're invested in.Commodity investors were among those cheering yesterday as Beijing surprised world markets with the news that its exports had jumped nearly 18% in December from a year earlier.The reason for the cheering was that Chinese imports jumped even more than exports. They were up nearly 56% as the Asian nation imported record or near-record amounts of iron ore and crude oil. China's growing appetite for commodities is bullish for companies that produce raw materials ranging from soybeans to copper. It's also likely to provide a boost to currencies such as the loonie and the Australian dollar that represent commodity-producing economies. But China's swelling exports are distorting world trade in ways that could have nasty consequences, includin...

          World Of Finance by Vijaya Sai.M The conventional wisdom in Washington and in most of the rest of the world is that the roaring Chinese economy is going to pull the global economy out of recession and back into growth. It’s China’s turn, the theory goes, as American consumers — who propelled the last global boom with their borrowing and spending ways — have begun to tighten their belts and increase savings rates. The Chinese, with their unbridled capitalistic expansion propelled by a system they still refer to as “socialism with Chinese characteristics,” are still thriving, though, with annual gross domestic product growth of 8.9 percent in the third quarter and a domestic consumer market just starting to flex its enormous muscles. That’s prompted some cheer-leading from U.S. officials, who want to see those Chinese consumers begin to pick up the slack in the global economy — a theme President Barack Obama and his delegation a...

          World Of Finance by Vijaya Sai.M Debt funds are funds that invest in “debt instruments”, which include government securities, corporate bonds and money market instruments . These are called debt instruments because the issuers have borrowed money from the lender (investors) by issuing these securities. These “debts”, mainly known as “bonds”, are income generating properties i.e. investors receive regular interest payments on them. These payments could be monthly, semi-annually or annually. However, many of the most attractive debt instruments are unavailable directly to the retail investors. But, they can invest in those debt instruments indirectly through debt funds. For retail investors Debt Mutual Funds are the best way to invest in debt i.e. income generating instruments. Ideally debt funds are of three main types:   1.       Income/bond schemes  They invest in long- and medium-term instr...

          World Of Finance by Vijaya Sai.M The Bombay Stock Exchange (BSE) is known as the oldest exchange in Asia. It traces its history to the 1850s, when stockbrokers would gather under banyan trees in front of Mumbai’s Town Hall. The location of these meetings changed many times, as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as ‘The Native Share & Stock Brokers Association’. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading Sensex futures contracts. The development of Sensex options along with equity derivatives followed in 2001 and 2002, expanding t...

          World Of Finance by Vijaya Sai.M Sometimes accounting processes seem rigid and unwavering. On the contrary, many techniques are used with different situations to reflect the exact figures desired. Of course, this can only be taken so far, but it can be manipulated. So what are the options of changing the accounting to increase the accounting profit? Let’s make sure we are all on the same page as to what accounting profit really is. Accounting profit is a fairly simple calculation, but it can easily be confused with so many other, similar, terms. The basic definition is the cost of providing products and services subtracted from the price of all those products and services sold. The area that gets hazy is exactly what costs are included in bringing items to the market. The 2 categories that costs are placed are explicit and implicit. Accounting profit is calculated using only explicit costs. Explicit Costs are items or services that...

        World of Finance by M.Vijaya Sai I am certain we have all heard of the term Japanese candlesticks, but are you using them effectively? History: It is more than likely the oldest technical analysis tool available to Forex traders, Japanese candlesticks. Japanese Candlestick charts were developed in the 18th century by a man named Munehisa Homma. Munehisa Homma developed candlestick charts to analyze the price changes of rice contracts. He traded these contracts and was considered the best trader of his time. He became a very wealthy man for the sole use of these candlestick charts. So what is a candlestick chart? In simple terms the Candlestick charts is the Japanese Candlestick Charts, are simply a way to show price movement. The charts are both very simple and powerful and when used effectively are one of the most profitable trading tools available. They are similar to line charts but much easier to read and inter...

        World of Finance by M.Vijaya Sai An individual planning to start his own consultancy in India, would like to have the answers for the following questions: Q1: Can I simultaneously start my own business / consultancy while working as an employee? Q2: Which is better from tax point of view: salaried employee vs. working as a consultant? Q3: If I start a consultancy, then what are the legal formalities? Q4: If working as a consultant, whether to open a sole proprietorship firm or work under individual’s name? Q5: If I open a sole proprietorship, whether any registration is required for it? Q6: How can I be sure that the name I’m going to use, say, “ABC Consultants” is unique and there is no other business or profession is being operated under the same name? What if in future I become famous and someone else copies my firm name? Q7: What is the status of sole proprietorship under Income Tax Act, 1961? Do I need to apply f...

        World of Finance by M.Vijaya Sai Thinking to invest in Market…..??? Moreover you are a risk-averse investor and want to minimize your risk….??? There is an investment avenue for you that are bonds and debt instruments which can give you fixed returns . They yield more returns as compared to the fixed deposits and the national saving certificates . But the question is.., as an investor how do I get the information as to which are the good ones amongst them .  The answer would be to go as per the Credit rating given to the securities . After all What is credit rating…? What is its importance…?? and What does that Indicate…??? There are thousands of companies in India all of them require capital for functioning and they issue securities to get funds.        Purpose of Credit Rating Credit rating agency is set up in order to protect the interest of the small or retail investors who invest in debt ...

        World of Finance by M.Vijaya Sai There’s a funny saying about income tax which goes like this “death comes once but income tax comes every year in a person’s life” and someone else has said that death and income taxes are inevitable. All assesses are liable to pay tax and they do a lot of work planning and investing keeping tax in mind. All of them will have read the income tax act passed in the assembly that particular year but there is every chance of them having misunderstood some of the concepts. They will have discussed with some of their friends, colleagues, relatives who would have made them more confused. Today we will be discussing some of common misconceptions and the reality.    Process of Filing Income Tax The process of filing income tax is difficult and cumbersome; most of the assessees (Tax Payers) have this misconception and especially those who have recently started paying income tax and tho...

        World of Finance by M.Vijaya Sai If you are a budding investor , got some spare money and thinking of investing in stock markets and for the first time you walk into broker’s office, tell your broker about your interest. The first thing that broker would be telling is “diversification or portfolio construction” . If you know the word its well and good, but if you don’t have any idea about it then you will be puzzled. You would have read that shares of your favorite company (e.g.: Infosys, Reliance or TCS) are trading well, so you tell your broker that you want to put all your money into stocks of that company. For a moment your stock broker will look at you as if you have fallen from sky, it’s because people living at the stock markets believe that if you don’t diversify then there are very less chances of you surviving in the market . Now, is it always necessary to have a diversified portfolio…..??? If yes then how much...