World Of Finance

        World of Finance by M.Vijaya Sai Why does an investor put his money in the stock market? The answer would be to earn higher returns. Ask him if he is sure that he is going to earn money that he intends, we don’t think that there will be a confident answer from his side. This has been the story ever since the trading has started. There has been a continuous battle between the investors and the stock markets if you consider the history of stock market there have been some wins which have gone in favor of stock market and some in favor of investors. The investor, from the moment he invests tries to outperform the market , the billion dollar question is “Is it possible…..???”, but it cannot be said that it’s just impossible to outperform the market because there are some examples such as Warren Buffet.   The behavioral finance has proved that the tendency of investors is “to Buy the Stocks at Lower Price and Sell th...

        World of Finance by M.Vijaya Sai What Is the LIBOR Interest Rate? The LIBOR, or London Interbank Offered Rate, is a rate at which banks can borrow money from one another. This rate is updated daily and is offered on unsecured (no-collateral) loans. The LIBOR is often used as an index on adjustable-rate mortgages. LIBOR is a benchmark rate that is used in international money markets and published daily by the British Bankers Association (BBA), a banking industry trade group. LIBOR approximates the rate at which banks could borrow one another in the marketplace. LIBOR is determined from responses by BBA members to the following question: "At what rate could you borrow funds, were you to do so by asking for and then accepting inter-bank offers in a reasonable market size just prior to 11 am" The rates are not actual transactions but are indicative of the credit risk and liquidity in the marketplace. LIBOR is quoted at a...

        World of Finance by M.Vijaya Sai LIBOR , the London Interbank Offered Rate , is the most active interest rate market in the world. It is determined by rates that banks participating in the London money market offer each other for short-term deposits. LIBOR is used in determining the price of many other financial derivatives, including interest rate futures, swaps and Euro dollars. Due to London's importance as a global financial center, LIBOR applies not only to the Pound Sterling, but also to major currencies such as the US Dollar, Swiss Franc, Japanese Yen and Canadian Dollar. LIBOR is determined every morning at 11:00am London time. A department of the British Bankers Association averages the inter-bank interest rates being offered by its membership. LIBOR is calculated for periods as short as overnight and as long as one year. While the rates banks offer each other vary continuously throughout the day, LIBOR is f...

        World of Finance by M.Vijaya Sai The India GDP statistics is a summarization of all the differential factors that forms the basic foundation of the Indian economy. The India GDP statistics is a cumulative report of the performance of all the major parameters of the Indian economy. The statistics of the India GDP clearly reveals that the rise of the India GDP after the 1990s was due to the open economy phenomenon. The paradigm shift of Indian economy from that of a closed-market to open market was during the balance-of-payments crisis in the late ‘80s. The Government of India remained flexible – it opened up the Indian markets such that private investments could easily find an entry. GDP calculated at purchaser’s price is the total value calculated by all the domestic producers, adding any product taxes and deducting the subsidies, if any (these elements are excluded from the value of the products). Due to the change in th...

        World of Finance by M.Vijaya Sai Gross Domestic Product (GDP) is the broadest quantitative measure of a nation's total economic activity. More specifically, GDP represents the monetary value of all goods and services produced within a nation's geographic borders over a specified period of time. The Department of Commerce releases GDP data for the U.S. economy on a quarterly basis at 8:30 am EST on the last business day of the next quarter. The components used to calculate GDP include: Personal Consumption: -- Durable goods (items expected to last more than three years) -- Nondurable goods (food and clothing) -- Services Government Expenditures: -- Defense -- Roads -- Schools Investment Spending: -- Nonresidential (spending on plants and equipment), Residential (single-family and multi-family homes) -- Business inventories Net Exports: -- Exports are added to GDP -- Imports are deducted fr...

         World of Finance by M.Vijaya Sai Section 80C, even a layman who doesn’t have thorough knowledge about Income Tax knows about this. Under Section 80C of the Income Tax Act, government gives tax benefits to certain financial products in order to encourage savings. The investments made in these products are eligible for Tax Exemption up to a limit of Rs 1 lakh. If your annual income is more than 500000 and you invest Rs. 1 lakh in this investments you save Rs 33,000 in taxes.   The concern is how many of you know about the investments that come under Section 80C. People are aware only about ULIPs; this scenario is because insurance companies are promoting their products massively to increase the sales. But understand ULIP is not the only product that offers Tax benefit under section 80C. In this article we are introducing all the investments which come under section 80C.   Generally people think about investments o...

         World of Finance by M.Vijaya Sai Anyone who follows the gold and currency markets closely will realize that the US$ gold price and the Dollar Index generally trend in opposite directions; or, to put it another way, that the US$ gold price and the Swiss Franc generally trend in the same direction. This reciprocal relationship between gold and the dollar is often not evident on a daily or weekly basis, but is almost always evident during periods of 12 months or longer. The reason that gold and the dollar generally trend in opposite directions is that in one respect gold is just another currency. It is no longer money in the true meaning of the word, but it tends to trade as if it were. As a result, when the dollar weakens on the foreign exchange market over an extended period then the US$ gold price will generally rise during the same period; and when the dollar strengthens over many months the US$ gold price will usually f...