World Of Finance

          World Of Finance by Vijaya Sai.M What does Fixed Income Security mean? An investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity. Unlike a variable-income security, where payments change based on some underlying measure such as short-term interest rates, the payments of a fixed-income security are known in advance. Kinds of Fixed Income Securities: 1.Government securities, 2.Corporate bonds, 3.Commercial paper, 4.Treasury bills, 5.Strips etc. Fixed Income  Securities relevance in Indian context: Government Securities( G-Sec ) : In India G- Secs are issued by the Central Government , State Governments and Semi Government Authorities such as  municipalities, port trusts, state electricity boards and public sector corporations.  The Central and State Governments raise money through these securities to finance the creation of new infrastructure as well as to meet their current cash needs. 

          World Of Finance by Vijaya Sai.M Hi Friends this is a must  watch clip if you would like to know about Sub prime crisis which shook world economy.

          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, including th

          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 are certain to bring up d

          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 instruments like corporate bonds, debentures, fixed deposits. Th

          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 the BSE’s trading platfor

          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 money is required to be