Overview of techniques and sectors of the financial industry
Investorline An entity whose income exceeds its expenditure can lend or invest the excess income. On the other hand, an entity whose income is less than its expenditure can raise capital…
Essence of finance
The term finance may incorporate any of the following: The study of money and other assets The management and control of those assets Profiling and managing project risks Finance is…
What is Affluenza
Affluenza is a desire by someone to have a lot of money.
What is Accounting Noise
The distortion that is caused in a company’s financial statements due to accounting rules and regulations that must be followed. Accounting noise makes it difficult for investors to easily ascertain…
A Ton Of Money
A Ton of Money is a slang buzzword which describes a lot of money. In fact, the lot of money is a relative term and depends in the context and…
Financial Derivatives/Basic Derivatives Contracts – Options
There are two types of stock options: Call Option: Call option gives the buyer a right to purchase the given stock at the strike price. Thus Call option is generally…
Financial Derivatives/Basic Derivatives Contracts – Swaps
A Swap is an agreement to exchange a sequence of cash flows over a period of time in the future in same or different currencies. Mainly used for hedging various…
Financial Derivatives/Basic Derivatives Contracts – Futures
Futures contracts, like forward contracts, specify the delivery of an asset at some future date. Futures contracts, unlike forward contracts, Require the buyer or the seller of the futures contract…
Financial Derivatives/Basic Derivatives Contracts – Forwards
Spot markets allow the purchase and sale of an asset today. By contract a forward contract specifies the price at which an asset can be purchased or sold at some…
Financial Derivatives – A Introduction
A financial derivative is a financial instrument whose value is derived from the price of an asset (or a number of assets). We live in a world where commodity prices…