What is Sarbanes–Oxley Act?
Investorline The Sarbanes–Oxley Act of 2002, enacted July 30, 2002, also known as the ‘Public Company Accounting Reform and Investor Protection Act’ (in the Senate) and ‘Corporate and Auditing Accountability and…
What do you understand by Working capital management?
Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between a firm’s short-term assets and its short-term liabilities.…
What are Capital investment decisions?
Capital investment decisions are long-term corporate finance decisions relating to fixed assets and capital structure. Decisions are based on several inter-related criteria. (1) Corporate management seeks to maximize the value…
What do you understand by Corporate finance?
Corporate finance is the area of finance dealing with monetary decisions that business enterprises make and the tools and analysis used to make these decisions. The primary goal of corporate…
What do you understand by Managerial finance?
Managerial finance is the branch of finance that concerns itself with the managerial significance of finance techniques. It is focused on assessment rather than technique. The difference between a managerial…
What are the types of Interest and what factor determine it?
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price…
What is Yield curve and what shape does it take?
In finance, the yield curve is the relation between the interest rate (or cost of borrowing) and the time to maturity of the debt for a given borrower in a…
What do you understand by Risk-free interest rate?
Risk-free interest rate is the theoretical rate of return of an investment with no risk of financial loss. The risk-free rate represents the interest that an investor would expect from…
What is Interest rate and reasons for its change?
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company…
Basis risk
Basis risk in finance is the risk associated with imperfect hedging using futures. It could arise because of the difference between the asset whose price is to be hedged and…