Away from the Market
Investorline Away from the market – A phrase used when a "limit order’s" asking price is higher or the bid is lower than the current market price for the security. Eamples…
Finance Acronyms & Important Terms/Words
A A Nasdaq symbol indicating that stocks of a particular company are class A stocks. AAA Triple-A (AAA) rated Bonds are the highest rated bonds and are considered very safe.…
Finance
Finance is the study of funds management.The general areas of finance are business finance, personal finance(private finance), and public finance. Finance includes saving money and often includes lending money. The…
Management of working capital
Management uses a combination of policies and techniques for the management of working capital. These policies aim at managing the current assets (generally cash and cash equivalents, inventories and debtors)…
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.…
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…
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…
Capital budgeting
Capital budgeting (or investment appraisal) is the planning process used to determine whether an organisation’s long term investments such as new machinery, replacement machinery, new plants, new products, and research…
Motives behind Mergers & Acquisitions (M&A)
The dominant rationale used to explain M&A activity is that acquiring firms seek improved financial performance. The following motives are considered to improve financial performance: Economy of scale: This refers…
Method of financing for Merger & Acquisitions
There are some elements to think about when choosing the form of payment. When submitting an offer, the acquiring firm should consider other potential bidders and think strategically. The form…