Bankruptcy is the legal proceeding involving a person or business that is unable to repay outstanding debts. It offers an individual or business a chance to start fresh by forgiving debts that simply cannot be paid while offering creditors a chance to obtain some measure of repayment based on the individual’s or business’s assets available … Read more
Introduction The meaning of the word ‘derivative’ is ‘derived’. A financial derivative can be defined as a financial security or instrument whose purpose or value is derived entirely from the value of the underlying asset or group of assets. The value of derivatives is based on the expected future price movement of the respective underlying … Read more
Investment Investment can simply be defined as the act of investing cash or monetary instruments for a future return. It consists of two major components; Time and Risk. As defined previously, one makes a certain investment in the present for some uncertain return in future. Objective of Investment Speculation Speculation involves investment but has a … Read more
Introduction A market anomaly is a price action that contradicts the expected behavior of the stock market. Traders and investors can use these unusual market behaviors to find opportunities throughout the stock market. A market anomaly refers to the difference in a stock’s performance from its assumed price trajectory, as set out by the efficient … Read more
Beaver Model: William H. Beaver proposed this model (Beaver Model) in 1966. Beaver demonstrated that financial ratios can be useful in the prediction of an individual firm failure, financial distress and bankruptcy prediction models. Bankruptcies, bond defaults, overdrawn bank accounts, and firms that omitted payment of preferred stock dividend are failed firms. Failure is the … Read more
INTRODUCTION L.C. Gupta Model is another model of understanding Financial Distress. This model made an attempt to examine survival strength of the company derived from the concept of marginal firms. This study is based in Indian data, attempting to distinguish sick and non-sick companies on the basis of financial ratios. The sample taken was of … Read more
Introduction Financial distress is a condition in which a company or individual cannot generate revenue or income because it is unable to meet or cannot pay its financial obligations. This is generally due to high fixed costs, less-liquid assets, or revenues sensitive to economic downturns. Looking at a company’s financial statement can help investors and … Read more
Introduction Prospect theory assumes that losses and gains are valued differently, therefore individuals make decisions based on the perceived gains instead of perceived losses. Prospect theory is also known as ‘loss-aversion theory.’ The basic concept of this theory is that if two choices are provided to an individual, both equal, with one presented in terms … Read more
IDFC First Bank : Introduction The IDFC Bank ( Infrastructure Development and Finance Company Bank) is an Indian Bank with the majority of the stake with IDFC Limited which is an Integrated Infrastructure Finance Company. The IDFC crisis provides good learning opportunities to the concerned parties. IDFC Bank started its operation in October 2015 after … Read more
YES BANK: INTRODUCTION YES BANK is one of the leading private sector lenders in the Indian banking and financial system. It was incorporated in November 2003 and started its operation from August 2004 with the mission; to establish a high-quality, customer-centric, service-driven, private Indian Bank catering to the ‘Future Businesses of India’. YES BANK is … Read more