Concepts Finance manages the pool of money. Therefore, the very nature of the industry demands that there should be high trust between members and the companies managing the pool of money. Despite all this awareness, there are financial crises where people lost their invested money and trust for the participants of the financial industry. The … Read more
BEHAVIOURAL FINANCE Mental Accounting is the set of cognitive operations used by individuals and households to organize, evaluate, and keep track of financial activities. It is one of the Heuristics i.e. mental shortcuts to make a judgment. Mental Accounting was proposed by Richard Thaler. He has Nobel Prize for his contribution to Economic Sciences.
Introduction Personal Finance is a modern concept of planning and managing personal or financial activities. It generally covers concepts such as income and spendings, savings, investments, insurance, etc. from individuals’ perspective. It is an application of financial concepts in financial decisions at an individual level at different stages of life. Personal finance involves analyzing financing … Read more
INTRODUCTION Capital structure refers to the combination of debt and equity sources of financing in the business. Capital structure is the mix of the long-term sources of funds used by a firm. It is made up of debt and equity securities and refers to permanent financing of a firm. Debt and Equity are used in … Read more
Introduction Equity is generally referred to as shares, which is the capital vested by owners in the business. It is also the difference between the assets of the company and the liabilities it holds. Equity refers to ownership in the business i.e. the equity holders are the rightful voters in the decisions of the company, … Read more
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Introduction Capital Structure is the combination of all the long-term sources of finances. Capital structure theories relate the capital structure of firm, capital mix and value of the firm; basically capital structure theories relate financial leverage with value of the firm. There are four widely accepted theories on capital structure: Some of the solved numerical … Read more
What is Debt ? Debt is the act of borrowing money for the business or personal use. Debt securities represents the liability for the individual or a company i.e. company has the priority obligation to payback the debt amount with interest, which is the return of Investment for the lenders. It has a maturity period … Read more
Introduction Merger, Acquisition, and Amalgamation are common terms in corporate world. All these terms are similar but they do have some differences. Merger is simply the fusion of at least two equal companies voluntarily where only one company loses its existence. Acquisition is an act where one entity purchases the business of another entity. Here, … Read more
Introduction Merger involves fusion of two or more firms into one entity. This is one of the important concepts in corporate valuation and one of the most accepted strategies for company expansion. The first thing that we consider when we hear word ‘merger’ is synergy i.e. relatively greater competitiveness of combined entity when compared with … Read more
