Forward Rate vs. Spot Rate

FORWARD RATE AND SPOT RATE

Introduction Forward rates and spot rates are important and related concepts in finance that refer to the future and current prices of financial instruments, such as currencies or bonds.  Forward Rate The forward rate is the price at which a financial instrument can be bought or sold for delivery at a future date. It reflects … Read more

Equity Investments: Meaning and Advantages

EQUITY INVESTMENT meaning and advantages

Introduction In the investment market, investors, in majority, are involved in two types of investment i.e. equity investment and debt investment. Debt investment means investment decisions of investors by lending money to the business or any firm for a certain investment(interest) rate.  Meanwhile, Equity investment, as the name suggests, is the investment decision of investors … Read more

Lehman Brothers Scandal 2008

LEHMAN BROTHERS

Introduction Too big to fail, is a prime case of Lehman Brothers Bankruptcy. In February of 2007, the fourth largest investment bank in the U.S, Lehman Brother, was selling at $86 per share with a total market capitalization of nearly $60 billion. With more than $4 billion in net income, it was soaring to higher … Read more

Pegged Exchange Rate : Advantages and Disadvantages

ADVANTAGE AND DISADVANTAGE OF PEGGED EXCHANGE RATE

Introduction There has been a long history of ‘exchange’ in the course of human civilization. The exchange in modern civilization dates back to the barter system where countries used to exchange the surplus product for shortage product with each other. Countries with surplus agriculture products would exchange such products for other shortage products like minerals … Read more

What is a Turnaround Strategy ?

Reasons for turnaround strategies

Introduction When an organization believes that a decision it took previously is incorrect and needs to be reversed before it harms the company’s profitability, it will employ the turnaround approach. In other words, a turnaround strategy is just walking away from a bad decision that was taken previously and turning a loss-making company into a … Read more

What is Corporate Strategy?

Introduction Corporate strategy is a well-defined, long-term plan designed by the top level management with an objective to achieve company goals and gain a competitive advantage over other business while providing value to both customer and shareholders. In addition, corporate strategy is a multi-level strategy implemented by a company to create corporate values and provide … Read more

Stamp Paper Scam (Telgi Scam 2003)

Introduction The Stamp Paper Scam or The Telgi Scam of 2003, is another scam that revealed the fragile nature of the Indian economy. The Telgi Scam spread across 18 states of India, and authorities estimated its worth to be around Rs. 20,000 crore. This scam was a big blow to the police system, politicians, regulatory … Read more

Gross Domestic Products: Concept and Calculations

Introduction to Gross Domestic Product Gross Domestic Product, also known as GDP , is the total monetary or market value of all the finished goods and services produced within a nation’s boundaries during a certain time period (which is typically 1 year).  GDP calculates the monetary value of the final goods and services, purchased by … Read more

Greenfield Investment and International Acquisition

Introduction One of the most difficult decisions that companies must make when deciding to extend their operations to another nation is whether to start a new operation there via a so-called greenfield investment or to directly acquire an existing firm there through an overseas acquisition. Although extending a firm’s operations to a new market overseas … Read more

Greenfield Investment : Pros and Cons

Introduction to Greenfield Investment A greenfield investment (GI) is an international market expansion strategy. It is a form of foreign direct investment (FDI) in which a business begins operations in a foreign market. It is a FDI when a parent business establishes a subsidiary in another nation and starts up its activities there from scratch. … Read more