What is the Internal Source of Finance ? Internal sources of finance are funds that are created by the company itself. Internal sources of finance can be found in different ways. Some companies use them to fund their business and others use them for investment. Internal finance is a crucial aspect of success for companies … Read more
What are Non-Performing Assets? Non-performing assets are assets that are not performing well and have a negative impact on the company’s financial performance. These assets include physical, intellectual and intangible property. Non-performing assets, or NPAs, are assets that have not been generating cash flow. They are written off by the company and are not expected … Read more
Introduction to Corporate Restructuring Corporate Restructuring is a process of reorganizing the management and ownership structure of an enterprise in order to facilitate a change in the way it is operated. The primary purpose of corporate restructuring is to improve the performance and value creation potential of the company. It can be done by changing … Read more
Introduction to Stock Market A stock market is simply a place where people buy and sell stocks. Stocks represent ownership, when you buy or sell your stocks, you are changing your ownership status of the respective stocks. Hence, the stock market is a place where public ownership changes via trading of stocks. Stock market is … Read more
Introduction to Debt Financing Debt financing is the process of borrowing money from a lender to be repaid at some point in the future. It is also known as a loan. Debt financing is the use of borrowed funds to purchase an asset or pay liabilities. It is a loan that needs to be paid … Read more
Introduction Insolvency and bankruptcy are two closely represented concepts. These two terms are related but are two different concepts. They have some common expressions but they imply two different states. To understand these terms, all we can say is; All the bankrupts are insolvent, but not all the insolvent are bankrupts. Definition Insolvency is a … Read more
Introduction to Fungible and Non-Fungible Before we discuss NFT i.e. non-fungible token, it is important to understand the meaning of ‘fungibility’. A fungible item is anything that is interchangeable with another unit of the same item i.e. one unit of ‘x’ is interchangeable with any one unit of ‘x’. For instance, one dollar is equivalent … Read more
Introduction Financial innovation means development of new financial instruments, services and markets using new and innovative technology. It is an inclusion of new financial applications and instruments with help of technology in the market. It is the process of creating new products, processes, application software, or services related to the finance and investment sector. This … Read more
Introduction to Stock Market Bubble A Stock Market Bubble is a condition in stock market when prices for a stock or an asset rise excessively over a period of time. When a price for an asset outperforms the asset’s intrinsic value, a bubble rises. Basically, speculation is the major drive force to any bubble creation. … Read more
Background In 1987, two Hyderabadi brothers Mr. Ramalinga Raju (will be referred as Raju for rest of article) and Mr. Rama Raju established an IT firm. They named the business “ SATYAM COMPUTER SERVICES”. They offered services like software development, system maintenance, packaged software integration, business integration and many more. Satyam Computer Services marched to … Read more