Canons of Taxation are the fundamental principles of taxation which are used to create an effective taxation system in a country. Canons are basically characteristics of a good taxation system. A government must incorporate these canons of taxation when developing a tax structure & system in order to make theRead More →
As India continues to evolve as an economic power in the global scenario, Consumerism is undergoing tremendous changes in the business arena. Liberalization, Globalization and Increasing income and purchasing power among the people of India can be attributed as the main reasons for the prevalent market trend and changing consumerRead More →
Self Development is a never ending process. It is an ongoing activity and a lack of focus on personal development activities makes people stagnate in their life. Communication acts as a major factor contributing to one’s development in a crucial manner. Without advancement in communication skills, knowledge enhancement remains anRead More →
Global Subprime Crisis emerged in the US housing mortgage market in the year 2007 and gradually snowballed into a global financial crisis, leading to a global economic recession. The transmission of shocks of the crisis was mainly in two phases. First, it started with Inflation and then led to global financialRead More →
Portfolio construction refers to a process of selecting the optimum mix of securities for the purpose of achieving maximum returns by taking minimum risk. A portfolio is a combination of various securities such as stocks, bonds and money market instruments. Diversification of investments helps in spreading risk over many assets;Read More →
The Efficient Market Theory states that fluctuations in price of a share are random and do not follow a regular pattern. Hence, the amount paid for a stock or security and the return when discounted based on the amount of risk it involves will give a Net Present Value equalRead More →
A derivatives market is a market where derivatives are bought and sold by investors. Derivative A derivative is a financial contract, the value of which, is derived from an underlying asset (share, commodity, currency, security etc.). If the value of underlying asset declines the value of the derivative also decreases andRead More →
An investor conducts fundamental analysis and technical analysis to predict the future price movements of securities by analyzing the Economic factors, Industrial factors and Company specific factors. Various economic, industrial and company specific factors can have a direct bearing on prices of securities. A fundamental analysis helps an investor to understand theRead More →
Technical analysis is conduct by an analyst to study the price movements of stocks in the security market. An investor buys securities when there is an upward price movement and sells securities when there is a downward price movement. Technical Analysis is the process of identifying trend reversals at anRead More →
Risk – It refers to the degree or probability of loss in the future. Causes of Risk Wrong decision or Wrong timing Term of Investment – Long term investments are more risky than short-term investments as future is uncertain. Level of Investment – Higher the quantum of investment the higherRead More →
Credit control is an important tool of the monetary policy used by Reserve Bank of India (central bank) to control the demand and supply of money and flow of credit in an economy. RBI keeps control over the credit created by commercial banks. Objectives of Credit Control The primary objectiveRead More →
Commercial Banks comprise of public sector banks, private sectors banks and foreign banks which represent the most important financial intermediaries in the financial system of a country. Commercial Banks play a crucial role in the banking industry of a country. A commercial bank is an institution whose debts are widelyRead More →