Corporate America is flush with cash! Collectively, the Amazons’, Apples’ and other such publicly traded mega corporations account for close...
President Ronald Raegan had once famously said that “Big government is not the solution to the problem. In fact, big...
After the banking crisis, the Indian capital markets are facing another dire situation. It has recently come to light that...
In the previous article, we have already come across some of the reasons why the government should not encourage funding...
Bankruptcy is one of the natural states which a company may find itself in. Entrepreneurship is primarily about taking risks....
Dividend discount models are amongst the oldest category of valuation models that have been used by the market. However, there...
The Silicon Valley Bank crisis has prompted the Federal Reserve to evaluate its emergency funding program. The original emergency funding...
We know the way in which Banking as a Platform (BaaP) is using technology to revolutionize the commercial banking industry....
Fundamental analysis is considered to be the holy grail of stock investors. Warren Buffet claims to have amassed his fortune...
Return on Invested Capital (ROIC) is another popular metric that is used widely in financial analysis. The reason for its...
For a long period of time, the term outsourcing has been associated with cost reductions. Outsourcing is generally considered to...
From the previous articles, we already know that money markets form an integral part of the overall financial system. Also...
There are few issues which strike through the heart of communists in China and capitalists in America similarly. One such...
In the previous article we studied that there are two types of deposits that banks use to fund their lending...
The Shortcomings of an IPO The initial public offer model works well for big companies. However, as far as smaller...
We live in a world which idolizes innovation. We tend to idolize companies which have produced some products which can...
Exotic Innovations or Weapons of Mass Destruction ? Anybody who has followed the severe and protracted financial crises of the...
What is Financial Modelling and how it is extremely critical for High Finance In the world of banking and high...
Netflix is one of the largest providers of content in the world. This is amazing given the fact that content...
Financial markets move on the basis of data. If one party consistently receives information faster than the others, then the...
Most investors across the world are aware of the fact that yield curves are generally upward sloping. This is because,...
In the past few articles, we have studied about how behavioral finance impacts financial markets more than one might believe....
Economic cycles are a reality of life. Founders need to be aware of the fact that their start-up company could...
Since pension funds manage assets worth billions or even trillions of dollars. This means that it is crucial to create...
Pension funds across the world are facing a significant financial crisis. This is because, for a very long time, they...
What is the Immediacy Trap and How we can and cannot do without It We are living in a 24/7...
In this entire module on personal finance, we have written several articles on steps that need to be taken to...
Commodities are like stocks and other securities. There values could theoretically go up and down over the long term. Some...
In 2017, a top European Union court has ruled that since Uber’s drivers provide transport services to customers, it should...
Startup companies typically have a high failure rate. It is said that 90% of all startup companies fail. The percentage...
Formula Working Capital to Sales Ratio = Working Capital / Sales Meaning Stating the working capital as an absolute figure...
The Icelandic budget airline “Wow airline” became the latest airline to go bankrupt in Europe. Of late, Europe has seen...
Xiaomi is considered to be one of the most valuable startup firms in the world now. This firm, which has...
In the previous articles, we have studied the concept of yield to maturity. We now know how to calculate the...
Yield to maturity is a fundamental concept which every bond investor must be aware of. The term yield to maturity...
Budgeting is the start of all financial planning. Till a person is not able to take full control of their...
Zero-coupon bonds are those bonds that are sold at a deep discount to their face value. This means that these...
The real estate market tends to be a highly fragmented market in most parts of the world. Since the product...
Public private partnership is a widely used model when it comes to infrastructure financing. However, it needs to be understood...
In the previous articles, we have already seen that the sponsorship of sports teams can happen at multiple levels. We...
Almost every sporting franchise needs a stadium or a venue in order to play professionally. This is because the team...
It is common knowledge in the investing world that almost 90% of the start-up companies which come into existence shut...
February 2018 has been a bad month for the United States stock market. In just two consecutive trading days, the...
As explained in the previous articles, the infrastructure sector is facing a significant funding gap. There is an urgent need...
Hedge funds are considered to be the riskiest of all asset classes. Almost everybody considers hedge funds to be completely...
Finance itself is a complicated field. It is difficult to understand the nature of relationships between various financial variables which...
In the previous article, we have already learned what seed funding is and the various sources from which it can...
Companies all across the world use financial modeling. As we have discussed in several articles in this module, financial modeling...
The term short selling is often seen in the news. This tactic is regularly used by well-known investors. They are...
Pension funds have traditionally been viewed as long-term investors. They are an investment vehicle in which individuals invest over the...
We live in a capitalist world today. This is the era of multinational corporations. Today, there are many companies that...
Traditionally, pension funds were averse to equity investments. However, over the years, pension funds have been steadily pouring money into...
The retail industry has become closely intertwined with the finance industry over the years. This is the reason that the...
Once upon a time, a successful IPO was considered to be a transition point for a startup company to be...
Stock market investments can be akin to gambling depending on the procedure used for making these investments. If the investments...
Many students often find tax policy confusing. This is probably because it uses complex terms. The tax base is one...
In the previous article, we discussed about how tax base calculations work. However, tax base calculations are just one part...
In the recent past, the economy of India has been hit by one corporate marauder after another. It is surprising...
Facebook, Instagram, and Whatsapp are three major social media applications. These three applications have a combined user base of about...
Almost everybody knows that Whatsapp messages are often used to spread false information. A lot of times this information is...
The financial services industry can be divided into two sectors viz, the retail and the wholesale sector. On one hand,...
Amazon and Netflix are two of the most profitable firms in the entire world. For instance, last year, Amazon alone...
The banking system forms the bedrock of any financial system and even the entire economy. This is because the banking...
The sports business has traditionally not been a very lucrative one. It was common for the valuation of sports franchises...
As far as technology enthusiasts are concerned, blockchain is the most important invention since the wheel! It is very easy...
The incredible rise in the price of cryptocurrencies in the past few months has caught the interest of almost every...
The European economy is facing a significant downturn. There is a looming financial crisis in Europe which has been caused...
Modern commodity exchanges are huge financial markets. Their daily transaction volumes run into billions of dollars to say the least....
Some of the well-paid engineers in companies like Amazon pay about 45% of their income in taxes. They do so...
The bond market is much larger in size as compared to the equity markets of the world. This is because...
Every year investment bankers help several companies raise capital from the markets. They help these companies in issuing securities and...
The retail sector has been under significant financial distress in the recent past. An alarmingly large number of retail companies...
Modern-day start-ups can be of many different types. They can be differentiated on the basis of several parameters. One of...
The past decade has seen a rapid increase in the number of start-ups. There are more companies which start up...
Acqui-hire is a different type of acquisition strategy which has come into existence with the emergence of technology-based start-ups. For...
An annuity, just like a perpetuity, is a shortcut used while making present value calculations. Unlike the perpetuity, which is...
What is Blockchain and what is a Distributed Ledger? Not a day goes by without a media report on how...
One of the Most Important Uses of Discounting The present value of a bond is the sum of all the...
Whenever a company wants to sell its shares in the open market, it faces a very important question. The question...
Modern startup enterprises seem to be focused on the media hype. The focus of the entrepreneurs is to raise enough...
Rearranging the Profit Equation: The contribution margin is created by rearranging the profit equation to provide the requisite details. The...
The fixed-income security market is mostly composed of financial instruments which offer a fixed stream of income to investors. In...
Mergers and acquisitions are often used by conglomerates to create value. However, in some cases, demergers have also been effectively...
We now have a basic understanding of the concept of sustainable growth rate and how it related to the valuation...
What is FinTech and how is it a Game Changer for BFSI firms? Anybody with a passing curiosity about the...
Forfaiting is an important means of raising short-term finance for companies that indulge in foreign trade. With the increasingly easy...
In the previous article, we became aware that the value of a stock can be split into two parts. One...
The whole objective of equity valuation is to find mispriced securities. Investors can make abnormal profits when they find securities...
We have earlier discussed the fact that Net present Value (NPV) is considered to be the gold standard when it...
Perpetuity is a very important concept in corporate finance. The concept of perpetuity makes it possible to value stocks, real...
In the previous articles, we have already studied about the proof of concept as well as the minimum viable product...
We all know that professional sports teams are run like a business across the globe. This means that these sports...
There is a lot of discussion that goes on about the economic impact of sporting events. It is commonly believed...
The Fed has decided to raise interest rates steeply. One rate hike has already been announced this year (2018). It...
Whenever the subject of startup funding is mentioned, the audience automatically assumes that equity investments are being discussed. This is...
In the previous few articles, we have already learned about how venture capital and venture debt work. We now also...
The process of negotiations between startup companies and investors is often hotly debated and contested. There are several points of...
In the previous articles, we have learned about how the money market is just like any other financial market. This...
After the solicitation, packages are sent out, and the creditors are given all the information that they need, it is...
What Do Vulture Funds Do ? Countries and companies are in turmoil all the time. When entities are close to...
Governments all over the world are fighting a war on cash. It is a known fact that the governments do...
The current crisis at the Silicon Valley Bank is a stark reminder of the dark days of 2008. Just like...
Wells Fargo is one of the largest banks in the United States. However, of late, it has also become one...
The name WeWork is now a known brand name for millennials around the world. This is a remarkable feat given...
Why Investment is Important ? Every individual needs to put some part of his income into something which would benefit...
The capitalization table is a very important record for any startup company. These tables provide a clear and unambiguous report...
The Eurobond market is one of the largest debt markets in the world. It comprises a large portion of the...
In the previous article, we learned about the concept of forking in the cryptocurrency universe. We also understood that we...
Stock market indices are ubiquitous. People come across these indices almost every day. However, many are not aware about their...
In the previous article, we have already read about cryptocurrency forks. We now know that a cryptocurrency system is basically...
STRIP is an acronym that is commonly used to denote Separate Trading of Registered Interest and Principal of securities. This...
In our day-to-day life, we often use the term unicorn to refer to a mythical horse-like creature. In the year...
When a company files for bankruptcy, the interests of many different parties are impacted. This is the reason that bankruptcy...
How Countries Worldwide Handle Bankruptcies As part of the normal boom and bust cycles of Free Market Capitalism, businesses do...
In the previous article, we have already seen what warehouse automation is. We have also seen various financial benefits that...
Uber is already a well-known brand across the world. Technically, the company is still a startup. However, Uber has a...
The press releases by the United States oil companies will have you believe that fracking is the best thing that...
Burn rate is a metric that is specific to the start-up world. On the one hand, most of the financial...
Predatory Lending, also colloquially known as loan sharking is a bad business model. This business has always been run by...
Universal childcare is amongst the latest of government-funded programs which several Senators across America have started demanding. For instance, Senator...
In a previous couple of articles, we have already seen how artificial intelligence is useful in the field of commercial...
The valuation of a sports franchise is a very difficult task. This is because a lot of the rules that...
Debt securities are widely issued and traded in the secondary market. Debt securities could have a fixed interest rate or...
Financial reporting is used by a wide variety of users for a wide variety of purposes. For this reason it...
As we have seen earlier that there is a wide variety of financial ratios available. They fall into many categories...
For any startup financing to be successful, the startup company and the investors need to be on the same page...
In the previous few articles, we have already seen that the valuation of a sports franchise is heavily influenced by...
In the previous articles, we have already come across a couple of methods used for the valuation of a sports...
The valuation of early-stage startups is a controversial topic. There is no widely agreed-upon valuation methodology that can be used...
In the previous few articles, we have already come across the income-based approaches that are used in order to value...
There are many investors who believed that dollar-cost averaging was not a good strategy and that it did not work...
Cash flows vary from project to project. In some cases cash flows will occur evenly over time. There might be...
The dividend discount model is also used to measure the value of preference equity in addition to forecasting the value...
Municipalities use a wide range of financial instruments in order to borrow funds from the money market. This includes the...
We are now aware of how to use the basic single stage models for both free cash flow to the...
Debt and equity from investors remain the two conservative sources of funding when it comes to infrastructure financing. However, with...
Asset bubbles have always been a testimony to the bizarre things that humans can accomplish when they abandon their own...
Turnover ratios (also known as efficiency ratios) are a very important class of ratios. These ratios are not only used...
The mega-success of social media sites is not news for anyone. Social media companies such as Facebook and Instagram have...
The next step towards understanding the dividend discount model is to extend the conclusions derived from the single step dividend...
The entity concept separates the concerns of the owners from the business. An extension of the same concept is the...
In the articles on present value, we learnt that the value of a dollar today is not the same as...
In the previous article, we have learned about how corporations use bankruptcy as a strategic tool. However, it is important...
As discussed in the previous article, capital rationing is a form of capital budgeting. In capital rationing we change the...
Companies incur a variety of costs in their day to day operation. These costs are very different from one another...
Fixed income securities are important to investors’ portfolios since they provide regular income in the form of coupon payments. However,...
In the previous article, we had a closer look at the concept of covenants as well as indentures. However, we...
In the previous articles we discussed about what derivative contracts are and what are the uses of such contracts? However,...
Businesses may all look the same when you look at the building in which they operate, the employees they hire...
When the term “fixed income securities” is mentioned, investors immediately conjure up images of bonds in their heads. However, this...
Hedge funds are simply funds with high leverage and no regulation. They have come into existence in the past couple...
Financial theorists and practitioners all seem to agree on one basic principle, i.e., diversification is the most important tool which...
When Do Central Banks Intervene in the Forex Market ? Central Banks do not intervene often in the Forex market....
The investment banking industry is often referred to as if it were homogenous. However, this is not true at all....
The $4 trillion dollar Forex market witnesses a lot of market participants. However, all of these participants have different motives....
Why Orders are Important in Forex Markets ? There is a need for some form of automation in the Forex...
Pension funds are one of the most regulated financial investment vehicles in the world. Pension funds all over the world...
Commercial banking has traditionally been the backbone of banking. Banking was created to funnel idle resources in households to productive...
Forex quotations can be quite complex for the average person. It takes some training and knowledge to understand that these...
As mentioned in previous articles, return policies can be very important from a consumer’s point of view. There have been...
Securitization is now becoming an integral part of the way in which international sporting franchises finance themselves. There is no...
In the previous article, we have already seen that sponsorship is one of the predominant ways in which a sports...
In the previous article, we have already understood the meaning of title sponsorship. We also know why it is one...
We already know that modern sponsorship has evolved into a complex endeavour. Earlier, there used to be just one type...
Trend Is Your Friend Forex trading systems are what we often call “reactive systems”. There are many factors at work,...
The word Sukuk is an Arabic word which means certificate. These are certificates which are offered by corporations and governments...
In the previous articles, we have studied various money market instruments as well as how they are traded in the...
Investors who hold bonds generally earn a fixed nominal rate of return. However, the nominal return that they earn is...
The role of commercial banks is to act as trusted partners to their corporate associates. Over the years, the degree...
Modern banks are huge entities employing thousands of people in their workforce. However, amongst the various departments present at banks,...
In the previous article we learned that free cash flow to the firm is closely related to the concept of...
A startup is considered to be successful when it is able to raise money. The fact that a startup was...
In the previous articles, we have already come across the concept of team sponsorship. We have seen how teams can...
Technology has touched every aspect of our lives in the recent years and banking has been no exception. Huge strides...
Elon Musk cracked an April 1st joke on his investors. He first claimed that Tesla had gone completely bankrupt. Later,...
The growth story of Tesla is no ordinary story. It is a testimony to what a start-up can achieve if...
The creation of a financial model is like a project which has to be undertaken by the company. This means...
The disclosure statement is a legal document which every company undergoing bankruptcy in the United States is expected to create...
The United States of America takes pride in its judicial system. According to most American economists, the judicial system of...
Entrepreneurship is all about making decisions in the face of uncertainty. Entrepreneurship involves beginning a journey that the founder does...
The American energy sector has really taken off in the past few years. The discovery of “fracking” or hydraulic fracturing...
In the previous few articles, we have come across the various types of risk which are present in an infrastructure...
Psychographic models have evolved over the ages. They first began with the Bernwall model, which was a one-dimensional model. It...
The concept of banking as a service is revolutionary. This is because banking as a service is a mechanism using...
When we talk about social media, we often refer to companies like Facebook, Instagram, Twitter, and LinkedIn. However, in the...
Are you aspiring for a career in banking and finance and financial services? Do you dream of working in a...
Equity valuation is usually conducted for an entire enterprise. For instance, if we are trying to come up with a...
In the previous article, we learned about how certain psychological factors make a huge impact on our decision-making about financial...
Finance and sustainable business practices have traditionally been considered to be separate fields. It was common for companies all over...
Commercial or corporate banking has undergone a sea of change in the recent past. All these changes have not been...
We have studied the various discounted cash flow valuation models in this module. These different models need to be applied...
We are already aware that commercial banks are offering several liquidity management services to their clients. In the previous article,...
We live in a technological age today and hence are afforded many conveniences which people in the prior generations did...
In the previous articles, we have seen the various non-lending-related commercial banking products which are offered by banks. However, at...
The modern world is globalized. This means that free movement of goods, services, people as well as capital is allowed...
Most multinational companies registered in America have business interests outside of the United States. Since the United States has a...
Companies like Wal-Mart are often credited with bringing in technology to the retail business. Prior to multinational companies introducing technology,...
The job of a stock market is to provide relatively safe trading opportunities to its participants. Through this efficient process...
Ever since the inception of corporation as a separate legal entity, the common stock has become one of the most...
The Indian stock market is abuzz with the news of a hostile takeover. Larsen and Toubro, which is one of...
Commercial banks all over the world have been forced to adapt to increasing changes in technology. This is because technological...
The budgeting process is an integral part of any business. The budgeting process is ubiquitous and underlies almost every decision...
The capital budgeting process is at the heart of the financial decision-making which takes place in any organization. However, up...
The capital structure decision has been considered to be a purely financial decision for a very long time. However, in...
Globalization has led to increased competition. Artificial boundaries no longer stop competitors from entering markets and even dominating them. This...
The concept of strategic finance relates to making decisions that help the firm increase its cash flow in the long...
Businesses rely heavily on technology in order to obtain a competitive advantage. In today’s world, most successful companies have a...
The field of strategic financial management has become increasingly popular in the past few years. This has been because of...
There is no philosophy in the management domain which has not been criticized. The strategic financial management philosophy is no...
The field of strategy is not an exact science. This is because strategies are made based on the assumptions that...
The strategic financial planning process is different in the sense that it combines the functions of strategy formulation as well...
A lot of developing countries do not have the finances required to build large scale infrastructure projects. However, these countries...
America has been the hub of financial and entrepreneurial activity ever since the end of World War 2. However, over...
What is Stress Testing? Stress testing is a type of simulation model which is used to manage risks in banks...
Stripe is one of the most prominent start-ups in the world. It does not have the fame or popularity of...
One of the responsibilities of an investment banker is to set up the basic ground rules which will have to...
A successful business is built before there is one. The way any business is structured has very long term implications...
Banking services in general and corporate banking, in particular, have witnessed a lot of innovation in the past few years....
The Infrastructure Leasing and Financial Services (IL&FS) corporation were one of the bellwethers of India’s infrastructure sector. Ever since the...
Joseph Stiglitz is one of the most renowned economists of our time. He once criticized the current economic system after...
The disclosure statement is only the first step in the bankruptcy process. After the solicitation statement has been approved by...
In the previous few articles, we have already seen that sports leagues are able to generate a huge amount of...
As mentioned in the previous article, the financing required by companies in order to keep their operations afloat after filing...
The South Sea Bubble is one of the largest asset bubbles that the world has ever seen. In fact, this...
The world has seen many unconventional start-ups. However, almost all start-up companies derive their revenue from the earth. It is...
Spain’s economy has been in an unprecedented decline since 2008. The average Spaniard found himself unemployed and had a huge...
What Are Special Drawing Rights (SDRs)? Special Drawing Rights (SDRs) were a part of the monetary system that was created...
What Is Rework? Rework is that part of the final produce which has not been accepted by the client because...
We have already discussed that sports leagues across the world follow the franchise model. Franchising is at the core of...
Sports league sponsorships are a very important source of financing for many leagues across the world. The revenue derived from...
There are many sports management companies across the world that can be classified as large corporations. Many of these corporations...
In the past few articles, we have studied about the various models that are available to help us predict the...
The Special Purpose Vehicle (SPV) or Special Purpose Entity (SPE) is one of the most used tools in infrastructure financing....
In the previous articles, we have already studied the basics of start-up valuation. We are also aware of the basic...
Entrepreneurs who start up new companies have to deal with a lot of different types of stakeholders. As a result,...
Almost every start-up firm tries to increase its sales. However, convincing more customers can be a very difficult task. It...
Making a choice can be an overwhelming process. This is particularly true if the person making a choice has to...
Step-up bonds are special types of fixed income instruments. They help investors partially offset the risks of rising interest rates....
Financial modeling is not a perfect science. In fact, it would be fair to say that financial modeling is part...
Banking is perhaps the most regulated industry on the planet. The movement of funds in and out of the banking...
In corporate finance we studied that companies had an option when it came to compensating their equity shareholders. They could...
An organization in order to raise money divides its entire capital into small units of equal value. Each unit is...
The profession of investment banking has evolved over the years. Earlier, they were only used when companies wanted to issue...
In the previous article, we have studied how bankruptcy prediction models have come a long way. It is true that...
Every infrastructure project around the world needs one or more equity partners. This equity partner acts as an entrepreneur and...
In the second week of March 2023, the Silicon Valley Bank, which is headquartered in Santa Clara California collapsed in...
In the previous articles, we have discussed the concept of convertible notes. We have also seen the various pros and...
What is Single Entry System ? Single entry accounting systems record only one side of every transaction. This happens because...
To understand the dividend discount model, we need to start from the basics. The simplest way to understand the dividend...
Just like we have the single stage Free Cash Flow to the Firm (FCFF) model, we also have the Free...
We now have a fair understanding of what the concepts of free cash flow to the firm is. We also...
Credit cards have become an increasingly important part of every consumer’s finances. Banks now have more credit card customers than...
Smart contracts is another term that is commonly used within the cryptocurrency community. For the layman, this term can be...
Stock investments are supposed to be made based on rational choices. In this module, we have so far learned that...
The United States banking industry and the economy in general was rocked by the Savings and Loans crisis in the...
Scalability is considered to be a very important factor in any start-up company. Investors all over the world are highly...
Scenario analysis is at the heart of financial modeling. In fact, in many cases, a financial model is created solely...
What Is Scrap? Scrap is the waste that arises while manufacturing goods. It may arise because the unit being manufactured...
Sears has been one of the largest retailers in the world for many years now. The company has been in...
The retail sector has been in doldrums in the recent past. The entire industry is struggling financially. The financial troubles...
The business of sports can be asset-intensive and can lead to negative cash flows for a number of years. Sporting...
Bank loans are the dominant source of financing for infrastructure projects. This is truer in the case of developing countries...
The modern financial system is all about innovation. The system and its proponents believe that financial jugglery can solve almost...
What is a Security ? Assets with some financial value are called securities. Characteristics of Securities Securities are tradable and...
What is Investment ? It is essential for every individual to keep aside some amount of his income for a...
Investors who have been in the market for a long time know that investing is an emotional activity as much...
We have already seen that there are a lot of differences that arise between what we have learned in accounting...
Startup funding is not a one-time activity. Instead, it is a long-drawn process that encompasses many years in the initial...
In the previous articles, we have already learned about the seed funding stage as well as the series A funding...
In the previous articles, we have already learned that businesses do not raise all the funds that they need to...
The derivatives department is a highly specialized department in the modern-day investment bank. This is because, in terms of size,...
A portfolio manager is one who helps an individual invest in the best available investment plans for guaranteed returns in...
In the past couple of decades, social media has literally dominated the world of business. It has touched almost every...
Bank runs have been part of the banking industry for a long time. This is an unintended consequence of the...
In the previous articles, we have already seen how important cash flow is for the retail sector. We have also...
When a company is facing bankruptcy, it tries to free up as much capital as possible. This freed up capital...
The Silicon Valley Bank ceased to exist when it was declared bankrupt after a bank run. At this point in...
Due to increasing globalization in the world economy, a lot of multinational corporations today have their businesses spread out across...
The Finance Function in Corporates We often read about how corporates are doing financially with reference to their profits, asset...
The Finance Function and the Project Office Contemporary organizations need to practice cost control if they are to survive the...
Financial activities of a firm is one of the most important and complex activities of a firm. Therefore in order...
In the previous articles, we have already established that the financial system of any country is the key to its...
Roth Individual Retirement Account (IRA) is a retirement account that has been named after Senator Roth, who played an instrumental...
Another metric that is widely used by investors to gauge the profitability of a company is Return on Assets (ROA)....
Return on Equity (ROE) is probably the most important number in the financial universe. Every company is driven by profit...
The manner in which startup companies obtain their financing can have a very large impact on the future of their...
Infrastructure projects last for many years. As a result, different sources of funding are used at different points of time...
Professional sports athletes play for certain sports franchises throughout the year. However, these same players also represent their nation when...
The economics of sports leagues is quite complicated. This is because of various factors. However, two of the most important...
The purpose of commercial banking is to help corporations meet their funding needs in a better manner. Commercial banks help...
The profession of investment banking has become quite innovative over the years. Traditionally, raising capital was an expensive as well...
The domain of personal finance is exceptionally wide. There are lots of experts who have differing opinions, who coexist in...
The British banking regulator FSA has prosecuted Barclays for rigging the interest rates in the market. The regulator termed it...
In the previous couple of articles, we have already seen that sporting franchises prefer to lease out stadiums instead of...
Governments all over the world generally levy graduated taxes on their population. This means that as the income being taxed...
The retail sector has generally been engaged with buying and selling of new goods. This has been the case across...
The number of pension funds, as well as the amount of money being managed by these funds, is increasing exponentially...
Financial models were widely used by corporations, even in 2008. However, the severity of the 2008 crash forced financial institutions...
The usage of remote deposit capture has been increasing rapidly in the recent past. This is because the technology is...
In the previous article, we have already seen that sponsorship is not really a risk-free activity. We became aware of...
We have already seen in the previous articles that the financial size of the global sponsorship market is increasing at...
It is often said that profit is a reward for risk bearing. Nowhere is this truer than in the case...
Infrastructure projects are most needed in developing nations. These are the countries where infrastructure projects are able to create the...
Money market instruments are considered to be very low-risk investments. This is because the money market as an asset class...
In the previous article, we have already seen that building stadiums where professional sports franchises operate is a very expensive...
Derivatives are considered to be extremely risky. The market is divided in two fronts when it comes to the opinion...
Roadshows are an important part of the investment banking process. This is because this is the stage where all the...
Commercial banking is fundamentally different from retail banking in several ways. One of the main differences between the two types...
The relationship between when cash is spent and when it is recognized as an expense is fairly complex in job...
Commercial banks have been relying on a wave of digitization in order to provide the best-in-class service to their customers....
The rent vs. buy decision is as old as the concept of financial planning itself. There are people who have...
In the previous article, we have already witnessed what replacement cost theory is and how it can be used to...
The repo market is probably the largest section of the money market. It is estimated that the daily volume of...
In the previous article, we have already determined why it is important to closely monitor the workings of pension funds...
In the previous article, we have already studied about option pools. We now know the various advantages that they offer...
Retail companies have traditionally been one of the largest users of real estate in the world. It is common for...
Inventory is a very important part of the retail business. This is because the stock which retail stores hold on...
In most parts of the world, the financial system can be divided into two parts viz. the private sector and...
The quick ratio is a variation of the current ratio. However, a quick ratio is considered by many to be...
Ratio analysis is considered to be very important when it comes to making financial investments. There are many retail investors...
Ratio analysis, without a doubt, is amongst the most powerful tools of financial analysis. Any investor, who wants to be...
Ratio, as the name suggests, is nothing more than one number divided by the other. However, they become useful when...
The liquidity management paradigm in the commercial banking industry has undergone a drastic change. At one time, liquidity management was...
A couple of years ago India as a country, was facing a huge divide. The government of India had passed...
There is a common saying in the investment markets that “In the short run, the markets are a voting machine...
First-time investors are quite anxious to raise funding for their projects. The fact that professional investors are looking to invest...
America is a developed country and an inclusive society. It should ideally no longer face the problems of racism and...
In order to be successful at investing, an investor not only needs to have mastery over their numbers, but they...
The two tiered system puts the central bank in control of the commercial banks. Therefore, the government authorities have delegated...
What is HFT or High Frequency Trading ? HFT or High Frequency Trading is a process where trading in equities,...
In the previous articles, we have already read about why entrepreneurs require seed funding and how they obtain this seed...
In the previous articles, we studied proof of work as well as proof of stake. We learned that the proof...
Investors who are new to cryptocurrencies tend to find the entire ecosystem confusing and deceptive. When investors try to educate...
The proprietary ratio is not amongst the commonly used ratios. Very few analysts prescribe its usage. This is because in...
Today, the defined benefit pension plan is viewed as being a relic of the yesteryears. Most of the plans offered...
In the previous article, we have already studied what bank guarantees are and how these bank guarantees are provided by...
In the previous article, we studied what convertible notes are and how they are used in the context of financing...
In the previous article, we have already been introduced to the concept of debt ceiling as well as the various...
In the previous article, we have already seen how certain football clubs in Europe have been using their money power...
In the previous article, we have already learned what a freemium business model is. We now know that this model...
The decision to take a company public is a huge one. When a company gets listed on an exchange, it...
The Gordon growth model is a well known and widely known model for valuing equity securities. However, as with every...
In the previous article, we understood what a merchant cash advance is. We also understood the two types of merchant...
We already know that money markets are amongst the biggest sectors within the fixed-income securities market. The money market is...
In the previous article, we have already seen what multi-banking is. We are now aware of how multi-banking is an...
In the previous article, we have already discussed what neo banks are. We now know the business model of neo...
In the previous article, we studied what relationship banking is and how it is different as compared to transactional banking....
Scalable business models are the latest buzzword in entrepreneurial circles all across the world. Most new-age founders aspire to make...
In the previous article, we discussed the concept of sports tourism. We have seen how sports tourism has a wide...
In the previous article, we have already seen how fintech is changing almost every aspect of pension fund management. The...
In the previous article, we have already studied about the concept of venture debt. We know that venture debt can...
Prospect Theory is probably the most important piece of literature in behavioral finance. The conclusions made in prospect theory underlie...
The job of an investment banker includes enabling the flow of information between the company and its investors. When a...
The Wal-Mart Flipkart deal has become historic in many aspects. Firstly, this is the biggest, most valued takeover of a...
In the previous articles, we have already seen that funding a stadium can be very difficult from a financial point...
The high indebtedness of the United States of America is well known. However, USA is still considered to be an...
The put call ratio is the only financial ratio that does not compare the current market price to any financial...
Equity valuation focuses on estimating what the likelihood of the company being a successful enterprise in the future is. Now,...
Sporting franchises across the world have traditionally been owned by wealthy individuals. This has largely been because of the fact...
The Indian banking sector is facing a crisis on an unprecedented scale. The problem becomes peculiar when more facts are...
Bitcoin futures have been introduced on the Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE) from December 10,...
Veteran American Senator Bernie Sanders, as well as Alexandria Ocasio-Cortez, who has now become the voice of the Democrats, are...
The average person believes that they are legally allowed to make any investment that a rich person can. However, this...
Pension funds are present in some form in almost every country of the world. Hence, ideally, there should be comparisons...
In the previous article, we talked about Facebook’s plan of becoming a social media conglomerate by merging different apps like...
In the past article we discussed about the concept of internal rate of return. We discussed how it could be...
Before the Job The first four stages are done before the job is being performed. The final purpose of this...
The financial goal of most people is to become wealthy. This is the reason why a lot of people are...
Whenever we talk about modern start-up corporations, we assume that the company is engaged in some kind of an online...
In terms of products and service coverage, the commercial banking ecosystem is much larger than the retail banking ecosystem. Corporations...
If you have regularly observed the stock market, you may have noticed that a lot of time when the market...
The untrained investor uses profit and profit margin interchangeably. This is not technically correct. The difference may be minor but...
Many economists have argued that profit maximization has brought about many disparities among consumers and manufacturers. In case of perfect...
When the management of companies is encouraged to change their paradigm from traditional finance to strategic finance, they notice a...
The ultimate aim of all business is to generate profit. That is what the investors invest for, management plans for...
The entire world is still trying to grapple with the failure of the Silicon Valley Bank. The impact has been...
Portfolio management refers to the art of managing various financial products and assets to help an individual earn maximum revenues...
What is a Portfolio ? A combination of various investment products like bonds, shares, securities, mutual funds and so on...
Nickel Shortage During the 1970’s, nickel was in extremely short supply in the world. This is because Canada was the...
An initial public offer (IPO) is a method of selling securities wherein the entire lot of securities is offered for...
Startup valuation is one of the most important issues faced by startup companies in their earlier years. On the one...
Investment bankers use several different types of methodologies while arriving at the valuation of a company. One of the most...
Bankruptcy is a state in which firms are not able to meet their obligations to internal as well as external...
Whenever the topic of fixed income securities is considered, the obvious assumption many investors make is that the conversation is...
Value of Money Depends Upon Time In the previous article we learned about the concept of nominal and real values...
The Price Earnings Growth (PEG) Ratio is one of the first variations that were made to the Price to Earnings...
Formula Price to Book Value = Current Market Price / Total Assets – Intangible Assets The value of assets is...
“Cash is King” say the bigwigs on Wall Street. That is why the valuation of shares is done on the...
The price to earnings ratio is the most fundamental of all market related ratios. It has been used for decades...
Formula Price to Sales Ratio = Current Market Price / Reported Sales Revenue Many companies state their revenue after removing...
The buying and selling of financial securities is a complex process that has evolved over many years. Each security represents...
History of Prime Brokerage The growth in the number of hedge funds as well as the scale of their operations...
Investment banks all over the world have deep relationships with hedge funds. This is because investment banks often become the...
When we think about investment banks, as well as the activities that they undertake, we tend to think about initial...
Forex trading is a complicated affair. The complication largely arises because of the innumerable factors that are at play in...
Pension funds across the world are meant to be low-risk financial instruments. They are allowed to take slightly more risks...
Pension funds are an investment vehicle that has a special focus on retirement. Many people think that pension funds and...
Bank failures are complex events that are the result of many underlying factors. When the history of any bank failure...
Most of the lessons taught in the “Rich Dad Poor Dad” book series are somewhat unique. This is because the...
It is common practice for businesses to prepare financial statements. This is because they need to get these financial statements...
Dividend discount models are based on the assumption of constant or linear growth. However, a mere look at the empirical...
In the previous article, we learned about what dollar-cost averaging is. We also learned about some of the benefits that...
It is often believed that the role of the investment banker is to sell the company for the highest price....
Creating the maximum possible shareholder value had always been the cornerstone of capitalism. All economic theories had always been aimed...
Investors are used to looking at projections of future events. They commonly use projections about future cash flows, future profits,...
With the advent of technology, more and more people have started accepting digital payments. This means that corporations have to...
The derivatives markets all over the world have been under fire after the 2008 crisis. There is increasing clamor and...
Over the counter markets are a particular type of financial market. Generally, financial markets are centralized. This means that there...
Contrary to traditional economic theory, investors are not completely rational human beings. Instead, they are also emotional. This also means...
If mere numbers are considered, Panaya is a small blip on the radar of the global Information technology behemoth Infosys....
The recent coronavirus pandemic has fundamentally changed the way in which individuals, organizations, and even nations manage their finances. Most...
Quotation: The job begins with a quotation given to a client. For the client, all that matters in the quotation...
Bonds are commonly issued during infrastructure projects. The company holding the equity stake is generally the one issuing the bonds....
Millions of well-intentioned people around the world try to save and invest money every month but fail. They are consistently...
In the past few articles, we have studied about different types of coupon payments. These coupon payments vary from each...
In every public-private partnership, it is the job of the public party to provide remuneration to the private party. There...
The internet has enabled the functioning of various new types of business models. The peer-to-peer business model is one such...
The financial world has not witnessed much innovation since the 2008 meltdown. This is because any innovation in this sector...
Pension funds typically cater to people investing for their retirement. When it comes to retirement planning, most people stay conservative....
Whenever investors pool their resources together in order to create a fund that then invests in other assets, the concept...
The purpose of pension funds is to ensure that the wealth created by an individual is invested and distributed in...
Infrastructure funding can be very important for any economy. This is the reason that governments all over the world want...
Pension funds have always been considered to be conservative investors. This means that pension funds have generally been associated with...
We are already aware that pension funds control a significant amount of investment funds across the world. The total amount...
Systemic risks received a lot of media attention after the 2008 financial crisis. The world realized that the failure of...
With the passage of time, more and more pension funds are moving from a state-controlled pension fund regime to one...
In the previous article, we have already studied how commercial banks help in providing point-of-sale services to their corporate customers....
The previous article was an introduction about the two basic decisions that corporate finance helps a corporation in making. Prima-facie,...
The Nordic crisis of 1992 refers to the series of bank runs and currency crisis that shook Finland, Sweden as...
Commercial banks provide various types of services to their customers. One such area of service is that of liquidity management....
People often say that the size of the derivative markets is exploding. It is over $700 trillion dollars a year...
The National Stock Exchange (NSE) is one of the two leading stock exchanges in India. Ironically, the National Stock Exchange...
Financial modeling enables key personnel to make better decisions. These models are used for various types of decision making. Hence,...
After a firm has filed for bankruptcy, the court provides relief against creditors and even further lawsuits. However, this is...
In the previous few articles, we have already seen that sports sponsorships have been witnessing a significant rise in the...
The past few years have witnessed the rise of online retail. As a result, there has been a persistent debate...
The field of commercial banking is undergoing many technological changes simultaneously. Open banking is one such technological change. Open banking...
Formula The formula for this ratio can be easily judged by its name: Operating Cash Flow to Sales Ratio =...
Opportunity cost of a capital is a term unique to economics and finance. It is unique in the sense that...
There are a large number of sporting leagues around the world. However, when we study all the leagues, we find...
The gist of optimism bias is often expressed by using the popular saying “rose-tinted glasses.” In real life, it is...
Annuities can be divided into two types based on the exact time when the payments occur in a given period....
Cashless society is the latest buzzword in global finance. At the present moment, only 15% to 20% of the world’s...
In the previous article, we studied about the concept of sweeping. We are now aware that commercial banks provide their...
The commercial banking industry is undergoing a rapid transformation. This transformation has been enabled by the increasing use of digital...
In the globalized world of today, it is common for a business to go international. Almost any company which has...
Finding the Contribution Margin: It begins with the same old way. Companies have to compute the contribution margin for each...
We already know that bonds are issued by a wide variety of entities. Bonds are routinely issued by corporations, banks,...
Toys R Us is an iconic American company. According to recent surveys, Toys R Us has a market share of...
In an ideal world, investors are supposed to look only at cold hard facts and analyze them while making an...
Creative Accounting and the Need for a Theory of Accounting The rise of “creative accounting” practices, an euphemism for hiding...
In the previous article, we discussed as to how derivatives contracts can be dangerous and can pose a systemic risk....
Need for a Uniform and Common Theory of Accounting The frequent attempts by experts and professionals on having a “theory”...
The Bank of Japan has recently decided that it will cut its rate below the zero percent mark. Bank of...
Traditional financial analysts would consider a negative working capital i.e. having more current liabilities than current assets, a sign of...
Traditionally, the commercial banking industry was largely controlled by commercial banks which had a huge brick-and-mortar presence. However, over the...
The net present value (NPV) is the most important concept in corporate finance. It is on the basis of this...
Indian banking sector is divided into two. There are public sector banks, and then there are private sector banks. The...
Traditional economic theory assumes that all money is fungible. The meaning of the word fungible is “interchangeable.” Hence, according to...
The retail sector has some unique financial needs. There are various types of retail establishment across the world which use...
The commercial banking system has undergone a high deal of innovation in the past few years. A lot of new...
In the past few years, the number of mergers and acquisitions has increased drastically. This can partially be attributed to...
The Three statement financial models and discounted cash flow models are considered to be basic from a financial modeling point...
The nature of mergers and acquisition activity has drastically changed over the past few years. Earlier, most of the mergers...
The Mexican peso crisis, which is also known as the tequila crisis was one of the first major currency crisis...
We have already learned about the technique of proof of concept in the previous article. However, proof of concept isn’t...
In the previous article, we have already learned about the “Proof of Work” mechanism which underpins Bitcoin and many other...
The importance of financial planning at an individual and family level cannot be overstated. For years, people and even governments...
Discounted Cash Flow (DCF) analysis is the bedrock of modern-day financial analysis. It is for this reason that financial modelers...
Whether you’re a business or an individual, you have to find a way to manage your finances now and in...
The money market is a full-fledged financial market. Hence, there are many investors who are keen to hedge the risks...
The money market is interlinked with other markets such as the stock market and the bond market. As such, if...
Financial markets are markets where financial instruments or securities are traded. Financial markets can be classified based on various parameters....
Equity and debt are the most commonly used sources of funding when it comes to infrastructure financing. However, in many...
When it comes to exchange traded derivatives, one of the first things that need to be understood is the margin...
Commercial banks do make some money by providing services such as transaction processing and payroll processing to their clients. However,...
All kinds of investing is driven by market sentiment. These sentiments in turn are driven by certain market indicators. Investors...
Most investors do not invest directly in the company i.e. they are not promoters of the company. Rather they invest...
Equity valuation or the valuation of any asset is an art. Valuation is not a perfect science and there is...
In the previous article, we have studied about how modern start-ups have created a new form of a business model...
The global payments processing market is dominated by only two major players viz. MasterCard and Visa. Many experts find this...
The news media has been full of claims that the present market is the longest bull market in history. Media...
In the previous article, we have already seen how pension funds have been adversely affected by an increasing amount of...
Advances in medical science have increased the life span of individuals. It is now common for people to live for...
The effectiveness of salary caps in meeting the stated objectives has always been a topic of debate. There are many...
Lyft is one of the most famous tech unicorns in the world. There was tremendous amount of buzz in the...
The Importance of Major Pairs The Forex market is a place where trading happens in all currencies. However, the volume...
Making assumptions is an integral part of every financial calculation. It is a known fact that if the assumptions are...
The concepts of cash burn and cash burn rate are relatively new to the investor as well as to the...
Up until now, we have seen various ways in which commercial banks are able to serve their corporate clients. Almost...
Founders spend a lot of their time trying to understand how to deal with potential investors. They try to understand...
Many corporations and individuals earn a significant portion of their income from rents that they derive from their immovable properties....
In the previous article, we have studied about how vendor financing is being used as an alternate mechanism of finance...
Business and personal lending is dominated by tangible assets. The simple reason behind this is that they make good collateral....
In the previous articles, we have already seen what sponsorship is and what are the various advantages and disadvantages which...
Anyone working in the investment banking industry for a few years has definitely come across the term “leveraged buyouts.” It...
In the previous articles, we have already studied the difference between defined benefit plans and defined contribution plans. We now...
In the previous articles, we have undertaken careful consideration of how public-private partnership (PPP) projects work. A lot of details...
Valuing a corporation is a complex exercise. This is partly because there are multiple ways of looking at the same...
Liquidity can be defined as the ability of a firm to make good its short term obligations. Most businesses function...
Legal costs have long been a deterrent for people wanting to file lawsuits. In a country like America, the legal...
Our monetary system has undergone a sea of change in the past century. If our great grandfathers were to see...
What is a Lockbox ? Lockbox is an additional service provided by banks in the United States. This service allows...
Law Firms: Law firms all across the world practice job costing. Most law firms charge an hourly rate to their...
In the previous articles, we have already seen that the owners of sporting franchises are able to evade taxes even...
In the previous article, we have already understood what Jock Taxes are. We also had a closer look at the...
The Mississippi bubble is one of the biggest asset bubbles known to the modern world. This bubble first led France...
Investment bankers help their clients raise money by selling equity as well as bond securities on the securities markets. Investors...
In the previous article, we have studied about the concept of Simple Agreement for Future Equities (SAFE). However, it is...
The Ketan Parekh scam was the second most important scam that rocked the Bombay Stock Exchange after the Harshad Mehta...
Entrepreneurs as well as people in the general market are often left perplexed about how investors decide to value any...
In the previous article, we have already learned that term sheets are the basis on which the entire relationship between...
The speed at which commercial banking is being automated is astounding. The automation process is about two decades old. However,...
Kraft foods and Heinz, two Fortune 500 giants, merged in 2016 to form one of the largest companies in the...
Latvia is a small country nestles in Eastern Europe. Nothing from this country seemed remarkable to the global financial world...
Spotify, which is one of the largest music streaming websites in the world, has filed an anti-trust lawsuit against Apple...
Concept of Internet Only Banks With the advent of internet banking, a large part of the services that are offered...
A company is said to be more efficient when it keeps the least inventory on hand to make the sales...
There are many asset classes that are available to the common man. The average investor can put their money in...
It is common knowledge that investment bankers help a company when they want to list their shares on the stock...
Special Purpose Acquisition Companies (SPAC) have become all the rage in the investment banking industry. They are not a new...
Governments all over the world regularly engage in high-value financial transactions. They often need the help of experts in order...
The primary function of investment banks is to help their clients raise equity capital. This is often done by initial...
In the past week, the American investors witnessed an inverted yield curve for the first time since the year 2007....
In the previous article, we have already seen that it is common for sporting franchises to raise significant amounts of...
The typical successful start-up obtains funding from various private investors at the earlier stages of the business. Now, these investors...
Taxes can be classified based on which class of the population pays the most. The purpose of taxation is to...
The Israeli bank crisis of 1983 rocked the Middle Eastern financial world. The Israeli economy was believed to be strong...
In the previous article, we have already understood the method used for deriving the discount rate which is used while...
In the previous article, we have already studied what merchandising is. We now know why it is an important source...
In the previous article, we have already seen what sponsorship tiers or sponsorship levels are. We have also seen the...
The valuation of sports franchises is often quoted widely in the public domain. This is generally done based on the...
Jaguar Land Rover (JLR) produces some of the most exquisite and high-end luxury vehicles in the world. The company is...
As asset class is a group of assets that have similar investment characteristics amongst themselves. At the same time, their...
It is a known fact that the world is in great need of infrastructure projects and, therefore, infrastructure finance. Developing...
When the word infrastructure project is used, it brings to mind images of bridges, railways, and even ports, which are...
The global financial system is not perfect by any means. However, most of the imperfections seem to be minor. As...
We all know about initial public offerings. These events are held to issue new stock and sell them to the...
In the past few years, the online grocery shopping space has grown by leaps and bounds. Customers have generally been...
Banks have to lend money in accordance with the amount of reserves that they have on hand. However, there is...
The banking system is the bedrock upon which the modern financial system stands. The banking system is highly integrated with...
The interest coverage ratio is a number that has a lot of importance for the creditors of the firm. This...
The automobile industry sales have been stagnant for the past couple of years. However, this is bad news. This is...
The exchange rate between two currencies is determined by the interaction of several variables. Some variables have more influence on...
Predicting future interest rate movements is not only important for traders who invest in financial markets. Instead, it is also...
In the past couple of decades, banks have started providing a new type of product called the credit card. The...
External causes are considered to be the number one reason behind the organizational decline. However, they do not work in...
The Internal Rate of Return (IRR) is another very important metric that can be used to determine whether or not...
In the previous article, we studied the cost modeling process. We understood the various steps which have to be undertaken...
Most of the investment banks in existence today have been around for several decades. For much of this time, the...
From the previous articles, we now know that sports franchises across the world are now being viewed as commercial entities....
The Indian banking sector has seen a sudden increase in the number of bad loans. Several of these bad loans...
The stock market tends to run in cycles. For a couple of years, the market maintains a bullish stance. Then...
Companies that file for bankruptcy also have a capital structure just like normal companies. This means that their capital structure...
The coronavirus pandemic was one of the biggest disruptive events that most people will witness in their entire lifetimes. The...
Why Geography matters for Banking With the world economy being integrated and interconnected due to the process of globalization, the...
Liquidity management has become an important buzzword in the pension fund industry. This is because of the fact that recessions,...
The retail industry has been financially struggling for a significant amount of time now. This struggle has been exacerbated by...
The retail industry is unique in many ways. There are several financial and operational concepts which are more relevant to...
Technology is the elephant in the room as far as pension funds are concerned. There is no meeting or conference...
The sporting industry has undergone a lot of changes in the recent past. These changes have been related to various...
The Silicon Valley Bank collapse has the potential to be a turning point in the way the modern financial system...
In the previous two articles, we have already established that the sporting industry has this unique practice of recognizing human...
We are now aware of the various models that are used for equity valuation like Gordon model, H model, 2...
Some Forex traders fail because they try to run even before they can walk. You may be passionate about trading...
Follow the Money Trail In recent months, there has been a spate of disclosures around the world about how banks...
In the previous article, we have already seen that the return policy offered by a retailer can deeply influence their...
It is a myth that financial ratios are to be used only by investors and analysts in deriving a fair...
In the previous article, we have already learned about the repo market. We learned about how the repo market is...
In September 2018, Austria became the latest developed country to issue ultra-long-term bonds. As per the deal, Austria raised a...
Leasing has traditionally been one of the biggest expenses related to the retail industry. This expense is incurred by almost...
Any stock market around the world is huge in size. It is made up of many participants who regularly buy...
Finance as a force for good Even before the 2008 global financial meltdown, finance worldwide was not exactly successful at...
Companies want to go public because it helps them raise cash, which can be used for further expansion. However, the...
Investment bankers are intermediaries in the capital-raising process. This means that most of the time, the deals which go through...
A lot of people are of the opinion that obtaining venture funding can be very difficult for a startup business....
Behavioral financial analysts have conducted a significant amount of research in order to understand how investors process loss. In the...
Personal finance is defined in such a way that it is supposed to be linked with the financial decisions of...
Booms and busts have now become a normal part of the business cycles. Due to monetary inflation, the value of...
In the previous articles, we have learned that the money market is a very important market in our financial system....
Valuation of any company can be a very complex task. However, when it comes to pre-revenue companies, this complexity is...
Reserve requirements are one of the most important features of modern central banking. We hear about reserve requirements almost every...
Start-ups connect with large corporations in many ways. The most common way for start-ups to connect with their larger counterparts...
In the previous article, we have already studied what risk-based supervision is. We now know why regulatory bodies all across...
It is common knowledge that sports leagues all over the world rake in billions of dollars when it comes to...
We already know that primary financial markets are used by firms to raise funds from investors. This is done by...
Over the years, the sporting business has quietly metamorphosized into a big business. The amount of money changing hands in...
Sporting franchises are often said to be confused about what their objectives should be. One chain of thought believes that...
How Technology is a Game Changer for the BFSI Sector It would be an understatement to say that technology has...
Now, since we are aware that there are actually multiple models that can be used to value any given company...
All stock market investors know that markets go through periods of euphoria and panic. During periods of euphoria, investors keep...
There is more than one entry route if one wants to gain an exposure in the commodities market. Positions can...
Corporate income tax is collected when there is corporate income i.e. when the revenue collected by the corporation exceeds the...
There are various types of sporting leagues across the world. These leagues cater to different sports in different parts of...
When a firm declares bankruptcy, this decision has an impact on all the contracts signed by the firm. The law...
Start-up businesses are affected by a wide variety of factors. Macroeconomic factors such as business cycles affect start-up organizations as...
The retail industry has been constantly innovating in order to become financially more viable. There are several innovations which have...
The retail business is inherently a cash flow positive business. This is generally because of the fact that retailers are...
Interest rates are one of the most important factors while determining the bond value. All other factors like payments, number...
Beginning a startup can be quite an overwhelming process. This is because of the fact that founders need to make...
The continuous inflow of capital is vital for any economy to grow in the long run. This inflow of cash...
Corporate taxes form a significant portion of the expenses borne by multinational corporations. These corporations are almost obsessed with efficiency....
Credit enhancement refers to the artificial restructuring of credit products which results in the improvement of its credit rating. In...
It may seem like the banking business is about money. However, the banking business is really all about information. Until...
In the past month, the Dow Jones Industrial Average had seen a spectacular fall. The market had crashed more than...
How Dire is the Bad Debts Problem in Indian Banks In recent months, the news reports about India’s bad debts...
Timely payments are very important to any corporation. Only if a corporation is able to keep its word and make...
Uber and Pinterest are amongst the hottest tech start-ups in the world right now. This is why the fact that...
Derivative markets are unique kinds of markets where derivative instruments are traded. As we already know, derivative financial instruments are...
Domestic Funds Transfer It is common for individuals and entities to transfer funds to their friends, family, business partners, and...
Investment banks perform a wide variety of activities. As we have explained in previous articles, the work performed by investment...
Option pools are synonymous with startups. Founders, investors, and employees expect the company to have some sort of option pool...
Pension funds have witnessed a dramatic increase in the number of assets that they control. This increase has been the...
The main objective of the financial system is to allow the participants to meet their financial goals. One common goal...
In the business world, Cash is King. Companies that do not have adequate cash cannot survive for very long. This...
The fall of the Silicon Valley Bank happened very suddenly. The bank had gone from a healthy functioning bank to...
The modern banking system is considerably different from what the average person believes it to be. Banks are not institutional...
How the GameStop Saga is Small Investors Paying the Biggies in the Same Coin The past few weeks have seen...
The Debt Bomb and its Implications The world is in crisis and one of the reasons for that is the...
Stakeholders all over the world are concerned about the irreversible damage being caused to the ecosystem of the earth. There...
The inner workings of hedge funds are as elusive as their outward appearance. The general public usually does not know...
The amount of money that is managed by pension funds is huge. Since pension funds have large amounts of money...
In many cases, IPOs are thought of as being underpriced. This means that as soon as the IPO is listed...
We have seen that a perpetuity represents an infinite stream of future cash flows. However, we have also seen that...
Financial models are complex projects which take months or even years to build. It also needs to be understood that...
The British government has held a referendum wherein the majority of British citizens voted to leave the European Union. This...
Harshad Mehta was the son of a peon. He was born in abject poverty and when he migrated to Mumbai,...
What the Resignation of Urjit Patel Means for the Corporate Regulator Tussle in India Recently, in India, the RBI or...
Hedge funds are often looked upon as being unethical in their practices. This is partly because there is public outrage...
Leverage is one of the defining features of any hedge fund. Therefore hedge funds have gained expertise in the creation...
Money laundering is a heinous crime. Although it does not directly lead to loss of human lives, it allows money...
Hedge funds are both exclusive as well as elusive. They differ from other funds like mutual funds in a large...
Technically, the term hedge fund does not exist. In fact, the term hedge fund applies to any fund which is...
The term “hedge funds” have become ubiquitous in the financial markets nowadays. This is a term which incites a strong...
Human beings are social animals. For centuries, our brains have been wired to conform to the actions of the larger...
Traditional financial theories assume that finance is a scientific field. This means that just like in a scientific problem, a...
The international bond market is a large and diverse market. There are various categories of bonds that are issued in...
There are several cognitive biases that affect our ability to think clearly about financial investments. One such bias is called...
Buying Assets on Installments A hire purchase agreement is a particular type of agreement between a buyer and seller. The...
Derivatives may have found their way into the media in very recent times. However, they have been used by mankind...
The word “money” has not always meant what it means today. Today when we use the word “money” we refer...
The activities of most investors have historically been limited to their home country. This is largely because earlier, there were...
Homeownership has been at the center of every American dream for the past few decades. The conventional belief is that...
The purpose of financial resources is to mobilize savings. In most cases, these savings are generated by households and are...
In most bankruptcy cases, senior classes of creditors have more power as compared to junior classes of creditors. This means...
The post-pandemic economic environment across the world has bearish undertones. During the pandemic, many countries had lowered their interest rates...
In the previous article, we have already seen the importance of broadcasting revenue. We also know what the shortcomings of...
The Foreign exchange market is far more complicated as compared to stock or bond markets. Predicting the foreign exchange rate...
Economies of scale provide a significant advantage in the retail industry. This is the reason why all retail companies try...
The gender gap in pension systems around the world is a very real and pressing issue. Numerous studies have been...
From the past few articles, it may seem like capital budgeting has a pre-determined procedure. All the possible scenarios that...
Ever since the era of globalization, the world has started operating like one single market. The concept of a global...
The process of financial planning is a bit more organized compared to the traditional saving and investing approach. During financial...
Gold has always been the alternative asset class. Whenever people lose faith in the value of the stocks that they...
While the system of debit and credit is the foundation for maintaining balance and accuracy, it can often feel overwhelming...
The 1MDB scandal is a scandal of epic proportions that was uncovered in Malaysia almost five years ago. This scandal...
When investors look at the list of companies that have become unicorns in the recent past, Goodleap tends to stand...
Start-ups are private entities. It is true that start-ups thrive because of the resourcefulness and innovation of the people behind...
Money market securities are generally issued by firms that have a very strong credit rating. This is because investors do...
Retirement planning is one of the most neglected fields in financial planning. This is the reason why a lot of...
Fixed assets i.e. property, plant and equipment represent the single largest investment any company makes in its operations. It is...
We already know that a mortgage is one of the biggest expenses that any investor has. It is also common...
The Indian government has been defensive about opening up its retail sector to global companies such as Wal-Mart and Amazon....
Flipkart is amongst the largest unicorns in the Indian startup ecosystem. Wal-Mart is a known international retailer with revenues upwards...
Whenever companies need to raise money by accessing the public markets, they have to use the services of investment banks....
The economy of any nation can be viewed from the point of view of fund flow. This is a unique...
The common perception is that companies need to cultivate relationships with investment bankers only if they are unlisted and need...
Arbitrage was earlier restricted only to commodities that could be traded easily in the markets. It is a phenomenon born...
Trading foreign exchange is markedly different from trading other financial assets in the market. There are certain unique features of...
Traditional economic theory assumes that investors are completely rational beings. Hence, they react to information in the same way if...
As we have already seen in previous articles, corporations all over the world have started automating their payments. Unfortunately, a...
The dividend discount models assume that the investors have no control over the payout policy of the firm whatsoever. This...
Free cash flow models can be further categorized into two types. There are certain kinds of models which pertain to...
The free cash flow to operating cash flow ratio is different from other ratios. It is different in the sense...
The freely floating currency system may have its advantages and disadvantages. However, it has fundamentally changed the way we look...
In the modern world, more and more start-ups are selling products and services related to information technology. These companies either...
Financial resources are scattered across the economy. This is the reason that there is a need for a financial system...
A central bank is an institution that is mandated by constitutional decree to function along certain principles and entrusted with...
The modern banking system is two tiered. This means that at the bottom there are commercial banks i.e. the banks...
Money markets are large and liquid markets. They exist in almost every country which has a developed financial system. The...
Following are the basic fundamental principles of Accounting: Monetary Unit Accounting needs all values to be recorded in terms of...
Pension funds are amongst the most heavily supervised financial instruments in the world. This is because of the fact that...
Corporate finance is based on two fundamental rules. All tools and techniques of corporate finance are mere ways and means...
Financial modeling is an intensive technology process. This means that at the present moment also, financial models use the latest...
Sports franchises are also business entities just like other private companies. Hence, it is possible for the owners of these...
The retail inventory method is used by retail corporations across the globe to obtain a rough estimate of the ending...
For centuries, men have held the ambition to be able to beat the market consistently. Year after year many traders...
Dhirubhai Ambani was the perfect rags to riches story that India had ever seen. He had started out with nothing....
There is a widely held view that creative destruction is the cause of all business cycles. This explanation is used...
We already know that sports leagues have several sources of revenue. Some of these sources have been continuing for a...
What is the Fed Wire System? The Fed Wire system is a service that is offered by the Federal Reserve,...
Banks earn their income in two parts. One type of income is generated by undertaking risk i.e. by lending their...
In 1971, Richard Nixon single-handedly took the world off the gold standard. Ever since, many commentators have been of the...
It’s hard to read a newspaper and not see any Fintech company being mentioned. The Fintech revolution has taken center...
The plastic problem has become a major talking point across the entire world. Almost every country in the world is...
The following explanation will help in understanding each finance function in detail Investment Decision One of the most important finance...
We often read about how electronic and software based trading is the norm in stock or equity markets as well...
The use of incubators is fairly common in startup companies. Entrepreneurs across the world use the services offered by incubators....
Retail organizations across the world face multiple challenges when it comes to managing their business operations. Managing retail warehouses is...
In the previous few articles, we have already seen what retail warehouse automation is. We are now aware of the...
The business of sports leagues is inherently intertwined with the finances that the franchises have. It may appear that the...
Every activity done by human beings is generally linked to a larger goal, a pursuit to achieve something important in...
Every firm has a predefined goal or an objective. Therefore the most important goal of a financial manager is to...
Most of the players in the online as well as offline retail industry have a clearly defined retail policy. It...
In the previous article, we learned about financial freedom or financial independence. However, in the traditional financial planning world, financial...
Introduction A financial intermediary is a firm or an institution that acts an intermediary between a provider of service and...
It is human nature to plan for rainy days. An individual must plan and keep aside some amount of money...
A lot of young people are not aware of what their financial goals ideally should be. Most of them fall...
A market is a place where two parties are involved in transaction of goods and services in exchange of money....
What is Financial Modeling and How Does it Help Financial Professionals? Ask any banker or for that matter any financial...
Financial modeling generally does not differ very much from industry to industry. For instance, if a person creates a financial...
Financial modeling can be considered to be the science of making informed decisions regarding a company based on data simulations....
Financial models are used by corporations almost every day. These models help while making several key strategic decisions. For instance,...
Financial strategy is at the heart of the business of any insurance company. This is because insurance companies need to...
Just like mergers and acquisitions, modeling for leveraged buyouts (LBOs) also requires special skill and knowledge. In this article, we...
A heuristic is a technological term for what is known as a “thumb rule” in common parlance. In the previous...
Financial modeling has become an essential part of most real estate transactions today. This is because of the fact that...
Planning is an essential function that the founder of a startup company needs to perform. However, this planning is often...
Definition of Financial Planning Financial Planning is the process of estimating the capital required and determining it’s competition. It is...
The retail industry has become highly competitive. However, at the same time, the retail industry has also become quite data...
In the previous articles, we have already read about how banks are the main pillars of the financial system. It...
Financial institutions and markets are together called the financial system. This financial system is the backbone of the national economy....
The fracking industry has had a huge impact on the financial situation of the world in the past decade or...
Infrastructure projects typically last for many years. It is not uncommon for these projects to last for decades. These long...
Buying a home is a huge financial decision. The effects of this decision are felt throughout the life of an...
The goal of personal finance is to accumulate wealth and then disseminate it at the right time in order to...
We have discussed various types of dividend payout models. We have discussed the Gordon growth model, the H model, one...
Prima facie, capital budgeting may seem like a very simple task. After all, it has just 3 steps. The first...
We have seen in the previous article that estimating cash flows can be quite confusing and counterintuitive. This is not...
Continuing from the previous two articles, we will look at some more counterintuitive steps that need to be taken to...
In the previous articles, we have already studied about regular commercial paper as well as asset-backed commercial paper. However, there...
In the previous article, we have already seen how multinational companies spend large sums of money in order to buy...
International trade is a vital component of the economy of any nation. Also, international trade is highly dependent upon exchange...
In the previous article, we studied about exchange traded derivatives. We studied their defining features and found out the reason...
Now since we have a basic idea regarding what derivatives really are and the function that they perform, it time...
The financial community of the world is at a consensus that the current economic system provides the United States government...
Many theorists believe that organizational decay is caused by external factors. In fact, some have gone far enough to suggest...
Infrastructure projects continue for a long period of time. Sometimes these projects continue for decades. Hence, they need long term...
They say that there is no smoke without fire. This is true of many things and one of them is...
Facebook, Amazon, Apple, Netflix, and Google are together known as the FAANG stocks in the stock market. These stocks have...
In the previous few articles, we have already studied the pros and cons of sponsorship. However, we have come to...
The dollar today is the uncrowned king of the financial world. This means that the dollar does not face much...
The endowment effect is another important psychological barrier that helps people from realizing the full potential value of their investments....
The entity concept is one of the central tenets of accounting. An understanding of the same is therefore of paramount...
The gaming industry is notorious for being full of fads. Games tend to become popular very soon. However, their popularity...
Formula Equity to Fixed Assets Ratio = Equity / Total Fixed Assets Equity includes the retained earnings Total Fixed assets...
In the previous articles we have seen how we can convert a possible future stream of cash flows to its...
The retail sector is often considered to be a part of a single industry that has similar characteristics. However, this...
Sugary beverages manufactured by companies such as Coca-Cola and Pepsi are colloquially called “soda” in the United States. Americans consume...
The discipline of economics is generally valid for all industries across the world. This is because the basic fundamental economic...
While valuing firms, free cash flow has to be calculated over a number of years. Hence, there is a good...
In the previous article, we have studied the concepts of the tax base and tax rate individually. Now, it is...
Options and derivatives are generally associated with equity securities. It is for this reason that most investors are not aware...
In the previous two articles, we saw how information regarding the possible future price, dividends and rate of return expected...
The dividend discount model makes a lot of assumptions. Some of these assumptions are not considered to be viable by...
Investors can be classified into types. The two predominant types are growth oriented investors and value oriented investors. Growth oriented...
Many tech-based companies are lined up for initial public offerings (IPOs) in 2019. Many companies such as Uber and Lyft...
Setting up a startup company can require a lot of paperwork. It is common for startup founders to spend a...
There are two predominant schools of thought about the stock market. The views of these schools of thought are somewhat...
China has become the largest exporter of goods in the world. This has been a remarkable feat achieved by the...
The new age high tech generation may seem to be immune to market inefficiencies of the past. They may seem...
The double entry system of bookkeeping is said to have revolutionized growth in modern business. It is only because businesses...
The ICICI bank is the largest private sector bank in India. It was also famous for being one of the...
Book building has been one of the most widely used methods in the underwriting process. However, over the years, companies...
In the previous articles, we learned about how to calculate the cash flow from operations if the cash flow statement...
The United States of America is full of people who have huge student loan debt, credit card debt, and mortgage...
Facebook is one of the largest social media firms in the world. The Facebook family of apps, i.e. Facebook, WhatsApp,...
The retail industry has been rapidly evolving for many years. The industry has adapted to a wide range of changes...
Oceans account for over 70% of the surface area of the earth. This makes them important for life as well...
In the previous articles, we have already studied the aggregator as well as the marketplace business models. These two types...
The Difference between Retail, Corporate, and Investment Banking Most of us when dealing with banks usually walk into the branch...
Pension funds have a very large amount of money at their disposal. However, that does not mean that the management...
Private-public partnerships are a common mechanism used while creating infrastructure projects. In general, a public-private partnership involves a joint venture...
We all know that investors are a very important part of the entire start-up ecosystem. However, up until now, we...
Technology all over the world has been advancing at a breakneck speed. Just a few decades earlier, radio was the...
Commercial banking has traditionally been slow to adopt the latest technology. However, over the past few years, commercial banks have...
The costs of issuing an initial public offer can be prohibitive. There are many companies across the world that want...
In the previous articles, we have already seen what artificial intelligence is and how it can be applied in commercial...
Banking as a service is set to transform the commercial banking industry. It is the latest buzzword in the commercial...
In the previous article, we have already seen what Black Friday sales or deeply discounted sales are. We also know...
In the previous article, we have learned about what self-financing i.e. bootstrapping is. We have also learned about what are...
In the previous articles, we have already seen what Buy Now Pay Later (BNPL) financing is, how it is implemented...
Defined contribution plans have come under a lot of criticism because of the various disadvantages that they have. Many of...
The dividend discount model also has its fair share of criticism. While some have hailed it as being indisputable and...
The concept of in-store automation is increasingly becoming popular in the retail sector. In the previous articles, we have already...
Paperwork Intensive Job order costing systems have a massive paper trail. They function on the basis of this paperwork. This...
In the previous article, we learned about the non-interest income at various commercial banks. We have also understood what these...
In the previous article, we have explained the concept of omnichannel retailing. We have also seen how it is different...
In the previous article, we have already seen that private equity firms are making a beeline in order to invest...
There is no doubt about the fact that the Product as a Service (PaaS) model is being adopted by companies...
In the previous couple of articles, we have tried to understand what salary caps are. We also know the different...
In the previous articles, we have already seen how the use of securitization has grown in sports. We also know...
In the previous articles, we have learned about what subscription-based banking is. We also know the various advantages that this...
In the previous articles, we have read about the meteoric rise of cryptocurrencies. We know that investments in these currencies...
In the previous article, we have already seen how the valuation of a sporting franchise can be found using the...
In the past article we have seen how Discounted Cash Flow (DCF) is the most appropriate method of stock valuation...
Infrastructure projects tend to have a lot of financial risks. In many cases, the risks are poorly managed. In fact,...
The bankruptcy process takes a long period of time to resolve. During this time frame, the company takes the protection...
Debits and credits are the building blocks of the double entry accounting system. Many accounting students find the usage of...
In the previous articles, we have already seen that sporting franchises are required to raise a lot of capital at...
Debt financing is the most important source of finance for infrastructure projects. In most infrastructure projects, the majority of the...
Sporting franchises are also business organizations that operate just like other business entities. Therefore, just like other business entities sports...
The debt ratio is the second most important ratio when it comes to gauging the capital structure and solvency an...
The inability to manage debt is one of the biggest reasons behind the failure of many companies. Just in the...
Debt to equity conversions is one of the most commonly used tools in the bankruptcy universe. These transactions allow companies...
The debt to equity ratio is the most important of all capital adequacy ratios. It is seen by investors and...
Cryptocurrencies are just like other financial assets. This means that they can also be bought and sold in financial markets....
The era of big corporations started during the industrial revolution. The past couple of centuries have witnessed the rise of...
Timing is everything when it comes to bankruptcy claims. Any company facing the threat of bankruptcy has a duty to...
Whenever a person from the baby boomer generation hears the term pension plan, they refer to defined benefit pension plans....
Most firms use both operating leverage and capital leverage to some extent. In today’s business world it is almost impossible...
A high debt equity ratio makes the company financed by debt more than by equity. Therefore there are fixed interest...
The degree of operating leverage of a company is very important from an investor’s standpoint. Although it shows the riskiness...
Deposits can be divided into two types. The first type is time deposits in which an account holder gives the...
The Lure of Investment Banking and Why is it so for Management Practitioners All aspiring management students as well as...
The banking system is an integral part of the financial system of many countries. In fact, as we have discussed...
Deutsche Bank which, which was once a dominant German financial institution has now become extremely fragile. This German bank managed...
The European banking system has been in a bit of a crisis in the last few years. Major European banks...
Development impact bonds are a revolutionary new type of bonds which are being introduced in the market. These bonds have...
Ratio analysis is one of the oldest methods of financial statements analysis. It was developed by banks and other lenders...
Creating a successful startup business can be a daunting task. This is because a startup business needs a viable idea...
Bankruptcy is a common phenomenon in the business world. There have been many cases wherein the stalwarts of yesterday, the...
The study of financial management is imperative for anyone trying to make a career in the industry. However, traditional financial...
If you are connected to any kind of financial market or watch the financial news even for 5 minutes every...
Accounting has been hailed by many as the “language of business”. There are many quotations like “A pen is mightier...
The banking industry is a highly specialized field. To the layman, it may appear like all banks perform the same...
Commercial banking has traditionally been a relationship-driven business. This meant that the business was primarily driven by human-to-human contact. Over...
Markets across the world can also be segregated based on the type of intermediary. Prima facie, it may appear that...
Throughout finance, one rule always holds true. The general belief is that the value of any asset or security is...
The business of sports is one of the largest businesses in the world today. Across the world, there is a...
Meaning of Financial Management Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization...
Planning is the cornerstone around which business empires are built. Businesses which survive and thrive in the long run are...
The retail industry has already been undergoing a massive change since a long period of time. This industry has seen...
Fixed income securities used to be a relatively obscure part of the financial markets. Up until the late 1970s, bond...
The term “Forex market” is used very frequently in the media as well as in day to day life. It...
In 2019, President Donald Trump created outrage when he decided to lower the tax rates of corporations. Donald Trump was...
Banking in old times was not the tightly monitored and tightly regulated business that it is today. Instead, earlier banking...
Traditional economists are of the opinion that infrastructure is the heart of the economy. Empirical data clearly shows that given...
There are certain types of financial markets and financial institutions that are found in almost every country in the world....
The topic of investment banking is fascinating. This is because some of the biggest banks in the world i.e., Barclays,...
In earlier time, prices used to be driven by costs. This meant that the firms would consider the amount of...
Retail investors across the world do not have a high level of knowledge when it comes to money markets. This...
Individual investors are well aware of the existence of pension funds. Retail investors who earn their income in the form...
There is no shortage of education in the field of finance. There are various academicians who work tirelessly in the...
It is essential for individuals to invest wisely for the rainy days and to make their future secure. What is...
The geographical boundaries drawn by nation states are blurring in the 21st century. In many parts of the world, free...
Taxation has a major impact on the return that any investment generates. This is the reason why it is important...
When a new investor enters into the cryptocurrency market, they are often confused by different quotes for what appears to...
Cryptocurrencies have taken the world by storm. In the past few years, the cryptocurrency market has transformed into a mainstream...
The ownership and storage of cryptocurrencies are quite different as compared to regular currencies. It is for this reason that...
The financial decisions made by an investor are actually influenced by several factors that are present in their thought process....
What is a Currency War ? A currency war is a situation wherein devaluation of currency by one country is...
The current ratio is the most popularly used metric to gauge the short term solvency of a company. This article...
The retail sector has started using data and analytics in a big way. In general, data and analytics is used...
Corporate finance is one of the most important subjects in the financial domain. It is deep rooted in our daily...
In the previous article, we have discussed how important revenue modeling is and the techniques which are used by companies...
Theoretical Concept The cost of equity concept is very important when it comes to valuing shares on the stock market....
The risk involved in an infrastructure project does not remain the same throughout the life of a project. Instead, the...
The financial environment in the retail industry is extremely competitive. This means that retailers are always under pressure from their...
In the previous article, we have studied about how some companies have started using bankruptcy strategically. This means that they...
Asset-backed securities have become famous all over the world in the past few years. The largest market for asset-backed securities...
Bankruptcy proceedings are often long drawn processes. The reason behind this is simple. If a company has to come out...
A financial model is often called a “model of models.” This is because there are several parameters which go through...
Financial planning is often confused with investment planning. Although investment planning is a major part of financial planning, it does...
As mentioned earlier, investment banks have been in operation for several years now. This is the reason why, for many...
Theoretically there are two types of interest rates, simple and compounding. However, in finance the word interest usually refers to...
The bankruptcy of an organization is the end result of many years of organizational decline. It is not an event...
In one of the previous articles, we studied about covered bonds. We discussed how covered bonds are considered to be...
The vast majority of investors fail to perform well in the stock market because of behavioral and emotional reasons. The...
Investment banking institutions are engaged in multimillion-dollar transactions. This means that if an investment bank is perceived to be operating...
Causes of Failure of Job Order Costing: The following is the list of the most probable causes that would cause...
Warren Buffet once told that interest rates are like gravity. If there is no gravitational pull on asset values, then...
In accounting and in finance, conservatism is generally considered to be a positive quality. However, studies in behavioral finance have...
Hidden Assumption: The cost volume profit analysis has a rogue assumption. This rogue assumption believes that the cost volume profit...
Contracts govern all transactions whether they are between firms or between firms and private individuals. Indeed, in most of the...
The rise of behavioral finance has led to several new strategies being floated in the financial world. Contrarian investing is...
Startup firms usually receive their funding in the form of debt or equity. Some newer ways of providing funding to...
Credit cards have been a great financial innovation that has revolutionized personal banking. As far as retail banking is concerned,...
The sharing economy has been one of the major themes when it comes to start-up investing in the past decade....
All investors have pre-existing beliefs about the way investment markets work. These beliefs are often deep-rooted and subconscious. For example,...
Infrastructure finance is an extremely complicated and advanced field. There are many complex financial instruments related to infrastructure finance which...
The business model behind commercial banking practice has completely changed over the years. Earlier, commercial banks were heavily dependent upon...
Banking activity is generally considered to be risky. Banks earn money by borrowing money from people and then lending them...
In the previous articles, we have discussed that the money market has various sub-sections. One of the most important sub-markets...
Ever since the beginning of history, humans have been using commodities. This has created a necessity to trade commodities. However,...
A sports league becomes profitable when it is successfully run over many years. This means that almost all the teams...
In the previous article, we have already seen that broadcasting rights and the revenue from the sale of these broadcasting...
It is important for investors investing in fixed-income securities to be aware of restrictive covenants. This is because restrictive covenants...
Common size statements are not financial ratios. Rather they are a way of presenting financial statements that makes them more...
Financial markets have their own terminologies. The Forex market has a number of terms which it shares with other financial...
The derivative market can seem like a world unto itself. The market is so large and so different from the...
Wall Street is very sensitive to communication. Every quarter, executives from top companies communicate their results to the street. Based...
In the past module, we concentrated on calculating the returns part of the project. All our articles were focused on...
Economists all over the world are of the opinion that markets are the best system for allocating scarce resources. However,...
Pension funds are large investment funds that control trillions of dollars worth of investments worldwide. Pension funds exist in almost...
In the previous articles, we have studied what a risk-based supervisory system for pension funds is. We have also studied...
Investment banking has traditionally been a lucrative business. Investment bankers have always been in the news for the excessive amount...
The retail industry has undergone a lot of changes in the recent past. Each of these changes have been strategic...
In the previous article, we have already learned that the money market is a market for assets that can act...
Corporations all across the world make a wide variety of payments via checks. This includes statutory payments, payments to utility...
The Chinese government has a bad reputation when it comes to finances. Most countries including the developed ones like the...
There has no doubt about the fact that the Chinese economy is one of the largest economies in the world...
The nature of investment banking is such that investment bankers are supposed to work very closely with their clients. In...
A lot of financial modeling takes place in Microsoft Excel. One of the errors that financial modelers come across during...
There is much more to the international financial system than what meets the eye. For instance, if you were to...
Banks in the modern world face an inherent risk of insolvency. Since the banks are so highly leveraged, there could...
Depreciation is an important concept in capital budgeting. This is because it is a non cash expense and ideally should...
Forecasts Spread Over a Period of Time Inflation is an ever persistent condition in today’s economy. The purchasing power of...
What are Capital Controls ? Capital controls are when the governments of nations restrict the inflow and outflow of capital...
In the previous few articles we have come across different metrics that can be used to choose amongst competing projects....
Capital structure ratios are very important to analyze the financial statements of any company for the following reasons: Same Business...
Meaning of Capital Structure Capital Structure is referred to as the ratio of different kinds of securities raised by a...
What is Capitalization Capitalization comprises of share capital, debentures, loans, free reserves,etc. Capitalization represents permanent investment in companies excluding long-term...
Concept of Carry Trade Carry trade is a kind of trade that is peculiar to the Forex market. In other...
Most economists in the world believe that the market system is the most efficient way of allocating resources. However, there...
People who invest their money in stocks can be split up into two categories. One category of people actively decide...
In the previous few articles we understood how to calculate free cash flows which accrue to the firm as a...
Finance is like Oil to the Engine of the Indian Economy As finance is the grease and the oil that...
The startup and entrepreneurship game has undergone a lot of changes in the recent past. Earlier, having a free cash...
Now, it’s time to move on to the second metric which can be used to derive the free cash flow...
Once upon a time, investors and analysts used to believe in ratios that have been calculated based on the earnings...
Formula Cash Flow to Debt Ratio = Operating Cash Flow/Total Debt Meaning The cash flow to debt ratio tells investors...
The first thing that any investor related to fixed income markets first notices about the market is the sheer variety...
The cash ratio is limited in its usefulness to investors and financial analysts. It is the least popular of the...
Cash Basis of Accounting Cash Basis of Accounting uses receipts and payments of cash to record incomes and expenses. Therefore,...
Governments across the world have stepped up their fight against cash. Cash is being increasingly viewed as a curse that...
Catastrophe bonds are one of the most sophisticated tools used by the insurance company in order to protect itself from...
The field of behavioral finance has become fairly developed over the years. There have been many psychologists as well as...
In the previous article, we explained the concept of cost overrun. We also explained how cost overruns have a negative...
In the previous article, we have already understood the concept of shrinkage. We now know how shrinkage is calculated and...
The United States is economically the most powerful nation in the world today. This is what makes the study of...
Last month Donald Trump fueled a debate when he called the Fed “crazy.” Political accusations started flying all across the...
The popularity of cryptocurrency is causing investors to make a beeline for buying into the cryptocurrency boom. The trading activity...
In the previous article, we have already studied about the peculiarities of the Chinese pension system. We are now aware...
Commercial banking has been around for a very long time. Ever since the birth of corporations more than three centuries...
We studied the different methods to calculate the free cash flow to the firm (FCFF) in the previous articles. In...
Amazon has become the poster-child of the e-commerce growth story across the world. For many years, retail executives across the...
Downturns are part of an economic cycle. Every few years or so, the economy stops growing at a rapid speed....
If you are an investor who is even remotely connected to financial markets, the odds are that you have heard...
What are Bills of Exchange? A bill of exchange is a promissory note that is usually issued by the buyer...
It is true that cryptocurrencies have been gaining more acceptances all over the world. As a result, the rise of...
The Black Wednesday of 1992 refers to the momentous day when the British Pound was under attack by currency speculators....
When a new investor enters the world of cryptocurrency, they often use two terms mentioned together. These two terms are...
When an investor thinks of bonds, they often think about the financial agreement between the investors and the borrowers. However,...
While calculating present values of bonds, one may observe that some of the information required to compute the present value...
The transition of the world monetary system from gold standard to the modern Forex markets was anything but smooth. Governments...
Investment bankers play different types of roles when it comes to capital raising. Most of the time, they are middlemen...
The consistent generation of revenue is important for the success of any sports league. If the organizers of any of...
When people think about how startup founders invest their time, most of them think about dealing with investors or managing...
In the previous articles, we have discussed some of the financial instruments which are commonly used in the money markets....
Technological innovations are having a huge impact on the commercial banking industry. Many parts of the commercial banking business are...
When the word bankruptcy is used, the immediate image conjured is that of a company that is trying hard to...
In the previous article, we have already studied that all bankruptcies are not involuntary. In many cases, the shareholders and/or...
The traditional financial theory assumes that all investors are rational. Hence, they believe that all investors will reach the exact...
The human mind is riddled with several fallacies. When human beings make investment decisions, they are battling a wide variety...
BB&T and Sun Trust bank are both giant institutions in their own right. However, now since they have decided to...
If certain high profile fund managers and bond investors are to be believed, then the bond market has just slipped...
The problem with traditional financial theories is that they tend to operate in an ideal world! The underlying assumptions are...
Behavioral finance is a fairly recent phenomenon. The development of this branch of finance is not more than a few...
The theory of behavioral finance has become exceedingly popular in the past few years. This is largely because of the...
As investors, we are often perplexed by the behavior of the markets. For instance, we may find a stock to...
There have been many economic theories developed in order to understand how and why human beings save and spend their...
There is a fundamental difference in the way portfolios are viewed in traditional financial theories and the way in which...
In the previous article, we have already seen what straight-through processing is and how it is different from the usual...
The holding company-subsidiary company corporate structure is extremely popular all across the world. All large companies serve as holding companies....
Buy Now Pay Later (BNPL) is the latest buzzword in the retail industry. The media has been full of debates...
Profitability was always the core reason behind the existence of a company. For many businesses it still is. There is...
In the previous article, we have already seen what fantasy sports leagues are. We also know why sports leagues across...
The retail business runs on wafer thin margins. As a result, every additional dollar that the store is able to...
The Product as a Service (PaaS) business model is poised to change the business world in a big way. There...
The Bernie Madoff scandal was a story of a $50 billion embezzlement and Ponzi scheme run by Madoff Securities LLC....
We are now aware of the fact that investment markets are not driven by mathematical decisions alone. They are heavily...
The main criticism of the Barnewall model was that it only classified investors into two types. This created an oversimplification....
Movements in the stock markets are easy to track. This is because instead of looking at the movements in the...
The average investor may be able to keep their thinking in check and save themselves from a lot of biases....
In the previous article, we have already seen how commercial banks inadvertently help anti-social elements in laundering money. We have...
Apple Inc. is the largest and the most profitable company in the entire world. However, of late, it has also...
Apple is one of the largest manufacturers of mobile phones in the world. The company is the largest in the...
“Valuation” or the process of assigning a fixed numerical value to the present and potential of a business is considered...
The Indian equity markets are at an all-time high. This can be largely attributed to the large inflow of savings...
2017 has been an exceptional year for stock markets across the world. The start of 2018 has been no different...
Proponents of the free market generally believe that competition is good for the economy. They argue in favor of the...
Before the advent of globalization, every country in the world was working in a vacuum when it came to taxes....
Artificial intelligence (AI) and machine learning (ML) are disrupting the entire business landscape across the globe. The retail industry is...
We have already seen the various ways in which technology has shaped the commercial banking domain. However, the commercial banking...
The Asian financial crisis was another major currency crisis that happened during the 1990’s. The crisis assumed epic proportions. This...
The Glitz and Glamour of Finance Beckons Many Many management graduates and those working towards entering business schools often aspire...
In the previous articles, we have already read about commercial papers and why they are an important segment of the...
It is common knowledge that the world’s largest cab service Uber does not own any vehicles. Similarly, one of the...
The Indian banking system is reeling under a glut of Non Performing Assets (NPA’s). The unpaid debts of Indian corporations...
Accounting for pension funds is considered to be much more complex than standard accounting. This is because a lot of...
Estimating the value of equity stock of a company is not an easy proposition. This is because while estimating the...
Equity valuation is about guessing what the value of an organization is expected to be a decade from now or...
Personal finance gurus seem to have differing opinions on many subjects. Some of them believe that mutual funds are good...
Liquidity management can be a big problem for several companies. This is particularly true if the company has a large...
In the previous few articles, we have already studied the concept of automation as it related to retail warehouses. However,...
All of us have seen movies or have read novels wherein there are several witnesses who are describing the same...
The scope of trade has been widely expanded in the modern world. There are many kinds of organizations, private and...
In the previous article, we learned about what a digital depository system is and how it functions. We also understood...
In the previous articles, we have already studied open banking as well as banking as a service. Many people tend...
The past couple of decades has seen tectonic shifts in the way pension plans are being funded. Investors all over...
Dividend discount models are the first type of discounted cash flow models that we will study. The model simply discounts...
Possible To Appraise The Job: Job order costing is the only way that companies can appraise the jobs that they...
Over the years, corporate banking has become a very important part of the overall banking system. This is because of...
Building stadiums or other sporting venues is an essential activity that plays a crucial role in the success or failure...
In the previous article, we have already discussed what salary caps are and what are the objectives behind implementing them....
In the previous couple of articles, we have already seen what securitization is and how it is used in the...
Commercial banks were first hesitant to adopt a subscription-based revenue model. This is because it was widely believed that such...
The popularity of cryptocurrency has exploded over the past few years. Statistics clearly suggest that cryptocurrencies are one of the...
A lot of new-age start-ups are very innovative in their business models. However, a lot of these start-ups also follow...
Algorithmic trading was considered to be a bookish concept developed by geeks. Less than a decade ago, mainstream traders at...
Alibaba is a Chinese online retail company. This company started as an Amazon wannabe in the Chinese economy. However, today...
Automobile companies in India have been facing tough competition amongst themselves. Firstly, increasing traffic congestion in the cities is making...
Tracking direct labor and materials that have been used in a job can be done with a fair degree of...
Pension funds across the world generally invest in traditional asset classes such as debt and equity. However, over the past...
In April 2019, the stock price of Amazon had taken a beating because of the news of the divorce of...
Amazon and FedEx have traditionally had a love-hate relationship. On the one hand, Amazon is one of the biggest customers...
In the previous article, we have established the fact that convertible debt is advantageous to some types of companies. We...
In the previous article, we have already seen that accounting for sporting franchises involves certain scenarios that are specific only...
Sporting franchise clubs are business entities at the end of the day. Even though some of them may not be...
It is common for sporting franchises to create an internal system so that young players with high potential can be...
In the previous article, we have already established that there are many sporting franchises across the world that prefer to...
One can never really understand a subject, unless they know where it came from. Therefore, a short history of the...
Although accounting may be heralded as being the language of the business, it is definitely not error-free. This has been...
Every activity that a business firm does must be done for a reason and accounting is no exception. Accounting helps...
Just like accounts receivable turnover ratio show the financing that the firm is providing to its buyers interest free, the...
Accounts receivable are a very important part of the current assets of any business. Like inventory, accounts receivable are considered...
Merger modeling requires creating many sub-models which enable decision making. The accretion/dilution analysis is one such sub-model. It is one...
A contract is said to be well formed if it is able to cover all the possibilities and provide guidance...
In the previous article, we studied the concept of convertible debt and some of the common terms which are used...
Advantages of Currency Pegs Currency pegs have become extremely popular in the post Bretton Woods monetary world. About one fourth...
Advantages of Forex Market The biggest financial market in the world is the biggest market because it provides some advantages...
The freely floating currency system is the predominant system of foreign exchange that is prevalent in the world today. As...
In the previous article, we understood about how high-yield bonds have emerged as one of the biggest market segments in...
In the previous article, we understood what preferred shares are and also paid attention to their characteristic features. In this...
In the previous article, we have already studied what Swingline loans are. We now know that such loans are different...
In the previous article, we have already seen what a variable lease is and how it is different from traditional...
In the previous article, we learned about the three financial statements. We also learned how income statements and balance sheets...