eCheat.com RSS Feedhttps://www.echeat.com/ good essay for final cpa essay in french Essay SOMMAIRE L’objectif de cet essai est de déterminer s’il est préférable de partir en affaires par le démarrage de son entreprise ou d’en acquérir une déjà existante dans le but de s’approcher de l’indépendance financière. Bien que les référentiels disponibles à ce jour sont vastes et parfois complexes, il a été jugé pertinent de présenter dans le cadre de cet essai, les éléments essentiels qui ne viennent pas nécessairement en premier lieu dans l’esprit de l’entrepreneur lorsque celui-ci désire se lancer en affaires. La démarche suivie pour analyser ces théories est d’une part, la compréhension des différentes formes légales existantes d’entreprises, d’autre part, la revue des écrits concernant différents aspects à considérer lors d’un démarrage ou d’une acquisition d’entreprise. En dernier, une entrevue avec trois entrepreneurs sera réalisée pour soutenir les constats de la première partie. L’entrevue nous permettra de cerner la différence entre les théories versus la réalité sur le chantier. Ainsi, une recommandation par entrepreneur sera présentée afin de mieux guider les nouveaux entrepreneurs. En sommes, il a été difficile de mettre en lumière l’entièreté des concepts analysés dans le cadre de cet essai. En fait, la taille de notre échantillon constitue un enjeu de notre étude. Les entrevues avec les trois entrepreneurs de domaines différentes ne nous ont pas permis de valider certains concepts, car ceux-ci ne s’appliquaient pas dans leur domaine d’activité. Par conséquent, il peut être nécessaire de faire place au jugement quant à choisir entre un démarrage ou une acquisition d’entreprise. Mots clés : démarrage d’entreprise, création d’entreprise, indépendance financière, entrepreneur, entreprise individuelle, société par action, motivation, méthodes de démarrage, gestions de fonds de roulement, types de transferts, risques et défis du transfert 1 Introduction Depuis les dernières décennies, les médias sociaux sont de plus en plus accessibles et influents nous exposant quotidiennement à une vaste variété de contenu dont entre autres, des aperçus dans la vie des gens riches, personnalités influentes, ou encore, entrepreneurs vedettes notamment leur style de vie luxueuse. Bref, qui ne souhaitent pas devenir millionnaire? Ou du moins, tout simplement avoir assez d’argent pour pouvoir complètement profiter de la vie comme font ces entrepreneurs vedettes dans les réseaux sociaux? C’est un rêve commun à tous. La société projette une image du bonheur idéalisé, d’une vie parfaite et les tentations sont nombreuses. Les gens sont encouragés à voyager et à dépenser davantage pour être heureux, d’accumuler des biens matériaux, du luxe, mais aussi à enrichir 2020-07-31T08:35:52.16-04:00 http://75.150.148.189/free-essay/good-essay-for-final-cpa-essay-in-french-45494.aspx Active vs. Passive Management Does Alpha Exist Active vs. Passive Management: Does Alpha Exist? By Name Name of Class Professor University City Date Active vs. Passive Management: Does Alpha Exist? An active investment management strategy relies on research analysts and investment managers to select the most profitable stocks that should be included in a portfolio. Passive management, on the other hand, involves the use of a specific stock index as a guide on which securities should be included in an investor’s portfolio. Investors that use a passive investment strategy believe in market efficiency as reflected by the availability of all current and future information about securities in the market, which is in line with the efficient market hypothesis theory (Phan & Zhou, 2014, 61). Investors that use an active investment strategy, on the other hand, believe that the market changes from time to time, and therefore a portfolio should adapt to these changes if profitability is to be maintained, which is in line with the adaptive market hypothesis (Hiremath & Kumari, 2014, 1). Both active and passive investment management strategies are frequently used in the exchange market and there is no clear consensus on the effectiveness of each in comparison to the other. Research Questions The key research question is whether there are significant differences in the performance of portfolios managed using active and passive management strategies, as gauged by portfolio alpha values. The investment alpha basically compares the rate of return of a given portfolio with a market index or a selected rate of return. The study will also seek to determine whether the alpha as a measure of performance is ideal for the comparison of the two management strategies. Research Aims and Objectives The study aims to identify the difference in the performance of a portfolio managed using the active management strategy and one managed using the passive management strategy. The investment alpha recorded by each portfolio will be used as a measure of performance. An analysis of the key factors relating to each portfolio management model and how they may impact on the performance of the portfolio will be conducted. Hypothesis The hypothesis to be tested will relate to the difference in financial performance between an actively managed and a passively managed portfolio. The null and alternative hypotheses have been identified as follows: H0: There is no significant difference between the performance of investment portfolios managed using active and passive management strategies as measured by the portfolio alpha. H1: There is a significant 2019-05-16T08:47:32.057-04:00 http://75.150.148.189/free-essay/Active-vs_-Passive-Management-Does-Alpha-Exist-45488.aspx 123456789 Introduction Business investments are affected by a wide range of factors. Before a company undertakes any investment activity, it must first understand the prevailing environment. In this case, it must comprehend the demography, politics, climate, and social and cultural dynamics. The aim of analyzing the environment is to ensure that business decisions are uniquely tailored for that type of an environment (Kular, 2017). Every market has unique characteristics and a business which is able to recognize these traits and utilize them in operations is likely to compete effectively. Developed markets and emerging markets exhibit different traits. Companies in emerging markets may not compete at the same level with those in developed economies following the traditional investment models (Authers, 2018). Thus, the adoption of the ESG (environmental, social, and governance) model gives businesses in the emerging markets a somewhat similar competitive platform with those in developed markets. Today emerging economies offer multiple business investment opportunities. The adoption of the environmental, social, and governance (ESG) approach is particularly a superior approach embraced by businesses to boost their sustainability. ESG refers to the three core factors in the measurement of sustainability and ethical impact of business investments (Authers, 2018). In recent years, emerging economies have been hit by market volatility and political disruptions as well as unstable interest rates in developed countries like the U.S., thus, with some much uncertainty in the traditional markets, companies in the emerging markets have opted to invest in ethical, social, and corporate governance. ESG investing is also viewed as a parameter to encourage cultural shift towards corporate governance transparency. Businesses in emerging markets are trying to attract potential investors using openness and transparency. Similarly, environmental sustainability is a trending issue that has attracted the adoption of ESG investing. Investors are looking for sustainable businesses, hence the significance of ESG investing. Organizations with poor environmental management policies may be fined for regulatory breaches, those with poor social practices may experience high staff turnover and labor-related problems, and entities with poor governance framework may not attract potential investors (Msci.com, n.d.). Basically, ESG is a modern day model for business operations in emerging markets. Background The predominant aspect considered in making decisions related to financial assets was the financial returns. However, there were other criteria such as political, social, and environmental elements considered. In the 1950s and 60s, there was an opportunity for trade unions to consider social environments in their capital 2019-05-16T04:39:45.247-04:00 http://75.150.148.189/free-essay/123456789-45487.aspx Trump’s Trade Policies and Global Markets Trump’s Trade Policies and Global Markets Since becoming the 45th president of the United States on January 20, 2017, Donald Trump has been very aggressive in his policies regarding trade, terrorism, economic cooperation, conflict resolution, and climate change. Trump’s aggressive approach has been criticized both by national and international analysts. Specifically, the decision of cancellation of nuclear deal with Iran and imposition of tough trade sanctions by the United States was heavily condemned by the European Union and America’s allies. The central focus on Trump’s trade policy is to decrease imports and increase the U.S exports to benefit the local industries and advantage the American business community. For this purpose, the United States has posed heavy tariffs on steel and Aluminum imports from the European Union, China, Canada, and Mexico. Similarly, several news steps have been taken to shield the domestic market from financial crisis and create employment opportunities for the U.S citizens. However, analysts believe that Trump's tariffs have echoed the trade policy of the United States and resulted to the great economic depression. This article presents a comprehensive analysis of Trump’s trade policies and their impact on global markets, and offers useful investment suggestions based on numerical analysis of information collected from the most credible resources. Historical Background Donald Trump was elected as the 45th president of the United States on in U.S presidential elections 2016 and assumed his office on January 20, 2017. The central agenda of his election campaign was based on two words: “America First.” Trump believed that all his efforts and life struggle primarily focused on the progress and development of the United States and its people. In his opinion, most of the previous American presidents preferred personal and global interests to those of the United States. For instance, he repeatedly emphasized on renegotiating the America’s relations with China, Mexico, and Pakistan in his campaign. Moreover, he often criticized the U.S free trade and strategic agreements with other nations, such as Trans-Pacific Partnership trade negotiations, NAFTA, the Iran nuclear deal, and the Paris Agreement on climate change. Similarly, Trump’s economic strategy was based on reducing income taxes, declining imports, and increasing the U.S exports to benefit American businessmen and workers. To implement his financial plans, Trump has taken several aggressive steps against the U.S ally and rival countries regarding trade, fiscal cooperation, and economic development. The possible outcomes of an antagonistic trade policy include global loneliness, loss 2019-01-31T09:10:52.163-05:00 http://75.150.148.189/free-essay/Trump’s-Trade-Policies-and-Global-Markets-45471.aspx This article presents a comprehensive analysis of Trump’s trade policies and their impact on global markets, and offers useful investment suggestions based on numerical analysis of information collected from the most credible resources. 2019-01-31T09:03:24.893-05:00 http://75.150.148.189/free-essay/This-article-presents-a-comprehensive-analysis-of-Trump’s-trade-policies-and-their-impact-on-global-markets,-and-offers-useful-investment-suggestions-based-on-numerical-analysis-of-information-collected-from-the-most-credible-resources_-45470.aspx Inventory Management Inventory Management An Inventory is an organized list that contains all the tangible and intangible properties of a company. Materials, work in progress or assets meant to enhance the operations of the firm can make up the inventory. Correct valuation of a company’s assets is very important in making crucial managerial decisions. The paper discusses inventory management based on methods used by Apple and Nordstrom companies. Types of Inventories and their Characteristics Companies can manage four types of inventories. These include Work in Process, Finished goods, Maintenance, Repair and Operating Supplies (MRO) and Raw material inventory (Nemtajela & Mbohwa, 2017). Nordstrom company is distinguished because of the way it handles its finished goods that are ready for the customer. The type of inventory dealing with manufactured goods and services is called the Finished Goods inventory. A characteristic of this is keeping a record of goods that are ready for the consumers. Apple deals mainly with its supply chain inventory. An important feature of this type of inventory is that it is responsible for the supply a company receives as raw materials to the final products ready for consumers. Goods and Services Design Concept Integration The Nordstrom integrates several concepts in the design of its goods and services. The company carries out market research to determine the goods and services needed by customers and the general quantities required. The company thus ensures that enough goods and services are produced without shortage or excessive production, which increases production costs. The Apple Company mainly controls its supply chain. The firm reduces the number of suppliers. Only very effective suppliers, both by cost and quality supplies obtain tenders. Quality raw materials are thus supplied at competitive prices. In the end, the company will be able to produce very quality products at fair prices. Role of Inventories in the Companies Good inventory management will ensure that a firm has enough stock to cater for the needs of the customers while not producing too much as to increase costs. The inventory may include common databases with suppliers to enable them quickly recognize the organizations' needs and make supplies at the right time. Inventory management incorporates methods that ensure there are very high turnovers. Goods and services in such cases are bought while still at very high market values creating room for new production. Inventories can promote mass productions in an organization. They enable timely orders and sales, therefore, providing capital to 2018-08-05T03:17:32.573-04:00 http://75.150.148.189/free-essay/Inventory-Management-45446.aspx Analysis of Beating the Street and Rich Dad, Poor Dad Name Instructor Course Date Analysis of Beating the Street and Rich Dad, Poor Dad Peter Lynch’s Beating the Street Summary of the Book To every sane individual, the family is the most important part of their life. Unfortunately, many professionals are often too engrossed in growing own careers but at the expense of own families. In the book, Lynch acknowledges that he did not spend as much quality time as is desirable but is working on it after retirement (12). He uses the analogy of seventh grade students to underscore that anyone can make it big in financial investments but the key is keeping it simple by investing in companies that one understands how they work (Lynch 25). In the second chapter, the book cautions readers against listening too keenly on market analysts who are always pessimistic. He acknowledges that, “Even after good news is made public, Wall Street can be slow to react” (Lynch 252). Financial markets suffer crashes when stocks are valued too high but understanding the dynamics of a specific set of firms can present the perfect opportunity for an investor to buy even when it appears as the best moment to sell. There are some financial investment options that seem popular with many American investors. Lynch cautions against following such trails by pointing out that bond funds do not offer as much returns as some readily available direct investment tools such as stocks (46-47). He points out that, “The reason that stocks do better than bonds is not hard to fathom” (Lynch 42). These ensure a definite ROI and do not require one to research or manage to profit from them. There are many mutual funds in operations across the U.S. though, many of them are duds. Lynch points out that getting a good mutual fund demands as much research as that which is necessary to ascertain a good stock option (51). However, finding a good firm is not always hard as admirable management operations are thrifty and are careful not to use resources in conducting glamorous campaigns. This implies that while stocks are better than bond funds, a knowledgeable investor will opt for shares as opposed to bonds. Big firms were once small companies. Lynch advises readers to focus more on understanding the opportunities presented to small companies in future as they avail massive avenues for high returns as opposed to large firms with very limited chances for expansion 2018-06-02T01:18:51.05-04:00 http://75.150.148.189/free-essay/Analysis-of-Beating-the-Street-and-Rich-Dad,-Poor-Dad-45442.aspx Greendale Stadium Greendale Stadium Student’s Name Instructor Institution Date Part B The critical path refers to the order a network of activities in a project. It is a sequential series of activities which shows the longest time the completion will take. The longest duration the Greendale stadium would take to complete is 2 years and 8 months. The project has also provided time allowances to accommodate for delays various tasks may have. The time allowance for 2017-11-21T04:01:55.39-05:00 http://75.150.148.189/free-essay/Greendale-Stadium-45398.aspx The Reasons Underlying Failed States The Reasons Underlying Failed States Name of Student: Name of Institution: Date of Submission: The Reasons Underlying Failed States Introduction Governance refers to the act of exercising administrative, political and economic authority in managing the affairs of a nation. Therefore the success or failure of a state lies squarely on its governance. The failure of states is attributed to the loss of credibility of their governments. The failure is also as a result of the nature of the state continually becoming illegitimate and questionable in the eyes and hearts of a large portion of its citizens. This research paper examines the reasons underlying the failure of Haiti, why specific actions taken by the leadership of Haiti as a country have failed and also discusses the prospects of success of Haiti. a) Factors That Contribute to the Failure of the Haiti Government Haiti is regarded as a failed state because of poor public health and sanitation, little public order and poor transport and education facilities in the country. It is also among the lowest ranking states globally in terms of life expectancy and per capita income. This was the condition of the country even before the 2010 earthquake which killed thousands of its citizens and destroyed its infrastructure. Corruption in Haiti Haiti has a legacy of corruption. The country is ranked fourth globally with regard to corruption. In the aftermath of the 2010 earthquake, the country received massive foreign aid for reconstruction. However, the massive aid does not profit its citizens as a result of the many corruption cases in the country. The country’s law is deficient in dealing with corruption cases (Pike, 2017). This is because the vice has a negative influence on the operations of the judicial system and the executive. Land tenure, real property procedures, insurance, and pension regulation procedures, as well as foreign investment regime, are also corruption infested. Therefore nearly all activities in the country have been undermined by the vice. Corruption has undermined institutions in the country. This is because of the poor utilization of resources that are meant to develop institutions. The leadership utilizes the resources for their own personal gain at the expense of the institution. This results in the complete closure or bankruptcy of these institutions. The law requires that corrupt government officials be arrested and charged but that has not been implemented. Top government officers have a series of corruption scandals raising questions about their ability to lead. The 2017-11-21T03:39:53.413-05:00 http://75.150.148.189/free-essay/The-Reasons-Underlying-Failed-States-45397.aspx Project Schedule Project Schedule Name Institution Authors Note PART A: Project Schedule Project: Network Improvement Effort Estimate in days Planned start date Planned End date Resources 1 Plan Project 1.1 Development of a Work Plan 1.1.1 Developing a work breakdown structure 1 09/11/2017 09/11/2017 Project Manager 1.1.2 Development of the staffing plan 1 09/12/2017 09/12/2017 Project Manager 1.1.3 Developing project schedule 2 09/13/2017 09/14/2017 Project Manager 1.1.4 Development of the project budget 1 09/14/2017 09/14/2017 Project manager, Core team 1.2 Development of the project control plan 1 09/15/2017 09/15/2017 Core team 2.0 Execution and Control of the project 2.1 Design Framework 2.1.1 Describing the framework stages and activities 3 09/18/2017 09/20/2017 Core Team 2.1.2 Acquisition of the network devices 1 09/21/2017 09/21/2017 Core team leader 2.1.3 Designing the web delivery tool 3 09/22/2017 09/26/2017 Core team developers 2.2 Creation of the framework 2.2.1 Installation of the network devices 3 09/27/2017 09/29/2017 Core team 2.2.2 Review the network devices for quality 1 10/02/2017 10/02/2017 Core team, review team 2.2.3 Building the web tool prototype 3 10/03/2017 10/05/2017 Web developer 2.3 Testing the framework 1 10/06/2017 10/06/2017 2.3.1 Test the usability of the network devices 1 10/09/2017 10/09/2017 Core team, review team 2.3.2 Testing the usability of the web tool 1 10/10/2017 10/10/2017 Core team, review team 2.3.3 Adjustment of the framework basing on the feedback 2 10/11/2017 10/13/2017 Core team 2.4 Implementation of the Project 1 10/13/2017 10/13/2017 2.5 Closing the project 1 10/14/2017 10/14/2017 Project manager 2.5.1 Conduction of post-project review 1 10/15/2017 10/15/2017 Core team, review team 2.5.2 Celebration 1 10/15/2017 10/15/2017 Core team, review team PART B: Written Response Introduction The paper is written basing on the project schedule created in the first section of the assignment. From the beginning while the project schedule was developed it was considered that the work in the entire project will be done on the normal working days which falls within the week under normal working condition and a single working day will compose of a maximum of 8 hours. While developing the schedule of the project all the holidays that are applicable have been put into consideration. Project Analysis From the plan, it can be clearly seen that the project is scheduled to begin on 11th September 2017 and end on 15th October 2017. Furthermore, the critical path is the time as well as the cluster of activities to be carried out from the begging to the end of the scheduled project. Normally, there is always one significant path but basing on the nature of this project there is a likelihood of having more than one path for this specific project (Flyvbjerg, 2013). Similarly, basing on the nature of the projects as well as all other dependencies the calculated crucial path of the project was 35 days. Recommendations Various factors were considered to influence the project negatively as a result affecting the date of completion. Three primary activities were identified, and they could affect the project in a negative way. The activities included the unforeseen delays, lack of funds, and unavailability of the necessary resources. However, the most recommended way of eradicating the negative impact to the project schedule is to 2017-11-21T03:21:04.003-05:00 http://75.150.148.189/free-essay/Project-Schedule-45395.aspx IMPACTS OF SMEs ON AFRICA IMPACTS OF SMEs ON AFRICA Student: Course: Professor: University: City: Date: Impacts of SMEs on Africa 1.1 Research Background According to the IMF growth outlook of the Africa, the sub-Saharan Africa which for the last decade has maintained robust growth rates seems to be slowing down. The IMF notes that apart from Kenya and Senegal that are experiencing the growth rates above 5%, the majority of other countries in the sub-Saharan Africa are experiencing a depressed growth rate. The group trimmed the initial focus for the economic growth rate in Africa of 2.9% to 2.6% (Aboah, White, and Meuwissen, 2015; pp.7). Some of the major causes of the downward review of the economic performance of the continent are the low-performance rates in the Africa two biggest economies. In 2016 for example, the Nigeria economy which is classified as the largest in the Africa continent in terms of the GDP slipped into recession. The situation has not been any different in Africa second major economy, South Africa which is also in recession. Therefore, without the robust economic performance of these major economies, the contributions by others such as Rwanda, Ethiopia (which have experienced incredible growth rates in the past decade) is small. However, what plagues Nigeria and South Africa economy is what essentially inflicts several other African economies. Notably, except for the South Africa, investments in basic infrastructure in Africa is poor. Much of the continent's population lives in the rural areas (Aboah, White, and Meuwissen, 2015; pp.9). However, the basic infrastructure such as roads and electricity in the countryside of Africa is lacking. Much of the investments in infrastructure is made in the major cities. Even then, much of the infrastructure is put in areas that are in rich suburbs. Lack of these basic infrastructures particularly when the majority of the population is located has been the Achilles hill in the Africa battle of modernization. Moreover, it makes the trade in Africa expensive. For example, it takes close to a week to transport a container cargo from Kenyan port of Mombasa to the Uganda capital city, Kampala. Therefore, goods will reach the port from China much faster, but it will take days before the products reach the owner in Nairobi or Kampala (Aboah, White, and Meuwissen, 2015; pp.13). The lack of the investments in infrastructure of the rural areas has also dwindled the global multinationals from doing business in Africa. Another factor that has also been slowing down the 2017-10-03T05:54:07.837-04:00 http://75.150.148.189/free-essay/IMPACTS-OF-SMEs-ON-AFRICA-45379.aspx Reasons for an Appeal for more Financial Aid Student’s Name Professor’s Name Course Date Reasons for an Appeal for more Financial Aid I am writing to appeal against the current bar from financial aid I receive to support my education. I understand that changing my major from communication design to general study by transferring to VCU dental hygienist program has led to the cancellation of the financial aid. 2017-09-09T02:46:51.183-04:00 http://75.150.148.189/free-essay/Reasons-for-an-Appeal-for-more-Financial-Aid-45369.aspx Business Concept DESCRIPTION OF OPPORTUNITY Pizza is an Italian delicacy which has won for itself the admiration of Ghanaians both young and old alike. Although the desire for pizza is increasingly rampant, it is also not against the facts to say that pizza has become like an occasional delicacy- taken only on special days such as Christmas, holidays, birthdays celebrations and among others just to mention a few. Fortunately for some and unfortunately for others, the average price of the smallest sized pizza is as worthy as a bag of Ghacem cement. Hence, the pizza that people would have loved to eat more often has become like a ceremonial something because of its price and even those who can afford it stand the risk of being more prone to certain health conditions which accompany excessive intake of chunk foods. It is quite amazing to know that some gentlemen have lost their relationship partners because they could not afford pizza- don’t doubt the power of pizza. Everybody in general ranging from the old, the youth and even some children are all in a constant demand to satisfy the urge of the prestigious feeling that comes with eating pizza. It is due to the magnitude of this need that we deem it fit to venture into this opportunity of pizza production. DESCRIPTION OF THE PRODUCT Our pizza will be made from typical healthy Ghanaian ingredients which are readily available in our local markets across the country. We do not aim to take away the Italian concept of a pizza, that is the crust, the sauce spread and the toppings however we would rebrand the existing pizza format into a more decentralized piece. A crucial change would be the choice of toppings, the regular Italian toppings such as cheese, pepperoni, and sausages will be substituted for local Ghanaian toppings such as boiled beans, roasted groundnuts, honey, coconut and many others. Special flavours will be provided for people such as vegetarians as well as those with health conditions such as diabetes and high blood pressure. The pizza will be in various sizes such as; family size, lovers’ size, hungry man size and kiddie size, each at a defined cost. The pizza will be well packaged in attractive pizza boxes on which the health benefits of ingredients used would be inscribed. The nutritional value, the unique look and taste, the feeling of Ghanaian belongingness as well as the affordable price 2016-12-02T09:54:35.17-05:00 http://75.150.148.189/free-essay/Business-Concept-35254.aspx Effects of the Financial Crisis on Lehman brothers Effects of the Financial Crisis on Lehman brothers Introduction In 2008, the entire world witnessed a major financial catastrophe brought by the sub-prime mortgage crisis affected the U.S at the time. The measure taken by the U.S right after the September 11-terror attacks aimed at stimulating the economy, were cited as the major culprits affecting this crisis. According Taylor (2009) the financial crisis happened when the economy underwent a period of over prosperity due to a sudden economic boom. (p. 1) History of Lehman brother’s Lehman brothers surely come a long way from its origins in 1844 when two brothers, Emanuel and Hendry Lehman created the company as a general store. Lehman brother started to grow through the capitalization of high cotton prices, which saw its growth explode tremendously. Through strategic partnership, the business survived and was able to endure the turmoil that rocked America during the 18 century. Lehman was also able to join the financial advisory business. Later in the year 1883, Lehman become a member of the coffee exchange. Finally, 1887 Lehman headed to the New York stock exchange where he began the work of underwriting; Lehman’s first client was the “international steam pump company” and from then on, grew to bigger clients such as Woolworth s and sears roebuck and company. It also had partnership with Goldman Sach’s at the time. Lehman brothers in the 20th century Lehman brothers had offices in the world trade center in America. On the September 11, 2001, the building got a direct hit from a terror ploy that destroyed it substantially leaving Lehman brother without a head office and one employee dead. Lehman brothers endeavored to quickly recover from the loss and set up an improvised trading floor in a hotel in New Jersey in record time of under fifty hours after the terror attack. In addition, after a week when market opened, it was business as usual for Lehman brothers operations. A month later, they acquired a brand new 32-story building for a whopping 700 million dollars. Criticisms surmounted as to why Lehman brothers never returned to their former building in lower Manhattan. Lehman’s collapse In 2008, Lehman brother got a sire of reprieve when the Federal Reserve scheduled a meeting to discuss the liquidation of Lehman’s assets. Top of the agenda was the possible sale of Lehman’s to either Barclay's bank or bank of America. According to reports, an outright sale of Lehman brothers was 2013-08-28T06:03:07.187-04:00 http://75.150.148.189/free-essay/Effects-of-the-Financial-Crisis-on-Lehman-brothers-34952.aspx .qwe 2011-11-09T06:13:59.49-05:00 http://75.150.148.189/free-essay/_qwe-34314.aspx Cause and Effects on Interest Rates Interest rate essay Causes of interest rates can be explained as -deferred consumption. When money is loaned the lender delays spending the money on consumption goods. Since according to time preference theory people prefer goods now to goods later, in a free market there will be a positive interest rate. Inflationary expectations. Most economies generally exhibit inflation, meaning a given amount of money buys fewer goods in the future than it will now. The borrower needs to compensate the lender for this. Alternative investments. The lender has a choice between using his money in different investments. If he chooses one, he forgoes the returns from all the others. Different investments effectively compete for funds. Risks of investment. There is always a risk that the borrower will default on the loan. This means that a lender generally charges a risk premium to ensure that, across his investments, he is compensated for those that fail. Liquidity preference. People prefer to have their resources available in a form that can immediately be exchanged, rather than a form that takes time or money to realize. Taxes. Because some of the gains from interest may be subject to taxes, the lender may insist on a higher rate to make up for this loss. The nominal interest rate is the amount, in money terms, of interest payable. The real interest rate, which measures the purchasing power of interest receipts, is calculated by adjusting the nominal rate charged to take inflation into account. There is a market for investments which ultimately includes the money market, bond market, and stock market and currency market as well as retail financial institutions. The CAPM returns the asset-appropriate required return or discount rate - i.e. the rate at which future cash flows produced by the asset should be discounted given that asset's relative riskiness. Betas exceeding one signify more than average "riskiness"; betas below one indicate lower than average. Thus a more risky stock will have a higher beta and will be discounted at a higher rate; less sensitive stocks will have lower betas and be discounted at a lower rate. The CAPM is consistent with intuition - investors (should) require a higher return for holding a more risky asset. Since beta reflects asset-specific sensitivity to non-diversifiable, i.e. market risk, the market as a whole, by definition, has a beta of one. 2007-12-03T03:44:39-05:00 http://75.150.148.189/free-essay/Cause-and-Effects-on-Interest-Rates-33453.aspx What Features Should an Ideal Financial System have? As we compare regions of the world in terms of their relative economic and financial power, we can definitely see some fundamental differences in the financial systems between countries that are more developed and those that are less developed. Digging deeper, we observe that countries with more advanced and efficient financial markets have three key features that make them successful. First, a successful system must be highly diversified in its ability to cater to the needs of increasingly complex and sophisticated economies. Secondly, the system must be able to provide financial services efficiently. Finally, the system must be robust enough to withstand a variety of shocks in a rapidly changing globalized economy. Diversification allows financial markets to allocate assets and bear risks more efficiently. A broadly based financial system is likely to be more stable in times of economic downtown. We can see this during the 1997 financial crisis in Asia, where many of the countries that were not widely spread, collapsed because of their inability to manage risk. A highly diversified system involves having a wide portfolio of high-quality financial assets that cater to needs of different agents, such as equity securities, corporate-debt securities, government debt securities and bank deposits. We can see that lesser developed countries in Asia have a significantly higher proportion of bank deposits, where as more developed systems like the US and Europe are relatively spread apart evenly across the four asset groups. A successful financial system must also be innately efficient to provide services that are of good quality, good speeds, and are competitive globally. This in turn will ensure accurate and timely information flow, responsible corporate governance and appropriate risk management. In order to achieve all of this, the financial system must be supported by an effective legal and regulatory framework as well as good accounting and auditing standards that are well-implemented and enforced. In addition, the financial system must have an efficient banking sector that caters to a wider set of consumer needs. In many lower developed countries, a large amount of households and businesses do not yet have bank accounts, and this represents a lack of trust and knowledge of the financial services industry by the general public. In order to improve this as well as improve the efficiencies of other financial assets, the financial system must reside in a place where there is a strong economy, there must also be transparent 2007-11-20T07:30:47-05:00 http://75.150.148.189/free-essay/What-Features-Should-an-Ideal-Financial-System-have-33431.aspx Role of Women in Microfinance Role of Women in Microfinance by N.Kavitha MBA, M.Phil,(Ph.D) Lecturer- MBA, SSM College of Engineering, Komarapalyam. 638 183 Tamil nadu. India nkavithamba@yahoo.co.in Abstract the 1980s, microfinance programs have improved upon original methodologies and extended beyond conventional thinking. First, microfinance demonstrated that poor people, and especially women, had excellent repayment rates (and often, rates that performed better than those in formal financial sectors). And second, that the poor were willing and able to pay interest rates that would allow the microfinance institutions (MFIs) to cover costs. Introduction To most, microfinance means providing very poor families with very small loans to help them engage in productive activities or grow their very small businesses. Like us, many poor people need and use financial services all the time. They save and borrow, invest in home repairs and improvements and meet occasional and domestic expenses such as food and school fees. However, there are some 500 million low income entrepreneurs in the world and about 5% have access to financial services. Indeed, the financial services available to the poor often have serious limitations in terms of cost, risk and convenience. As a result, over time, microfinance has come to include a broader range of services (credit, savings, insurance, etc.) as the industry has come to realize that the poor and the very poor who lack access to traditional formal financial institutions require a variety of financial products. Meaning A type of banking service that is provided to unemployed or low-income individuals or groups who would otherwise have no other means of gaining financial services. Ultimately, the goal of microfinance is to give low income people an opportunity to become self-sufficient by providing a means of saving money, borrowing money and insurance. Micro financing is not a new concept. Small microcredit operations have existed since the mid 1700s. Although most modern microfinance institutions operate in developing countries, the rate of payment default for loans is surprisingly low - more than 90% of loans are repaid. 1.Like conventional banking operations, microfinance institutions must charge their lenders interests on loans. While these interest rates are generally lower than those offered by normal banks, some opponents of this concept condemn microfinance operations for making profits off of the poor. It is a tool for empowerment of the poorest; the higher the income and better the asset position of the borrower, the lower the incremental benefit from further equal doses of micro-credit is likely to be. 2.Delivery is normally through Self Help Groups (SHGs). 2007-04-17T10:10:32-04:00 http://75.150.148.189/free-essay/Role-of-Women-in-Microfinance-32926.aspx Rural Finance in World Perspective a Contemporary Scenario RURAL FINANCE IN WORLD PERSPECTIVE ( A CONTEMPORARY SCENARIO) by N.KAVITHA MBA, M.PhiL, (Ph.D), LECTURER, SSM SCHOOL OF MANAGEMENT, SSM COLLEGE OF ENGINEERING, KOMARAPALAYAM-638 183 NAMAKKAL – DIST E-mail : nkavithamba@yahoo.co.in & Dr.A.Ramachandran M.com,M.Phil,Grad.CWA,Ph.D, Reader in Commerce, SNR Sons College (Autonomus), Coimbatore. E-mail: ram1200@rediffmail.com Rural Financial Trends: How Are Lenders and Interest Rates Changing? In recent history, it looked to many as if rural financial markets would become dominated by large banks that offered relatively expensive credit to agricultural firms. However, the 1990's have seen resurgence in smaller banks with a focus on smaller, agricultural producer loans. Moreover, small banks may be more competitive than ever with respect to interest rates. This report outlines some of the important trends in rural credit markets including the types of lenders, volume of loans, interest rate trends and some discussion of specific types and sizes of loans. It is our hope that such information will allow agricultural firms and organizations to make more informed decisions with respect to securing capital, as well as choosing an appropriate lending institution. Introduction Rural Finance Rural finance comprises credit, savings and insurance (or insurance substitutes) in rural areas, whether provided through formal or informal mechanisms. The word ‘credit’ tends to be associated with enterprise development, whereas rural finance also includes savings and insurance mechanisms used by the poor to protect and stabilize their families and livelihoods (not just their businesses). An understanding of rural finance helps explain the livelihood strategies and priorities of the rural poor. Rural finance is important to the poor. The poorest groups spend the highest proportion of their income on food – typically more than 60% and sometimes as much as 90%. Under these circumstances, any drop in earnings, or any additional expenditure (health or funeral costs, for instance) has immediate consequences for family welfare – unless savings or loans can be accessed. Financial transactions are therefore an integral part of the livelihood system of the poor. Rural finance consists of informal and formal sectors. Examples of formal sources of credit include: banks; projects; and contract farmer schemes. Reference is often made to micro-credit. Micro underlines the small loan size normally associated with the borrowing requirements of poor rural populations, and micro-credit schemes use specially developed pro-poor lending methodologies. Rural populations, however, are much more dependent on informal sources of finance (including loans from family 2007-04-13T10:39:09-04:00 http://75.150.148.189/free-essay/Rural-Finance-in-World-Perspective-a-Contemporary-Scenario-32916.aspx An Overview of Rural Finance for Rural Women RURAL FINANCE FOR RURAL WOMEN AN OVERVIEW By N.Kavitha MBA., M.Phil.,(P.hD) Lecturer in MBA Department, SSM College of Engineering, Komarapalayam – 638 183 Namakkal – Dist. INDIA E.mail: nkavithamba@yahoo.co.in Introduction Poverty hits hardest at the female half of humankind. If woman living in a rural area of a developing country, they are likely to be poorer than a man, more vulnerable, own no land, be less educated and in poorer health. And you are unlikely to live as long. Struggling to combine a ‘double day’ of low-paid work with care for the home, rural women often have to cope with frequent pregnancies and child mortality. For women, perhaps the cruelest reality of all is that they have less chance than men to escape from poverty. A rural woman is likely to have little or no say in the way the family spends its income. Discrimination in education is the start of the vicious spiral of poverty. A girl may be deprived of schooling and literacy for no other reason than that she is female. Seventy per cent of poor women in India cannot read or write. Illiteracy often excludes people from written knowledge and decision-making. Some rural women have been affected by trade liberalization They are unable to participate in the marketing of export crops as they lack land rights and access to essential farm inputs. On the other hand, some women have gained by securing jobs in new export activities. Investment in rural women pays off. •Indian population is 48.1% women and 51.9% men • Female illiteracy is 62% whereas the male illiteracy rate is 34% • The labour force participation rate of women is 22.7%, less than half of the men's rate of 51.6% • In rural India, agriculture and allied industrial sectors employ as much as 89.5% of the total female labour • Women have extensive work loads with dual responsibility for farm and household production • Women's work is getting harder and more time-consuming due to ecological degradation and changing agricultural technologies and practices • Women have an active role and extensive involvement in livestock production, forest resource use and fishery processing • Women contribute considerably to household income through farm and non farm activities as well as through work as landless agricultural labourers • Women's work as family labour is underestimated • There are high degrees of inter-state and intra-state variations in gender roles in agriculture, environment and rural production Rural Women at a glance Rural women comprise 2007-04-13T10:28:21-04:00 http://75.150.148.189/free-essay/An-Overview-of-Rural-Finance-for-Rural-Women-32915.aspx Women Self Help Groups in India Women SHGs in India [A Rural View] by N.Kavitha MBA, M.PhiL, (Ph.D) Lecturer in MBA, SSM College of Engineering, Komarapalayam-638 183. Namakkal – Dist. Email:nkavithamba@yahoo.co.in Dr.A.Ramachandran M.Com,M.Phil,Grad WCA, Ph.D, Reader in Commerce, SNR Sons College, Coimbatore. E-mail: ram1200@rediffmail.com Introduction It has been realized in many parts of the world that an effective way to tackle poverty and to enable communities to improve the quality of life is through social mobilization of disadvantaged people, especially into Self Help Groups (SHGs). The concept of Self Help Groups is based on the idea of community participation, as sustainable community development requires the active participation of the entire community. 'Popular participation ensures that the benefits of development are equitably distributed. To further this, proposals are made for the decentralization of the authority so as to ensure redistribution of wealth, improved access to education and other social services. Consequently the focus of self-help groups is to develop the capacity of the disadvantaged, particularly women, and to organize them, so that they can deal with socio-political and socio-economic issues that affect their lives. Self Help Groups have been formed in almost all the villages adopted in the three districts of Uttarkashi, Tehri & Jaunsar. The women have been mobilized to form small groups for savings & credit for improving the economic conditions of the individual women. Inter-loaning for meeting their day-to-day needs has increased their confidence in themselves. Micro-capital assistance has raised their hopes for starting small enterprises for generating more money thus improving their overall economic condition. Apart from IGA the groups have been instrumental in tackling the village issues such as water problem and negotiating with the pradhan for getting the drinking water scheme for the village. The women's collective strength has improved the Public Distribution System as far as dry ration is concerned or the functioning of Anganwari or Balwari's activities are concerned. Claming the Scholarships for the school students from the Pradhan or getting the old age scheme/widow pension scheme for the beneficiaries activated are some of the activities taken on by the SHG's. Anti-liquor movement has strongly taken on in all the three regions initiated by the women in these SHG's. Trainings received in Health & Hygiene thus 2007-04-13T09:19:10-04:00 http://75.150.148.189/free-essay/Women-Self-Help-Groups-in-India-32914.aspx Macro Economics What is 'macroeconomics'? You may have already studied microeconomics, which looks at supply, demand and prices for individual goods. Macroeconomics looks at the bigger picture and involves the study of the economy as a whole. National income Let us start by looking at a simple example - a 'two sector' economy made up of households (consumers) and firms (producers) -and use this to develop the idea of national income. To start with we will ignore the impact of government policy and overseas sectors. Households ultimately own the factors of production, e.g., labour, materials and capital, and supply these factors to firms who use them to produce goods and services. In return households earn rewards for supplying the firms with the factors of production e.g., wages and interest on capital. These rewards are in turn used to buy the goods that the firms have produced. This process is known as a circular flow- see Figure 1. Figure 1: Simple circular flow From Figure 1 we can see that there are three ways of measuring the amount of economic activity in the economy. These are: (a)National product/output = the flow counted at this point represents the amount received by firms for their total production. (b) National income = the flow counted at this point represents the total income received in return for factors of production. (c) National expenditure = the flow counted at this point represents the total expenditure by households on goods and services. If it is assumed that all income is spent, then whichever method is used the same measure of economic activity must be obtained. Let's look at a numerical illustration. Illustration Assume there are two producers - a lumberjack and a carpenter. The carpenter makes chairs each of which needs £5 worth of wood and which he sells for £20. Total annual sales are 10,000 chairs. The income and expenditure accounts for the lumberjack and carpenter are: Carpenter£000Lumberjack£000 Purchases (wood)50 Wages40Wages10 Interest20Interest5 Rent50Rent20 Profit40Profit15 Sales200Sales50 'National Product' = 200 This is the total value of the production (i.e., chairs) 'National Income' = 40 + 20 + 50 + 40 + 10 + 5 + 20 + 15 = 200 This is the total received for factors of production i.e., wages, interest, rent and profit 'National Expenditure' = 200 This is the total amount spent on production (i.e. chairs). We can see that the three measures of economic activity all give the same value. Now we can start adding to this model to make it more realistic. This model will use the following definitions: Consumption (C) - consumption goods produced and sold to customers i.e., the chairs. Savings (S) - income that is not spent on consumption. Investment (I) - production of, or expenditure on, non-consumption goods (carried out by firms) including expenditure on increasing stocks of consumption goods. Injections - expenditure on domestic 2007-02-17T17:07:36-05:00 http://75.150.148.189/free-essay/Macro-Economics-32641.aspx Standard and Poors 500 Index Standard and Poors 500 Index An Index consisting of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value weighted index (stock price times number of shares outstanding), with each stock's weight in the Index proportionate to its market value. Some say, it’s a company that rates stocks and corporate and municipal bonds according to risk profiles and that produces and tracks the S&P indices. S&P also publishes a variety of financial and investment reports. The S&P 500 is considered to be a benchmark of the overall stock market. What is an Index? The first and consequently most widely known index was created back on May 26, 1896 by Mr. Charles Dow. At that time the Dow index contained 12 of the largest public companies in the US. Today, the Dow Jones Industrial Average (DJIA) contains 30 of arguably the largest and most influential companies in the US and World economy. We will discuss the composition of the DJIA later in this tutorial. The basic definition of an index is "a statistical measure of the changes in a portfolio of stocks representing a portion of the overall market". Before the computer age, calculating the price of a stock market index had to be kept as simple as possible. The original DJIA was calculated by adding up the prices of the 12 companies and then dividing that number by 12. These calculations were actually more like an average than an index, but it served its purpose. Today computers do most of the work and the indexes are much more accurate to the market. For example, many of the larger indexes now are based on the market capitalization of a company's stock rather than the stock price alone. Each stock index is slightly different. They include different types and amounts of stock. Some are even calculated in a slightly different manner to portray a different statistical measure. The Standard & Poors 500 Index As we just mentioned, the main problem with the DJIA is that it only contains 30 companies. The S&P 500 attempts to fix that problem by including 500 companies. As a result the index includes over 2/3 (at time of writing) of US market capitalization. More and more, it is being considered to be the benchmark of the US stock markets. Furthermore when mutual funds state that they have outperformed the market they are usually referring to the S&P 500. Created By: Standard and 2007-01-03T21:30:29-05:00 http://75.150.148.189/free-essay/Standard-and-Poors-500-Index-32205.aspx The Asian Financial Crisis of 1997 This is a overview of the The Asian Financial Crisis 1997 and how it consequentially effected the Asian Market and its surrounding area. The work is done in Spanish. La crisis financiero Asiatic de 1997 - y las consecuencias en Asia y a otra parte Introducción La Crisis Financiera Asiática era una crisis financiera que comenzó en julio de 1997 en Tailandia y afectadas las monedas, mercado de valores, y precios de activo en varios países asiáticos, muchas consideraba East Asian Tigers (tigres asiáticos del este). También se refiere comúnmente como la crisis asiática del este; de la crisis moneda o localmente como la crisis del IMF/FMI (International Monetary Fund - Fondo Monetario Internacional) aunque el último es algo polémico. Indonesia, Sur del Corea y Tailandia eran los países más afectados por la crisis. Hong Kong, Malasia, Laos y las Filipinas, tierra firme China, India, Taiwán, y Singapur eran relativamente inafectados. Japón no fue afectado mucho por esta crisis sino pasaba con sus propias dificultades económicas a largo plazo. La crisis financiera asiática de 1997-99 vino como choque a la profesión de economía y a la comunidad internacional de la política. Pocos dentro o fuera de la región habían previsto la profundidad de los problemas económicos que siguieron, y un cuerpo amplio de escribir rápidamente emergió para ofrecer el poste-mortem competente. Mucho de este análisis, sin embargo, fue limitado a los factores puramente económicos. Las dimensiones políticas de la crisis fueron no hechas caso en gran parte. Todavía, todo los factores políticos ser crucial a entender el curso de la crisis así como las maneras de las cuales los gobiernos respondieron a ella. Aunque estuvo llamado la crisis "al este asiática" porque originó en Asia del este, sus efectos ondulados a través del globo y causó una crisis financiera global, con los efectos principales sentidos tan extensamente como Rusia, el Brasil, y los Estados Unidos. Historia y causas Hasta 1997, Asia casi atrajo mitad de la aportación de capitales total a los países en vías de desarrollo. Las economías de Asia sur oriental, en particular, mantenidos los altos tipos de interés fue atractivos a los inversionistas extranjeros que buscan un alto índice de la vuelta. Pues el resultado las economías de la región recibió una afluencia grande del dinero caliente, (el dinero que se mueve a través de país confina en respuesta a tipos de 2006-12-10T17:11:58-05:00 http://75.150.148.189/free-essay/The-Asian-Financial-Crisis-of-1997-31968.aspx Managing Foreign Currency Risk in Business Managing Foreign Currency Risk in Business Real appreciation/depreciation of the Irish Punt, US Dollar, French Franc, Japanese Yen and Deutsche Mark The real exchange rate is the nominal exchange rate adjusted for changes in the relative purchasing power of each currency (Shapiro, 1999). This concept can be linked to the theory of Purchasing Power Parity (PPP), first introduced by Gustav Cassel in 1918 and defined as: e (home)/e (foreign) = p (home)/p (foreign) (formula 1) e = spot rate p = Inflation In absolute terms, it states that currencies should have the same purchasing power all over the world. Transportation costs, tariffs, quotas, restrictions and product differentiation are ignored though. The relative version of PPP states that the exchange rate between home and foreign currency will adjust to reflect changes in price levels of the two countries. So, if inflation in the US is 5% and 3% in the UK, then sterling must rise by 2% in order to equalise the dollar price of goods in the two countries. Vice versa, when calculating real appreciation or depreciation, it is necessary to adjust for inflation rates. Therefore, real appreciation or depreciation of a currency is that adjusted for inflation and is calculated using the following formula: e(real) = e(nominal)*[p(foreign)/p(home)] (formula 2) Similarly, the real interest rate must be adjusted to reflect inflation. The real interest rate, according to the Fisher effect, measures the exchange rate between current and future purchasing power. Together with (expected) inflation, it represents the nominal rate. This can be approximated by the equation r = a + i, where r is the nominal rate, i is the rate of inflation, and a is the real rate of interest. Based on these calculations, it clearly emerges that the US$ is overvalued by about 36% since the exchange rate differential is greater than the relative inflation between the USA and Ireland. We can thus assume that if PPP holds, the controller has a convincing argument with regards to his fears of the US$ weakening against the punt. But it is widely accepted that PPP generally does not hold for major currencies bought for investment purposes such as the US$, and that if it does hold, it will only do so over the long term (Shapiro, 1999). Please see overleaf for calculations. 2006-11-17T01:53:40-05:00 http://75.150.148.189/free-essay/Managing-Foreign-Currency-Risk-in-Business-31782.aspx Investment Evaluation of a Suburban Coastal Transport System Summary This paper aims at determining the optimum viable solution of an investment on a suburban coastal shipping system in the area of Athens. More specifically it refers to the development of a sea transport system, alternative to the existing road one, that would connect Piraeus with the southern suburban coastal area of Athens. The best viable solution of such an undertaking is considered to be the one, which under the existing constraints maximises the total profit that derives from this investment. The variables used for the formation of the constraints are the number of vessels used, the routing and the price of the services. The article after presenting the methodology of the market analysis, focuses on the financing alternatives of the project and their impact on its economic efficiency and concludes with the best viable scenarios and optimum solution. 1. Introduction The paper’s main objective is to determine the optimum solution of an investment undertaking that includes an alternative transportation system, that is a suburban coastal transport system in the south region of Athens. Such a system is believed that can offer a possible solution to the transport problems of congestion, which characterise the existing overloaded road network of Athens. Suburban coastal shipping has a special character. First there are not many examples of cities that use an analogous transport system. Secondly, the main competitor of sea transport is road transport or fixed track systems (train, tram). It should be mentioned that the current transportation system despite its deficiencies in terms of time, cost as well as externalities remains a strong travel alternative and consequently a constraint for the development of the proposed seaborne transport. This is due to the several advantages it offers to its users like door to door services, flexibility and speed. City of Athens disposes a road system as the main one satisfying the transport demand to and from the suburban areas. The best economic solution for an investment of this kind is determined as the one that maximises the profit of the investor, under the constraints that the current transport system sets. In this context, in order to format the constrains of the system, a market analysis has been conducted taking all the above into consideration in order to examine the possible demand for such a system versus the existing road transport one (Greek Bank of Industrial Development, 1995). However, the question is whether an enterprise in this field would be economically viable and which would be the required demand of that service, in order to be able to equalise the marginal costs with the marginal revenue. 2. A methodology 2006-11-02T22:02:29-04:00 http://75.150.148.189/free-essay/Investment-Evaluation-of-a-Suburban-Coastal-Transport-System-31678.aspx Understanding the Basics of Picking and Trading Stocks Understanding the Basics of Picking and Trading Stocks Those who are ignorant in investment history are bound to repeat it. Historical investment returns and risks of various asset classes should be studied. Investment results for an asset over a long enough periods (greater than 20 years) are a good guide to the future returns and risks of that asset. Further, it should be possible to approximate the future long-term return and risk of a portfolio consisting of such assets.” – William Bernstein, the Intelligent Asset Allocator What, Exactly, Are Stocks? Stocks are shares in a company. When you buy shares of a company, you, yourself, become a part owner of that company. As a shareholder, you get the same basic rights and privileges as people who own millions of shares. You can receive quarterly reports and an annual report with information on how the company is doing. If the company makes money, your stock’s value will increase. When the company loses money, your stock’s value will decrease. Quarterly reports tell how much money the company has gained or lost during the reporting period. This will keep you updated on how well, or poorly, your stock is doing. The annual report is a combination of all the quarterly reports. Fancy charts and graphs are usually included. They give detailed financial and business information about the company. There would never be a time when you couldn’t be fully aware about your stocks health. How Do They Work? If a company wants to raise money (capital), one of its options is to distribute stock. Stocks can raise money without making a debt, or to not create a legal obligation to pay back borrowed funds. Most investors are in stocks for the money. They expect to be paid more than they paid themselves. Investors expect their investment to earn more for the company, than any other form of investment. If the return on investment is high, then the price usually increases. So, if the earnings go up, the price goes up. In the long run, stocks have beaten most of the other alternatives to investing. It’s proven that a long-term investment will usually gain more money then any other type of investment will in the same amount of time. In other words, stocks are the way to go. How Do I 2006-08-05T10:12:28-04:00 http://75.150.148.189/free-essay/Understanding-the-Basics-of-Picking-and-Trading-Stocks-31006.aspx Lessons Learned from Managing a Personal Stock Portfolio Lessons Learned from Managing a Personal Stock Portfolio This report is going to talk about every aspect of the stock market game that I recently finished participating in with this Intro to Business class. It will state the good and bad times I experienced doing this project, my most and least successful trades, the challenging and easy activities that went along with this project, improvements, and most importantly, what I learned from taking part in this game. First of all, I would like to talk about the good trades, the bad trades, and the trades that were just a waste of making. The greater part of my stock portfolio was made up of technology stocks, which actually, I regret now. The majority of these stocks went way down towards the end of the game, including Microsoft Corp., AOL Time Warner, and Yahoo Inc. This surprised me, because I believed that these stocks would do the best. Another group of stocks that didn’t do really well for me are the goods-selling companies, including Costco Wholesale, Home Depot Inc. Safeway Inc., and Wal-Mart Stores. On the other hand, my consumer-good type stocks did the best overall. They provided me with a reasonably good profit. One example is Coca Cola Co. which gave me a 21% rate of return. I think that’s pretty darn good! The one stock that I am definitely glad I invested in is Sony Corp. I invested in this stock mainly because it had a steady stock chart, and I figured it would give me a fairly reasonable profit, but boy was I surprised when I found that at the end of the game, I had an 18% profit. This was actually just a lucky trade I made, and the fact that I didn’t sell it when it went down a little bit helped quite a bit Pixar is another example of a lucky trade, which provided me with a 24% rate of return! There were a few stocks that were just a waste of investing in, because they didn’t provide me with neither a high gain, nor loss. An example of this would be Quicksilver, which I held on to for approximately eight days, and in all that time, gave me a five cent profit! The most challenging part of this project was probably all the research that had to be done. I knew that to be 2006-07-30T20:15:35-04:00 http://75.150.148.189/free-essay/Lessons-Learned-from-Managing-a-Personal-Stock-Portfolio-30816.aspx The Risks of Trading on the Stock Market The Risks of Trading on the Stock Market Every day thousands of people all over the world are aggressively running around in one of the cramped up exchanges, trading stocks for money. Literally billions of dollars in stocks go up and down like a roller coaster. Being a broker or doing your own self-trading takes a lot of education and experience. To gain a significant understanding of how the market works one must work extremely hard. About ten percent of people involved in the stock market know the market well enough to “day trade”. It is the most risky type of trading a broker can do. A “day trader” can loose a million or gain a million in one day. Day trading is uncertain and should not be taken lightly. Along with the big money involved in the stock market comes one of the most stressful jobs established by man. Obviously with putting a lot of money into stocks and not knowing for sure whether your going to gain or loose is something to stress over. Literally you have to trade within minutes or seconds, to get the payoff you are after, timing is critical. As well, being a stockbroker is stressful in itself, trading someone else’s money in order to collect commission is nerve racking. It is an interesting job. It fluctuates like the market itself. There have been many cases of “day traders” who have gained or lost a significant amount of their assets in a day. Few people could look at this, and see it in a positive way, because there is a chance you can gain. The truth of the matter is, even if there is a slight chance you could loose your money it should not be attempted. Unless you have a strong financial base. I was recently reading a book called “the guts and glory of day trading”, statistically it said that 90 percent of people who “day trade” will come out with a significant loss. Further more “day trading” is a form of gambling. If you find yourself waking up every morning consistently thinking about the stock market you are addicted. This is something taken lightly by many people. Many people whom “day trade” have both left their old job and are relying on the earnings from day 2006-07-23T17:18:45-04:00 http://75.150.148.189/free-essay/The-Risks-of-Trading-on-the-Stock-Market-30530.aspx Factors to help Determine Sucsessful Investments Factors to help Determine Sucsessful Investments When using the term investment it refers directly to the acquisition of new capital such as buildings, machines or offices. Firms will usually make the decision to invest on the expectation to make a gain. Investments made by businesses or firms usually involve millions of dollars, making investment a very big important decision with many different factors to take into account. There are four main factors, which would most likely influence a decision regarding investment, they include the current rate of interest, future expectations, the level of income, the government and the accelerator theory. Interest Rates Interest rates are a variable rate which are manipulated through government policies whenever the economy is not stable. Interest rates have an influence on investment as you can see from the two following figures. Most decisions to invest involve borrowing money, so we can assume that there is an association between the cost of borrowing and the level of investment. Investments usually involve large sums of money. In order to acquire this money firms must take out loans. Interest rates can be defined as the cost of borrowing or the reward for saving. If interest rates are high this will make borrowing more expensive making saving more encouraging. In contrast if interest rates are low this makes borrowing a more attractive offer. Firms are more likely to consider an investment at a low rate of interest. This shows us what kind of impact interest rates has on investment. Future Expectations Another factor that has a significant effect on investment, are a firms future expectations. If investment yielded an 11% increase and the current rate of interest was 10% investment would take place. However the future is unpredictable, because investment decisions take time to accomplish, there is usually a great deal of uncertainty. What businesses expect to happen in the future is very important. If a business’ management is feeling pessimistic about the future, low interest rates will not encourage investment. On the other hand high interest rates will not deter them from making an investment if they are feeling confident and optimistic about the future. This idea in a way contradicts our previous idea; this shows us that there are possibly a lot more 2006-07-22T18:55:12-04:00 http://75.150.148.189/free-essay/Factors-to-help-Determine-Sucsessful-Investments-30495.aspx The Role Of Organizational Culture In Mergers & Acquisit The Role Of Organizational Culture In Mergers & Acquisitions The articles stressed the important role culture plays in mergers and acquisitions (m&a). Several factors regarding the cultural impact on mergers and acquisitions were evident in the information gathered from the Internet. These factors such as reward systems, operating and decision making styles, organization structure, and company values should be pre-assessed and considered when determining the viability of a m&a. Leaders of today’s global markets should look past financial and strategic synergies and focus more on the cultural impact of changing two previously independent organizations into one integrated solution. There were four main areas of importance regarding organizational culture and mergers and acquisitions: Conduct a cultural self-assessment of potential organizations involved. Determine cultural objectives through due diligence. Integrate the “right” amounts of diversity from both organizations. Actively manage the post-deal culture. At the start of a merger, key cultural characteristics should be assessed in both organizations to choose to 1) keep the two cultures independent (coexist), 2) have one culture dominate and absorb the other, or 3) blend the cultures with surviving aspects of each remaining. The preferred method noted would be to blend the cultures together resulting in a more effective culture than the sum of the two parts. Unfortunately, in many mergers, culture combination and chemistry are mere after-thoughts. Subsequently, the initial objective to acquire the talent and benefits inherent in the “human resource” aspect of a company are lost after integration. Because of the probable culture clashes, employees will have a tendency to fiercely hold on to their cultural norms. Human nature causes clashes to erupt out of noting and evaluating the cultural differences based on “my way” is the superior way and then attacking the other side by identifying inefficiencies. However, a fair amount of cultural debate brings positive outcomes. Cultural due diligence does not suggest elimination of cultural conflict, because diversity, to some degree, is necessary in developing the newly combined corporate culture. After integrating the appropriate amounts of cultural diversity from both organizations, it is also important to actively manage the newly developed post-deal norm. Some suggest that culture has a bottom-line impact on corporate financial performance. By initiating ongoing dialogue and communication, the organization can maintain its cultural objective. In summary, corporations involved in mergers and acquisitions should, 2006-07-19T20:47:46-04:00 http://75.150.148.189/free-essay/The-Role-Of-Organizational-Culture-In-Mergers-amp-Acquisit-30402.aspx Interview with Trader from Chicago Mercantile Exchange Interview with Trader 2006-07-18T19:30:59-04:00 http://75.150.148.189/free-essay/Interview-with-Trader-from-Chicago-Mercantile-Exchange-30380.aspx Are financial accounting statements useful to investors? Are financial accounting statements useful to investors? 1.1 Introduction Financial accounting statements are summaries of monetary data about an enterprise and are used in an attempt to help make informed decisions in the present and future. Financial statements portray the effects of transactions and other events by grouping them into broad classes (or elements) according to their economic characteristics. The three basic financial statements are the balance sheet, the income statement and the cash flow statement. There are many different entities that utilise financial statements. Financial statements may be drawn up for private individuals, non-profit organisations, manufacturers and service industries. Three major groups that take advantage of the usefulness of financial statements are large corporations, investors and the government. Financial statements play a decisive role in each of these entities financial decisions. Corporations decide how much credit to extend to customers and how much should be distributed to investors in dividends. Investors use a company's financial statements to decide whether or not it would prove advantageous to invest their money, and if so, how much. The government uses financial statements to determine how much an entity is required to pay in taxes. Each decision as stated above does not always require the same financial statement, however. A balance sheet would be used in the decision-making process for assessing a competing firm and determining a customer's credit limit. It provides the user with data about available resources as well as the claims to those resources. An income statement would prove useful in determining credit extension to customers, distribution of dividends, taxes and investment opportunities. It provides the user with data about the profitability of the enterprise detailing sources of revenue and the expenses which reduce profit. A cash flow statement would be a useful tool in each instance because it gives a brief description of how much cash is coming in, going out and to where exactly. It reports cash flows from investing, financing, or operating activities. Although each one is unique in its own respect, each financial statement is a necessary tool in making any financial decision. 1.2 Financial reporting, investors, limitations of accounting Investors are generally considered one of the primary users of financial statements. They use the financial statements to determine the current profitability of the firm and attempt to predict its future profitability. Their interest is in the future growth of a company's stock price and/or the likelihood of the company paying dividends to the owner. To 2005-06-19T08:37:50-04:00 http://75.150.148.189/free-essay/Are-financial-accounting-statements-useful-to-investors-26974.aspx Financial Management as a Career, Career Profile Financial Management as a Career, Financial Advisor Job Profile The nature of the work of a financial manager varies a lot with their specific titles, which include controller, treasurer, credit manager, etc. Controllers direct the establishment of financial reports that sum up and predict the organization's financial position, such as income statements, balance sheets, and analyses of future earnings or expenses. Controllers also are responsible for preparing special reports required by regulatory authorities. Often, controllers superintend the accounting, audit, and budget departments. Treasurers and finance officers oversee the organization's financial goals, objectives, and budgets. They overlook the investment of funds and manage associated risks, supervise cash management activities, execute capital-raising strategies to support a firm's expansion, and deal with mergers and acquisitions. Credit managers manage the firm's publication of credit. They establish credit-rating criteria, determine credit ceilings, and monitor the collections of past-due accounts. Managers specializing in international finance acquire financial and accounting systems for the banking transactions of multinational organizations. In summing up to the general duties described above, all financial managers execute tasks unique to their organization or industry. The role of the financial manager, particularly in business, is changing with these new technological advances that have reduced the amount of time it takes to produce financial reports. They often work on teams, acting as business advisors to top management. Financial managers need to keep abreast of the latest computer technology in order to increase the productivity of their firm's financial operations. The working conditions of financial managers is usually in an office, close to top managers and departments that develop the financial data these managers need. They mainly work long hours like 50 to 60 hours a week. The job outlook for financial managers seems to be very good. It is expected to grow about as fast as the average for all occupations through 2010. Strong computer skills and the knowledge of international finance are very important. Financial managers who are well-acquainted with computer software and applications that can serve this role will be needed. A bachelor's degree in finance, accounting, economics, or business administration is the lowest academic preparation for financial managers. Many employers do seek graduates with a master's degree though. Preferably in business administration, economics, finance, or risk management. Experience may be more important than formal education for some financial manager positions. The median annual earnings for financial managers in 2000 was $67,020. The middle 50 2005-06-19T08:35:05-04:00 http://75.150.148.189/free-essay/Financial-Management-as-a-Career,-Career-Profile-26971.aspx All About Foreign Direct Investment (FDI) Foreign Direct Investment (FDI) A foreign investment (FDI) is a company controlled through ownership by a foreign company of foreign individuals. Control must accompany the investment; otherwise it is a portfolio investment. Companies want to control their foreign operations so that these operations will help achieve their global objectives. Investors who control an organization are more willing to transfer technology and other competitive assets. The idea of denying rivals access to resources is called the appropriability theory. Governmental authorities worry that this control will lead to decisions contrary to their countries' best interests. Direct investments usually, but not always, involve some capital movement. There are two ways companies can invest in a foreign country. They can either acquire an interest in an existing operation or construct new facilities. Buy: Depends on which companies are available for purchase; difficulty to transfer resources or acquire resources for a new facility; the goodwill and brand identification; easier access to local capital; market does not justify added capacity; immediate cash flow. Build: Depends on difficulty to find a company to buy; little or no competition; local governments prevent acquisition; acquisition less likely to succeed (inefficient); local financing easier to obtain for building. Whether a company first transfers capital or some other asset to acquire a foreign direct investment, the asset is a type of production factor. Production factors: capital, technology, trademarks, managers, raw material, .... If trade could not occur and production factors could not move internationally, a country would have to either forgo consuming certain goods or produce them differently, which in either case would usually result in decreased worldwide output and higher prices. In some cases, the inability to use foreign production factors may stimulate efficient methods of substitution. If finished goods and production factors were both free to move internationally, the comparative costs of transferring goods and factors would determine the location of production. However, as is true of trade, there are restrictions on factor movements that make them only partially mobile internationally. Factor movements may substitute for or stimulate trade. World trade (exports) are stimulated by FDI because of the need for components, complementary products and equipment for subsidiaries. The least-cost production location changes because of inflation, regulations, transportation costs, and productivity. Businesses and governments are motivated to engage in FDI in order to expand sales, acquire resources and minimize competitive risk. Governments may additionally be motivated by some desired political advantage. Sales expansion objectives : - Overcome high transportation costs - Lack of domestic capacity - Low 2005-06-19T08:30:10-04:00 http://75.150.148.189/free-essay/All-About-Foreign-Direct-Investment-FDI-26966.aspx Flush with Cash Does the average corporate bondholder understand the result of the large amount of mergers and acquisitions? Do they understand the implications on the credit quality of companies who have so much cash that share buybacks and special dividends? Not likely. The average corporate bond investor - and hopefully they are using a bond fund - has been sort of blind sided by these events. The result of these shareholder friendly actions has been a blow to credit ratings, the driving force behind prices and yield - which work in opposites with prices falling as yields increase. An equity friendly environment, one where companies turn their backs on creditors has created the smallest spread for bondholders in over a decade. To understand what this means, we should first look at reward and risk. 2004-12-26T00:00:19-05:00 http://75.150.148.189/free-essay/Flush-with-Cash--26036.aspx