Mergers and acquisitions

Mergers and acquisitions (M&A) are both aspects of strategic management, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture.M&A can be defined as a type of restructuring in that they result in some entity reorganization with the aim to provide growth or positive value. Consolidation...

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Liquidity and Liquidity Risks

DEFINITION of 'Liquidity'1. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity. Assets that can be easily bought or sold are known as liquid assets.2. The ability to convert an asset to cash quickly. Also known as "marketability."There is no specific liquidity formula; however, liquidity is often calculated by using liquidity ratios. It is safer to invest in liquid assets than illiquid ones because it is easier for...

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BIS - Bank of International Settlements

The Bank for International Settlements (BIS)  is an international organization of central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks". The BIS carries out its work through subcommittees, the secretariats it hosts and through an annual general meeting of all member banks. It also provides banking services, but only to central banks and other international organizations. It is based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City. BIS also stands...

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What is meant by RBI intervention?

• Direct Intervention: In case of any currency movement, a country’s central bank can directly intervene to either push the currency up, as India has been doing, or to keep it artificially low, as the Chinese central bank does. To push up a currency, a central bank can sell dollars, which is the global reserve currency, or the currency against which all others are measured. When it needs to keep its currency lower, it can buy dollars, as the Chinese do, to the point where they are the largest holders of dollar-backed US Treasury paper. •...

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Do you know which is the biggest market in the world??

What Is Forex?The foreign exchange market is the "place" where currencies are traded. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the U.S. and want to buy cheese from France, either you or the company that you buy the cheese from has to pay the French for the cheese in euros (EUR). This means that the U.S. importer would have to exchange the equivalent value of U.S. dollars (USD) into euros....

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Depreciation

DEFINITION of 'Depreciation'1. A method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets for both tax and accounting purposes.2. A decrease in an asset's value caused by unfavorable market conditions. For accounting purposes, depreciation indicates how much of an asset's value has been used up. For tax purposes, businesses can deduct the cost of the tangible assets they purchase as business expenses; however, businesses must depreciate these assets in accordance with IRS rules about how...

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Why the NSE and BSE are surging- Things you should know

FII money:  FII inflows into equity and debt in 2014 will top $40 billion according to sources – the highest ever. Of this, the greater proportion (60 percent) has gone into debt. These may abate with the fall in interests. Once they do, FIIs could shift money from debt to equity, but this process will not happen all of a sudden. Also, if rates fall, that is a reason to invest in equity. The government, the reforms,the stability: As long as Modi and the BJP keep winning various state elections, confidence in reforms and governance will...

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What is deregulation and why it is important?

What is deregulation of petrol or oil mean? Decontrolling or deregulating the petrol prices mean that, the government will no longer be subsidizing petrol prices and the prices will be purely linked to the international crude prices. In the case of diesel, though, it will be only partially regulated – the reason being an attempt to avoid sudden spike in inflation. Why deregulation?As all of us know, petrol (or Gasoline) is produced out of crude oil which is a natural resource that’s available in limited quantity. It is a matter of a few...

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VAT- Value Added Tax

DEFINITION of 'Value-Added Tax - VAT' A type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. Value-added tax (VAT) is most often used in the European Union. The amount of value-added tax that the user pays is the cost of the product, less any of the costs of materials used in the product that have already been taxed. For example when a television is built by a company in Europe the manufacturer is charged a value-added tax on all of the supplies they purchase for producing...

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What is FII's?

DEFINITION of 'Foreign Institutional Investor - FII' An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds. The term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations...

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How a young engineer hoodwinked an entire nation

The story of 27-year-old Arun P Vijayakumar is a story about courage and sheer machismo. He has proven to the world that there is no limit to imagination. Arun, a native of Manimala in Kottayam district in Kerala, made the entire nation proud when he said that he had been accepted as a research scientist at the National Aeronautics and Space Administration (NASA) in the US, according to this report in The Hindu. As he came from a family with financial problems, Arun obviously got a lot of attention from the media, as all 'Zero to Hero' stories...

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Ponzi Scheme and Saradha Scam

Definition A fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This scam actually yields the promised returns to earlier investors, as long as there are more new investors. These schemes usually collapse on themselves when the new investments stop. The Ponzi scam is named after Charles Ponzi, a clerk in Boston who first orchestrated such a scheme in 1919. A Ponzi scheme is similar to a pyramid scheme in that both are based...

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"India's Mangalyaan among top inventions of 2014" - Times Magazine

India’s Mars satellite is among Time’s list of top inventions of 2014 that includes levitating skateboards, superbananas that prevent blindness, Ebola fighting filter, and a tablet that translates sign language.Dubbing it the supersmart spacecraft, Time said: “Nobody gets Mars right on the first try. The US didn’t, Russia didn’t, the Europeans didn’t. But on 24 September, India did.”It further said that at $74 million, Mangalyaan is equipped...

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Crony Capitalism

What is Crony Capitalism?? A description of capitalist society as being based on the close relationships between businessmen and the state. Instead of success being determined by a free market and the rule of law, the success of a business is dependent on the favoritism that is shown to it by the ruling government in the form of tax breaks, government grants and other incentives. Why Crony Capitalism?? Both socialists and capitalists have been at odds with each other over assigning blame to the opposite group for the rise of crony capitalism....

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John D Rockfeller and the Standard Oil Monopoly

John D Rockfeller and MonopolyJohn Davison Rockefeller, Sr. (July 8, 1839 – May 23, 1937) was an American business magnate and philanthropist. He was a co-founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust. Rockefeller revolutionized the petroleum industry, and along with other key contemporary industrialists such as Andrew Carnegie, defined the structure of modern philanthropy. In...

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Berkshire Hathaway to aquire Duracell

Berkshire Hathaway to acquire Duracell battery from Procter & Gamble in $4.7 billion stock deal Berkshire Hathaway agreed to buy the Duracell battery business from Procter & Gamble in chairman Warren Buffett's latest stock swap. Berkshire will turn over $4.7 billion of P&G shares held by Buffett's Omaha, Nebraska-based company, according to a Business Wire statement on Thursday. Duracell will have about $1.7 billion in cash when the deal is completed, which is expected in the second half of next year, according to the statementThe...

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Renminbi

The Renminbi is the official currency of the People's Republic of China. The name  literally means "people's currency".The (sign: ¥) is the basic unit of the renminbi, but is also used to refer to the Chinese currency generally, especially in international contexts. The distinction between the terms "renminbi" and "yuan" is similar to that between sterling and pound, which respectively refer to the British currency and its primary...

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G Force

G Force  g force (with g from gravitational) is a measurement of the type of acceleration that is caused by mechanical contact-forces between object surfaces, and that indirectly causes weight. Despite the name, it is incorrect to consider g-force a force, as "g-force" (lower case character) is a type of acceleration that can be measured with an accelerometer. Since g-force accelerations indirectly produce weight, any g-force can be described...

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Know these Corporate Super Powers

Intamin- International Amusements Installments Intamin Worldwide is a designing and manufacturing company in Wollerau, Switzerland. It is best known for creating thrill rides and roller coasters worldwide. The U.S. division of the company is located in Glen Burnie, Maryland, and is headed by Sandor Kernacs. The Intamin brand name is an abbreviation for: INTernational AMusement INstallations. The company distributes approximately 5–7 roller...

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Why India needs to revise its IPR policy

The US will push India into giving adequate protection to intellectual property regime (IPR), a major bone of contention between the two countries. A top state department diplomat said on Friday that if there is one thing that investors from the US would continue to seek from India is transparency in policy, especially related to intellectual property rights. When an American investor approaches any market, he is going to look for at least a presence of transparency , predictability and rule of law," Charles Rivkin, assistant secretary of...

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China trains Pakistan rangers along LOC

 The Chinese troops are training Pakistani army personnel right  across the India-Pakistan border in Jammu and Kashmir, a report said on Friday. ·         This comes as a major worrying factor for India. ·         As per a report submitted by the Border Security Force intelligence wing, the Chinese troops have been seen...

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G20 Summit

The "Group of Twenty" represents two-thirds of the world's population, 85% of global GDP and over 75% of global trade.It began in 1999 as an annual meeting for finance ministers and central bank governors following the Asian financial crisis, before evolving to also include a summit for countries' leaders in 2008, after the global financial crisis.G20 meetings are aimed at deepening economic co-operation and strengthening the global economy.It comprises 19 countries and the European Union...

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The Warren Buffet Indiactor signals imminent RECESSION

It is only a matter of time before the stock market plunges by 50% or more, according to several reputable experts. Stocks Pundits doesn’t hesitate to put the blame squarely on President Obama’s big-government policies and the Federal Reserve’s risky low-rate policies, which, he says, “penalize the income earners, the savers who save, your parents — why should your parents be forced to speculate in stocks and in real estate and everything...

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Wells Fargo

Wells Fargo & Company is an American multinational banking and financial services holding company which is headquartered in San Francisco, California, with "hubquarters" throughout the country. It is the fourth largest bank in the U.S. by assets and the largest bank by market capitalization. Wells Fargo is the second largest bank in deposits, home mortgage servicing, and debit cards. In 2011, Wells Fargo was the 23rd largest company in the United States.In 2007 it was the only bank in the United States to be rated AAA by S&P, though its...

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IB and RAW- What's the difference??

It is important to know that although both IB and RAW are Indian intelligence agencies, there is difference between them. IB is the Intelligence Bureau of India and is India’s internal intelligence agency. RAW is the Research and Analysis Wing of India and is India’s external intelligence agency. This is one of the main differences between IB and RAW.IB is regarded as the oldest intelligence agency in the world. It originally started in 1947 as Central Intelligence Bureau. It is under the governance of the Ministry of Home Affairs. RAW on the...

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RAW Top Ten Classified Operations

10. Amalgamation of Sikkim Bordered by Tibet, Nepal, Bhutan and West Bengal in the Eastern Himalayas, Sikkim was ruled right from Indian Independence by a Maharaja. The Indian Government had recognized the title of Chogyal (Dharma Raja) for the Maharaja of Sikkim. In 1972, RAW was authorized by Indira Gandhi to install a pro-Indian democratic government there. In less than three years, Sikkim became the 22nd State of the Indian Union, on...

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