Fair value and book value are two different methods of valuing a company. While both methods are widely used by investors to value companies for decision-making, both the methods are substantially different in the way they value the company. Therefore, it is important to understand the differences between both methods. Book Value The book value …
Fair Value Vs. Book Value: What is the main difference? Read More »
Definition: Debt finance is a type of finance that is acquired by a business for the principal amount to be paid along with interest at a future date. Generally, debt finance has a set time period for repayment. When a business acquires debt finance, it may be subject to different terms and conditions which is …
What is Debt Financing? Definition, Sources, Secured vs Unsecured, and More Read More »
Financial information is data about financial transactions about a person or business. Financial information includes payment histories, credit card numbers, credit ratings by third parties, financial statements, etc. Financial information is used by investment companies, creditors, lenders, and management to evaluate an entity. While using financial information, the security of the data should be ensured …
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Financial institutions are engaged in dealing with financial transactions and the government highly regulates them. Financial institutions help their clients with a wide variety of services like lending, deposit, investment services, and currency exchange. The main financial institutions are commercial banks, investment banks, mutual funds, insurance companies, advisory firms, brokerage firms, investment institutions, trust companies, …
Financial intermediaries play a very significant role in the economy. A financial market is a physical place where financial instruments are traded. By using financial intermediaries, financial markets facilitate the flow of money from lenders to borrowers, which helps improve the economy. Financial intermediaries are required for many reasons different parties have different requirements to …
Importance of Financial Intermediaries and How It Is Value to Economics? Read More »
Generally, financial intermediaries are engaged in bringing together the ultimate borrowers and ultimate lenders of finance. They allocate the funds of companies that have a surplus of capital and lend them to production companies. In this way, their objective is to convert savings into investments. The financial intermediaries charge a fee for their service and …
8 Characteristics & Features of Financial Intermediaries (Explained) Read More »
A financial intermediary means an institution that acts as a middleman between two parties in order to help financial transactions. Financial intermediaries are highly specialized and they connect market participants with each other. Financial intermediaries include banks, investment banks, credit unions, insurance companies, pension funds, brokers and exchanges, clearinghouses, dealers, mutual funds, etc. 1) Banks …
12 Types of Financial Intermediaries – And How Do They Work? Read More »
Meaning: Financial management is that managerial activity that is involved in planning and controlling of firm’s financial resources. It is concerned with acquiring, financing, and managing assets to accomplish the overall goal of a business enterprise. Every beginner needs to start a business or a company with financial knowledge and management strategies. Finance is directly …
12 Main Objective of Financial Management You Should Know Read More »
Clayton Alderfer’s ERG theory of motivation from 1969 converges Maslow’s five human needs into three categories: Existence, Relatedness, and Growth. Existence Needs: This need includes basic survival and physiological needs like air, water, clothing, safety, intimacy, and affection. This equates to Maslow’s first two levels. Relatedness Needs: This need encompasses social and external esteem, and …
ERG Theory of Motivation: What Is It? and How Does It Work? Read More »
Gearing refers to the relationship between the company’s debt to equity. It is expressed in a ratio. It shows the extent to which lenders versus shareholders fund the firm’s operations. It measures financial leverage in a nutshell. When the debt-to-equity ratio is great, the business may be highly geared or highly leveraged. Financial gearing This …
What Is Financial Gearing? And Why Is It Happening? Read More »
