Finance

5 Types of Financial Information (Statements) – Explained

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

5 Types of Financial Information (Statements) – Explained Read More »

7 Types of Financial Institutions – Explained

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,

7 Types of Financial Institutions – Explained Read More »

Importance of Financial Intermediaries and How It Is Value to Economics?

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 »

8 Characteristics & Features of Financial Intermediaries (Explained)

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 »

12 Types of Financial Intermediaries – And How Do They Work?

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 »

12 Main Objective of Financial Management You Should Know

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 »

ERG Theory of Motivation: What Is It? and How Does It Work?

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 »

What is Operating Gearing? Definition, Formula, Example, and Usages

Definition: Leverage refers to increased means of accomplishing the purpose of the company. In the financial world, leverage refers to using fixed-cost assets or funds to increase the return to its shareholders. The leverage related to investment activities is called operating leverage. Operating leverage: Operating leverage is caused by to nature of fixed costs incurred

What is Operating Gearing? Definition, Formula, Example, and Usages Read More »