Money Market: Meaning, Definition, Features, Importance, Characteristics, Functions
What is Money Market? The money market is a market for short-term credit. It refers to the institutional arrangement facilitating the borrowing and lending of short-term funds. In the money market, funds may be available for a day, a week, three months, six months, etc. It is the market of short-term financial assets, which are […]
Earnings Management: Needs, Methods, Objectives
What is Earnings Management? Earnings are the profits of a company. Investors and analysts look to earnings to determine the attractiveness of a particular stock. Companies with poor earnings prospects will typically have lower share prices than those with good prospects. Remember that a company’s ability to generate profit in the future plays a very […]
Inventory: Concepts, Purpose of Inventory
What is Inventory? Inventory is the stock of any item or resource used in an organization. An inventory system is a set of policies and controls that monitor levels of inventory and determine what levels Should be maintained, when stock should be replenished, and how large orders should be. By convention, manufacturing inventory generally refers […]
11 Main Need for Working Capital
Need for Working Capital Working capital is the lifeblood and nerve center of business. The need for working capital is crucial for the smooth functioning and long-term success of a business. Here are some key points need for working capital: Strengthen Solvency Working capital helps to operate the business smoothly without any financial problems for […]
12 Main Factors of Working Capital
Factors of Working Capital Working capital is a measure of a company’s ability to cover its short-term financial obligations and operational expenses. It represents the difference between current assets and current liabilities. Several factors can affect the level of working capital in a business. Here are some important factors of working capital: Nature of Business […]
Factors Determining Capital Structure
The capital structure of a company refers to the mix of debt and equity that a company uses to finance its operations and growth. Choosing an optimal capital structure is a critical decision for any business as it directly impacts the company’s risk profile and the cost of capital. Factors Determining Capital Structure These are […]
6 Importance of Capital Budgeting
Meaning of Capital Budgeting Capital Budgeting is the process of making investment decisions in capital expenditure. It involves the planning and control of capital expenditure. It is the process of deciding whether or not to commit resources to particular long-term projects whose benefits are to be realized over a period of time. Below that we […]
9 Objectives of Ratio Analysis and Limitations
Objectives of Ratio Analysis Ratio analysis is a quantitative method of gaining insights into a company’s liquidity, operational efficiency, profitability, and solvency. This method involves comparing different items for a company’s financial statements, such as the balance sheet, income statement, and cash flow statement. It helps investors, analysts, and the company’s management make better financial […]
9 Types of Debentures | You Should Know
Meaning of Debentures When borrowed capital is divided into equal parts, then, each part is called a debenture. Debenture represents debt. For such debts, the company pays interest at regular intervals. It represents borrowed capital and a debenture holder is the creditor of the company. The debenture holder provides a loan to the company and […]
Participants in Foreign Exchange Market
Participants in Foreign Exchange Market The foreign exchange market, also known as forex or FX, is a decentralized global marketplace where currencies are traded. It’s the largest and most liquid financial market in the world. Here are some of the main participants in foreign exchange market: Traders Traders are those participants who use spot and […]
