Term Of The Day - Double Entry
June 3rd, 2010
In category Term Of The Dayby Mukesh Dedhia
What Does it Mean?
The fundamental concept underlying present-day bookkeeping and accounting. Double entry accounting is based on the fact that every financial transaction has equal and opposite effects in at least two different accounts. It is used to satisfy the equation Assets = Liabilities + Equity, whereby each entry is recorded so as to maintain the relationship.
Source: www.investopedia.com
Term Of The Day - Cost Of Carry
June 2nd, 2010
In category Term Of The Dayby Mukesh Dedhia
What Does it Mean?
Costs incurred as a result of an investment position. These costs can include financial costs, such as the interest costs on bonds, interest expenses on margin accounts and interest on loans used to purchase a security, and economic costs, such as the opportunity costs associated with taking the initial position.
Source: www.investopedia.com
Term Of The Day - Crisis Management
June 2nd, 2010
In category Term Of The Dayby Mukesh Dedhia
What Does it Mean?
The identification of threats to an organization and its stakeholders, and the methods used by the organization to deal with these threats. Due to the unpredictability of global events, organizations must be able to cope with the potential for drastic changes to the way they conduct business. Crisis management often requires decisions to be made within a short time frame, and often after an event has already taken place. In order to reduce uncertainty in the event of a crisis, organizations often create a crisis management plan.
Source: www.investopedia.com
Term Of The Day - Capitulation
May 26th, 2010
In category Term Of The Dayby Mukesh Dedhia
What Does it Mean?
When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into less risky investments. True capitulation involves extremely high volume and sharp declines. It usually is indicated by panic selling.
The term is a derived from a military term which refers to surrender.
Source: www.investopedia.com
Term Of The Day - Flight To Quality
May 26th, 2010
In category Term Of The Dayby Mukesh Dedhia
What Does it Mean?
The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This flight is usually caused by uncertainty in the financial or international markets. However, at other times, this move may be an instance of investors cutting back on the more volatile investments for the conservative ones (i.e. diversifying) without much consideration of the international markets.
Source: www.investopedia.com
Term Of The Day - Black Swan
May 12th, 2010
In category Term Of The Dayby Mukesh Dedhia
What Does it Mean?
An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult to predict. This term was popularized by Nassim Nicholas Taleb, a finance professor and former Wall Street trader.
Source : www.investopedia.com
Term Of The Day - Quant Fund
May 6th, 2010
In category Term Of The Dayby Mukesh Dedhia
What Does it Mean?
An investment fund that selects securities based on quantitative analysis. In a quant fund, the managers build computer-based models to determine whether an investment is attractive. In a pure “quant shop” the final decision to buy or sell is made by the model; however, there is a middle ground where the fund manager will use human judgment in addition to a quantitative model.
Source - www.investopedia.com
To Master Money, Learn to Manage it!
March 26th, 2010
In category Mukesh Dedhia's published articlesby Mukesh Dedhia
It is very important to master the art of managing one’s money. Usually one spends 20 yrs to equip oneself to earn money and then puts no effort to preserve or make the earnings work for them. The trend towards nuclear families and breaking down of conventional ones emphasizes the need to learn skills of managing money. This highlights the fact that financial planning has become a basic life skill today.
Do Not Get Carried Away By the Word “Guarantee”!!!!
March 26th, 2010
In category Mukesh Dedhia's published articlesby Mukesh Dedhia
As soon as we hear the word “guarantee” the feeling that comes to our mind is of security or surety. Especially when it comes to guarantee on the returns our money is going to earn, through investments, we become all the more happy to invest. Guaranteed return products are undoubtedly very popular among us Indians. We use at least one of these products, say, bank fixed deposits, NSC, KVP, PPF, RBI Bonds, etc., to pick up a decent fixed return.
What fiscal stimulus was all about
March 19th, 2010
In category Interesting articlesby Mukesh Dedhia
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