Misconceptions about Personal Finance
The importance of financial planning at an individual and family level cannot be overstated. For years, people and even governments have been trying to inculcate this habit into the masses. However, they have found it difficult to do so. This is because there are several misconceptions related to personal finance, which are common among people. […]
Financial Modelling for Insurance Companies
Financial strategy is at the heart of the business of any insurance company. This is because insurance companies need to deploy their funds in a manner which allows them to gain maximum returns. However, the nature of claims being faced by insurance companies is uncertain. As a result, every insurance company is supposed to have […]
Title Sponsorship and its Disadvantages
We already know that modern sponsorship has evolved into a complex endeavour. Earlier, there used to be just one type of sponsor who would be associated with the entire league. However, now there are various types of sponsors who are trying to engage with the audience and derive economic benefits at various levels and price […]
Degree of Operating Leverage Ratio
The degree of operating leverage of a company is very important from an investor’s standpoint. Although it shows the riskiness of a venture, it also shows the efficiency of a company. Just like, financial leverage arises out of the capital structure of a company, operating leverage arises out of its cost structure. If a company […]
Who Uses Accounting Data ?
Financial reporting is used by a wide variety of users for a wide variety of purposes. For this reason it has been difficult to set a common framework of accounting. The many stakeholders often have contrasting needs from accounting information. Let’s look at the stakeholders and their need for accounting data: Capital Markets: Accounting information […]
A market is a place where two parties are involved in transaction of goods and services in exchange of money. The two parties involved are:
In a market the buyer and seller comes on a common platform, where buyer purchases goods and services from the seller in exchange of money.
A place where individuals are involved in any kind of financial transaction refers to financial market. Financial market is a platform where buyers and sellers are involved in sale and purchase of financial products like shares, mutual funds, bonds and so on.
Let us go through the various types of financial market:
A market where individuals invest for a longer duration i.e. more than a year is called as capital market. In a capital market various financial institutions raise money from individuals and invest it for a longer period.
Capital Market is further divided into:
Commodity market like any other market includes a buyer and a seller. In such a market buyer purchases raw products like rice, wheat, grain, cattle and so on from the seller at a mutually agreed rate.
Your email address will not be published. Required fields are marked *
The Perils of the Immediacy Trap and Why we can and cannot do without it
February 12, 2025
What are Bonds? – Characteristics and Different Types of Bonds
February 12, 2025
