Sample letter introducing new salesperson

This sample letter was written by a salesperson to an existing customer informing him that he is being promoted and will be replaced by someone new. The current salesperson comes right to the point in announcing her promotion and replacement. He then seeks to set up an appointment with the customer so the customer can […]

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Stone Money of Micronesia–Rai stones

A large, circular stone disks with a hole in its center, carved out of limestone is known as Rai Stones. Micronesia located in Pacific Ocean has a tiny island called Yap. People live here are called Yapese. In Yap Island there is no gold or silver, the Yapese found limestone deposits and carved the stones […]

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Why there is a Demand for Money ?

There are three motives underlying the demand for money i.e. Transaction demand for money Speculative demand for money Precautionary demand for money Transaction demand : Transaction demand for money means that money is demanded to carry out certain transactions. It is likely to be positively related with income. This is simply because higher the income […]

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Why Macroeconomics is important for the Investors?

For Investors or people in finance, understanding macroeconomics and its factor is very important because each of the major macroeconomic factors such as growth, inflation, business cycles etc.., have strong impact on the financial markets. They also have strong impact on the financial sector. For example, when the economy gets into downturn, many firms find […]

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FINANCIAL STATEMENT ANALYSIS- Significance and Limitations

Financial statements includes Trading, Profit and Loss Account and Balance Sheet. Expressing the financial items in these financial statements brings a meaningful information. Financial statement – Definition: A process of evaluating the relationship between the component parts of the financial statements to obtain a better understanding of a firm’s position and performance. Financial statement analysis […]

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Efficient Market Hypothesis and its types

EMH (Efficient Market Hypothesis) elaborates that all relevant information is fully and immediately reflected in market price of a security where an investor will receive stable rate of return. In other words, an investor should not expect to earn an abnormal return (above the market return) through either technical analysis or fundamental analysis.The efficient market […]

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Measurement of Risk in Stocks

The uncertainty of a future outcome is the simplest and most accurate way to describe risk. The anticipated return from an investment is known as the expected return. Whereas, the actual return over some past period is known as the realized return. The simple fact that dominates investing is that the realized return on an […]

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Investment Risk and its types

Risk can be defined as the probability of failing to receive expected return. Every investment involves uncertainties that make returns of investment risk prone. These uncertainties could be due to the political, economic and industry factors. Types of Investment Risk 1. Systematic vs Unsystematic Risk Risk could be systematic and unsystematic depends upon the source […]

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Effective Annual Rate– Explained and usage

Effective annual rate is an annual rate of interest when compounding occurs more than once in a year. This can be used to compare the annual effective interest among the loans with different nominal interest rates and/or different compounding intervals such as daily, weekly, monthly, quarterly or half yearly. Effective annual rate (EAR), is also […]

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