Jan 112011
What Is Gearing In Finance?

GEARING is the proportion of the capital employed in a company that is financed by lenders rather than shareholders. In simple terms, explains how a company finances its operations either through lenders or through shareholders. Gearing is basically defined as the ratio between a company’s borrowing (debt) and owner’s equity (i.e. shareholder’s fund). It is synonym to the word financial leverage. The ratio explains the degree to which the business is funded by the owner as against the borrowed funds. The gearing ratio shows how restrain a company is with debt. Companies with high gearing more long term liabilities than [....read more....]

 Posted by at 11:43 pm
Jan 062011
HNI/HNWI - Define High Net Worth Individual Or Investors

High net worth individual (HNWI or HNI) are generally rich or wealthy people with more money and assets, traditionally these people were called as millionaires or billionaires but these days the term high net-worth individuals is used by the financial services to denote an individual with high net worth. High net worth ,means your Credit worthiness ,as Banks or other financial institution rate you by looking at your Actual assets Liquid/Fixed. [Image credit : flickr] Every organization which has financial dealing always has some important customers. The important customers are those who contribute significantly and their contribution matters a great [....read more....]

 Posted by at 5:13 pm
Jan 052011
Arbitrage – Strategy To Make Fast Money

Arbitrage is a financial transaction that makes an immediate profit without any risk. Arbitragers take advantage of different rates, prices or conditions between different markets. Arbitragers make profit by exploiting price differences of identical or similar financial instruments. Trading foreign exchange is a kind of arbitrage where no risk involve where arbitragers buy at lower price and sell it at higher. However, the term has expanded the meaning now any activity to buy underprized item and sell at higher price to earn profit. These days futures index by the BSE and NSE are instrument used for arbitrage. Arbitrage opportunity exist [....read more....]

 Posted by at 7:37 pm