Writing a business plan: overview and objectives

The business plan is a selling document. It should demonstrate that a business can sell enough of its products or services to generate a profit and should attract investors or lenders. The business plan should also assist the entrepreneur in planning for all aspects of starting or growing his or…

Analysis of financial information for stock valuation

Valuation of a company in terms of its shares is a long and effort-taking process. Yet individual investors will find it helpful to get to know about the main stages of the process as they can perform nearly all of the stages on their own. When analyzing a company one…

Bond terms and conditions explained

Sinking-Fund Provisions A sinking fund is money taken from a corporation’s earnings that is used to redeem bonds periodically, before maturity, as specified in the indenture. If a bond issue has a sinking-fund provision, a certain portion of the issue must be retired each year. The bonds retired are usually…

Benefits of Investing in Corporate Bonds

Investors buy corporates for a variety of reasons: Attractive Yields Corporates usually offer higher yields than comparable-maturity government bonds or CDs. This high-yield potential is generally accompanied by higher risks. Dependable Income People who want steady income from their investments, while preserving their principal, include corporates in their portfolios. Safety…

How Social Media is The Best Way for any Country to pass the important message

Social media is actually a mode of communication among all the members of the country. To get all the news and information related to the whole country, the only way is social media. Television is the social media to get all the ideas, news, information, etc. Apart from television there…

How Does a Harvard Professor Invest for College?

Even if you are a Harvard professor, an economist and an authority on financing a college education, finding the right college savings program is still a nettlesome process. Susan Dynarski, an assistant professor of public policy at Harvard’s Kennedy School of Government, not only knows how tough it is for…

Fixed loan type vs adjustable: higher rate vs uncertainty

A few decades ago, the home buyer could only get the only type of loan: fixed-rate 30-year mortgage. Now the borrower can choose between the rate that is fixed for the life of the loan (fixed-rate mortgage or FRM) and a rate that fluctuates in line with major indexes (adjustable-rate…

Subprime mortgage loan: what to do if your credit is not perfect

“Specialty financing” or “loans for someone with less than perfect credit” are polite terms used to market “subprime” or “non-prime loans”. Sometimes they are effectively the only way to homeownership for those who have frequent late payments, bankruptcies, liens, judgments or other mishaps tarnishing their credit history. People with below-standard…

Exchange Funds are: definition

Exchange funds allow investors a tax-free means to diversify a low-cost-basis and/or restricted stock position. Exchange funds allow investors to pool their low-cost-basis stocks in a fund. In exchange for contributing their stock to the fund, each investor owns a pro-rata share of the fund. After a set period of…

What Are Corporate Bonds?

Corporate Bonds (also called corporates) are debt obligations, or IOUs, issued by private and public corporations. They are typically issued in multiples of $1,000 and/or $5,000. Companies use the funds they raise from selling bonds for a variety of purposes, from building facilities to purchasing equipment to expanding the business….