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Complete Guide to Stock Market

Stock market can be defined as the public market meant for the trading of various listed company’s stocks and derivatives at matched price. Its size was estimated at about $ 36.6 trilion US at the first week of the October. Anyone can participate in stock market whether it is small stock investors or large funded traders. According to the Securities Contract Regulation Act (SCRA), 1956, defines stock exchange as any body of individuals constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities.

The stock market is one of the most important sources for the companies to raise their money. It allows businesses to be publicly traded, or to raise additional capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange provides, allows investors to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments like real estate.

An investor should keep some points in mind while investing in stock market :-

1. Make sure your broker is registered with SEBI and the exchanges and do not deal with unregistered intermediaries.

2. Ensure that you receive contract notes for all your transactions from your broker within one working day of execution of the trades.

3. Do not get misled by the market rumours, like advertisement and ‘hot tips of the day’.

4. Investing in very low priced stocks or what are known as penny stocks does not guarantee high returns.

5. Be cautious about stocks which show a sudden spurt in price or trading activity.

BSE or Bombay Stock Exchange is the oldest stock exchange in Asia that has a rich past of stock trading in the country. It is the first stock exchange in India which obtained permanent recognition from the government of India under the Securities Contracts Regulation Act, 1956. It has facilitated the growth of the Indian corporate sector by providing it with an efficient access to wide pool of finance resources. At present, BSE is the world’s number one exchange in terms of the number of listed companies. The BSE Index, is India’s first stock market index that enjoys an iconic stature. It is an index of 30 stocks representing 12 major sectors.

 Speaking about NSE or the National Stock Exchange, it is India’s leading stock exchange covering various cities and towns across the country. It was set up by leading institutions to provide a modern, fully automated screen-based trading system within national reach. The exchange has brought about speed & efficiency, safety and market integrity. It has played a catalytic role in reforming the Indian securities market in terms of micro structure, market practices and trading volumes. The market uses state of art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in stock trading services.

These days, exchanges have tied-up with various leading names in the virtual world of Internet and mobile communication to deliver up-to-date knowledge to the subscribers of NSE stock market news alerts, BSE news alerts etc. These alerts spill out all second-by-second information about both, NSE, BSE stock gainers, thus, helping the dormant investors updated about the latest movements in the Indian stock scene.

How to Read the Stock Market Table/Quote

Before you can start buying or trading stocks you need to know how to read the stock market table or quote. A stock quote appears in financial papers and usually has 12 columns. The following is a brief description of what you can see in each column.

The first two columns represent the week high and low. These are the prices at its highest and lowest value at How to Read the Stock Market Table/Quote

Before you can start buying or trading stocks you need to know how to read the stock market table or quote. A stock quote appears in financial papers and usually has 12 columns. The following is a brief description of what you can see in each column.

The first two columns represent the week high and low. These are the prices at its highest and lowest value at which a stock has been traded over the past year. The trading of the previous day is not included in these columns.

The third column identifies the name of the company and its type of stock. If it is common stock, the company doesn’t have special symbols or letters after its name. Different symbols or characters after the company name represent different types of shares

The fourth column indicates the ticker symbol. This symbol is the unique alphabetic name that identifies the stock of a certain company. This symbol is used when quoting latest stock prices.

The fifth column represents the dividend per share. This is where you can find the annual dividend payment per share. If the company is not currently paying out dividends, this space is left blank.

 The sixth column indicates the dividend yield. This is your percentage return on the dividend. You can calculate it by dividing the annual dividends per share by the price per share.

The seventh column is the price/earnings ratio. This is calculated by getting the current stock prices of the last four quarters and dividing it by the earnings per share of the last four quarters also.

The eighth column represents the trading volume. This shows the total number of shares that have been traded for the day.

The ninth and tenth columns indicate the day high and low. This is the price range that the stock has been traded throughout the entire day.

The eleventh column indicates the close. This is the last trading price that was recorded when the market closed on that day.

The last column represents the net change. This is the dollar value difference in the stock price from the previous day’s closing price.

These days, you can already get stock quotes from the Internet. It will be more convenient for you since most websites that offer stock quotes are updated constantly throughout the day. For you to become a successful trader, you should know how to read the stock market quote or table.

How to Improve Your Credit Score by Getting Auto Financing For Low Credit Scores

The online as well as offline auto financing for low credit scores has changed the scenario completely. Gone are the days when credit challenged consumers tried to make the best of the local corner lots – fly by night or not. The potential car buyers from any segment of society with any type of credit can now approach the financial institutions of their choice. They will most probably get a favorable response from more than one source. Yes, sir, getting the auto finance car loans approved with less than perfect credit has come to stay with all kinds of addresses.

The low credit score auto financing is working wonders for the auto makers and the auto finance industry. These plans allow them to reach a much wider target audience of credit challenged consumers across the country. Granted the experience of getting the best auto deal that too with bad credit is a bitter pill to swallow for many of us, but with a little luck and preparation success is right at any customer’s fingertips.The genuine potential car buyers are not likely to be discouraged at being locked out of many attractive deals. Having poor credit or no credit history may mean having to start on the back foot, but the finishing line can still be reached.

The buying a car with low credit score has gone from being impossible to possible thanks to the rapidly developing and wider presence of internet technology. The handheld devices are allowing all consumers with any type of credit to shop their requirements smartly. Initially, to eat a greasy burger, consumers went to a street hawker. But now even the most expensive eateries offer exotic burger recipes at unforeseen prices. Similarly, in the early days, people with poor credit or no credit history could not even dream of driving a personal vehicle. They would be politely shown the door if at all they made the mistake of walking into the car dealerships.

The auto financing with low credit score can surprise give an affordable monthly car payment to serious potential car buyers. The main aim of a car purchase plan is to get a good safe and reliable car as a personal vehicle. It is not a showcase of bragging about getting an auto deal which no one else can better. For most credit challenged consumers, getting a first time or their next car are all about crossing the coming milestone in their lives. The recent economic crisis and subsequent technology changes have improvedthe auto makers and the auto finance industry a great deal.

The auto financing for low credit scores is no longer a rare occurrence. It is common enough so that an increasing number of car buyers can benefit from the advantages it has to offer. As the outstanding auto loan balances surpass $1 trillion interest rates are likely to rise in order to tighten the economic constraints. This means poor credit or no credit history car loans may become expensive with customers getting their deals done pronto ending on the smarter side.

Purchase Order & Letter of Credit Financing

Many business opportunities come with an associated challenge. For most entrepreneurial businesses, the greatest challenge is financing the business opportunities created by your sales efforts. What are your options if you have a sales opportunity that is clearly too large for your normal scale of operations? Will your bank provide the necessary financing? Is your business a startup, or too new to meet the bank’s requirements? Can you tap into a commercial real estate loan or a home equity loan in sufficient time to conclude the transaction? Do you decline the order? Fortunately there is an alternative way to meet this challenge: You can use Purchase Order Financing & Letter of Credit financing to deliver the product and close the sale.

What is purchase order financing?

Purchase order financing is a specialized method of providing structured working capital and loans that are secured by accounts receivables, inventory, machinery, equipment and/or real estate. This type of funding is excellent for startup companies, refinancing existing loans, financing growth, mergers and acquisitions, management buy-outs and management buy-ins.

Purchase order financing is based upon bona fide purchase orders from reputable, creditworthy companies, or government entities. Verification of the validity of the purchase orders is required. The financing is not based on your company’s financial strength. It is based on the creditworthiness of your customers, the strength of the commercial finance company funding the transaction, and in most cases a letter of credit.

What is a letter of credit?

A letter of credit is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. If the buyer is unable to make payment for the purchase, the bank is required to cover the full amount of the purchase. In a purchase order financing transaction, the bank relies on the creditworthiness of the commercial finance company in order to issue the letter of credit. The letter of credit “backs up” the purchase order financing to the supplier, or manufacturer.

Is purchase order financing appropriate for your sales program?

The perfect paradigm is a distributor buying products from a supplier and shipping directly to the purchaser. Importers of finished goods, exporters of finished goods, out-source manufacturers, wholesalers and distributors can effectively use purchase order financing to grow their businesses.

Is purchase order financing appropriate for growing your sales orders?

Purchase order financing requires you to have management expertise- a proven track record in your particular business. You must have bona fine purchase orders from reputable firms that can be verified. And you must have a repayment plan; often this is from a commercial finance company in the form of accounts receivable or asset-based financing.

You should have a gross margin of at least 25% to benefit from purchase order financing. Sellers of services or commodities with low margins, such as lumber or grain, will not qualify.

The bottom line decision for purchase order financing:

It can take two or more years to develop a profitable business. Banks generally base their lending limits on a business’ performance for the past two or three years. Purchase order financing, combined with letters of credit and/or accounts receivable or asset-based financing can give you sufficient funds to cover your operating costs, financing costs and still realize significant profits. If you qualify for purchase order financing, you can grow your business by taking advantage of large purchase orders and eventually qualify for bank financing.

Role of the Financial Manager

                                 ROLE OF THE FINANCE MANAGER

According to the changing business environment the role of the financial manager has undergone a  sea change.During 1980’s the finance manager had a traditional role to play ,his task was mainly confined to procuring cash,maintain accurate records ,prepare reports on the company’s current financial position and performance  and manage cash to save the company from insolvency.However this role gradually transcended and has now changed into a gigantic task with the growing complexity in the business environment,globalization and also with the enlargement of the size of the business.

Today’s finance manager is well versed with the overall financial functioning of the organisation and is capable of dealing with the problems and decisions dealing with the management  of the financial operations.Now he is very much involved with with the total amount of capital employed by the firm ,with the allocation of funds in  various financial projects and financial activities and is less concerned with the procurement of funds  and now the finance manager is more concerned if at all the funds have been properly utilised.Therefore the role of the finance manager is much exact.In order to tackle the functioning of this financial operations he has to have a broader range of skills,a strong grasp on the nature and scope of all firm and financial operations and a thorough understanding of how the firm operates in averse situations and operates in a market place.Therefore their task are more centralised on the liquidity and profitability of the firm.

Today,undoubtably the role of Financial managers have not only become exciting but also challenging,because it entails effective and quick decision making process,tact,requisite skill,intelligence and foresight in order to match the fast moving and technologically complex corporate environment.There can be problems at times where it becomes increasingly alarming for the company to function smoothly,the problems can relate to:

Selection of new proposals for capital investment,Dividend declaration,Procurment of long term and short term capital,optimal use of working capital  and increase in the value of firms common stock.Therefore the role of the finance manager centres around efficient planning and control of flow of funds right from inflow to outflow of funds.The modern financial manager has very important role to -play in the effective management of the company.He has to have knowledge of financial markets and financial statements in order to take financial decisions or any corrective measures,concerning the firms operation.The financial manager is highly specialised job today ,no area of management can function smoothly unless its financial aspect is sound and effectively managed,the responsibilty totally rests with the Finance manager.Hence shows how important a Finance manager is to the organisation.

Understanding the Different Types of Commercial Loans

Applying for a real estate loan for a commercial property is similar to applying for a residential loan in many ways. However, just as there are different types of real estate loans available for residential properties, the same holds true for commercial properties. If you are preparing to apply for financing, it is beneficial to understand the different types of loans available for commercial borrowers. This will help you to narrow down the options with greater ease to save you time and stress.

Traditional Real Estate Loans

Commercial real estate loans are available for an extensive range of property types, and this includes everything from apartment buildings with at least five units to offices, retail buildings, industrial properties and more. The different types of loans available are generally for existing properties that will be operated as an investment property, and there are special loans available for those that will be owner-occupied. Commercial loan programs specify the usage of the property, the occupancy requirements and other factors. Therefore, it is helpful to have all pertinent information on-hand before you begin shopping for a loan.

Hard Money Loans

Traditional commercial real estate loans are designed for properties that are in good to excellent condition and that do not require significant maintenance or rehabilitation. More than that, they generally must be producing income to pay for the expenses, including the mortgage. While many properties will meet these and other basic requirements, many others will not. Hard money loans are special loans that are designed for unique situations. They generally give the borrower funds at a higher interest rate than with traditional loans, and the intent of these loans is to help the borrower to re-position the property so that it is more profitable and in better condition within the next few months or year or two.

Business Loans

Business loans are another option available, but it should be noted that these are not real estate loans. For owner-occupied businesses, it may be necessary to obtain a special commercial loan for the real estate based on the business’s financial statements. The borrower may also need or benefit from additional financing, and business loans are a viable option to consider. These loans have varied terms and rates based on the type of business it is, how established it is, if collateral can be used, how creditworthy the borrower is and more. They can be used in conjunction with commercial property loans, but business loans may not be tied to the real estate in any way.

The first step in the commercial financing process is to find the right loan program to apply for. As you can see, there are numerous types of loan programs available, and within each of these types, there are various programs with different terms that may be more or less attractive to you than others. With this in mind, you can contact different lenders or search online for investor commercial property loans, owner-occupied loans, hard money financing or other options that meet your needs. This will help you to hone in on suitable options.

Money Market Leaders in West Bengal

Money market news is very important for regular as well as occasional investors.  Investors should know about different financial tools which are there in the financial market. Each financial tool news varies from the other. Market changes at the blink of an eye. It is utmost vital to get update with them latest news of the money market. Without latest information about the market, it becomes very risky for the investors. Trading without full acquaintance leads the traders to a loss path. To keep a tab on the happenings of the market is the first step in this hyper turbulent market.

Indian financial market is the most happening and the second largest market of the world. It is driving the attention of huge investors from around the globe. Every day some New Money Market Companies in India’s financial market is adding up. It is attire necessity for investors to keep a check on the new entrant. So that one can get better option to invest .Companies which are new entrant to the market needs through research. Investors should go for its background checks so that investing becomes easier and profitable.

Indian money market is flooded with endless companies. People are showing high end zeal to invest in this market. The same is true for the populace of west Bengal. In this over crowded market everyone wants to earn handsome return but this is only possible if you know which the Best Money Market Company in West Bengal is. As the competition is intense there are many Money Market Companies in West Bengal, you need to carefully select the right company for good rate of return from them. To invest in top Money Market Leaders in West Bengal will be the best option as the majority of people go with them. Eminent companies of the stock market never give you huge unbearable loss. One can expect good rate of return from them. This is the reason investors go for mainly blue chips companies.   is a news portal website which brings for you latest news of the money market.

Stock Valuation Model – 3 Simple Techniques to Value Stock

Stock valuation models are methods to value stocks. Everybody knows the stock price but only few understand how much it worth and the other investors do not even care. The reason can be due to different strategies, do not know how to value stock or just do not care how much it worth as long as the price increase the next day. If you are one of the intelligent investors, consider these valuation models in your next purchase.

Discounted Cash Flow (DCF)

This is probably the most common model that you ever heard when it comes to stock valuation. However, I found it a bit tough to do it. Simply because the discounted cash flow model have to consider revenue growth and the escalated cost at the same time, which can be too difficult to estimate and forecast as an outside investor.

Nevertheless, you can use this method in valuing stock by projecting future cash flow; from the sales and costs, and discount back to current value with Weighted Average Cost of Capital (WACC).

Dividend Discount Model (DD)

This model suits best for income investors. The idea is to project future dividend distribution based on the average historical dividend payout ratio and discount it back to present value. Although this is the simplest among all, it works best for high dividend yield stocks.

 Nonetheless, the stocks must have very strong business performances that can guarantee the dividend payments 10 years down the road. And normally, penny stocks cannot be evaluated this way.

Earnings Growth Model (EG)

This is my favourite method as it is very practical and easy to do. Initially, I project its future earnings using constant or variable growth rate. Either constant or variable growth rate is depends on the expectation of its business performance within that period. Often than not, I normally use the historical business performance as a baseline provided its fundamental value remain intact. Then, I discount the future earnings with the expected return on investment (ROI).

I found this model as highly valuable since the stock price is easily reflected by its earnings. For example, the stock price will reflect its earnings and earnings growth. Assuming the P/E is the same throughout the year, you can expect the stock price to increase the same rate as the company’s growth rate.

So, before buying anymore shares in the future, put some efforts to value the stock. You can reduce the risk of losing money significantly if you buy the stock at much cheaper price than its intrinsic value.

Managing Business Cash Flow With Services of Pegasus Opera Supplier London

Your business ventures are obviously well planned to follow a precise method and bring forth expected results. However, you need to check compare and assess the expenses of each business process before agreeing to execute it. Handling financial calculations for an array of deals can be quite challenging and somewhat confusing for inexperienced individuals. In such cases, fortunately, Pegasus Opera Supplier London can deliver services that can simplify all your finance managing processes without altering you existing business processes and methods. Let us discuss about how these services an help you out.

Managing Cash Flow Effectively

Managing finances is one of the primary objective for success through business. Without having a clear idea how to manage or track your expenses, you would not be able to generate revenue. But, with the help of Pegasus Opera, you an track your financial flow, and measure exactly how much revenue is being added to your company and how much is being deducted to pay the bills or to serve as an investment. This insight can help you to take profitable actions. Such facilities can help your company to grow beyond expectation and assure you whether to spearhead various endeavours or not. What this application offers is a realistic and fact filled revenue forecast which is great for intelligent business decision making.

Features and tools

This application comes with a whole host of features and meticulously designed tools for precise financial assessment of business based operations. Its conversion tools can help you to simplify the business processes and streamline resources to get the job done. It has a built-in import facility which assures a quick and glitch free data transfer. With Pegasus Opera application, users can check their finance, and other different divisions of their business without extensive infrastructure modification or heavy application implementation. Handling HR and payroll, CRM, supply chain, and document management is easy with the help of Pegasus software.

Low Maintenance and Usage Benefits

This applications is designed to cover huge financial requirement of companies. From managing business processes to tracking expenses, your finance management necessities would not any other support while Pegasus Opera is with you. Although, this application can deliver multitude of solutions, it does not come with an expensive price tag. Its design makes it easy to use and easy to update without frequent maintenance requirements. Its ‘easy to customize design’ helps business owners to maintain their existing company structure and processes while getting better results than ever.

These are few of the many benefits or features that make Pegasus Opera exceptionally important and capable of handling huge financial requirements with ease.

Understanding what makes the Stock Market Move Up and Down

Successful investing requires more then just a little bit of know how and a dash of luck. It requires a cool head, an analytical mind, and the ability to make quick money decisions. This is especially true when investing in the stock market. Investing naturally comes with a level of risk. The market’s activity fluctuates on a daily basis during the opening and closing bells.

Generally the stock market is supposed to grow in value over a period of time. This growth is actually an average of all of the stocks included on the market. While some may have increased in value throughout the day, other stocks will have fallen in value. In some cases growth can affect whole sectors. A sector is a bloc of companies involved in a specific type of business.

Movement in the market is affected by a number of different factors. News reports affecting a specific industry can cause investors to want to increase their holdings, or negative news can cause investors to exit as quickly as possible. These however, are not hard and fast rules. In some cases favorable news can result in lower stock prices as more investors try and sell their shares then are willing to buy, once the stock price falls, it can rise quickly again as even more investors are interested in “buying low”.

According to analysts, the erratic movements of the stock market can sometimes be attributed to the large number of inexperienced and amateur investors. This can cause the irrational behavior sometimes seen. Mass panic has been blamed more then a few times for making the market move in directions that completely contradict normal rules of behavior for the stock market.

Amateur investors have a tendency to make decisions based on press releases or rumors that is sometimes not even related to the value of a stock itself. Other causes could be the activity of day traders. Day traders usually trade in such large volumes that they can affect a stock’s price either negatively or positively.

Still other ways the stock market can be swayed is by a coutry’s attempt at correcting inflation. Usually raising or lowering the interest rate does this. These rates are an indicator of the financial situation for a country. If rates are either raised or lowered, the market activity will usually be influenced.

Some companies are able to increase their individual stock prices by releasing quarterly reports showing they have met or exceeded their profit forecasts. Also releasing information about new products or technology that can increase that particular sector’s value.

Conversely, if a company reports that they fell short of profit projections, the value of that companies stock will usually go down as investors sell off some or all of their stocks. Large shifts are usually due to overreaction to changes in risk.

Without the assistance of a professional, the market can be an unforgiving venture for the casual investor. This trend has begun to change due to better resources being available to investors on all levels. Research is a must for any investment.

Effective Quicken Tech Support Packages to Manage All Finance

To setup a business is a not difficult task as it has many aspects, which require lot of attention.  An individual may needa helping hand to provide a proper assistance to the business. When we talk about today’s context all we have is technology. Technology and innovation is playing a vital role in our life.

We have software, devices and many other technologies which improve our work and saves time. If we talk about business, money matters the most, to manage the finance we require a man power or some tool. In this techno world, we have a tool to manage all the financial transaction of a firm, it is prominently known as Quicken. It is accounting software that is developed by Intuit.Take regulate of the private accounting in very short span of time with Quicken money management software! Organize day-to-day finances, optimize investments & manage your home-based business.

There are basically 2 types of packages in Quicken:

   1.    The Quicken Cash Manager is for Personal Finances

Traceexpenditure&reimburse bills effortlessly with Quicken Cash Manager, it is the simple, exactmode to control your day-to-day finances.Quicken Cash Manager is full of comprehensible tools to give you an idea about you where your capital is going. So you can manageeach dayexpenses, canimprove your budget and set aside for what you want for the most part. Itsprivate money management software intended to help out you in goingfurther on. If you have any problems of Quicken Accounting Software Problem, then take help of any reliable Quicken Support Phone Number.  It is compatible with Windows 8 and 8.1

  2.    Quicken Home & Business

Quicken Home & Business is for the Business Finances & Investments, basically to see where your funds goes, checksavings and deal withhome-grown business finances with Quicken Home & Business. Quicken Home & Business have all thefeatures of Quicken Cash Manager, for with neat money management.

What all issues a user can face while accessing Quicken Software and How Technical Support is Essential?

Technical Support With having so many features, a user may come across some of the issues which may trouble and affect the workand for that reason there are many third party officials who provide their services in resolving and giving technical support to various issues a such as; error in login the software, Password recovery issue, Quicken software connection failed, Quicken running slow, Unable to store data for backup,Quicken not responding,Licensing information issue, Quicken Installation Support, Help in Quicken Set up, Unable in installing the software, support for- if user is not able to download any file from Quicken, if failed in storing any data, A specific web browser not supporting Quicken, Couldn’t find back up of all the data.

These third parties exist for 24×7, which is very helpful for the user who faces issues in the odd period of time, just by calling on the Quicken technical Support Number. The customer support is available for anywhere and anytime in the assistance of technical support professionals who have the experience in handlingall the Quicken Not Responding issues. You can completely rely on the variety of services third party expert team deliver.

The Most Common Home Loan Challenges And How To Deal With Them

Your dream home is a worthwhile yet challenging goal. This most rewarding goal has quite a few hurdles, home loans for one. Explore this article to discover common housing loan challenges in your journey. Then you can get better equipped to deal with them.

Several first-time borrowers do not understand the process of home loan eligibility. Housing finance is not as simple as visiting online eligibility and EMI calculators. It is a right process. But you need a strong financial knowledge base to understand complex housing finance eligibility criteria. That’s why; most uninformed borrowers face a rejection. So, to overcome this challenge, you have to understand the most important rule of housing finance in India.
“Preparation is the key.” So, start home loan process right when you decide to buy a home. You can use the funds for down payment and repayment of current liabilities. This is your pathway to better home loan with lower interest rates.

A clear start of housing loan research is more questions than answers. Most borrowers are flooded with questions. Which is the best home loan rate for me? How do I select a repayment option? Will I be able to afford the suggested house loan EMI? What are all these fees all about? What will happen if I miss an EMI? This is a great start. The toughest question is – is this the best house loan for me?  This unending dilemma can cause a lot of sleepless nights. So, unless you are an expert on the topic, take an advice of a professional. Several personal finance experts and housing finance consultants can help you. You can make much smarter choices by taking advantage of their knowledge base.

 Down payment:

Housing finance companies expect you to contribute 15% to 20% of the cost of the property. So, you need to gather enough funds. At a same time, you will need funds for other expenses for example; processing fees, debt settlements, credit reports, and professional consultations. So, cash flow management is a big hurdle in such scenarios. However, valuation of a property is significantly lower the current market price. So, you will need to pay it through down payment. In such cases, here you have two options. You can add a co-applicant. Additionally, you can use few of your investments for down payments. Otherwise, you need to reconsider your choice of property. Select another affordable property for yourself.
So, any borrower has a tough road and few problematic decisions ahead. But, your dream home is worth the effort. So, make smart choices and enter your dream home confidently.

No Down Payment Auto Loans in Washington make Car Buying Process Easy

After thorough research, you have chosen your favorite car. You are ready to buy the car, but have you thought about making down payment?

Is making Down Payment Compulsory while buying a Car in Washington?

It is not compulsory but it is advisable to make down payment of at least 20% of the new car’s value. Experts suggest making down payment because of the following reasons:

1. It will help you in obtaining Washington auto loan at favorable terms.

2. It will make your monthly payments affordable.

3. It will decrease the chances of finding yourself in an “upside down” auto loan situation.

How to buy a Car without making Down Payment?

New cars are getting costlier with each passing day. An average new car costs $33,560in Washington. And, 20% of the new car price is $6712. It is difficult for a Washingtonian car buyer, with an average gross monthly income of $5114, to pay such a large amount to the dealer.

Instead of spending such a large amount on down payment, you can opt for no down payment auto loan program in Washington. In such a loan program, the down payment amount that a car buyer normally pays is structured into the loan.

The benefit of a no down payment auto loan is that you no longer have to obtain expensive personal loans for making down payment.

What is the Need for No Down Payment Auto Loans in Washington?

Washington is considered one of the richest states of America. The state’s average household income is $61,366. It is higher than the national average household income by $7,709. It means Washingtonians earn more in comparison to people of other states. So, why do they need no down payment auto loans?

1. Washingtonians do not have liquid assets to make down payment.

2. Many car buyers do not have a car to trade-in.

3. Manufacturer incentives are not adequate for making down payment.

Are No Down Payment Auto Loans Easily Available in Washington?

There are many online auto financing companies that provide no down payment auto loans in the Washington state. To obtain a loan from them, you have to submit your loan requirements and provide information about your credit history.

You can finish your loan process quickly by submitting the application online. It means you can buy a car without leaving the comfort of your home. Doesn’t it sound comforting? So, do not spend time in visiting banks with stringent lending criteria. Instead, apply with an online auto financing company and obtain instant approval on no down payment auto loans in Washington.

Car Destination is the perfect choice for Washingtonian car buyers. Apply with the no down payment auto loan specialist and get ready for low-rate auto loans in Washington. Get in touch today.

Four Tips to Stay Away from Car Finance Pitfalls

When the time comes to buy a new car, just like everyone else, you will also be looking for the car that you can afford and the car finance that goes easy on your pockets. Before you start thinking on the same roads, its better you should be aware of some snags that might come across in your car purchase and finance plan. This will eventually help you to be on a safer side and avoid any delays while financing your dream wheels.

Here are some expert tips for you –

Know Your Credit Score Beforehand
One of the most important things to take in to account while you plan to apply for a car loan. Your credit worthiness is quite important and plays a big role in deciding if you can get the finance and what interest rate you’ll be charged. On the other hand, if your credit ratings have been compromised lately, your chances of getting the best car loan deal will be close to none.

You can always know your credit score by requesting a Free Copy of your Credit Report at Loans Direct. Once you know your credit score, you will find better options that are available to you. If your credit score is low, there are experts who can help you get credit ready and find competitive car finance.

Cut the Long List Short
When it comes to select a car, the choices can make you cry for selecting the right one. Start with setting your budget first and exactly what it is you’re looking for in your new car. Prioritise your needs in a new car, things that are must-have and the nice-to-have. This will help you avoid over-spending and making the wrong decision. More the amount you borrow higher will be your repayments. Thus, stick to your list and you will ensure a great deal in your next car purchase.

 Explore and Research

It is always a great thing to do beforehand. Exploring different financing options and doing some research on current interest rates will make you better informed when negotiating your finance terms. Moreover, look for the features you’ve decided in your price range. You can also explore if there are any rebates or special offers available on specific car make or model. Festive and holiday season can help you to save some more dollars while shopping for a car.

See and then Sign
Reading finance documents carefully is something most of us forget to do or let it go. To be on a safer side, do not sign the purchase contract and car finance terms without reading them thoroughly. Ask questions as many as you can to understand the terms mentioned in it. Give more eyes to the section that says anything about extra charges and fees that haven’t been mentioned upfront. You can also seek time to review the contract before signing.

If you feel car finance is a hassle or finding the most suitable deal is a bit difficult for you, let the Car Loan Experts at Loans Direct take care of the car buying process from start to finish. Get in touch with us today to find out more.

Pension Plans and Pensions Auto Enrolment

When it comes to retirement planning, it is all about managing the money in such a way so that you can lead a happy any stress free retirement life. Having worked all your life, it is now time to sit back and relax. This is only possible, if you have a sound retirement plan to back you up. There are various ways by which you can secure your retirement. Here are some of them

  • Government Bonds
  • Equities
  • Recurring Deposits
  • Shares
  • Debentures
  • Gold and Silver

Apart from these there are various other ways which allows you to secure your post retirement life

Pension Plans

The pension plans give you financial stability, as a result, you can still continue with your lifestyle even after your retirement, without having to compromise with the standards.

Considering the rising inflation and high cost of living, it has become very important to plan your pension well in advance. The pension plan needs to be designed in such a way so that all your needs can be taken care of and it maintains a financial balance in your life. To enjoy an independent life after retirement you must plan your retirement policy by an expert and get the right policy that will fulfill all your needs and you enjoy a full life even after your retirement.

The Employer’s Responsibility

As per a new law which has been implemented in the United Kingdom, every single employer needs to enroll his workers in a pension scheme as long as they meet the given criteria in terms of age limits and other aspects. This is what is known as Pensions Auto Enrolment. This has brought about a sense of security among the employees as they know that they are automatically covered by the pension plans which offer them financial stability during their post retirement life. Get in touch with them and find out the best plan that not only covers your need but also ensures a better life after your job life. But before you invest do check with all the option and read all the terms and conditions properly before you invest.

If you are planning to opt for a separate pension plan, then you have many options to choose from. There are numerous financial companies who offer excellent pension schemes which are feasible and very flexible at the same time. These financial organizations are governed by the state of law which ensures their reliability and authenticity. These organizations would ensure that all your requirements pertaining to the pension plans are looked after. They would do all sorts of researches and calculation to find out the scheme which suits you best. They have some of the best financial experts working for them who would help you with their valuable advice and would ensure that you get the best plan.

Finance Summary V – Market, Producers, The economic role of the Government

The market

A market is a set of arrangements through which buyers and sellers make contact and do business. Perfect market is a theoretical model of market, where a lot of buyers and sellers and competition is free.
There are monopoly, duopoly, oligopoly are the models of the market. Monopoly is situation, when there is only one seller or a very limited numerous of sellers in some markets. Pure monopoly is a theoretical market structure where there is only one seller of a commodity or service and where entry into the industry is closed to potential competitors. There is patent, superior talent and huge strategic capital is needed to organize a firm with potential monopoly power. In the U.S. legislation and foreign competitors minimized the danger of monopoly corporations. Duopoly is situation, when there are two sellers of a commodity ore service at the market and oligopoly is situation, when there are 3 and more competitive sellers at the market.
Competition is the main characterize of the market. All businesses compete with one another in selling things, in labour, capital and natural resources. There are new ideas, professional managers; new ways to reduce costs and to make products attractive to consumers are needed business to survive in the face of competition.
So, market is one of the main mechanisms of development of the modern world.

Producers and their role in the economy

Producers (enterprises and firms) are the backbone of any economy. Their aim is to supply goods and services, seek profits and compete with one another. They are transform inputs into outputs. There is labour, capital and natural resources are the main factors of production.
Every economy faces the problem of what, how and for whom to produce. Market economy solves this problem thanks to the law of supply and demand, which states that imbalances in the market corrects by changes in prices. It is imbalances between the quantity of the goods that buyers want to purchase and the quantity that producers want to sell.
When price of a good or service goes down, people increase their purchases, when it goes up demand cut down. Producers, when price goes up, increase their output. When there is shortage at the market, supply increase and producers have a chance to make an extra profit.
Perfect market is the model of market, where are a lot of buyers and sellers and competition is free. Monopoly is situation, when there is one seller or a very limited numerous of sellers in some markets.

The economic role of the Government

In every economy the work of different firms has to be coordinated. In market economy it is achieved by means of market. The debate over the role for Government in this economy is continuing. Economy, based on free enterprise is characterized by private ownership and initiative, with relative absence of government involvement. From time to time government intervention has been found necessary to ensure that economic opportunities are fair, to dampen inflation and to stimulate growth.
In the American market economy government plays a big role. It taxes, regulate, and support business. There are agencies to regulate safety, health, environment, transport, communications, trade, labour relations, and finance. Some industries – nuclear power, for example – have been regulated more closely.
U.S. Government controls inflation, limits monopoly, protect the consumer, controls the money supply. The aim is balanced budget. Government uses fiscal and monetary policies. Policies are admired at raising productivity, for abolishing poverty, increasing employment opportunity for all, providing educational opportunity for all. Its aim is to keep inflation low, maintain sound public finances and create the right climate for markets to work better.

Successful Investment by Effective Stock Market Tips

If people want to start a successful investing journey in India, they must invest in stock market. Although it involves a lot of risks in comparison to other investment options (FD along with various others) provided by many government as well as private banking & financial institutions but investments in stock can provide a huge returns to investors. To get huge returns is not an easy task for the people especially who are going to invest in the market for the first time without having any idea & knowledge about share market. In such scenarios, they will have requirement of getting effective stock market tips to book the huge profit for their investing capital.

Nobody in this world is capable to predict the market with 100% accuracy for short-term. In spite of that, it is recommended for investors to avail services of a paramount financial advisory firm, which has made well reputation in providing perfect stock tips to investors in India by understanding their custom needs & requirements. Having a highly qualified & experienced stock advisory team, such companies are capable to predict the market movement in the most accurate way. People should never try to predict the market movement by themselves only. They should have to stick on the recommendations provided by their advisory firms.

One of the other important things that are considered for share market trading are that investors should not be worried about the daily price fluctuations in the market. Most of the people use to be panic if prices are fluctuated in a drastic way. They need not to be panic as fluctuations in the market are a common phenomenon.  Successful investing doesn’t require to get real-time updates throughout the day. It is sufficient for investors to check the stock price once in a week if they invested in fundamentally strong stock. People should buy the stock & hold them for many years without following daily price movement.

People should always invest with peace in their mind. They should stay away from the crowd. There is no need to follow Internet, newspapers, TV channels every day. There is no need to check daily updates on the real time basis. Once they invested in fundamentally strong stock, you don’t need to check it on the real time basis. Investors should hold it for a long term across ups & downs. After a certain period, they will get immense profits for their holding stocks. Hence, there will always be requirements of profitable stock market tips to the people to become a successful investor.

How a Finance Broker Handles Your Home Loan Application Process?

After so much of research and exploration, you might have finalised an Australian finance broker to help you with your funding needs and to manage the paperwork in applying for a loan with the bank. Most of the time, your finance broker will update you with the outcomes of all the discussions and negotiations with the lender, but you might not be told about the efforts put in doing so. Thus, this article is an excerpt of an interview held with a finance specialist who shared the insights of the loan application process.

All it starts with your interview with the broker and that’s the time when they will assess your needs and at the same time will evaluate your financial credibility to help you get the most appropriate loan offer from the most appropriate lender in Australia.

In the First 24 to 48 Hours
Your choice of broker will submit your loan application with the lender after receiving all the supporting documents required to enclose with the loan application. If applicable, it will include First Home Owners Grant (FHOG) application as well. Once this is done, you will be informed about the submission within 24 to 48 hours.

The Next 2 – 3 Days
Your broker will receive a conditional approval receipt from the lender on your behalf. It will include the details of any outstanding matters that may require attention prior to final approval. Also, if needed, the valuation of the property will be ordered by the lender.

 Another 3 Days

The lender will receive the valuation report of the property within 3 days of request (subject to property access).

In Next 2 Days
The broker will be provided with the letter of final approval from the lender within 2 days after receiving valuation report. Now, the broker will contact you to confirm about the receipt of final approval from the lender.

In Another 5 to10 Days
If everything goes as per the books, the lender will dispatch the copy of mortgage documents for you within 5 days of final approval of your loan. By this time, you need to sign the documents and send them back to the lender within next 5 days. You will be required to convey the receiving of mortgage documents to your finance broker to ensure everything is fine before you sign.

The Final 2 to 10 Days
After sending your mortgage documents, it will take 2 to 3 days for your solicitor/conveyancer to contact the lender for final settlement. It might take 3 to 5 days for them to manage all the necessary paperwork prior to settlement. Moreover, the lender may take up to 10 working days to prepare the discharge of the existing mortgage and arrange a settlement.

Copywriting Series: Writing Copy for the Finance Market

If you have an ear and eye for the finance market as a copywriter, you should be reaping the rewards. As a copywriter for this niche, the benefits are endless, because markets change with such frequency. There’s always some news to convey about a host of topics – from emerging markets and stock markets, to information on debt settlement.

Finding The Right Tone

A professional tone is used in these articles, which means you have to be an authority on the subject you’re writing about. Nobody wants to read the ramblings of a novice in these areas. They want information, highly specialized, first rate knowledgeable content from an expert in these various fields.

If you’re a copywriter who is interested in the dynamics of global finance and understand the difference between an emerging market and developed economies, you should be able to put together some great copy on the state of world markets, their trajectories and recoveries.

Creating Current, Up to Date Content

There are so many topics that fall under the heading of finance. College planning, investments, insurance, tax, retirement, bankruptcy and car finance, are just a few that some copywriters have turned into a lucrative career. Writing for the finance market requires intelligence and professionalism. You have to research each topic extensively and provide up to date information for your reader.

As data changes rapidly on a day to day basis, the preparation has to be done in order to achieve results. This means, creating relevant copy from authoritative sources. Because speculation is a huge part of this writing niche, you should research at least ten varied opinions on your topic.

Clients want the information to be useful and engaging, but this doesn’t mean they have to be boring. If you’re a skilled copywriter you’ll be able to portray this by using the right tone, gathering and organizing the data in your copy – and turning it into a product worth reading. Use financial terms, but be careful not to lay it on too thick, or you’ll be discouraging new finance readers from returning to your clients website.

Stick To The Basics

The same basic article structures are used in these articles – like defining your target demographic, settling on an objective or purpose for your article, and using persuasive language to get your message across. Use a great heading, intro, sub-heads and a conclusion. Difficult or complex topics must be presented in short paragraphs, or you will lose your readership.

The only difference in structure is that there may be graphs, or some other numerical data that has to be incorporated into the body of your article. These should be used to reaffirm, or drive your argument/point home. If they are there for show, and have no real relevance, readers who have been in the game for a long time will pick up on poor research ability in no time. Bullet points and bold or italics work particularly well in the finance field, highlighting certain pertinent areas of interest.

Writing on Finance Means More Money

Clients generally pay well for financial copy because it’s so specialized. If you have yet to study, and want to get into financial writing – then do a split degree in finance and English. There are so many clients that are always looking for skilled copywriters to write the content on their finance websites. The fast paced finance world and its information sites need content more often than other niches. So the demand is always there, which means as a great finance writer, you’ll never be out of work.

There’s a more relaxed approach to what people want to see and read on the Internet, especially when they visit these finance sites. Not everybody understands the complexities of this niche, and this is where you can excel by making reading an absolute pleasure for both novice and professional readers alike, by using your effective writing skills to engage and inform.

The sky is the limit if you want to enter the world of finance writing. Keep in mind you have to be detail orientated, have impeccable work ethic and research skills far above the norm. Using your intelligence and writing skill, you can make a difference by creating professional, authoritative copy for this specialized market. A specialization like this can be very lucrative, if you have the right skill sets.

Why Auto Insurance Is Important

Many of us need automobiles to get from place to place, so we all know how useful they can be while also recognizing the fact that driving an automobile is dangerous. You might be careful in obeying traffic laws, but you never know when someone else will not and be the cause of an accident that involves you. Then again, mistakes do happen and you never know when something may occur that you will be at fault. These are reasons why it is important to have auto insurance.

However, auto insurance covers much more than just collisions. There are times when certain acts of nature may occur such as a hail storm or a falling tree that may cause damage to an automobile and it would cost too much money out of pocket to fix these things. The insurance will sometimes charge a small deductible depending on the type of accident that has occurred, but the cost is minimal compared to what it would cost to fix an automobile on your own.

A world without auto insurance

Just imagine what a world without auto insurance would be like. First of all, people who are at fault in accidents would be paying money to the accident victims out of their wages and other income for years to come. Those who have been injured in an accident at no fault of their own are entitled to have their medical bills, vehicle repairs, and other expenses paid by the insurance of the person who was at fault. If the person at fault does not have insurance, then they do have to pay those expenses out of their pocket. Many people have been known to lose major assets because they did not pay the minimal cost of having auto insurance to prevent such losses.

Then there are those natural disasters that we have absolutely no control over. There have been many overturned trees from high winds that have decided to fall the direction of someone’s brand new car. There have also been the occasional hail storms throwing golf ball-sized hail out of the sky at the many automobiles below. This can cause thousands of dollars in damage that goes beyond the scope of what most individuals can afford straight out of their pocket.

So why is it important?

It is probably already quite obvious to see why having auto insurance is very important. If not, then look at it this way:

• You are protecting your automobile, one of the largest investments you make in your life.
• You are able to pay for medical bills if an accident occurs.
• You don’t have to feel the biggest part of an accident-related lawsuit.
• Protects assets that you’ve worked hard for from being lost due to a lawsuit.
• Protects you from those motorists that may not have insurance of their own.
• Not only pays for accidents and weather-related incidents, but also pays for vandalism and theft.
• You know you are protected every single time you hit the road.

However, this brings about another point. It is very important that you review your insurance policy and make sure you understand all of it since every policy is different. Depending on a person’s financial situation, they may choose a certain type of coverage over another for a variety of reasons. This can be because they want to cut premium costs because they simply cannot afford higher coverage or another reason that they find they don’t need extensive coverage. These things should be considered carefully because you never know when one accident may be the event that causes you to lose many of your assets in order to satisfy the cost of a lawsuit settlement.

Lowest Auto Loan Rates – Where to Apply?

Benjamin Franklin once said that a person can know the real importance of money when he tries to borrow some. If you ask a car buyer, he will tell you the same thing. It is because he has to find the best loan program among several options. He has to take care of searching the lowest loan rates in order to make the loan program affordable. If you are in the auto financing market and searching for lowest rates on auto loans, here’s some help:

Who offers the lowest rates on auto loans?

WalletHub, a website that provides financial advice to its members, analyzed more than one fifty lenders and auto financing institutions to find the one that offers the least expensive auto loans. It reported that auto manufacturers offer the lowest rates on auto loans. Credit union is the second best option for car buyers seeking affordable loan program. The report mentioned that a traditional bank is the costliest alternative for an average car buyer because of its high-interest rates.

“Auto manufacturers are rebounding from a terrible economy when people weren’t buying new cars, so even though things are improving, they’re still sweetening the deal with low rates,” informed Jill Gonzalez of WalletHub.

The website found that manufacturers offered 1.92% APR for a three-year auto loan term to car buyers with good credit history. Such low rates were offered to car buyers for buying the manufacturer’s best-selling models. The credit union and banks offered 2.44% and 4.31% respectively on similar loans.

General Loan Approval Criteria of Auto Manufacturers

Although every auto manufacturer has different requirements, here are the general loan approval criteria:

>> Good credit score

>> Debt-to-income ratio lower than 40%

>> Gross Monthly Income higher than $2000

>> Co-Signer for young car buyers and people with no credit score

Following is the list of car buyers who are rejected by most auto manufacturers:

>> People with bad credit history

>> People with recent bankruptcy discharge

>> First-time car buyers without co-signer

>> Car buyers with repossession in last one year

If you fulfill the auto manufacturer’s loan approval criteria, it is best to obtain your auto loan from him. It will help you in saving money. Sadly, many car buyers have bad credit history or bankruptcy. Such buyers are not able to access lowest auto loan rates offered by auto manufacturers.

If your loan application has been rejected by an auto manufacturer, you can seek help of online auto financing companies. Such companies offer loans to people with less-than-perfect credit scores. They mainly focus on sub-prime car buyers. Also, their approval ratio is high because of a large lender-dealer network.

So, don’t worry if you cannot find an auto manufacturer to finance you. You can always opt for an online auto financing company to obtain loan approval.

Pre-Owned Market to Lead the Auto Market Growth

India is a growing economy and own one of the largest car markets in the world. Rising income levels and easy finance options boosted in making Indian automobile industry the sixth largest globally.

According to the statics submitted by consultancy and market research firm Frost & Sullivan, 2.5 million new cars were sold in India in year 2014 whereas used car market saw a hike with 3 million cars sold in the same year. Another report submitted by SIAM estimates that annual car sale for year 2015 could reach 5 million and over 9 million by year 2020.

The statistics clearly depicts that Indian automobile industry is growing fast at the rate of 15% that’s expected to be doubled in the next four years. Right now there are approximately 15,000 used car dealers in India out of which fewer than 1000 are organized. So, there’s a huge scope of improvement in the used car market.

 The overall ratio of new passenger vehicle sales to used passenger vehicle sales is estimated to be 1:3 in the developed market. However, in India the ratio is expected to be 1:1.3 by 2015.  All these reports suggest that the used automobile market is going to be fairly promising in coming years.

Decade ago majority of pre-owned car sales were customer to customer (among family and friends) on bases of circle of trust. But, current scenario has changed fairly with the presence of organized layer of dealers and technology. Furthermore, consumer needs have changed and innovation in technology is the major reason behind this robust growth.

Indian consumers have now defined the equation of used cars in a positive way. Pre-owned cars market offers great flexibility, wide selection, and easy transaction using online portals. This segment had become popular for three main reasons:

  • First car buyers can buy wide range of cars with advance technology at lower prices
  • Families looking to buy a second car often seek to buy used car as it is more economical option
  • With the change in lifestyle, customers who want to upgrade from 2-wheeler to 4-wheeler can do it easily without stretching their budget.

Also increased organization, online availability, lower rate of depreciation, easy financing, fair pricing and easy documentation have triggered the expansion of used car market.

Currently, there are many players in the auto market, making it difficult for the consumers to decide who is better. In-spite of huge list of online classifieds, buying used automobiles is still a sort of nightmare for Indian customers, as no one has been able to sooth the pain points of the buying and selling process.

The India’s first online marketplace for buying and selling automobiles Droom is making a lot difference with some of the unique features. With their Full-Circle trust, Buyer’s protection, Commitment Fee, wide selection, and listing from verified sellers only, droom is making online used car market more trustworthy and happening. Additionally, get droom discount offers to save on your purchase. Plus, they offer excellent automobile services at incredible prices. Visit or download droom mobile app for Android and iOS users.

3 differences between an SME Loan and a Business Loan

Even though business loans are considered to be a part of all the types of SME loans, there are a number of differences between the both. SME loans are offered to businesses to help them purchase new land or machinery to help their company grow and increase their profits. However, fundamentally, there are a number of factors which make a business loan differ from the other SME loans financial institutions offer. The three major differences between an SME loan and a business loan are:

Loan amount offered
Financial institutions offer business loan  to enterprise up to the amount of 35 lakhs. Other SME loans however provide higher amounts to businesses as loans between 5 to 10 crores. A business loan can be used by the business for any short term requirements. SME loans however are used to purchase machinery, land or equipment. This is why financial institutions offer higher amounts for SME loans.

The tenure for a business loan which is offered by a financial institution is roughly five years. The tenure for SME loans however range from 6 to 15 years depending on the type of loan chosen. Since the amount loaned is higher in the case of SME loans, enterprises are offered a longer tenure to help make the repayment of the loan easy. Small and Medium sized enterprises are given a longer duration so as to not financially pressure them and allow the repayment process to be simple.


All SME loans are secured while business loans are unsecured loans. Business loans offer a lower amount of finance and are hence an unsecured type of loan. SME loans  however offer a large amount as finance to small and medium enterprises. For a plant and machinery loan the plant or machinery purchased will be kept as security by the financial institution. In the case of medical equipment loans, the equipment which has been purchased by the company will be the security got the loan. For Property term loans, the plot of land purchased is kept by the financial institution until the loan has been repaid. Once the enterprise repays the loan in full, the financial institution will transfer the ownership to the enterprise. In cases where the loan cannot be repaid, the institution will simply sell the property, equipment or machinery to recover the loan amount.

A business loan is a short term unsecured source of finance. Enterprises should only use such a loan to help improve their business and not use the finance to repay bad debts or loans. Doing so will financially burden the company in future. Depending on the company’s financial needs, one can apply or any of the available loans with ease.

Fulfill Your Dream of Owning a Home with the Home Loan

Staying in own home is a fantasy of everybody. Individuals see longs for owning home at their own particular decision, yet everyone doesn’t ready to manage the cost of that. These days in the nation like India, cash is not an obstruction of the fantasy of owning a home. Since all the legislature and on-government banks in India offer Home loan. These loans are extraordinarily given to that individual who needs to develop their own particular home or buy a home.

Indian banks offer home loan under diverse classifications, these incorporate:-

Home Purchase Loans – This sort of fundamental loan are being accommodated acquiring another home.

Home Construction Loan: Banks gives this sort of loan to development of home.

Home Extension Loan: One can get the loan for growing or broadening his current home.

Home Improvement Loans: People can profit these loans on the off chance that they have the prerequisite for actualizing repair works and redesigns of their current home.

Bridge Loans: This loan is the best loan for that individual who needs to offer his current home and wish to buy another home. Banks individuals by giving this loan to back the new home.

Parity Transfer Loans: This sort of loan is given to pay off a current New Zealand home loan and benefit the choice of a loan with a lower rate of hobby.

Home Conversion Loan: Banks give this sort of loan to that individual who has as of now bought home by taking home loan and afterward needs to proceed onward to another home and for that he requires some additional cash. Under this classification of loan the current loan is being exchanged to the new home and the additional sum is to be incorporated.

Area Purchase Loans: One can benefit these loans for obtaining area. The bank will give the loan without checking whether the borrower taking the loan for development his home or utilizing it for some different purposes.

Renegotiate Loans: That who have taken loans from their companions or in respect to buy their homes, this sort of loan helps them considerable measures to reimburse that obligation add up to them.

Stamp Duty Loans: To buy a property, stamp obligation is fundamental. This sort of loan people groups to pay for the stamp obligation.

In India, banks give home loans against altered and gliding rate of premium. Under the settled rate home loans the financing cost stays altered for the entire time of the loan. By taking loan under this classification the borrower will get the office of getting a settled financing cost. Be that as it may, for this situation they need to pay a higher rate of hobby. Then again, under the drifting rate loans the rate of interest vacillates in like manner. The borrower will get the office of getting a low loan fee. Be that as it may, the financing cost can rise whenever and the borrower needs to pay a much higher loan cost than the settled rate of these loans. The reimbursement of nz home loans is to be given through Equated Monthly Installment (EMI). The home loan EMI relies on upon the sum and the reimbursement period one takes.

In this time of innovation, one can apply for the home loan Online. By applying online one gets help from the heaps of bother like going to the banks, looking for the best home loan arrangement, do the tremendous conventions and satisfy the long paper works. By profiting these loans online one simply needs to sit on an Internet empowered PC, make a quest for the best home loan bargain and in the wake of picking one simply needs to fill a structure, that is it. By doing some basic techniques you dream can work out.

MBA in Marketing Vs MBA in Finance

Now-a-days MBA is one among the top choices of students from the Engineering as well as Finance streams. Management careers are gaining more and more fame as students have good career opportunities post successful completion of management studies. When pursuing MBA Students can choose the courses of their interest. When it comes to MBA programs in finance and marketing both have lot of similarities. Finance MBA programs offer courses in marketing, and marketing MBA programs offer courses in finance.

India is home to around 3000 institutes offering management education. Out of which there are numerous top management institutes in Maharashtra. Apart from Mumbai, even small cities like Pune and Nashik get ranked for owning the best MBA institutes. The top MBA colleges in India have the best infrastructure, best faculty, alumni and of course tie-up with top companies for campus placements.

Listed below are the similarities between Marketing and Finance MBA Programs:

Master of Business Administration in Marketing (MBA in Marketing)

Students who pursue MBA in marketing learn to manage and make decisions in regards to advertising, public relations and other communications fields. In their course of education they are taught about international sales and marketing, risk management, strategic planning, economics, ethics, market research, financial analysis, consumer behavior and current business trends.In an MBA marketing program, students can choose their subspecialty depending on their interest and career goals from areas like advertising, Internet and international marketing.

Master of Business Administration in Finance (MBA in Finance)

MBA graduates who pursue major in finance are taught how to make financial decisions for a variety of businesses and organizations. Students are taught how to acquire, manage and distribute funds in business. MBA in finance includes learning marketing, international business and finance, budgeting, financial accounting, data analysis and economics in the syllabi. Private equity, corporate finance and portfolio management are few of the subspecialty which students can choose depending on their interest.

From the above information, it’s clear that Marketing MBA graduates have an opportunity to step into creative and communications field and also in other finance corporates organizations where as Finance MBA graduates are best suited for working in fields related to banks, administration and accounting and corporate financial organizations.

Following is a list of Career Options for Graduates with a Marketing MBA degree:

  • Advertising Executive
  • Brand Manager
  • Business Development Director
  • Buyer
  • Market Researcher
  • Product Manager
  • Senior Marketing Analyst

Following is a list of Career Options for Graduates with a Finance MBA degree

  • Chief Financial Officer
  • Financial Analyst
  • Financial Manager
  • Insurance Adjuster
  • Investment Banker

Stock Broker

The 10 Factors That Affect and Predict Stock Prices

This is the most frequent question that most stock/options traders may have in their minds. Stocks price changes due to market forces, i.e. buying and selling of the available stocks in the market.  The following are the factors that affect or even predict the buying or selling of stock that ultimately affects stock prices of companies.

·         Market sentiment.  The price of the stock of a company is affected most of the time by the general market direction during a session.  In a bull market, the stock price of most companies will rise and in a bear market the stock price of most companies will fall.  One can gauge the market sentiment by looking at stock indexes or its future price movement.  The stock indexes are S&P 500, Dow Jones Industrial Index, Nasdaq (USA), ASX100, ASX (Australia), Nikkei 225 (Japan), Euronext 100, Euronext 150 (Europe Union), DAX, TECDAX (Germany), FTSE 100, FTSE All Shares, FTSE Techmark (United Kingdom.

·         The performance of the industry.  The performance of the sector or industry that the company is in also plays in part in determining the stock price of the company.  Most of the times, the stock price of the companies in the same industry will move in tandem with each other.  This is because market conditions will generally affects the companies in the same industry the same way.  Of course, there are exceptions to this.  Sometimes, the stock price of a company will benefit from a piece of bad news in its competitor if the companies are competing for the same target market.           

·         The earning results and earning guidance.  The main objective of a company is to make profit.  Therefore, investors and traders always assess a company based on its Earning Per Share (bottom line) and Revenue (top line) and its future earning potential.  In US, companies generally report the earnings results every quarter-yearly.  A company that achieves good earning results (EPS and Revenue) expects a boost in its share price and one that delivers poor earning result shall see a beating in its share price.  Sometimes, besides reporting the EPS and Revenue for the past quarter, a company may also issue guidance (expected value) for the EPS and Revenue in coming quarter or coming years.  This is also closely monitored by investors and is an important factor that will affect the company stock price.

·         Take-over or merger.  In general, a company being taken-over is anticipated to get a stock price boost and the company taking over another company shall experience a drop in its share price.  This is assuming that the company is being taken over at a premium, meaning it is being bought over at a higher price than its last traded stock price.  Depends on the agreed term, a company can be bought over by cash or stock (of the acquirer) or a combination of the two.  In some minority cases, the stock price of the acquirer may get a boost if it is perceived that the acquisition shall contribute to its earning or revenue in the near future.

·         New product introduction to markets or introduction of an existing product to new markets.  The introduction of new product to market is seen as a revenue enhancer for a company.  This also applies to an existing product that breaks into new markets.  Sometimes, the prospect of a new product introduction suffices to improve the stock price of a company, this is often observed in surges in stock prices of pharmaceuticals companies after the announcement of successful clinical trials, or FDA approvals for new drugs.

·         New major contracts or major Government Orders.  A company that is able to obtain new major contracts or major government order is expected to see a bull run in its stock price.  Those companies that fail in the contract bidding normally experience the fate of sell-off in its stocks.

·         Share buy-back.  The act of share buy-back by a company will reduce the number of share available in the open market.  Due to the law of supply and demand, a reduction in share available for trading in this case will cause a drop in supply, this will normally help increase the share price.  Also, the continuing buying back of share of a company will also acts as a support for the share price that helps to maintain or increase the share price.  The investors may also see the share buy-back by company as a confidence booster for them in the company itself.  Therefore, share buy-back is quite often used as a tool to deliver value to the investors.

·         Dividend.  After the announcement of a dividend.  The stock price may increase by an amount close to the dividend per share value.  However, the stock price may drop on the ex-dividend date by the dividend per share amount.  This is because anyone buying a stock on or after the ex-dividend date are not entitled to the corresponding dividend payment.

·         Stock splits.  Stock split in theory, should not have an impact to the stock price.  However, it is generally observed that the stock price increases (after taking into account the increase in the number of share) after a stock split.  Some attributed to the better affordability of the stock after stock split, some attributed this to the perception of cheap stock due to the lower stock price after the stock split.  Some however believes that stock split has no real impact on the stock price (effective stock price, taking into account the change in number of shares), as the stock price will increase regardless of stock split.

·         Insider trading.  Insiders include CEO, COO, CFO, Chairman, board directors etc, who has first hand information about the operations and the financial status of a company.  Therefore, the buying or selling of stocks by these insiders may herald some good or bad news about the company.  This is being watched closely by savvy stock investors/traders.  However, do be aware that due to compensation package that comes in the form of stock or stock options, the insiders may sell their stocks/stock options to cash-in their compensation benefits.  So in this case, it may not signal anything significant about the company.  A savvy investor should know how to observe and filter out this piece of information from your investment or trading decisions.

·         Investment Gurus / Hedge Funds trading.  The investment decision of highly revered investment gurus like Warren Buffett, George Soros, Carl Icahn are closely monitored by investors and therefore will move the market.  Hedge fund stock buying and selling are another source of information regarding the flow of “smart money”.

·         Analyst upgrade / downgrades.  Analyst upgrade and downgrade to a stock may have positive or negative impact to the stock prices.  However, one needs to be wary of the fact that quite often analysts’ upgrades or downgrades happen “after” some important news about a company.  For example following a extremely disappointing earning result, many analysts will likely to downgrade the company stock.  So, it is very likely that by then the stock price of that company has already priced-in the poor earning result, and analyst downgrade may not have further impact to the stock price.

·         Addition/Removal to/from Stock Index.  Stock Index Fund are those funds that invest in those company stocks that are included in a particular stock index (e.g. S&P 500, Nasdaq-100, Dow Jones U.S. Large Cap etc.) .  Therefore, an inclusion of a company stock to a stock index will generate buying interest in the stock for these stock index fund managers.   The stock index fund managers will dispose of the stock that has been removed from the stock index.

·         Others.  These include news about new technology, patent approval, war, natural disaster, product recalls and lawsuits that shall have positive and negative impact to the relevant company stocks.  The health or mishap of a key leader in a company may also affect the stock price of the company.  Take a look at the recent news about Apple Computer.

Intraday Trading : Commodity Market

Prices for ore, copper, nickel, atomic number 13 and alternative metals are during a multiyear slump amid sluggish growth in advanced economies and weakening enlargement in rising markets.
Unfortunately, the trend won’t be attenuation anytime shortly, M.T.R. capitalist Service says in its latest world base metals outlook report, printed Gregorian calendar month .
“Slowing growth in China and Brazil, muted conditions in Europe and a weak recovery within the America can still pressure world base metal costs,” the ratings agency warns.
M.T.R. expects this state of affairs to induce worse next year, and says that uncertainty relating to growth in China is one among the first factors underpinning its negative outlook. This, because the Asian big still accounts for quite four-hundredth of world demand for many key base metals.
M.T.R. conjointly noted that vessel worth declines can flow through to companies’ earnings in 2015, leading to a fabric decline in income for several producers.
“Base metal costs will not materially modification over subsequent twelve to eighteen months in our read, and will face more draw back risk.
Prices [will] still trade at lower levels, given expectations for reduced demand and slower growth rates,” it added.
And whereas the gloomy state of affairs could also be a boon for economies that import metals, nations that bank heavily on such exports, like Chile, DRC, Niger and African nation, can probably have a rough ride ahead.

Student Accounts: Helping Students Manage Their Own Finances

One of the biggest responsibilities associated with going off to university has to do with finance management – particularly if a student plans to live away from home. And, while many first and second-year university students might live in university housing – which usually means their yearly rent is sorted before their term begins – these students often have to deal with other costs on their own, such as food shopping, books, study supplies and, of course, trips to the pub.

Older university students, however, will often have to manage their own rent, bills, utility costs, and other expenses. So it’s important for students to get a handle on finances and finance management early on in their university careers.

One of the best ways to introduce a student into the world of finance management is to have them open their own bank account. A lot of responsibility comes with a bank account, as does a great deal of financial freedom. For instance, students can gain practice in keeping track of their finances – which is an important skill to have. They’ll also experience the conveniences of banking – for instance, through 24-hour cash machine withdrawals – as well as rewards for saving money – such as through accrued interest on certain types of accounts.

Moreover, if they happen to have an overdraft on an account, they’ll quickly learn the consequences of overspending – such as through deducted interest. Simply put, a bank account is a great way for students to learn about managing their own finances.

 Most banks today offer special accounts designed for students. Some might be geared for students already in university, while others are designed for students preparing to go to university. There are even accounts out there dedicated to graduate students, as there are for students under a certain age.

Each type of account caters to a specific type of student, usually offering special discounts, benefits, overdrafts and more. And student accounts usually offer special interest rates, if any at all. So, no matter what year a student is in at university, or how old they are, they can take advantage of a range of benefits that come with student accounts.

Whether you’re a student yourself, or a parent with a student, consider a student account – it’s one of the smarter moves you or your student can make with regard to gaining financial responsibility.

What is Capital Market, It’s Advantages and Disadvantages

Primary Market and Secondary Makret-

Primary Market-

The primary market is that part of the capital markets that deals with the issuance of new securities. Companies’ governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. This is typically done through a syndicate of securities dealers. The process of selling new issues to investors is called underwriting. In the case of a new stock issue this sale is an initial public offering (IPO). Dealers earn a commission that is built into the price of the security offering; through it can be found in the prospectus. In simple word The Primary Market is where financial instruments are sold from the issuer to investors

Benefits of Primary Market-

  1. Manipulation of price is smaller so invest in primary market is safer.
  2. No need to time the market the investors get the share at the same price.
  3. It is secure because of primary research data is collected directly by the organization that deploys the research
  4. The company receives the money and issue new security certificates to the investors

Secondary Markets-

The secondary market is the financial market for trading of securities that have already been issued in an initial private or public offering. Alternatively secondary market can refer to the market for any kind of used goods. The market that exists in a new security just after the new issue is often referred to as the aftermarket. Once a newly issued stock is listed on a stock exchange, investors and speculators can easily trade on the exchange, as market markers provide bids and offers in the new stock. In short The Secondary Market is where financial instruments are sold from investor to investor.

Benefits of Secondary Market-

  1. The investors can recover their investments to a certain extent, provided their economic status undergoes a change.
  2. In such cases the investors may refrain from making long term investments.
  3. Investor can get large interest by invest for a longer period of time.

Advantages and Disadvantages of Capital Market-


  1. 1.      Effective Risk Management-
  • Manage security exposure, market, and operations risk.
  • Handle compliance issues, regulatory requirements, security, and other operational risks without burdening existing operations
  1. 2.       Customer-centric Business Model
  • Capture investment profiles to target offers and leads, while shortening sales cycles and increasing investment offers.
  • Personalize customer experience across channels
  1. 3.      Operational Effectiveness-
  • Manage security exposure, market and operations risk. and Provide Real time and near real time actionable customer and product profitable insight, delivered to the front office.
  • Profitable for Investor- The resulting advantages include that innovation is driven forward in a free, capitalist economy, with investors receiving dividends from successful ventures. This money can then be used in other projects that an investor might be passionate and enthusiastic about.


  1. Volatility is another issue – and with long-term investments.
  2. May be high charges which reduce earnings from investment returns.
  3. No guarantee of returns
  4. Risk of losing your money.

Intersog Business and Finance Apps lead market for iPad

Chicago, Illinois – Leading mobile applications developer Intersog LLC today announces enthusiasm over market data revealing it’s numerous Business and Finance oriented applications to be the most propagated app series available in these categories for iPad. The apps — a portion of Intersog’s acclaimed Learning-To-Go mobile education app series – have been featured in What’s Hot category for Business and Finance with a great number of titles.

Pocket Manager – Business Essentials, Pocket CFO: Financial terms course book, Pocket MBA – Modern Supervision course, Pocket MBA – Effective Business Communications course, Pocket MBA – course, Pocket MBA Full course (Part 1), Pocket Manager – Small Business Guide course, Pocket Manager – Real Estate Financing and Investing course currently rank amongst the hottest downloaded apps in the genre of Business.  Pocket CFO series – Managing Cash Flow, Internal Controls and Fraud Prevention course, A Complete Guide to Investing course – gather the greatest amount of success among Finance apps. As the most significant achievement it’s important to highlight the success of Pocket MBA Full course (Part 1) as the most complete and in-depth collection of professional-level business courses from Intersog’s acclaimed Learning-To-Go mobile education series. These results are not without reasons. On a platform as conducive to mobile education as the iPad, Intersog’s status as an exceptional developer focused mainly on learning applications with a successful product history heavily defined by educational materials is enough to differentiate Intersog favorably from even its largest competitors.

As one of the only developers to specialize in offering to consumers a fully interactive mobile learning experience, Intersog continues to produce learning apps specific to finance – as well as other corridors of business — that are several leagues above other eBooks or apps offering basic educational materials currently on the market, even if these apps happen to be produced by giants such as Morgan Stanley, eTrade, or other institutions regarded conventionally as global leaders in the finance sector.

Bolstered by the organization’s sustained success and public recognition Intersog aims to build on its library of mobile learning applications currently centered around their Learning-To-Go app series – a faction of apps developed exclusively as interactive business courses. With the company’s up-coming release of the Combobook app series Intersog hopes to replicate their current success on a larger scale and in a much broader market capacity. The Combobook app series will center on offering a much wider variety of interactive educational materials and written content, taking its cue from the structure and quality of current Intersog products that have been integral their success.

Problems and Difficulties in Capital Budgeting

Problems and Difficulties in Capital Budgeting

*Dr.P.Shanmukha Rao  **Dr.N.V.S.Suryanarayana

Capital Budgeting may also be defined as “The decision making process by which a firm evaluates the purchase of major fixed assets. It involves firm’s decision to invest its current funds for addition, disposition, modification and replacement of fixed assets.

“Capital budgeting is concerned with allocation of the firm’s scarce financial resources among the available market opportunities. The consideration of investment opportunities involves the comparison of the expected future streams of earnings from a project with immediate and subsequent streams of expenditure for it”. The problems in capital budgeting decisions may be as follows:

a)     Future uncertainty: Capital budgeting decisions involve long term commitments. However there is lot of uncertainty in the long term. The uncertainty may be with reference to cost of the project, future expected returns, future competition, legal provisions, political situation etc.

b)    Time Element: The implications of a Capital Budgeting decision are scattered over a long period. The cost and the benefits of a decision may occur at different points of time. The cost of a project is incurred immediately.  However, the investment is recovered over a number of years. The future benefits have to be adjusted to make them comparable with the cost. Longer the time period involved, greater would be the uncertainty.

c)     Difficulty in Quantification of impact: The finance manager may face difficulties in measuring the cost and benefits of projects in quantitative terms. For example, the new products proposed to be launched by a firm may result in increase or decrease in sales of other product proposed to be launched by a firm may result in increase or decrease in sales of other products already being sold by the same firm. It is very difficult to ascertain the extent of impact as the sales of other products may also be influenced by factors other than the launch of the new products.

Assumptions in capital budgeting:

The capital budgeting decision process is a multi-faced and analytical process. A number of assumptions are required to be made. These assumptions constitute a general set of conditions within which the financial aspects of different proposals are to be evaluated. Some of these assumptions are:

  1. Certainty with respect to cost and benefits: It is very difficult to estimate the cost and benefits of a proposal beyond 2-3 years in future. However, for a capital budgeting decision, It is assumed that the estimates of cost and benefits are reasonably accurate and certain.
  1. Profit motive: Another assumption is that the capital budgeting decisions are taken with a primary motive of increasing the profit of the firm. No other motive or goal influences the decision of the finance manager
  1. No Capital Rationing: The Capital Budgeting decisions in the present chapter assume that there is no scarcity of capital. It assumes that a proposal will be accepted or rejected on the strength of its merits alone. The proposal will not be considered in combination with other proposals to consider the maximum utilization of available funds.

The next step in the capital budgeting process is to various proposals.  The methods, which may be used for this purpose such as, pay back period method, Rate of return method, N.P.V and I.R.R etc. The project should be accepted if NPV is positive it should be clear that the acceptance rule using NPV method is to accept the investment project if its net present value is negative (NPV CASH OUTFLOW).  The positive net present value will result only if the project generates cash inflows at rate higher than the opportunity cost of capital.  A project may be accepted in NPV = 0.

The internal rate of return (IRR) method is another discounted cash flow technique, which makes account of the magnitude and timing of cash flows. Others terms used to describe the IRR Method are yield on investment, marginal efficiency of capital, rate of return over cost, time adjusted rate of internal return and so on. The concept of internal rate of return is quite simple to understand in the case of one-period projects. The IRR is calculated by interpolating the two rates. The accept project rule, using the IRR method, is to accept the project if its internal rate of return is higher than the opportunity cost of capital (r>k) note that k is also known as the required rate of return or cut-off rate. The project shall be rejected if its internal rate of return is lower than the opportunity cost of capital.

The project study is undertaken to analyze and understand the Capital Budgeting process in power sector, which gives mean exposure to practical implication of theory knowledge. To know about the company’s operations of using various Capital Budgeting techniques. To know how the company gets funds from various resources.

How Auto Loan Amortization Works

Looking for an auto loan is a big process and so many factors are attached to it. First, the buyer has to study about the lender, their loan terms, interest rates etc. Through this, the buyer will have some vague idea about the lender and according to that he can negotiate on the interest rates. The auto loan depends on the credit history of the applicant also. So before going in for a loan, the applicant must improve on his credit score.

Amortizations can be explained as to the method to pay off the loan, more than a period of time taken to repay the loan completely. Amortization not only prevails in case of home loans and mortgages, but also for car loan, credit card dues etc. The process determines the mode of payment over a set period of time. This can be calculated with reference to the loan amount. As it is very much complicated most of the people use online calculators available in the internet. This can be utilized before a decision of the loan amount.

More number of ways are available to calculate the interest amounts, but mostly banks calculate them by using loan amortization table or spread sheet. They help in telling about the best offer available all around. It saves time also. The loan amortization tables are into three types and they are:

Equal Capital – The calculation system displays each equal monthly payment and the total variable payments made to the bank. In this case the repayment amount will get reduced as the expiration date gets nearer.

 Spitzer Amortization Table – This types provides a fixed monthly payment, but with variable interest rates through out the repayment period. Fluctuation of interest will be more in this case.

Bolit Amortization Table – The interest only will be paid from the beginning and the principal amount will be paid only after a pre determined period of time.

An amortization calculator is used as a best tool to calculate the loan details and to get some wide range of information, and it is impossible for a normal human being to understand the details without any difficulty. It helps the applicant by telling the amount to be paid monthly and the interest and the principal.

Details to be entered in the calculator are as follows:

Money to be borrowed
Interest rate
Period of loan

By providing these inputs the output will be the amortization schedule with the exact information. This tool can be used to find out the exact loan type. Thus auto loan amortization plays a vital role in auto loan industry.

A tool for poverty reduction through micro finance: market segmentation

Microfinance, certainly plays an important role in providing safety-net and consumption smoothening. The borrowers of microfinance possibly benefit from learning-by-doing and from self-esteem. However, for any significant dent on poverty, the focus of public policy should be on growth-oriented and equity-enhancing programs, such as broad-based productive employment creation. India is one of the fast developing countries in the world. India’s ‘first world’ economy is oriented to the very highest standards of globalize consumption, and formal sector incomes and lifestyles reflect this. By contrast, the real incomes and ‘lifestyles’ of the very poor, particularly in rural areas, are comparable very low. Micro-finance is often advocated as a solution to multiple social problems in India. Poor Persons with access to credit can make investments in enterprises that bring them out of poverty. Over the last few years, savings and credit groups have also helped to manage some important social programs of the Indian government, such as the distribution of food grains and school meals in state primary schools.

Market Segmentation:

The process of splitting customers, or potential customers, in a market into different groups, or segments, within which customers share a similar level of interest in the same or comparable set of needs satisfied by a distinct marketing proposition. The primary objective of segmentation, therefore, must be how to win and retain the customers you want to serve. The main purpose of segmenting a market is to allow a market or sales program to focus on the prospects that are most likely to purchase the products or services on offer. If it is done properly it ensures that the best return for the marketing expense is outlaid. There are definite differences and these depend on whether you are selling to individual consumers or to business customers.

In simple words, Market segmentation is the process of dividing a total market into market groups consisting of people who have relatively similar product needs. Market Segmentation is an important information-gathering technique that involves dividing the market into target groups defined by certain shared characteristics. Segmenting the market can identify niches where new products can fill an unmet need. Accordingly, the product development team should segment the market in a way that identifies clusters of potential customers from whom to elicit feedback on the prototype. Segmentation helps the MFI to identify market opportunities by customer group to more effectively design and target its new products. Specifically, it allows an MFI to make conscious decisions about cross subsidizing, diversifying portfolio risk and other tradeoffs involved in serving multiple customer groups with different products. Once the target market has been identified, the product development team will start collecting data on the segment to design product characteristics. Secondary data, information usually collected by external sources for some other purpose than product development, is typically the starting material for the product development team because it is relatively inexpensive and readily available. Primary data, information collected specifically for a particular project, is typically direct, field-based research and is more dear – both in terms of cost and value to the institution. Both are critical sources of information for the initial product design. Groups into which markets are typically segmented include:

Geography:Most MFIs divide their markets into geographical units, identifying specific characteristics of regions, towns, or villages. Geographic segmentation by region can make divisions by location such as south, north, central, mountain, or coastal; population density, differentiating urban, rural, and suburban areas; and climate such as tropical, arid, or temperate. Often, product design will reflect these geographic differences, for example by tying payment terms to seasonal climatic variations.

Demography: Demographic analysis involves segmenting the population by certain shared characteristics, such as age/generation, social class, marital status, family size, ethnicity, race, religion, occupation, and level of education. In conventional business, demographic variables are the most commonly used for differentiating target markets, mainly because they are easily measurable and are strong predictors of consumer preferences and usage rates. The three most common demographic characteristics used to segment markets in microfinance are gender, income, and industry/occupation.

Gender:Many microfinance programs, such as the Self-Employed Women’s Association (SEWA) of India, target women explicitly both because female-headed households are among the poorest in the world and because of women’s propensity to reinvest their earnings into their family’s health and education.

Income:Some MFIs target micro entrepreneurs earning less than a certain amount. If an MFI serves different economic classes of the population, income segmentation can help isolate the different needs of these target markets. Municipalities of Krishna district in Andhra began identifying a middle-class market segment for its savings product because this group typically has more stable accounts, makes larger deposits, and has fewer withdrawals than poorer groups, which “provide a more agile source of funds.”

Business Size:Business size is similar to income segmentation. MFIs can differentiate enterprises by their sales, number of employees (if any), or profit size.

Industry/Occupation:Some MFIs offer specialized products by industry, such as agriculture, fishing, and trade, or by occupation. TSPI (Tsukiden software Philippines) in the Philippines designed a group loan product for taxi drivers who resourcefully drive motorized tricycles to circumvent the chronic congestion. BRAC (Bangladesh Rural Advancement Committee) in Bangladesh typically identifies specific industries (like fishing or livestock) tied to development objectives to provide targeted financing. These targeted financial products are structured to match the seasonal funding needs characteristic of particular industries.

Financing Need: Commercial lending institutions often segment the market by product type or the corresponding financing need. Similarly, MFIs often segment the market by those enterprises requiring working capital (the most prevalent type of microfinance product) versus those wanting to purchase fixed assets or to finance infrastructure improvements. Another example of segmenting by financing need would be loan size, which is not necessarily connected to business size, although many MFIs mistakenly equate the two.

Behavioral:Behavioral segmentation divides customers into groups based on their attitude toward, use of, or response to a particular product. Behavioral segmentation is common among MFIs, which often group clients by repayment history because responsible clients are lucrative. Another behavioral segment used in both conventional and microfinance settings are those customers that are status conscious.

Common characteristics include faster operating cycles (shorter terms), slower growth rates (smaller loans), fewer assets and employees, and severely time constrained managers with less formal sector exposure/experience and lower levels of literacy. Corresponding product features include simple applications with quick turnaround time. Finally, providing an effective and sustainable MED (microenterprise development) service to the very poor is not an easy challenge. It requires persistence, visionary leadership and a strong commitment across the entire organization through staff incentives, performance measurement and a willingness to change and adapt. Develop a marketing strategy and internal systems to successfully launch the new product and manage its on-going refinement.

Microfinance product

Offering financial services to poor people in developing countries is expensive business. The cost is one of the biggest reasons why traditional banks don´t make small loans, the resources required for a 50$ loan is the same as for a 1000$ loan. MFIs also have big personnel and administration costs. Field staff managers must perform village surveys before entering a village, conduct interviews with potential borrowers, educate the borrowers in credit discipline, travel to the villages every week to collect interest and distribute loans and control that the loans are being used for the given purpose. The microcredit loan cycles are usually shorter than traditional commercial loans with terms from typically six months to a year with payments plus interest, paid weekly. Shorter loan cycles and weekly payments help the borrowers stay current and not become surprised by large payments. Clearly the transaction-intense nature of weekly payment collections, often in rural areas, is more expensive than running a bank branch that provides large loans to economically secure borrowers in a metropolitan area. As a result, MFIs must charge interest rates that might sound high. In order to be able to lend out money, the microfinance institutions must in addition borrow from the traditional finance sector with commercial perspective. There´s about 1-2% loss on loans due to people not paying back. To be able to expand business the MFIs must also make some profit, at least 1-2%. All in all it´s easier to understand why the MFIs charge their customer interest rates which in first sight might appear high. With a growing market, better economics of scale and increasing efficiency the cost will reduce and lower interest rates are able.

For a financial institution to scale and remain sustainable, at a bare minimum it has to cover its costs. A large bank can charge lower rates in order to recoup its costs. Because of smaller loan size and more transactions, the MFI has to charge higher minimum rates. Data from the Micro Banking Bulletin reports that 63 of the world’s top MFIs had an average rate of return, after adjusting for inflation and after taking out subsidies programs, of about 2.5% of total assets. This lends to the hope that microfinance can be sufficiently attractive for investors, as well as the mainstream in the retail banking sector.

Reliable finance broker at your doorstep

Buying a house is a large money investment. Not everybody has the money capability to buy a home or  a real-estate property in cash. So, home buyers seek for home loans.

Now, finding a decent and reasonable home finance arrangement could be a long and nerve-wracking method. If you are trying to get the most effective equity credit provider on your own, you may have to be compelled to notice the most effective lender/credit supplier then try and win over him/her for loan approval.

Today, several sensible home patrons don’t endure the difficulty of finding a lender/credit supplier on their own. Instead, they communicate with finance brokers for getting an equity credit line. It’s because finance brokers are equity credit line consultants. They have the qualifications, data and knowledge to guide you through the complete method of finance and insurance arrangements.

The distinction between a Finance Broker and a Loans Officer-

Loans Officer
You can get a home equity loan directly through a loaner (e.g. bank, depository financial institution, savings and loan association, etc.). If you choose to go to a loaner, most likely be coping with a “loans officer” who can establish that of the lender’s portfolio of loan products will fit your desires, rather than looking the complete market for an appropriate loan.
You may conjointly notice that the loans officers used by lenders expect you to possess full information of home loans. They even ask you if you wish a set or a variable loan. But, they forget to relinquish you an evidence of what they’re and the way they work.

Finance Broker
You can conjointly undergo a finance broker who incorporates a full information of how home loans work. They’ll inform you the assorted credit policies and loaning needs for all lenders/credit providers as they manage them on an everyday usual.

So, before you begin checking out your next home equity loan, you must ask for the help of a professionally qualified and knowledgeable finance broker who can save a lot of time looking around and is willing to supply you with variety of comparisons of the various interest rates and loan products offered within the market.

What is the role of Finance Brokers?

Finance brokers can work with clients:

  1. to work out their borrowing wants and ability;
  2. choose a loan suited to their circumstances;
  3. Manage the method during to settlement; and Even on the far side (i.e. post-settlement).
  4. Many businesses use finance brokers:
  5.  to assist them with their finance wants (e.g. automotive and instrumentality leasing); and
  6. to assist them when they are wanting to expand the companies.

What are the advantages of employing a Finance Broker?

Here could be a list of some benefits:

  1. they are doing all the legal work for you;
  2. they need access to a wider vary of loans;
  3.  they’re consultants in obtaining you loan approval;
  4.  they need larger business expertise and knowledge; and
  5. they’re needed to satisfy strict instructional Standards and skilled Qualifications

What do Finance Brokers specialise in?

Finance brokers will specialize in many areas such as:

  1. Residential /Mortgage Loans;
  2. finance and Equity Releases (i.e. money outs);
  3. instrumentality Leasing;
  4. private property Finance;
  5. automotive and private Loans;
  6.  Business Loans;
  7.  business Property Finance;
  8.  Medico and Pharmacy Loans;
  9. Agricultural Loans; and
  10. Organize for your Insurance wants.

Zero-percent Car Financing – Fact or Fiction?

What does zero percent financing really cost? Car dealers have been very successful with their zero percent financing campaigns – so successful that the concept has been repeated in other industries such as electronics, furniture sales and credit card companies.

According to CNW Research, only one-third of buyers who apply for zero percent auto financing actually qualify and only 10% of those deals actually close according to the National Automobile Dealers Association. CNW Research goes on to state that many zero percent qualifiers overpay for their cars, since they assume they’re getting the best deal available and they fail to negotiate price. Automotive manufacturers use their own financing companies to underwrite these zero percent loans, each of which have their own credit qualifications. Generally speaking an applicant must have close to perfect credit to qualify for zero percent financing.

If you have been one of the fortunate ones that didn’t get lured in with the 0% financing offers only to get switched to a higher rate because of “blemishes” on your credit and the dealer is now offering you that “free” money, here are some drawbacks you should be aware of before signing that deal.

Shorter Loan Terms. Some dealers offer 60 month terms, but 36 months is average. This means your monthly payments will be much higher.

Limited Inventory. The zero percent offers are generally reserved for models that are suffering lower sales and is almost never offered on pre-owned inventory.

Cash Back. Have you every noticed the “or” clause in those zero percent advertising ads “0% or $10,000 cash back?” That $10,000 you lose by opting for the zero percent financing is the actual cost of borrowing. This often equates to an interest rate much higher than a traditional car loan.
Adding up the Numbers A recent search of the website of one of the Big 3 automakers shows an offer of zero-percent financing on a 2005 mid size sedan. This is how the numbers work out.

Annual Percentage Rate

Less Rebate
Amount to Finance
Monthly Payment
Total Cost
$1,391 Based on 48 months. Does not include taxes, administration or other fees dealer may charge.

This comparison doesn’t take into account the fact that you are forced to purchase a new vehicle. Let’s take a look at the same vehicle, same model year with approximately 10,000 km on it that was found by doing a quick search on the Internet.

Annual Percentage Rate
6.95% pre owned
Cost of Car
Less Rebate
Amount to Finance
Monthly Payment
Total Cost
By financing at a low rate and choosing a slightly used vehicle over new, a consumer would save over $7000 in this instance.

Online Credit Applications One of the most streamlined ways to secure financing for a new vehicle is to use one of the many online Canadian car loan services. These companies allow car buyers to fill out car loan applications free of charge.

This method is recommended for car buyers with all types of credit ratings. It can certainly help people with poor credit ratings secure the loans that they need, but buyers with good credit can benefit from them as well. Oftentimes, more than one dealership or lending partner will vie for your business, which enables you to choose the financing that is best suited to your budget.

Having a service arrange your financing also affords you the opportunity to spend your time focusing on other aspects of the car buying process. This time could be wisely spent researching what cars you can afford, and determining what your needs are. Armed with that information, and a loan secured at a dealership or from a lending partner, you’re ready to begin shopping for a new car as a prepared and knowledgeable consumer.

Property investor vs. stock market investor

Many folks were scared of investing their money. They prefer safety of leaving their cash in a bank or building society. Today’s world of investment is complex .there are literally millions of things to invest .so people should know which investment is suits you personally before going to invest in. Whether buy-to-let Investment or stock market is the best way to invest your money

Stock market

The stock market is just one of many potential places to invest your money. One of the major advantage of investing in share market is we can sell quickly and cheaply in more or less any amount you want. Investing in stock is often risky, which draws attention to the huge gains and losses of some investors. If you manage the risks, you can take advantage of the stock market to secure your financial position and earn money. No one knows where share prices will go in over the next minute, day or month. All we do know is that the long-term direction of the stock market is up but it’s not a straight line. Unlikely to invest all your money at one particular point in time. It’s far more likely that you’ll invest small amounts of money on a regular basis. So there is maximum chance to earn profit through shares.

Property investors

Real estate returns are directly linked to the rents that are received from tenant. Property investors should see the areas are popular in it while buying a new property, so your investment value will be increase after a period of time. There are many ways to buy Real Estate below market value. Property can also be purchase at the trustee’s sale or off market.  Off market properties create a huge advantage for the individual investor, because they can buy property well below market value without out much competition. You can also add bedrooms, add bathrooms, finish a basement or do many other things to increase value on Real Estate. By adding these extra room or by remodeling it will increase the value of your home.

Choosing out best to invest Share or property?

One of the primary benefits of investing in stock market is the chance to grow your money .overtime the price of stock market tends to rise in value, though the prices of individual stocks rise and fall daily. If we come to Property investment, the buying cost will varies country to country but you obtain a huge profit if you are individual investors. Constantly buying and selling property will give you better result in investments. Sometimes buying a distressed property also helps you to obtain more profit in real estate business. Buying and selling a property is the best way to earn profit over a short or long period of time. This purely depends on the place where you buy a property. Stock market has fluctuation which tends to loss or profit suddenly. So choosing out the right investment will make you to grow your level.

“Auto Loan Industry fuels market for auto loan modification,” says Auto Relief Group

According to Experian Automotive, a global leader in providing information and analytical tools, the U.S. automotive lending industry showed signs of stabilization during the third quarter of 2009. Experian throws light on the major lenders. While Toyota Financial Services topped the market share in the third quarter at 11.2%, followed by Chase Auto Finance at 11.1%, GMAC at 9.1% and Ford Motor Credit at 7.1% for new cars; on the other, Wachovia Dealer Services occupied the market at 5.7%, followed by Chase Auto Finance at 4.5%, Toyota Financial Services at 3% and Capital One Auto Finance at 1.8% for the used ones.

However, the cost of borrowing has risen for people with a low credit score of 500 to 589. Considering the still not so healthy economy with high rates of unemployment, foreclosures, late payments etc., the financial institutes do hesitate to approve loans for the risky borrowers.

Interestingly, Auto Relief Group (ARG), nations leading Auto Loan Modification Company, reports increase in their clientele. “Though the dark phase of recession affected everybody badly, a service that actually bloomed is ‘Auto loan modification’ service. Recession brought along many late repayments for auto loan, even repossessions in worst cases but those who didn’t want their vehicles to be repossessed thereby lowering their credit score took the refuge in Auto Relief Group. Apparently, the market for auto loan modification gets the fuel from auto loan industry as their  borrowers are the potential customers for loan modification if they lack enough funds to meet the EMIs,” said Jeffrey Taylor, director of Sales of ARG,

With over 15 years of experience, ARG has been helping Americans find the best way to lower their payments and keep their car, truck, boat or RV. They work directly with the auto lenders to obtain the best loan modification. This modification consists of extending terms or lowering interest rates to find the payment that works best for the individual.

“We’ve been successfully assisting our clients in lowering their monthly car payment by as much as 50%. Our options include loan modification of an existing automobile loan, equity recapture, trade up, sale or even vehicle refinancing for those individuals who are in danger of losing their vehicle to repossession. Since every situation is unique, only after consulting with the ARG professionals can you possibly determine what is best for you on an individual basis.” Jeffery signs off.

About Auto Relief Group:

Auto Relief Group was founded to help customers deal with their auto loan payments in time of need. Over the years each member of their team has developed a stellar reputation, and industry connections, allowing the company to quickly identify opportunities and act to assist the clients in their efforts to reduce their payment and keep their car, SUV or truck.

What Causes Stock Prices To Go Up And Down?

One of the hardest concepts for beginners to understand is how stocks are valued. What is the driving force behind a stock price and what causes some stocks to be so volatile? When you buy a stock, you are buying a part of a company. However, that stock price of that company can go up and down drastically sometimes for almost no reason which in turn means the value of the company is going up and down as well.

Lets pretend you bought some shares of the stock Garmin in the last six months. If you were unlucky and bought it at its high, you might have paid as much as $125.00. Unfortunately if you look at the stock price today, you will see that the price is down to around $47.00. That is a decline of more than 50%! This also means that the value of the company went down more than 50% as well.

What happened? How can a company be worth only 50% of what it was just 5 months ago? Is the company really in that much trouble? Did a hurricane destroy a factory or two? Well, in Garmin’s case it is all because the perceived value of the company went down. GPS devices have been very hot for the last 3 years or so and the stock went up steadily because of the perception that Garmin was the industry leader and would sell a lot of units.

 Suddenly, with the economy on the downturn and people not spending as much as they did for expendable items, the perception is that Garmin will not sell as many units in the coming years. The company is still doing well right now but everyone believes that things will change. Thus, just because people THINK things might change, the stock goes down and so does the value of the company. The perceived value of the company has gone down.

Stocks can shoot up for the opposite reason when people think a company is in the sweet spot and has a product or technology that will do very well in the future. In that case, the company stock may go through the roof even though they have few sales at this very moment.

Stock prices go up and down daily on what stock market investors perceive the value to be and not necessarily what the company is really worth. It is difficult to fathom this sometimes because you have to change the way you think about investing in stocks. This is another thing that shows that the stock market for beginners is a complicated beast to learn.

How to manage your money like a millionaire

Unless you’re born into riches or win the lottery, you need to work hard to build your savings. An investment portfolio through an advisor is the traditional way to grow your wealth, but limited access and high fees leave many Canadians on the outside looking in.

A June 2015 report by Morningstar gave Canadian mutual funds a grade of D- on fees, meaning that Canadians pay the highest fees in the world. With 33 per cent of Canadian households investing in mutual funds, this adds up to a failing grade for 1/3 of Canadian investors.

“Mutual funds are like a bad habit – a habit we need to break,” says John Youn, Executive Managing Director of Questrade Wealth Management. “High fees don’t just impact your investment performance this year. Your returns are exponentially diminished year over year, meaning you could see a substantial long-term drag on your returns.”

There is a new way to get investment services just like the rich. It’s called online wealth management (sometimes it’s known as automated investing or robo advisor), and it means you get the same quality of investment management as your neighbourhood multi-millionaire. Online wealth management offers some very real advantages over traditional brick and mortar outlets.

In the last year, an alternative to mutual funds has emerged. Online investment services match individual investors with a custom portfolio of low-cost ETFs (exchange-traded funds). ETFs are similar to mutual funds, except that they charge much lower fees.

We asked the experts at Questrade Wealth Management’s Portfolio IQ to list the three top advantages of a robo-advice service:

Your money grows faster. The reason you’ll get to that millionaire status sooner? This kind of service is a fraction of the cost of traditional financial advice. Services like Portfolio IQ keeps fees ultra-low, so your savings can grow and compound to your benefit.

It’s easy and convenient. Money shouldn’t stress you out. With online wealth management, a team of experienced money managers is always monitoring your portfolio to ensure it’s growing as you’d like. This means you can sit back and relax.

An investment plan customized for you. Online wealth management lets you tailor your investment portfolio to suit your preferences. Rather than getting a standard package of investments or being pushed towards certain promoted mutual funds that aren’t a fit, a robo advisor tailors a custom portfolio directly in line with your goals, your risk level and your assets – and even how much money you have to invest.

What is the Most Actively Traded Money Market Security?

One of the reasons why many investors choose money market securities is that the investment can be made for a relatively short period of time. Furthermore, the level of risk is seen as being much lower than on capital markets. Therefore, there is a much lower risk of loss for someone who invests money into a money market fund as opposed to stocks or mutual funds.

The most actively traded money market securities are U.S. Treasury Bills, also known as T-Bills. These are issued by the federal government and can have varying terms, which range from 28 to 182 days. Therefore, they are an interesting option for those who are looking for an investment that is very short term, even if it brings less profit than other types of investments, such as stocks. One of the main advantages and reasons as to why so many investors are drawn into Treasury Bills is the fact that they are backed by the federal government and as such carry virtually no credit risk. In periods where the markets are highly volatile and investors are wary of losing their money, many will instead turn to investment vehicles that simply aren’t as risky.

T-Bills are highly liquid and as such will have bid/ask spreads that are extremely low. Furthermore, those purchasing them will find that they are exempt from municipal and state taxes. There are some investors who would like to get into money market funds, but find that purchasing them through financial institutions appears to be quite confusing, with all the different regulations and requirements surrounding them. But there is good news for people interested in buying T-Bills. Ordinary investors can actually purchase them directly from the U.S. Treasury and there is a lot of information available about this on the Treasury’s website. So for anyone who wants an investment that is easily accessible, this could be an option that is definitely worth considering.

While T-Bills can be said to have many advantages and are the most actively traded money market security, they may not be suitable for every investor. Individual investors who are looking for a place where they can put their money are therefore advised to do their research correctly and if necessary, consult a professional in the field of finance, such as a qualified investment advisor. By doing so, they will be able to find out more information about their investment profile, tolerance for risk, as well as explore other opportunities for them to achieve their financial goals. There could be some other low risk or no risk investments that you may want to look at in addition to money market funds, such as certificates of deposit issued by financial institutions, or some high interest savings accounts that can make your savings grow much faster than ordinary bank savings products.

Goals Of Corporate Financial Management-Some Thoughts

There is a multiplicity of goals of management. Wealth maximization is a wholesome goal. Maximization of profit, profitability, liquidity and solvency are other goals. But these are sectional and fragmented. Similarly, minimization of cost of capital, risk and dilution of control address particular aspects. Well, all these put together throw much light on the whole gamut of management as such. Now, maximization of economic value is added to the list of goals of management.

Further more, the goal of the management should be to achieve the objective of the corporate owners, who are the suppliers of capital, namely shareholders. The finance manager’s function is not to fulfill his own objectives, which may include higher salaries, earning reputation or maintaining and advancing his personal power and prestige. It is, rather, to the extent manager is successful in this Endeavour, and he will also achieve his personal objectives. It is generally agreed that the financial objective of the firm should be the maximization of owner’s wealth.

However, there is disagreement as to how the economic welfare of owners can be maximized. Two well known and widely discussed criteria which are put forth for this purpose are: (a) profit maximizations, and (b) wealth maximization.


Traditionally, the business has been considered as an economic institution and profit has come to be accepted as a rationally valid criterion of measuring efficiency. In support of this contention, the following arguments are usually put forward:

(i) Profit is a prime motive or main incentive which paves the way for better and more efficient performance. It is a reward for entrepreneurial ability. Persons or groups of persons compete with one another and work hard in order to excel others in giving better and more efficient performance simply because they are attracted towards earning more and more profit. This promotes enterprising spirit and leads to economic development of the society.

(ii) Profit is not only an objective, but also a criterion or measuring-rod of efficient management. In this way it is both a goal as well as a measure of good performance. The degree of success or failure over a period can be tested on the basis of the degree of profitability in a company.

(iii) All business decisions are taken keeping in view their probable impact on profit. Thus, it has become a part of the decision-making process.

(iv) In a society or in a business enterprise efficient allocation of scarce resources and their judicious utilization are possible on the basis of profit criterion. Resources flow from low profitable ventures to high profitable ventures.

(v) In a society which is devoid of profit motive or incentive, there will be no place left for mutual   competition   to excel one another in efficiency,   skill   and competence. In such a situation the pace of growth and progress is bound to slow down.

Limitations: As a goal, however, profit maximization suffers from certain basic weaknesses: (1) It is vague, (2) it is a short-run point of view, (3) it ignores risk, and (4) it ignores the timing of returns. An unambiguous meaning of the profit maximization objective is neither available nor possible. It is rather very difficult to know about the following: Does it mean short-term profits or long-term profits? Does it refer to profit before or after tax? Does it refer to total profits or profit per share? Besides it is being ambiguous, the profit maximization objective takes a short-run point of view. Prof. Ducker and Prof. Galbraith contradict the theory of profit maximization and observe that exclusive attention on profit maximization misdirects managers to the point where they may endanger the survival of the business. Prof. Galbraith gives the following points to argue his line of reasoning: (1) it undermines the future for today’s profit; (2) it short-changes research promotion and other investments; (3) it may shy away from ‘any capital expenditure that may increase the invested capital base against which profits are based, and the result is dangerous obsolescence of equipment. In other words, the managers are directed into the worst practices of management. Risk and timing factors are also ignored by this objective. The streams of benefits may possess different degrees of certainty and uncertainty. Two firms may have same total expected earnings, but if the earnings of one firm fluctuate considerably as compared to the other, it will be more risky. Also, it does not make a difference between returns received in different time periods, i.e., it gives no consideration to the time value of money and value benefits received today and benefits after six months or one year.

For the reasons given above the profit maximization objective cannot be taken as the objective of management. It can be stated that the appropriate operational-decision criterion should include: (i) It must be precise   and   exact,   (ii)   It   should   consider both   quality   and   quantity dimension, (iii) It should be based on the bigger and the better principle, and (iv) It should recognize the time value of money. For these reasons, wealth (value) maximization has replaced profit maximization as an operational criterion for management decisions.

Consider the example of three business units making profits over three years given below


Unit – 1

Unit – 2

Unit – 3




















From the above table, it is clear that all the business units making profits of six lakh rupees.  But evidently unit – 2 is the best of three, followed by unit – 1 and unit – 3. Hence profit maximization is not accepted as a flawless goal, since it might lead to unfair means adopted and time value of money is not considered.


The maximization of wealth is a more viable objective of management. The same objective, if expressed in other terms, would convey the idea of net present worth maximization. Any action which creates wealth or which has a net present worth is a desirable one and should be undertaken. Wealth of the firm is reflected in the maximization of the present value of the firm i.e., the present worth of the firm. This value may be readily measured if the company has shares that are held by the public, because the market price of the share is indicative of the value of the company. And to a shareholder, the term ‘wealth’ is reflected in the amount of his current dividends   and the market price of share.

Ezra Solomon has defined wealth maximization objective in the following manner: “The gross present worth of a course of action is equal to the capitalized value of the flow of future expected benefits, discounted (or capitalized) at a rate which reflects the certainty or uncertainty. Wealth or net present worth is the difference between gross present worth and   the amount of capital investment required to achieve the benefits.”

What about a public sector firm the equity stock of which, being fully owned by the government, is not traded on stock market? In such a case, the goal of management should be to maximize the present value of the stream of equity returns. Of course in determining the present value of stream of equity returns, an appropriate discount rate has to be applied. A similar observation may be made with respect to other companies whose equity shares are either not traded or very thinly traded.

From the above clarification, one thing is certain that the wealth maximization is a long-term strategy that emphasizes raising the present value of the owner’s investment in a company   and the   implementation of projects that will increase the market value of the firm’s securities. This criterion, if applied, meets the objections raised against the earlier criterion of profit maximization. The manager also deals with the problem of uncertainty by taking into account the trade-off between the various returns and associated levels of risks. It also takes into account the payment of dividends to shareholders. All these ingredients of the wealth maximization objective are the result of the investment, financing and dividend decisions of the firm.


The matter is further complicated by the fact that management may in practice have other objectives either instead of, or as well as, that of profit maximization. A few   possibilities are given below.

(a)Growth: The maximization of profit does not necessarily require a firm of large size. Corporate power, however, is often a function of size and this may become a management objective. Non-profit making organisations, such as mutual assurance companies and building societies, where the profit motive cannot operate, often adopt pure growth as an objective.

(b)Risk reduction: Many potentially very profitable enterprises also carry a high risk of expensive failure. Prospecting for oil, for example, is very profitable if a rich strike is made but ruinous if the exploration proves abortive. It may, therefore, be a management objective to ensure survival by the avoidance of risk, profit becoming a secondary objective.

(c)Personal aspirations: People who obtain senior positions in
management are likely to be highly motivated towards their own career
objectives. Important objectives for a manager may therefore be the
improvement of his own salary, career prospects or security. This may mean a desire for quick results which will stand to the immediate credit of the manager involved as against more solid but longer term profit making objectives.

(d)Social objective: Some organisations adopt an altruistic social purpose as a management, objective. Thus they may be concerned to improve working conditions for their employees, to provide a wholesome product for their customers or to avoid anti-social actions such as environmental pollution or undesirable promotional practices.

(e)Efficiency: Some enterprises, such as charities or public services, have as a fundamental objective the provisions of a required service which is not supplied in the marketplace. A suitable management objective for them is the provision of the service at minimum cost.

(f) Orderly liquidation: A firm will sometimes reach a point where it is appropriate for it to go into liquidation. This may be forced on it by a crisis or a failure of its commercial viability or it may be undertaken voluntarily because the purposes of its original foundation have ceased to exist. In either case, once the decision has been taken, the objective of management will be to operate the business until its demise so as to balance the conflicts of interests of employees, shareholders and customers, to fulfil contractual obligations, e.g. to pay creditors and debenture holders, and to bring a tidy conclusion to all outstanding matters.

Where a particular management action has implications for more than one objective, a view must be taken as to the balance to be struck. For example, the objective of the maximization of profit may be in conflict with the objective of minimizing risk. The judgment to be made is subjective and, therefore, not susceptible to analysis although it is usually made by   reference to some explicit or implicit overall corporate objective.

Ten Steps To Profitable Trading Strategy

It’s happened to many novice stock traders. You’re on your way into work and you hear on the news that some well known company announced great earnings after hours the night before. You’ve been waiting for an opportunity so you decide to buy as soon as the market opens.

An amazing secret trading strategy revealed! Click here ==> Ten Steps To Profitable Trading Strategy.

Despite the fact that the price is already up 10% or more at open, you make your purchase and sit back to watch the fun. Things go extremely well for the first half hour. The price rises a good 10% further and you congratulate yourself on your wise purchase.

Then, about 30 minutes into the trading day the stock does something remarkable. Its price rise turns and the price begins to drop. It drops quickly and within an hour loses all the gains for the day. It doesn’t stop there too. Aside from one or two buying flurries it continues it’s downward momentum and ends the day down 10% on opening price, leaving about a 10% gain on the closing price the night before.

Over the next few weeks the stock price continues to decline and by the time it slowly turns positive again a couple of months later it has lost 30% on the price you bought it for on earnings day. So what happened? What we are witnessing here is classic manipulation of market hype by the ‘smart money’ to take money off the ‘dumb money’.

The smart money are the 3% of traders and investors who make money trading the markets and the dumb money are the rest who lose money, usually to the smart money. You get the picture.

The answer to this is to look at what the smart money did. Emulate their strategy and you too could find yourself on the winners’ side for once. The answer is simple and obvious, all it needs is pointing out. If we search through a few well known company 12 month stock charts it won’t take long to identify one which has been doing this, ie. showing consecutive quarters of meeting or beating market expectations, then dropping in price before heading up again to their next earnings announcement three months later.

The smart money strategy should be clear
. Buy ahead of the earnings announcements and sell to the buyers on the day of the announcement, preferably during the first 30 minutes of market opening, during the buying ‘frenzy’. That’s all they have to do.

As the smart money dumps their stock and the buyers start to dry up, the stock price falls, eventually over the next few weeks to what could be considered a ‘fair price’ of some 20% lower. This happens all the time and the dumb money falls for it over and over again.

 In terms of time frames the best time to buy in would be about four to six weeks ahead of the earnings announcement. You need to get in as the price starts its steady climb upwards. This will happen between four and six weeks prior. Too early and you may find yourself getting stopped out at a loss. Too late and you may miss the early gains.

Getting in at the right time can however means gains of 25% or more leading up to the earnings announcement, and that’s before hype drives the price up after the announcement. Statistically the sweet spot has shown to be in the few days leading up to the one calendar month ahead of the earnings announcement.

Use the ‘Ten Steps’ buy in strategy shown in the website link at the end of this article to secure your position and mark in your diary to check the after hours announcement and be at the ready as the market opens the next day. Once you’re secured your position and your stops are at or above your buy price, follow the price of the stock upwards over the next few weeks. Keep your sell-stop well clear as there’ll likely be some turbulence on the way up.

Then use one of the following three exit strategies depending on the results announcements:

Company beats market expectations. If previous earnings patterns hold true (as it should) then expect the price to jump overnight and start the next day up. Let the initial buying frenzy drive the price up still further and then sell at market price between 15 and 30 minutes after opening. Total gains for this trade could be anywhere between 30% and 50%.

Company meets market expectations. This would mean less hype and less of a buying frenzy at market opening. Gauge market sentiment and be prepared to exit at market price at market opening. Total gains for this trade could be anywhere between 20% and 30%.

Company fails to meet expectations. If previous earnings patterns fail to hold true then exit at market price at market opening. Total gains for this trade from the weeks leading up to earnings announcement could be anywhere between 10% and 20%.

You can see that, aside from any large scale ‘force majeure’ which overshadows normal stock market movements, no matter which way it goes you will still profit from this stock trading strategy.

3 Factors Affecting Share Prices That Most Stock Investors Do Not Know

Certainly, there are just so many factors affecting share prices. For example, high oil prices, interest rates, GDP and CPI to name few. However, many beginners are focusing too much on the external factors than what can happen from the accounting perspective. They can easily get frustrated from their own ignorance. Therefore, before you think of getting cheated next time, spend time to read this article very carefully.

Dividend Effect

I love dividend as much as you do, but apparently, it does not comes for free. Simply because, the share price drops in the same value as the dividend paid after the ex-date. For instance, if Wal-Mart Stores Inc. decided to distribute $1 per share as dividend to its shareholders, its share price will generally drops from $49 to $48 per share after the ex-date.

So, do not comment so much in the future if the stock price drops after the dividend payout, because you took the money away already.

Bonus Issue

Bonus issue is additional shares given by the company to its existing shareholders. By doing so, the company is able to reinvest the dividend cash for better earnings growth. In fact, this is another way for the company to maintain its share price at cheaper rate without splitting the stocks. Bonus issue is also a good way to reward long term stock investor.

 Ideally, the share price drops the same ratio of bonus issued. For instance, if the company is giving one new share for each four shares own by the shareholders, the share price will drop by 20%.

Warrants Exercise

With warrants, you have the right to buy shares from a company after the exercise date at specified price. As a result, its earnings will be diluted as more shares are sharing the same earnings pie. In general, the share price drops the same proportion of the number of exercised shares. For example, if the exercised share is 10% of the existing number of shares, the stock price will normally drops by 10% as well.

Unfortunately, unlike stock split, these factors are diluting the earnings per share (EPS) of the stock, which in turn will adjust the share price accordingly. That is why, the stock price will get affected if any of the events happen. Although long term investors do not care much about it, stock traders (esp. swing traders, day traders, position traders) should consider these factors seriously.

Liquidity versus Profitability: The Dilemma of the Finance Manager


Written By: Shafii Ndanusa FCCA, Abuja – Nigeria.

The global economic crisis left in its wake a string of corporate failures across the different economies of the world, regardless of the stage of economic and political developments that different nations are faced with. One of the worst industries hit is the financial industry which has led to a plethora of different reform initiatives designed to reduce the undesirable impacts of the crises. From the Americas to Europe, Africa and Asia, the ripple effects are still being felt by individuals, enterprises, industries and nations. This scenario provided an excellent opportunity for most business and corporate analysts to conclude that the business failures were more as a result of the global economic crisis rather than the conventional management mistakes that has often been adduced as the chief reason for corporate failure.

Since the dawn of civilization when businesses became more organized and strategic, when detailed records of financial transactions began to emerge, specifically with the advent of what is known today as the Balance Sheet, finance managers had come face to face with a dilemma. It did not matter whether there was a general economic downturn, each business enterprise needed to survive, grow and prosper well into the future. Each time a major investment decision had to be made, technically there is always a dilemma in choosing between keeping more or less liquidity or desiring less or more profitability.

For organizations that are purely profit-oriented, it is easier to see the interplay of conflicting preferences. While for organizations that are non-profit, the desire for profitability can be equated to the desire for value-for-money in service delivery. The metrics for measuring value-for-money are as varied as their objectives hence a bit more difficult to fully appreciate. However, for all enterprises that wish to operate in perpetuity, such enterprises must manage their financial resources in a way and manner that ensures that they do not go under or become extinct.

The business environment around the world has become increasingly competitive. Just like in any venture, to succeed you have to find a way to have the best of resources in people, strategy, finance, products and market niche. With respect to the management of financial resources, a challenge usually arises in deciding whether to favor liquidity or profitability. It is not possible to favor both in one single decision. The more liquidity you keep, the less profitability you achieve. Likewise, the less liquidity you decide to keep, the more financial resources you are able to channel to fixed capital investments which eventually leads to more profitability. More of both choices are thus desirable, but mutually excluding.

Once a major asset allocation decision is to be made, there is need for the finance manager to strike a balance between liquidity and profitability. Striking this balance is instinctively one of the major roles of the finance manager in any organization. Good practice takes cognizance of the context in which the decision is to be made in addition to the peculiar circumstances of the enterprise as well as the short, medium and long-term objectives of the enterprises’ management.The pattern of investments in fixed assets and current assets is usually a reflection of management’s preference for either profitability or liquidity.

Overall, some of the factors affecting managers’ preference for either liquidity or profitability include the individual managers’ attitude to risk, the industry peculiarities, the general investment climate, cost of borrowing both long and short-tem funds and the current levels of return on the various classes of fixed capital investment in the firms’ portfolio, amongst others.

It is obvious that excessively high levels of liquidity will not do any organization any good, particularly in the long run as such an organization may be losing out on worthwhile investment opportunities. Low liquidity levels may limit an organizations’ ability to respond to business emergencies. Low profitability levels may lead to slow speed of corporate growth and may even affect a firms’ market rating. One of the probable dangers of high profitability levels is that it can create a false impression that an organization has fully matured and reached a comfort zone. The resultant effect is that the management of such enterprises ends up becoming less strategic, less proactive and thus prone to corporate drift.  Corporate drift itself may end up leading to corporate failure.

In summary, a proactive, vigilant and purposeful approach to the management of enterprises’ financial resources is the key to corporate survival, growth and prosperity in the long run.

Blue Sky Auto Finance – Are They Reputable?

Numerous folks are hunting into car financing with poor credit score and are asking yourself about Blue Sky vehicle finance. Even though there are numerous approaches to get scammed on this kind of car or truck mortgage, there isn’t any evidence that the Blue Sky organization is a scam. There are some effortless methods to come across out if a company is making an attempt to scam you. 1 way is to search online and read others’ opinions of the company. The Much better Company Bureau is an excellent useful resource to enable ascertain the excellent of a corporation. It’s also a excellent thought to go through all the info the organization provides you ahead of financing your car or truck to make confident you recognize every thing.

Browsing on the web for Blue Sky auto finance doesn’t flip up any internet sites at all that indicate this firm is a scam. In simple fact, one can only find details on their providers. It doesn’t seem that any person has had any complaints with them. You can also search for testimonials on the business title to come across out what other individuals consider about it. It is a great notion to do some study ahead of receiving into a undesirable credit vehicle loan mainly because this will assist you to get the greatest financing accessible to you.

A speedy search on the Greater Business Bureau web site indicates there is no Blue Sky car finance. In simple fact, the firm has obtained an A score with the Superior Business Bureau. There is only 1 criticism listed for them in the past 3 a long time. The criticism consists of advertising. It was closed by the Greater Organization Bureau when they determined the complaint could not be resolved satisfactorily employing common techniques of voluntary dispute resolution. The absence of complaints is a good indicator the firm is utilizing beneficial enterprise practices. They have been a member of the Far better Business Bureau considering that 2004.

Now that you have enough evidence that signifies there isn’t any Blue Sky auto finance issues to be worried about, you may want to take into account financing your automobile loan with them. As with any firm, it is nonetheless critical to be certain to go through over the paperwork you’re provided and make sure you fully grasp the total loan procedure. Locate out how frequently your credit could be run, how extended the mortgage might take to method, and any other data about the method that you are unsure about. Up coming, be certain to recognize the loan terms and situations. Double examine the curiosity charge you’re provided and make certain you can find the money for the payments. Shop about if you like to get a good comparison of what other corporations might give you.

When buying a car or truck with poor credit, you should be certain to do all of your homework. It is extremely effortless to have a business get advantage of you if you don’t realize the loan method. Carrying out some background investigation on the loan company is a excellent way to stay away from becoming scammed. Do a search on consumer reviews, examine the Much better Organization Bureau, and make sure you comprehend the mortgage procedure to get the best loan obtainable. Adhere to the actions above for Blue Sky automobile finance for any organization you may well be thinking about.

Know the Process of Auto Loans with No Cosigner and Buy Your Dream Car at Lower Rates

It is true that one may easily find lenders that specialize in such loans online right from the comfort of his home. The online process of comparing several auto finance proposals and finding the best car financing with no cosigner deal can be extremely easy, quick and free of hassles if one uses reliable quote comparison sites. One should also be aware of the methods or techniques to apply to get a car loan without any compulsion of getting a cosigner.


The risk lender takes with specific borrower plays crucial role in affecting one’s approval chances and also the cost he will have to bear for borrowing money that is the interest rate. Even if you are not able to get a cosigner, you could be considered for an affordable car loan if you have a verifiable record of making debt payments in a timely manner. This can be easily demonstrated with good credit history. Isn’t it? Usually People with excellent credit score are likely to qualify for low interest rate car loan. Even in case of having bad credit, you do not need to despair. Before applying for an auto loan, you should start improving your credit score to qualify for more favourable rates.

Besides, it is needless to say that the more cash one has to put down, the better his chances of a quick approval will be. When it comes to no signer bad credit auto loan or student car loan without cosigner with bad credit, most lenders will require that the borrower takes participation in the car purchase by making a sizable down payment. This also shows borrower’s commitment in the purchase of the vehicle.

However, there are many car buyers who need auto loans, but do not have one to co-sign their car loan. Instead of being overly concerned about their chances of getting a car loan, they should start their online search to find out cheapest auto loans with no cosigner programs.

Here, it is advisable to start saving up some cash. Moreover, if one has good income and stable employment, lenders’ risk gets reduced and hence approval chances can increase. Thus, prior to applying, one should make sure to understand such requirements of lenders that might differ per lending source and also documentation that is involved in the process.

As such approval criteria for student car loans without cosigner may vary per lender, it could be advisable to get assisted by a reliable online car finance service to find out the right lender and get assisted in qualifying for an affordable car loan fast and easy. Such services have a team of highly qualified and experienced auto finance experts who provide the required knowledge on getting quick approval for an affordable auto loan with no cosigner and no credit history, to borrowers.


Often, auto finance lenders ask for a creditworthy co-signer in the few cases when it needs more security. The cosigner is an individual who agrees to back one car loan and may be considered responsible for loan repayment in the event of the borrower’s default. If you are applying for auto loans with no cosigner, you will need to follow some eligibility guidelines to stand at a better position in terms of easy approval for an affordable auto loan. Get in touch with a reliable car loan specialist to understand how auto loan without cosigner works.

Importance of Stock Beta Value

Beta value of a stock is the measurement of the volatility of a stock in comparison to the volatility of the market. It is a simple and very useful indicator that all traders and investors should be aware of. Calculation of beta value of stocks is essential with many trading/investing strategies especially with Capital Asset Pricing Model (CAPM), which describes how much risk that one can take to get a desirable return or vice versa.

Many financial sites, broker sites and trading platforms offer real-time and daily beta value of stocks. When calculating the beta value, the volatility of the market is taken as 1 and the beta of stock is calculated as how much the stock price moved in comparison to this market volatility. The value can take one of the following forms.

Negative beta: This is an interesting but rare condition where the price of the stock moves in reverse direction to the market movement. Usually no stock has prolonged negative beta value as most (all) them move with the market.

Zero beta: This is another rarity, where the price of stock stays same over time irrespective of market movement. This can sometimes happen in sideways moving markets, where no major economic/industry/company news is coming up.

Beta less than one: This happens when the stock price moves less in comparison of market. Many blue-chip and large-cap company stocks have beta value less than one, which make them qualify for low-risk investments. But these stocks tend to offer low-returns; and are not so suitable for short-term trading.

 Beta of one: This happens when the stock price movement is same as that of market. This is true for many index-linked stocks and funds.

Beta greater than one: Beta exceeds one when the stock price movement surpass market movement. Many fast growing, mid and small-cap company stocks have beta higher than one. These stocks tend to offer better return for high-risk taken, but many of them are less suitable for long-term investing. Remember, very high beta levels may indicate low liquidity causing increase in volatility.

Knowledge of beta value is essential from a trader’s perspective as many experts believe that about 70 percent of stock price movements are with respect to market changes. In general it is believed that investing in instruments with high beta is good in rising markets and investing in low beta instruments is good in falling markets.

Advantages of beta value includes: simplicity in calculation, easy to apply and helpful in finding right trading instruments. Disadvantages of beta value includes: as it is based on historical data there is no guarantee of future returns, not applicable for newly issued stocks, does not distinguish bearish and bullish trends and it do not consider the value of the instrument.

Manage Your Small Business Effectively

Finance is an important element for all business to take decisions. A company’s growth can also be determined on the basis of the financial growth of the company. Therefore the accountant plays a very crucial role in the company. They should have expertise and in depth knowledge about finance related matters. There are many financial software’s also available to ease the task of accounting. The financial management of the business can also be outsourced to the professionals having expert knowledge in this field.

Small businesses can manage their own accounts. But they should have knowledge of the following accounting concepts

Cash flow projections: Small businesses should record all transactions related to expenses and incomes. They should also be able to the projections for future expenses and incomes. This will help them to monitor their cash and inventory and will help in taking decisions.

Bookkeeping and accounting: A small business owner should have the basic knowledge of accounting. Even if they hire an accountant it is necessary to keep a check on the accounts to ensure the growth of the business.

Marketing Expenses: Marketing is the key to the growth of the business. Proper marketing strategies adopted by the company can work best for small businessmen to increase their revenue. Marketing expenses should also be monitored and unnecessary expenses should be avoided.

Credit: Small businesses work on credit basis. The business owner should have complete knowledge about the credit terms and conditions about its clients. He should also frame his credit terms and policies and convey to their clients.

Savings and investments: Investments are necessary as the small business can earn interest n investment. Investment can be made in stocks, bonds, cash deposits etc

Payroll: Small business owner should have complete knowledge about the payment terms to its employees and staff. The payroll process should be streamlined and followed appropriately. Taxes, medical leaves, annual leaves, LOP’s, Provident fund etc should be considered before deciding on the payroll of its employees.

Points to be considered for smooth financial management for small businesses

  1. Calculate the minimum cost of living: Small business run on small scale hence it is necessary to estimate the profit that can be earned from it so that some amount can be saved after removing some cash for daily expenses.
  2. Hiring staff: Too many staff can only add to the expenses of the company. Unless it is necessary do not hire additional staff. Small businesses do not require too many staff as the business owner has to manage many different activities and departments of the business.
  3. Credit: Do not take unnecessary loans and credit in the name of the business. This will add burden on the business. The business owner should take loans only when needed.In this way they can save on many things.
  4. Negotiate: The business owner should negotiate the credit terms with their vendors. Working n credit basis is beneficial to the small business owner as they can utilize their money  until the grace period

On the Spot Financing: What Does It Mean? And What Does It Mean For You?

On the spot financing is a type of loan service available at many new and used car dealerships. Some dealerships specialize in, and strictly operate through this service. It’s a fast, easy and convenient way to get financed for a vehicle.

Here’s how it works. Instead of a bank giving you a loan for a car, the actual car dealership will finance the loan to you. Your dealer representative will give you final approval “on-the-spot” for your car financing. Then, you get to drive your new car home. This service is meant for, but is not limited to, people who have bad credit or have no credit at all.

If an applicant’s credit is low enough that a bank or car dealership denies their loan request, an on the spot financing dealership is there to pick up the slack. They function with the understanding that your credit is sub-par. In fact, you’re the kind of customer that they want to help! No need to hide it from these guys. While they do have a pretty thorough approval process, they will work with you and do their best to get you a vehicle. The in-depth process is actually a good thing. It’s designed to make sure the customer doesn’t get into any trouble with their payments and it results in a payment plan that works for everyone. So it’s best to be honest during the whole process. You’ll benefit from it.

On the spot financing dealerships truly want to help you, and if they can’t, they want you to help them help you. Get it? For example, if they review your monthly budget and determine that you spend too much money on soda, they may say, “Cut back on the soda spending, come back in a few months, show us your new budget and we may approve you for the loan.” Although the process may be a little more involved, if you need a vehicle, it’s well worth it. And depending on your financial situation, you can actually get approved rather quickly. One great dealership in particular proudly states that, “Most people who come to our store can get approved in about an hour!” Sometimes the length of the approval process may vary depending on your financial situation, but on average, you could get approved in an hour.

If you’ve been turned down for a car loan before, on the spot financing is a fantastic alternative.

How To Properly Manage Personal Finances

People that make a habit of managing personal finances by using money tips are those that have more money left in the budget at the end of the month. Money tips can come from magazine articles, financial planners, and family friends. Some money tips will be overheard while at work. Some of those tips will spell out exactly how people can save money on things they need for the home, car and personal financing projects that ensure they have enough money to retire on when that time finally arrives.

To be able to manage personal finances to where financial benefits are obtained from the process, some people must go to college and take courses in finance. These courses might teach people to manage finances through the use of spreadsheets and others will help them balance expenditures that were made in a checking account. While these are financial tools, they are also tools used in everyday situations where money exchanges hands. Managing how that money changes hands and at what price is what allows people to keep more of that money in their pocket.

People can find other things to spend money on that used to pay for late fees and over credit limit fees charged by credit card companies each month. People will learn that managing personal finances responsibly will have a positive effect on the credit rating awarded by the three credit reporting agencies. By learning how to manage personal finances smarter, people learn how to search for credit cards that charge no annual fees and banking institutions that do not charge for checking accounts.

 All of this money can be saved in a savings account and be used later to manage personal finances by increasing the amount of monthly payments. The overall appearance of managing personal finances well will cause a trickle effect to occur. People will feel good about themselves and appearances will improve. With more money in hand, many people upgrade the car they drive to work for a model that is new and includes free oil changes and an unlimited warranty on car parts for at least four years.

People will then have more interest in managing personal finances right because every financial decision that is made seems to have a dramatic effect on the amount of cash they can keep on hand. People start managing personal finances by lowering the number of bills to be paid each month. As each bill is paid off, the money for that bill is transferred to another on the list. Paying bills on time will become a orchestrated event that is looked forward to every month instead of a task that used to be avoided until the last day of the month.

The information on finances gained while attending college might help people find a new career. People that have a firm grasp on managing personal finances can find work helping other people whose personal finances need improvements made. Using the financial leadership skills learned in a classroom environment, financial planners can help guide people to improving their financial outlook and eventually this effort will teach them to manage personal finances more responsibly.