Accounting, Banking & FinanceINFLATION EFFECTSFebruary 23, 20155 CommentsParticularly when it was high (e.g., during the 1970s and the early 1980s), inflation distorts company earnings because it acts…
Accounting, Banking & FinanceKnow-how of Foreign Exchange MarketFebruary 23, 20156 CommentsOverview of foreign exchange market: Foreign exchange market is the biggest financial market in the world with over $5 trillion…
Accounting, Banking & FinanceStock marketsFebruary 23, 20156 CommentsStock markets are part of the capital markets (maturity in excess of 1 year), as are the bond and mortgage markets.…
Accounting, Banking & FinanceCollateralised Mortgage ObligationsFebruary 21, 20156 CommentsCMOs originated in the USA in 1983 after they were introduced by First Boston and The Federal Home Mortgage Loan Corporation.…
Accounting, Banking & FinanceMortgage Backed SecuritiesFebruary 21, 20155 CommentsThe Federal National Mortgage Association (Fannie Mae) was set up in 1948 by the government to encourage home ownership in the…
Accounting, Banking & FinanceAsset Backed SecuritiesFebruary 21, 20156 CommentsThe issue of asset backed securities is the process whereby traditional bank assets (for example, mortgages) are sold by a bank…
Accounting, Banking & FinanceMoney supply, Monetary Control or Price StabilityFebruary 21, 20156 CommentsA country’s money supply is defined as currency in circulation outside the banking system plus deposits held at banks.36 Banks play…
Accounting, Banking & FinanceTerm Insurance and AnnuitiesFebruary 21, 20155 CommentsTerm Insurance is the simplest and most affordable form of protection plan. The benefit of term insurance is paid out…
Accounting, Banking & FinanceUnit TrustsFebruary 21, 20156 CommentsA unit trust is a professionally managed investment fund investing in a portfolio of financial assets. Unit trust holders own…
Accounting, Banking & FinanceFixed Income SecuritiesFebruary 21, 20155 CommentsA simple analogy for the fixed income securities or bonds is that if you borrow from a bank to buy…