This category covers all kinds of topics in finance including corporate finance and financial management. The topics on financial institution and stock exchange will also be included.
A Letter of credit is a form of undertaking given by an issuing bank in favor of the beneficiary against the creditworthiness of the applicant. In the modern trading world, we commonly treat any letter of credit as irrevocable unless otherwise stated explicitly. An irrevocable letter of credit is a formal contract between the issuing […]
Irrevocable Letter of Credit Read More »
A bill of lading acts as a legal document between the shipper (consigner) and the carrier of the goods. It also works as insurance of goods receipt for the buyer (importer) before making the payment. A negotiable bill of lading is one form of such a legal contract that comes with the flexibility of transferable
How to Endorse a Negotiable Bill of Lading? Read More »
By definition, the term lading means arranging the transportation of goods on a carrier of any type. Hence the term Bill of Lading (B/L) would mean the documentary evidence of goods transported through any means of carriage. Bill of lading is used commonly in both domestic and international trade. Domestic examples of the B/L may
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At sight LC is a documented contract that enables immediate payment to the seller or exporter. The seller or exporter must fulfill the requirements agreed upon in the trade contract. A sight letter of credit is used to shorten the payment period for the exporters. With a normal letter of credit working, the exporters receive
At Sight Letter of Credit: Definition and How it Works! Read More »
Basically, when a corporation or company is in a profit position or has accumulated retained earnings or accumulated profit, such a corporation will consider distributing dividends. The dividend distribution typically depends on the dividend policy of each corporation. Thus, what are those factors affecting the dividend policy of a firm? Before we jump to the
Six Factors Affecting Dividend Policy Read More »
Portfolio beta is commonly used to assess the risk of investment portfolios. Investors typically strive to diversify their investment portfolios by investing in a diversified investment vehicle. By diversifying the investment portfolios, they are able to reduce risks. In this article, we cover the definition of portfolio beta, how to calculate it with example and
How to Calculate Portfolio Beta? Read More »
In the concept of portfolio theory, investors get the benefit of holding portfolios of investment vehicles, not just a single asset or security. Typically, the greater the risk of portfolios the greater the return the portfolios generated. In this article, we cover the definition of portfolio return, how to calculate the portfolio return with example
How to Calculate Portfolio Return? Read More »
A definitive market entry process an organization may seek after on its own is by constructing an entirely owned subsidiary in the target market. It is a type of foreign direct investment and is known as Greenfield investment. Greenfield projects are an approach to expand into emerging business sectors. They generally include a parent firm
What Is Greenfield Investment? Read More »
Nowadays, maximizing shareholder’s wealth is critical and has determinant importance towards the success or failure of an organization. Shareholder wealth maximization holds key functions in generating profits for an organization. During the time of business supervisors putting efforts to boost the wealth of their organization, they are actually attempting to raise the firm’s stock price.
How to Maximize Shareholders’ Wealth? Read More »
Business failures with startups and small size entities are common. Broadly speaking there can be several types of business failures and reasons causing such it. Financial accountants often term liquidity crunch more fatal than profitability for settled businesses. New business startups may fail due to inadequate planning and insufficient resources. What is Business Failure? We
Types of Business Failures and Its Causes? Read More »
