Finance Articles

An Initial public offering is the process by which a company goes public. It is a type of public issue by which an offer of securities is made to new investors for becoming a part of shareholders. To raise an IPO in India companies have to go through various rules and regulation. These rules and regulations are governed by SEBI. SEBI is a governing body of securities market in India which lays down rules to protect the interest of investors and assist the development of securities market in India.

Last six months have seen a drastic fall in oil prices from $115 to less than $ 50 now. Is it a boon or a devil in disguise? At first, the answer appears simple; cheaper oil obviously is very good for global economy and especially for energy intensive country like India. Oil price fall not only will significantly improve country’s trade balance, considering that 80% of India’s imports are of crude oil, but also lower fuel prices would offer big relief from inflation providing final consumers with surplus money which they are free to spend or save elsewhere.

The indirect taxes that are levied on consumer goods In Indian Union and States on their journey from the factory warehouse to the final consumer points include Central Excise Duty(ED), Central Sales Tax(CST), local Sales Tax(VAT), Entry Tax(ET). Component of all these taxes in the final Invoice value-whether included in the invoice value or shown separately- can be a significant sum. Hence any difference in tax rates across states and tax evasion in any sector can cause distortions in the market. This is particularly true in respect of high value but low volume goods.

Mr Steve is planning a long road trip with his family this weekend to North Carolina for a get together. When asked why did he chose a road trip over the normal rail route to the city he gleefully answered, “Mate ! Look at the oil prices. I couldn’t resist myself to drive with such cheap oil rates”. This is what the United States along with the rest of the world is facing today: Oil Price break. The price cut down in oil has lead to more road trips and travelling and has added a high extra figure to the general household of the United States itself giving them higher purse power to spend.

"We believe the best way to ensure improved performance at PepsiCo is to separate global snacks and beverages, putting the future of each business in the hands of empowered and focused management". This was written in the letter posted to the management of Pepsico by Trian Partners headed by the Activist Investor Nelson Peltz. Investor activism, which started in 1980s - then called ‘Corporate Crusaders' - has grown in importance with more and more companies targeted every year, be it Bill Ackman’s public failure at JC Penney, or Carl Icahn’s argument for a buyback at Apple, one of America’s most loved and successful companies.

“Housing is a human right. There can be no fairness or justice in a society in which some live in homelessness, or in the shadow of that risk, while others cannot even imagine it.”

– Jordan Flaherty