Finance Articles

Finance articles section focuses on various concepts of finance like budget, stock market and economics of various products & services. Apart from these articles on global financial institutions, different banking systems and topics of international importance in the field of finance are present.



Capital Account Convertibility: Global Economic Growth 25 June 2011

Since the 20th century, the world has become a smaller place for everyone. With advancements in technology like internet & mobile phones, quicker & cheaper air travel, extensive use of information systems etc have reduced the world and made it a common place for all. With all these advancements, trade amongst nations has increased manifold, tourism is on the rise, and hence there is tremendous exchange of currencies at the global level. This is where the concept of capital account convertibility lies.

 

Corporate Debt Restructuring 25 June 2011

Corporate debt restructuring is the reorganization of companies’ outstanding liabilities. It generally a mechanism used by companies which are facing difficulties in repaying their debts.  In the process of restructuring, the credit obligations are spread out over longer duration with smaller payments. This allows company’s ability to meet debt obligations. Also, as part of process, some creditors may agree to exchange debt for some portion of equity.  It is based on the principle that restructuring facilities available to companies in a timely and transparent matter goes a long way in ensuring their viability which is sometimes threatened by internal and external factors. This process tries to resolve the difficulties faced by the corporate sector and enables them to become viable again.

 

Healthcare Industry : From Social Service to Money Minting business 20 June 2011

5 star luxury suites with king-size beds and mattresses.

Centrally air-conditioned building.

Rooms with Plasma and LCD TV sets.

Ambience and pleasant surroundings.


These are some things which one finds in plush hotel resorts, where people are willing to spend thousands for their comfort and luxury. But people need a reality check. These days one finds these exotic facilities as the most unexpected place- Hospitals. And this is because the healthcare industry is no longer a social service but it’s a full fledged profitable business.

 

Stagflation 19 June 2011

Stagflation is unique situation where there is high inflation coupled with stagnant economy with low income and employment rates.  Inflation is a result of high growth which increases the income and correspondingly increases the demand, thereby leading to hiking of prices. Stagnation on the other hand results from low demand, leading low output resulting into collapse.  Stagflation is contraction of stagnant and inflation. Inflation or stagnant economy in itself is a difficult situation for any country. This is why stagflation is so dangerous. Imagine a scenario in which you have both a sinking economy and runaway inflation. With high unemployment, consumers have less money to spend. Add inflation, and the money they do have is worth less and less every day.

 

Mutual Funds Demystified 16 June 2011

Over the past few decades, the economic scenario has changed with countries prospering and growing consistently. In India, the investments made by people are evolving by the minute on a continuous basis. People have plenty of options like fixed deposits, bonds etc. But since they have relatively lesser returns, people turn their eye to the risky area of stocks. However, the one field, which has higher returns and yet considerably safe and is gaining tremendous momentum is Mutual Funds.

 

Indian Economy: An Overview 15 June 2011

India.

The world's largest democracy.

The world's 2nd most populous state having 17.5% of the world's population.

The 12th largest GDP in terms of nominal value and 4th highest in terms of purchasing power parity.

 

US Trade Deficit with China : Who Gains ? 12 June 2011

China’s rise as manufacturing giant has not only established its supremacy as one of the leading economy but also has made United States, largest economy in the world, totally dependent on it. In Feb 2011, US trade deficit with China was $270 billion. Deficit means United States imports from China were $270 billion greater than its exports to china.