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.

Carbon Emissions Trading: Making the World a Better Place ? May 17, 2011

India is one of the fastest growing economies of the world. Industries form a significant part of the economy which includes automobiles, mining, manufacturing, equipment and machinery etc. These also contribute a lot to the emission of harmful gases which in turn has ill effects on the climate. The Government of India is all set to create the world's first market for trading credits for energy savings. With the help of this, the Government expects to set compulsory energy-savings targets for energy-intensive sectors such as cement, aluminum, steel, power, textiles, fertilizers, railway, paper and pulp. The country's Bureau of Energy Efficiency is working on a program to establish credits for industrial plants that save energy beyond the government requirement. The plan has been modeled after emissions-trading markets at work in the EU.


Why Petrol Prices can't be freed permanently? May 15, 2011

After the euphoria surrounding the election results in 5 states subsided in mid May, the country was subjected to another round of hardship by the government in the form of petrol price hike. The hike effective midnight of 14th May has been the steepest since the petrol price was deregulated. The petrol prices at pumps across the country was hiked by 5 Rs and it is bound to have an immediate effect on the budgets of individual households across the country.


GDP: A False Accounting System? May 07, 2011

Many countries proudly announce that their Gross Domestic Product (GDP) per capita is growing but, in reality, if the depletion of natural resources is taken into consideration, the GDP for almost all nations would be declining. The most common number used to rank a country’s economy is the GDP (gross domestic product)- the annual revenue generated by the domestic economy. This number is divided by the population of the country to calculate the GDP per capita. Countries can be compared in terms of the people’s earning using the average revenue generated per person annually. For example, the GDP per head of the United States was $41,530 whereas that of Egypt was $1,030. Although these accepted numbers describe the size of the economy, there is an accounting anomaly of enormous proportions. 


Savings A/C Interest Rate Deregulation : Pros and Cons ? May 02, 2011

RBI has set the ball rolling and has made the pitch for the deregulation of saving bank deposit rates.While the central bank has deregulated the interest rates on fixed deposit schemes 14 years back, they are yet to do so on savings bank deposits.the interest rate on saving bank deposits has remained constant at 3.5% since 2003.Now RBI has made a move in this direction to deregulate the interest rate on saving bank deposits.The idea behind such a move is that RBI considers it would benefit everyone in the banking environment.The savers would be benefited by higher rate of interest and the lenders would have to come up with innovative products to attract low cost funds.


Money supply: Controlling the wealth April 15, 2011

Since medieval times, trade and business has gradually evolved and prospered. Earlier there was trade of art, tools, cattle and the most important medium was a barter system, where goods were exchanged in terms of kind. Gradually, over a few centuries gold coins, copper coins etc became the face of transactions, providing a relative value of goods and services which would use these coins for economic activities. But since the nineteenth century, almost in every country money and currency notes and coins were used as a medium of economic activity. Thus it became the responsibility of governments of every nation to control the wealth of the nation for prosperity and sustainable economic growth.


Demystifying Price to Earnings (P/E) Ratio April 04, 2011

Price to earnings ratio is one of the oldest and most frequently used metrics to evaluate stocks. The following article describes how it should be used in security analysis and how it should not be used. P/E  ratio is very simple to calculate but can be quite tricky to evaluate. It can be extremely informative at times while in some situations it can be meaningless.


Arbitrage - Encashing the Difference March 27, 2011

In finance, we many times come across terms like arbitrage, arbitrage trading, arbitrage mutual funds etc.  What is arbitrage? Arbitrage is a practice to capture the price differential between two or more markets to earn a risk-free profit. Trick is to simultaneously enter into deals in two markets where the price differential exists.