Accounting, Banking & FinanceNO ARBITRAGE PROFIT CONDITIONMay 18, 201513 CommentsCapital market equilibrium requires that market prices be set so that supply equals demand for each individual security. In the…
Accounting, Banking & FinanceThe Theory of Efficient MarketsMay 18, 201516 CommentsThe concept of an efficient market is very important in the area of finance. An efficient market is one in…
Accounting, Banking & FinanceCredit AnalysisApril 21, 201515 CommentsAn investor or a lender, before making any choice, must analyze a company’s or borrower’s creditworthiness to accurately estimate the…
Accounting, Banking & FinanceBASEL IIIApril 1, 201510 CommentsCentral bank governors of G10 countries together formed a Basel committee to supervise the banking activities. Basel is an informal…
Accounting, Banking & FinanceSecuritisationMarch 30, 20159 CommentsThis involves converting the stream of future income from an asset (such as interest payments on a bank loan) into…
Accounting, Banking & Finance‘Originate and distribute’ model of bankingMarch 30, 20159 CommentsThe changes in banking between 1970 and 2007, and especially the major innovations and growth in banking between 2000 and…
Accounting, Banking & FinanceMarket Makers-making the market flowMarch 30, 20157 CommentsYou might be asking your self “In a stock market a person is almost always able to buy and sell…
Accounting, Banking & FinanceCapital Budgeting – by Shatakshi BhargavaMarch 27, 201528 CommentsOrganizations (except Not-For-Profit-Organizations) work with the sole purpose of maximizing their profits. Though investment projects (long run generally) are the…
Accounting, Banking & FinanceTime value of moneyMarch 27, 20157 CommentsEvery business either small scale or large scale has requirement of finance to run its business successfully. Finance is blood…
ArbitRisk (Part-2)March 12, 20155 CommentsUncertain Payoffs: Risky choices often have financial consequences, also known as payoffs. Payoffs can be either positive (gains) or negative…