Classification and Objects of Scouring
Desized textile materials till contain oil, fats and waxes which are removed by alkali or detergent is called scouring.
Objects of scouring/Objectives of Scouring
- To remove natural and added oils, fat and wax’s from the textile materials.
- Improve hydrophylicity.
- Improve absorbency.
- Prepare for the next process.
- To get uniform bleaching result.
Flow chart of scouring
Flow Chart of Scouring
There are two types of scouring process-
- Hand Scouring
- Machine Scouring
In this process fabric is boiled in an open trough with NaOH common soda and
t.r oil for after a few hours. But be careful so that fabric does not come in contact with air otherwise fabric strength can be reduced. After that wash with cold water sour with dilute HCl to remove alkali from the fabric.
Now a day’s various types of machines are available for scouring with alkali. This alkali treatment can be divided into three categories.
- Lime acid soda process.
- Caustic soda process.
Engineer Sheikh Nurja
B.Sc engineer of textile
Merchandiser at buying house
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What is a Bond?
Question may arise in your mind that what is a bond. A bond is a financial instrument used by the government or corporations to collect money from the market. It provides a fixed benefit to the bondholders periodically and also at the time of maturity. Although the use of bond as a financing instrument used in developed countries and is very popular around the world. But in Bangladesh the use of the bond not getting enough popularity yet.
By selling a bond, borrowers make a contract with the buyer to pay interest and principal at the time of maturity. All provisions, terms & conditions are written in the bond indenture. A bond indenture is the written document where all terms are clearly mentioned which actually helps to ensure the right of the bondholders.
Basically, a bond pays interest semi-annually to the bondholders at the specific rate which is mentioned in the bond indenture.
Bonds with the maturity of 10 years or more are considered as long-term bond. The interest of bond is set on the basis of market interest rate. Every bond has coupon rate (except zero coupon bonds), maturity date, and face value (basically Tk 1000). Some may have call provision and convertible features.
There is an inverse relationship between interest rate (market interest) and the price of the bond. Higher the interest rates lower the price of the bond and vice versa. We get the price of the bond by discounting the cash and capital gain received from the bond by the required rates of return. Normally large companies issue a bond for the purpose of collecting long-term funds from the market.
Basic Characteristics of Bond
Characteristics of a Bond
From above-mentioned issues we can draw some basic characteristics of a bond, these are:
- Bond is a long-term financial instrument issued by the large companies to collect long-term funds.
- Every bond must have a face value, maturity value, and coupon rate and maturity period.
- It provides periodical benefit to the holders (basically for an interval of six months).
- The terms and conditions are written in the bond indenture.
- Zero coupon bonds do not provide any coupon/interest. It provides benefit at the maturity where the bond is issued at discount.
- There is an inverse relationship between interest and price of the bond.
- The callable or convertible feature is common for a bond.
Actually, the characteristics of a bond are depended upon the types of a bond which is being issued and where it is issued. Country to country the type and features of the bond vary.
In financial market what is meant by asymmetric information?
When a manager knows more about his or her firm’s future than do the analysts and investors who follow the company then a situation of asymmetric information exists. In this situation, a firm’s managers may correctly conclude that its securities are undervalued or overvalued depending on whether the inside information is favorable or unfavorable. Of course, there are degrees of asymmetry management is almost always better informed about a firm’s prospects than are outsiders but in some situations, this informational difference is too small to influence managerial actions. In other circumstances such as prior to a merger announcement or when a drug company has made a major research breakthrough managers may have information that will significantly alter the prices of the firm’s securities when it becomes public. In most situations, the degree of information asymmetry lies between the two extremes.
The potential impact of asymmetric information on markets was analyzed by George Akerlof in a paper titled “The market for Lemons”
The only convincing way for a seller to convey to potential buyers that the product is good to take some action that buyer can unambiguously interpret as a sign that the product is not defective. Such actions are called signals and the act of providing signals is called signaling.
Since manager’s primary goal is to maximize shareholders wealth managers are generally motivated to convey favorable inside information to the public as rapidly as possible. The easiest way would be to issue a press release announcing the favorable development. However, an outsider would have no way of knowing whether the announcement was true or how important it really was. Therefore such announcements have limited value. But if managers could signal information concerning favorable prospects in some truly credible way then the information would be taken seriously by investors and reflected in security prices.
Example: Dividend announcements are the classic example of managers providing information through signaling. If a firm announces a significant increase in cash dividend this is its managers signal that the firm has good future earnings and cash flow prospects. If dividend increase is widely anticipated but then is not forthcoming this is a negative signal.
The presence of effective management signals plays an important role in financial management.
Md. Nahian Mahmud Shaikat
Student of MBA
Institute of Business Administration (IBA)
Email: [email protected]
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