Finance works as the lifeblood for an organization, without finance, it is not possible to run any business. Every business organization requires managing and ensuring the effective use of funds Continue Reading
Agency Cost
What is Agency Cost and who bears them? An agency cost is a cost of reducing agency conflict among the owner/ principal (stockholders) and managers (agent). We can also say Continue Reading
Conflict Between Shareholders and Creditors
What kind of agency conflict between shareholders and creditors may exist? A conflict between shareholders and creditors is common for the company which uses debt capital to form an optimum Continue Reading
Agency Conflict
What is Agency Conflict? Agency conflict is a common problem we face in an organization, this problem arises because of the difference in the interest of management, owner, and other Continue Reading
What is a Bond
Questions 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 Continue Reading
Basic Types of Risk
We know that the future is uncertain, and because of uncertainty; the involvement of risk can be traced to every part of life. When we talk about any investment we Continue Reading
Perfect Capital Market
What is meant by a perfect capital market? If a capital market has the following characteristics then it would be considered as a perfect capital market. In perfect capital market Continue Reading
Standard Deviation is Better Measurement
Why is standard deviation better measurement for risk? In finance, the standard deviation is applied to the annual rate of return of an investment to measure the investment’s volatility. Standard Continue Reading
Asymmetric Information
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 Continue Reading