Tag Archives | Finance

Essay on Book-Keeping

Read this essay to learn about Book-Keeping. After reading this essay you will learn about:- 1. Meaning of Book Keeping 2. Necessity of Book Keeping 3. Systems 4. The Journal and the Theory of Journalising 5. Explanation of Journalising Rules for Various Accounts 6. The Ledger 7. Trial Balance (T/B) 8. Trading Account 9. Profit […]

An Overview on Debt Instruments | Company

The below mentioned article provides an overview on debt instruments. Debentures: According to section 2(12) of the Companies Act, a “Debenture includes debenture stock, bonds and any other securities of a company, whether constituting a charge on the assets of the company or not”. From this definition it is not very clear what is a […]

Debt Securitization: Meaning and Process | Financial Management

In this article we will discuss about the meaning and process of debt securitization. Meaning of Debt Securitization: It is the process of converting mortgage loans together with future receivables into negotiable securities or assignable debt is called ‘securitization’. The Securitization process involves packag­ing designated pool of mortgages and receivables and selling these packages to […]

Top 4 International Capital Market Instruments | Finance

The following points highlight the top four international capital market instruments. They are: 1. Global Depository Receipts 2. Foreign Currency Convertible Bonds 3. American Depository Receipts 4. External Commercial Borrowing. Instrument # 1. Global Depository Receipts: Global Depository Receipt (GDR) is an instrument which allows Indian Corporate, Banks, Non- banking Financial Companies etc. to raise […]

Equity Shares: Advantages and Disadvantages | Company

In this article we will discuss about the advantages and disadvantages of equity shares. An equity interest in a company may be said to represent a share of the company’s assets and a share of any profits earned on those assets after other claims have been met. The equity shareholders are the owners of the […]

6 Major Instances of Market Failure | Public Finance

This article throws light upon the various instances of market failure which calls for government intervention for correction. The instances are: 1. Externalities 2. Provision of Public Goods 3. Decreasing Cost  4. Uncertainty as a Source of Market Failure 5. The Distribution Function 6. Market Efficiency and Income Distribution. Market Failure: Instance # 1. Externalities: […]

Prof. Musgrave Approach to Public Household

In this article we will discuss about the multiple theory of public household. Economists have paid much attention to the formulation of theories that examine the problems of consumer households, business firms, trade unions and other decision making units in the economy. How­ever they have not made any serious attempt to develop a corre­sponding theory […]

Positive Externalities and Allocative Efficiency

After reading this article you will learn about the relationship between positive externalities and allocative efficiency. Positive externality occurs whenever private markets fail to allocate resources on the basis of full social benefits. I­mmunization against communicable disease, external benefits from edu­cation at schools are typical examples of positive externalities. Indi­viduals who are external to the […]

Corrective Policy and Negative Externalities

This article throws light upon the top three policies taken by government that will correct negative externalities. The policies are: 1. Taxation 2. Subsides 3. Regulation. Type # 1. Taxation: Corrective taxation of negative externality, forces market participants to account for the opportunity costs of all resources allocated in private market. Consider the case of […]

Stabilization Policy and Its Instruments

Stabilization Policy: Budgetary policy has its own bearing on the performance of a na­tional economy. That is on targets such as high employment, a reasonable degree of price stability, soundness of foreign accounts and an acceptable rate of economic growth. These macro targets cannot be materialized automatically. But it requires deliberate and well planned policy […]

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