Wednesday, October 29, 2008

Return on Capital

Return on Capital denotes how well a company yields cash in relation to the capital that he has invested in his business.It is the net income less tax after dividing capital investment which is often depicted in percentage. Monetary resource,shares,long term debt are used to calculate Return on Capital.
When return from capital is more than capital cost,value is said to be created but when it is less, value is said to be lost.

Tuesday, October 21, 2008

Balance of Payment

Balance of Payment is a measure of the amount that flows between a country and other countries.During a particular time period,this is used to sum up all international dealings.Export and import of good and services,capital,transfers ascertains the BOP.All debit made to outsiders and all credit received from outsiders are reflected in BOP.In short it points to a country's position.

Monday, October 13, 2008

Bond Market

The bond market is a financial market where the participants buy and sell evidences of indebtedness,usually in the form of bonds.Bond Market refers to the market government bond, because of its size,liquidity,lack of credit risk and, consequently, sensitivity to interest rates.Because of the opposite relationship between the evaluation and interest rates in slavery, the bond market of the obligations is often employed to indicate changes of interest rates or the shape of the curve of output.

Wednesday, October 1, 2008

Hedging

The hedges are a strategy,usually a certain form of the transaction,conceived to the minimum to reduce the exposure at the non desired risk of businesses.
The hedges consist of liquidating the non desired risk with those (of this type which calculated the actuarial value of the fire hazard) which has the capacity to take it.