Archive for August, 2007

Forex – The basics

What is forex?The exchange of foreign currency is termed as foreign exchange business or forex.
The primary requirement for conducting exim business is having proficiency in forex activities. It consists of two currencies where currency A is traded for currency B. The rate at which a currency would be traded against the other is determined by […]

Global markets shiver

The markets are witnessing a meltdown globally. Whether this bear market trend sustains or is it a matter of few trading session before the bulls ride back, would depend on how the US sub-prime mortgage saga unfolds.It would very premature to comment on the full impact of the sub-prime mortgage story at this point but […]

Interest income during inflationary times

There are two main areas of interest income during inflationary times – Real interest and Prime Interest
In order to protect its capital losses arising out of inflation the companies tend to raise the interest rate. The flow of income due to such increase in interest rates does not represent the true picture of actual income […]

Investments

All investments are categorized as different asset classes.  The prime among them are real estate, bonds, equities and metal. Let’s have a look at each one of them - what they stand for, the risk they carry and the returns they give.
Real Estate 
Investments in real estate carry high risk quotient by virtue of the demand-supply unpredictablity in this […]

Subprime mortgage - US

Sub prime mortgage is the basket of lending done by financiers to people whose credit worthiness is sub standard or the credit rating is not up-to the mark.
Why did it happen?
During the course of competition and a dwindling rate of interest the net margins of the lenders in US fell from around 600 basis […]