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Archive for August, 2009

Internet Banking Essay

August 25th, 2009 No comments

Internet banking is the new method of banking using the new technologies available in the world today. Instead of needing to travel into a local branch of your bank, the Internet allows you to do a wide variety of useful things with your accounts. It can be accessed from anywhere that there is a computer with the Internet, and of course unlike bank branches the net is open 24 hours a day 7 days a week.

The services available online vary from bank to bank. Most of the general services are on all banking websites but the larger banks contain more control over your money. Here are some of the things that are possible –

• View your account balances
• Pay your bills (With the help of programs like ‘B-Pay’
• View records of transactions
• Transfer money to linked accounts with the same bank
• Transfer money to specially selected unlinked accounts
• Order printed payment reviews
• Pay for shares
• Check interest in your accounts
• Send money overseas
• Change your details
• Open new accounts
• Receive advice on handling funds Read more…

Corporate Finance Essay

August 20th, 2009 No comments

To fully understand how the business culture has acquired the greed mindset, a look at what a corporation is and defining corporate behavior becomes the starting point. First a corporation is defined as “an association of individuals, created by law and having an existence apart from that of its members as well as distinct and inherent powers and liabilities (Webster Dictionary).” Although made up of people, being separate or apart from its members also equals unaccountability. The question of “who pays when a company goes under” is at the forefront of discussions today.

Corporations are developed to serve society, meet a need or provide a service. Over the years, however, the good intentioned corporation has evolved into a greed machine that has lost site of the community that it serves and the people employed who ultimately perform the work. The steady parade of top executives confessing to engage in price gouging, tax dodges, accounting shams, employee rip-offs, and other shady unacceptable acts are coming to light daily. Unethical and illegal practices are documented from the RJR Nabisco scandals in 1988 to today’s Enron, WorldCom, Merrill Lynch, Arthur Anderson, Xerox, and endless other corporations. The world realizes now that corporate greed is not about one-bad company, but large companies in general that have adopted unacceptable guidelines for corporate behavior and an overall attitude that greed is acceptable. Read more…

Investment Essay

August 20th, 2009 No comments

In the United States, a society plagued by capitalism, investing has become a way of life. To most Americans it begins with opening a savings account and slowly allowing that money to grow through the compounded interest rate over the years. While it may not seem like a big step in generating more income, nonetheless, this is a positive movement in the market of investments. With the many types of investments available knowing which are reliable, or safe, or yield good returns, are just some of the questions on the investors mind. Within each asset class there are investments to suit different kinds of risk, duration, returns and liquidity.

Bank savings account, as stated before, is the simplest kind of short-term investment. The returns on savings account are low when compared to other investments, but the returns are guaranteed by the supplier, in this case the bank. Banks offer security meaning if a bank was to go broke the federal government through the FDIC (Federal Deposit Insurance Corporation) insures your bank deposits of up to $100,000. Having guaranteed returns means an investment will not lose its value in the short term unlike other investments. The bank pays interest to you account for saving your money with them. Bank fixed term investment also known as certificate of deposit is when you deposit a sum amount of money for a set period usually three, six or twelve months. The money becomes locked away for the fixed term but, in return, you get a higher interest rate than you would receive from a straight savings account. Withdrawing money before the fixed term is over could cost a penalty. With a savings account you are able to withdraw part or all of your money whenever you want, making bank savings account completely liquid. Liquidity is the ease at which an investment can be turned into cash and this property of an investment is very important. Investments that are liquid are ideal for short- term savings, or as a place to hold emergency funds. If your looking for medium to long term goals a bank savings account is not a good investment. Rather try a certificate of deposit, which are good short or medium term investment depending on interest rates. Since interest rates are always changing it??s usually good to have money on fixed term deposit. Read more…

How to Write a Good Finance Dissertation

August 18th, 2009 No comments

Building the good Finance dissertation is your goal, and you can accomplish it, through clear definition of your dissertation goals. Most colleges offer courses during the program that will put you on the right path to writing your Finance dissertation; however, not all colleges can prepare you for the amount of work that you will develop in a dissertation. You must be prepared to dedicate a great many hours to your Finance dissertation. These hours should not be all at once; however, many students do find themselves spending a solid two weeks working on nothing but the Finance dissertation that is due in order to graduate. If this is you, do not worry, it can still be done. However, it is not the best way to write a good Finance dissertation.

Set your schedule up based on this information – You will need a problem statement; this should include research of at least three contemporary articles regarding current financial environments. Define you dissertation research topic – you will need no less than two articles that recognize that your problem exists. Read more…

Impact of Psychology on Finance

August 17th, 2009 No comments

For all their flair and boasted smugness, traders are not nearly as rational as they claim to be. This principle, which is in open conflict with the conventional Efficient Market Hypothesis supported by Modern Finance, is at the heart of a new discipline called behavioral finance. These studies target the cross-territory between psychology and finance and have an impressive body of empirical evidence supporting their statements.

What are the most common human frailties preventing the rational decision-making postulated by modern finance theory and conventional economics at large ?

1) Overconfidence, whereby humans do not know what they do not know and widely overstate their own information gathering and analysis capabilities. Illusion of control and a variety of self-attribution biases fall in this category.

2) Prospect theory, which states that human decisions are affected by psychological reference points. For instance, someone who is in a losing position will likely try to get even, whereas someone in a winning position will more likely try to secure his or her gains. Read more…

Financial Markets

August 12th, 2009 No comments

To successfully invest $200m of funds into short term securities with the highest possible yield in order to maximise our return on profit. 10% of our funds are required to be invested in the overnight market and 50% should be available over the next 3 months.

To speculate in the market according to interest rate movements over the next 6 months by buying and selling securities in order to achieve maximum profit from interest rate returns.

Due to the fact that we expect interest rates to rise in the next 6 months we plan to invest our money in short term securities such as (30, 60 and 90) day bank bills, as well as overnight cash. Investing short term provides us with the opportunity to benefit from any rises in interest rates when the securities are “rolled over” which will increase the yield of our return. In comparison to long term investment where the interest rate will be fixed and we will not be able to receive additional profit from an interest rate increase.

It is important that we first investigate the market in order to find the deficit economic units which offer the highest bid so we can obtain the maximum return on investment. Read more…

Man Behind The Money

August 10th, 2009 No comments

This informative report on the business major I am taking up is submitted to Dr. James Ellzy, Professor, College of Business, Tennessee State University, Nashville, TN. This report has been done by request of Dr. Ellzy to satisfy the requirements of the research paper that was assigned to me.

The purpose of this report is for me to research the outlook of pursuing a job as a financial consultant. Included will be facts concerning the earning potential, educational requirements, job settings, opportunities for advancement, and what role a financial consultant would play in a work atmosphere.

The sources that were used came from the Tennessee State University Main Library, various web sites, and selected readings from a news paper. They were all very useful in helping me to gather information on this topic. The books that I had to choose from offered a lot of insight into the field that I am interested in turning into a career.

In the following pages there will be an analysis of the different aspects of becoming a financial consultant. It will start with an overview of what this major will incorporate, the requirements, and potential for growth in this field of study. Read more…

Role of Accounting and Finance

August 7th, 2009 No comments

What is the role of accounting and financial decision making in Business? Why is essential to consider accounting data in relation to other factors in other decisions in all situations.

The word accounting can firstly be defined as the collection, recording, compiling and forecasting of financial information.

There are two different strands in accounting, and these are financial accounting and management accounting. Financial accounting has information about reports of the past, it can be used by external users, it needs to be reliable, accurate and consistent, it is ruled by accounting conventions and legal requirements, and it covers the company as a whole.

Management accounting focuses on the present and the future of the company, it is purely for internal users, it is usually easy to use, relevant and up-to-date, and it covers the departments and divisions rather than the company as a whole.

The first part of accounting is the collection of the data. This data is collected from the business transactions which are the: Buying and selling of goods and services; Sales invoices, purchase invoices; Statements, credit notes; Remittance advice notes, cheque receipts.

The second part is the recording of the data. This process is done with double entry, using the accounting equation and the conventions or principles. The information is recorded in Daybooks, books of original data, sales purchase ledgers, and nominal ledgers. Read more…