Sunday, May 30, 2010

What are stocks?










Shares, equity, or stock, it all means the same thing; Stock represents a claim on the company's assets and earnings.

Holding a company's stock means that you are one of the many owners (shareholders) of a company and, as such, you have a claim (albeit usually very small) to everything the company owns. Yes, this means that technically you own a tiny sliver of every piece of furniture, every trademark, and every contract of the company. As an owner, you are entitled to your share of the company's earnings as well as any voting rights attached to the stock.
As you acquire more stock, your ownership stake in the company becomes greater.
But with the advantage that a stock hat  limited liability, which means that, as an owner of a stock, you are not personally liable if the company is not able to pay its debts,  but you are entitled to a portion of the company’s profits, and have a claim on assets.

Some companies pay out dividends, but many others do not.
Without dividends, an investor can make money on a stock only through its appreciation in the open market, that means that  you buy a stok and wait in the hope its  value will increase over the time with the risk of depreciation, which means that the value decrease over the time.

Friday, May 21, 2010

Central banks











A central bank is the entity responsible for overseeing the monetary system for a nation. They have a crucial role in the economy, and a wide range of responsabilities. These include issuing the nation's currency, functioning as a governemnt bank and regulating the credit system.
Most banks have the aims of achieving goals like currency stability, full employment and low inflation.

The most important Central Banks right now are:
The Fed (Federal Reserve System), led by Ben Bernanke
The ECB (European Central Bank), led by Jean-Claude Trichet
The Bank of England, led by Mervyin King
The People's Bank of China, led by Zhou Xiaochuan

Wednesday, May 19, 2010

Financing Business Activity

IGCSE BS: Financing Business Activity

Friday, May 14, 2010

The IMF











The International Monetary Fund (IMF) is an organization of 187 countries, working mainly together to encourage global monetary cooperation.

Its main aim are:
  • to assure financial stability
  • to facilitate international trade
  • to promote high employment and sustainable economic growth
  • to reduce poverty around the world
The IMF has three major roles in the current monetary system:
  • It monitors and surveys financial and economic developments
  • It helps countries with difficulties of balancing payments by providind funds
  • It provides techincal assistance and training to countries that request this.