Nearly everyone is familiar with commercial banks such as Wells Fargo and Bank of America. An investment bank on the other hand exists to provide services to private and public companies. In the beginning the purpose of an investment bank was to help companies raise capital through equity offerings and debt issuance and to advise and assist with mergers and acquisitions. Since then the role of the investment bank has evolved and expanded dramatically. The investment bank can sell equity in the company in the form of a stock offering or they can offer advice on the issuance of debt, or bonds, by the company. As you might imagine, an investment bank often has a broad network of contacts within the financial industry. A good investment bank will be able to use this network to provide detailed market knowledge and guidance, legal advice and investment opportunities on a global, countrywide or regional level.
Thursday, December 29, 2011
Wednesday, December 28, 2011
Foreign direct investment (FDI)
The expression foreign direct investment (FDI) is one that has become very popular in the present dispensation.
More to the point, liberalization in some countries seems to encourage foreign investors to set up businesses in these countries.
In most cases, the normal practice would be for the investors from a stronger economy to invest in smaller economies.
Thus, most people associate FDI with American countries operating in Mexico, China, Brazil or smaller countries in Africa and Asia. Some reasons for direct foreign investmentmay include lower taxes, low costs of labor, tax concessions or superior currency value.
Other advantages may include the presence of large markets in the foreign countries and favorable banking policies. In some cases, certain countries encourage investors to invest in the industries where local investors may not be able to cope.
There are instances where investors from developing nations can invest in the developed economies of Canada, America and Europe.
For instance, there are investments in America owned and operated by rich investors from Dubai, Saudi Arabia and Kuwait.
For instance, no country will want its arms industry to be controlled by any foreign firms for very obvious reasons.
Thursday, November 10, 2011
Forex Explained: What It Is And How It Operates
Foreign exchange or forex pertains to markets wherein the traders buy and sell currencies from around the world. Instead of goods, stocks, and other equities, investors try to get hold of the currencies which are likely to rise in value after considering various factors.
For big multinational companies, the forex market offers a distinct advantage. It allows them to convert their dollars into the currency of a nation where they want to do business in. Through large-scale trading, they are able to get enough money to purchase raw materials, pay for labor, and do other transactions locally.
Speculation also exists here the same way that it does within the stock markets. Some traders use their leverage to influence the market by selling off considerable amounts of a currency and buying another to create artificial value fluctuation that they can capitalize on. Once their desired effects have transpired, they can move quickly to buy back the former currency which now has a much lower value.
While most equity markets are distributed in major cities around the world, forex is operated on a global scale with no central base to speak of, and as a side effect, it is up 24 hours a day with very few closures to accommodate the continuous need for transactions of this nature.
Basic Tips For Forex Traders
The foremost thing any forex trader should know is that a foolproof method to predict the currency market does not exist. In the United Kingdom, even the Chancellor of Exchequer cannot tell whether the British Pound Sterling will be rising or falling, just as in the United States, the Chairman of the Reserve Bank cannot tell whether the US Dollar will be rising or falling. Therefore, the best strategy for a successful trader would be to combine the use of market observations and forex software to make smarter currency transactions.
Though forex software and robots may be useful, it is not advisable to rely on them solely. Events around the world can give a good indication of which direction to go. For example, the value of the Euro can dip upone the announcement that Italy is over 1.9 trillion Euros in debt. Conversely, the reveal that Prime Minister Silvio Berlusconi might step down could somewhat prove to stabilize the Euro.
These kinds of developments are important to forex dealers because it can give them an idea of which currencies to invest in and which ones to avoid. These are some examples of the impact global events have on the world currency market.
Forex Trading Is Simple
Pessimists believe that one cannot be financially successful in forex trading. Without being too hopeful and with a little exercise of being smart, one can become an expert in world currencies and be financially stable with the venture. The business concept has continuously gained popularity and this is ample proof that it is indeed profitable and stable.
Wednesday, May 18, 2011
Planking
What is Planking? About Planking In case you have not heard about the latest internet sensation, it involves people facedown on objects, making their bodies stiff and faces expressionless, while lying across virtually anything. This silly, yet fun phenomena has become quite popular in Australia, as
Planking FTW! :D