Evaluation of Foreign Investment Proposal

Evaluation of Foreign Investment Proposal
Before evaluation, let's revise the basics and meaning of Foreign Investment.Investment is a thing, which is worth buying because it is profitable or useful in the near future.
Proposal is an offer and / or invitation to do some business or trade.
Statutory compliance are well-specified and documented obligations (duties and responsibilities) that are

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What is Portfolio Management? Meaning, Objectives in Finance

What is Portfolio Management? Meaning
First let's understand the meaning of terms Portfolio and Management.Portfolio is a group of financial assets such as shares, stocks, bonds, debt instruments, mutual funds, cash equivalents, etc. A portfolio is planned to stabilize the risk of non-performance of various pools of investment.
Management is the organization and coordination of the activities of

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Price Differentials in Financial Management

Price Differentials in Financial Management
First let's understand the meaning of terms Price and Differential.Price : The literal meaning of the word 'PRICE' is the amount of money expected, required or given by one party to another party in return of some goods and / or services.
Differential : Whereas, the word 'DIFFERENTIAL' means something pertaining to diversity (difference) between

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Features of Corporate Governance - Characteristics

Features of Corporate Governance
The characteristics or features of corporate governance are listed below.Imgage Credits © Sameer Akrani.Transparency : This means that the Board of Directors must release all relevant information to the stakeholders. They must show all the necessary financial and operational data to the stakeholders. They must not hide any important information or maintain any

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Importance of Corporate Governance - Need Significance

Importance of Corporate Governance
The need, significance or importance of corporate governance is listed below.Imgage Credits © Sameer Akrani.Changing Ownership Structure : In recent years, the ownership structure of companies has changed a lot. Public financial institutions, mutual funds, etc. are the single largest shareholder in most of the large companies. So, they have effective control on

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Merchant Banking Meaning - Functions of Merchant Banking

Merchant Banking Meaning
Merchant Banking is a combination of Banking and consultancy services. It provides consultancy to its clients for financial, marketing, managerial and legal matters. Consultancy means to provide advice, guidance and service for a fee. It helps a businessman to start a business. It helps to raise (collect) finance. It helps to expand and modernize the business. It helps

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Universal Banking - Meaning Advantages Disadvantages

Universal Banking - Meaning
Universal banking is a combination of Commercial banking, Investment banking, Development banking, Insurance and many other financial activities. It is a place where all financial products are available under one roof. So, a universal bank is a bank which offers commercial bank functions plus other functions such as Merchant Banking, Mutual Funds, Factoring, Credit

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What is Credit Rating? Meaning Explained Lucidly

What is Credit Rating? Meaning
Credit rating is done for debt instruments such as debentures, fixed deposits, commercial papers, bonds, etc.Image credits © Anvrecife.The company which issues debt instruments is called an issuer or issuing company. The issuer, issues instruments to collect finance from investors.Investor looks at the credit rating of instrument and issuer before investing.If the

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Benefits of Credit Rating to Investors and Company

Benefits of Credit Rating to Investors
The advantages, importance or benefits of credit rating to the investors are:-Imgage Credits © Sameer Akrani.Helps in Investment Decision : Credit rating gives an idea to the investors about the credibility of the issuer company, and the risk factor attached to a particular instrument. So the investors can decide whether to invest in such companies or not.

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Demerits of Credit Rating - Disadvantages Limitations

Demerits of Credit Rating
The disadvantages, limitations or demerits of credit rating are listed below.Imgage Credits © Sameer Akrani.Possibility of Bias Exist : The information collected by the rating agency may be subject to personal bias of the rating team. However, rating agencies try their best to provide an unbiased opinion of the credit quality of the company and/or instrument. If not,

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