Introduction We have examined the definitions, characteristics, advantages, and disadvantages of active and passive portfolio strategies in this post. With an active portfolio strategy, portfolio managers actively choose securities in an effort to outperform the market. The objective of a passive portfolio approach, on the other hand, is to mimic the performance of a market index with the least amount of intervention possible. General example of Product Portfolio Define Active Portfolio Strategy In an active portfolio strategy, portfolio managers actively choose investments in an effort to outperform a market benchmark or index. In order to provide larger returns than ... Read More

Introduction According to research, the vast majority of cross-border payment management practises are inefficient in terms of both cost and time. Current business practises frequently result in lower productivity, more labour, higher payment fees, and strained relationships with suppliers. However, these issues can be addressed by implementing best practises and software technology to improve cross-border payment effectiveness, such as an advanced global payments system. Cross-Border Payments: Definition Cross-border transactions commonly referred to as international payments, comprise entities that do not reside in the precise same country which can be the payer (the customer) or the recipient (the merchant). Such transactions ... Read More

Introduction The government should allocate funds in such a way that it benefits the economy for a long term. On that note, the term peace dividend has garnered much attention in international and domestic circles. As wars create disruption to the country as well as economy at large, instead of splurging money on military restoration, the government diverts those funds to construct the economy and welfare at large. In simple words, this concept revolves around the idea of how military funds used for economic purposes. Definition of Peace Dividend The term "peace dividend" was first ... Read More

Introduction Mezzanine financing is a versatile funding option that converts debt to equity financing to provide businesses with a lower-cost source of capital than traditional equity financing. Are you a business owner looking for funding to help you take your business to the next level of success? Or are you an investor seeking high returns with little risk? In any case, mezzanine financing may be the ideal solution for you. Mezzanine financing is a type of financing that combines the attributes of debt and equity financing. Define Mezzanine Financing Mezzanine financing is a type of financing ... Read More

Introduction Medallion Signature Guarantee is a secured authorization stating that the transfer of any securities, be it bonds or stocks, are legal and authentic in nature. SEBI- Securities and Exchange Board of India, the watch dog or regulator oversees all the activities in the securities market, thereby protecting the investor from all sorts of frauds. While all that’s good, but what about selling or transferring of securities to another shareholder in physical form? Thanks to Medallion Signature Guarantee, it came to rescue to protect the interest of the shareholders, offering the desired legitimacy. So, what exactly is this concept ... Read More

Introduction Market Cap vs Enterprise Value are thrown around in finance circles without truly understanding what they mean? Don't worry; you're not alone. These two phrases may seem interchangeable at first, but they are entirely different evaluation metrics . Meaning of Market Cap Market cap is short for market capitalization, which measures a company's value in the stock market. Market cap is an important metric for investors because it indicates a company's size and potential for growth and volatility. The resulting figure represents the total dollar value of all the company's outstanding shares. Market Cap Explained Market ... Read More

Introduction An interim audit is one type of review done by the auditors before the final audit takes place. The decision to examine the books of accounts in between the financial year is taken by the higher management to ensure the veracity of the financial records. But why this audit is done? Auditing the books of any company can be both cumbersome and time consuming. The auditor has to verify and cross-check financial records before finalizing the values. Fig 1: Interim Audit Though auditors are professionals, there’s a chance of making inadvertent mistakes while examining the books. ... Read More

Introduction Unemployment is a major issue that affects economies worldwide. While there are many types of unemployment, frictional unemployment is a unique form caused by increased job searching. If the companies are able to figure out the quitting reasons, they can scale up the employee retention rate.  Frictional Unemployment Although frictional unemployment can be seen as a positive turn of events for the economy, it has the negative side as well like rise in unemployment rate, reduced money circulation in the economy, etc. Define Frictional Unemployment The gap between fresh employees joining for the first time and ... Read More

Introduction The free rider problem occurs when individuals benefit from a shared resource or public good without contributing their fair share Are you sick of making all the effort while others profit? Do you ever feel like you're being taken advantage of at work, school, or in relationships? Fig 1: Free Rider Problem You may be dealing with the free rider issue if this is the case. It's an aggravating condition that can breed hatred, lack of motivation, and, eventually, a breakdown in cooperation. But why is there a problem with free riders, and what can be ... Read More

Introduction If the government spends more than the available funds in the account, it goes into fiscal deficit. The respective government determines the total outlay at the end of the financial year. Fiscal deficit can be computed by subtracting total revenue from total expenditure. Fig 1: Government spending on multiple categories This value throws a light on government spending and projects the financial health of the economy on a whole. Situations like these occur due to high unemployment, uncollected loans lend to business at the time of financial crunch, recession, global market crash, etc. Define Fiscal Consolidation Fiscal ... Read More