Bonds are a type of investment that allows a corporation or government to raise money while offering a fixed return for the investor. The investor buys a bond (lends money to a corporation or institution) and the government or corporation is then obliged to pay the investor back their money at a set time including a set level of interest. Bonds may also be issued by governments during times of war to raise money to grow and maintain military forces. There are many different types of bonds however the financial conditions are similar. Bonds almost always have a set maturity date when the lender is paid back the money together with a set interest rate during the lifetime of the bond. Most bonds are considered to be a safe, secure investment with a guaranteed return.
Most working people have a bank account where they keep their money and allow it to grow with interest until it is needed for daily expenses. Each and every day millions of people make deposits of money into various banks around the world. Whilst a bank is designed to store and look after your money it is also a business that needs to make money in its own right. There are various ways that banks make money and ensure that they are able to deliver important services to their customers. So, how do the banks make money?
If you have ever deposited a check into your bank you may have noticed that, in most cases, the money doesn’t immediately arrive in your account. This can certainly be a frustrating experience, especially if you need access to the money quickly. Let’s take a look at how checks work and why the banks hold them for so long.
There are many different types of investment funds designed to increase personal wealth. One of the fastest growing type of investment funds is called a hedge fund. The first hedge fund was created by Alfred W. Jones in 1949. Today, it is estimated that almost $2 trillion is currently invested in hedge funds throughout the world. Unlike many other investments, a hedge fund is designed to increase the investment in any financial conditions. Continue reading to find out more about hedge funds.
Although many of us did not live through the Great Depression, we are well aware of the effect that it had on the world. Millions of people were left homeless and without jobs as the economic markets of the world crashed. Many people lost all their money as banks closed and unemployment rose to a record high. It started in late 1929 and most countries did not recover until the early 1940’s. International trade dropped dramatically and most commodities become worth very little. It was a difficult time to live through and still effects the way that we view the economic market today.
Insider trading is defined as the trading of a corporations stock by people who may know information about the company that is not public knowledge. Insider trading is when a person who worked for a corporation uses nonpublic material information to sell or gain stocks for their own personal gain. Material information is any information that, if released, could affect the corporation’s stock price. An insider is any person who is privy to material information about a company before it is made public. This includes people such as CEO’s executives and directors. It also extends to people that have a relationship with these people such as spouses, siblings, parents or children. In most countries insider trading is illegal and carries legal penalties.
Every working person is required to pay a number of different taxes to the government. A tax is a compulsory contribution to state revenue. Taxes are applied to income and business profit and added to the cost of goods and services. The failure to pay tax is a criminal offense and is punishable by law. Generally the money generated from taxes is used to better the community by improving facilities and paying for government funded services. This was not always the case, as often throughout history we have seen ruling powers collect taxes for their own benefit such as larger castles and better food and clothing. So when were the first taxes introduced? Read on to find out.
Credit cards are small plastic cards allowing a person to buy goods on the the promise that they will pay for these goods at a later date. But when was the first credit card issued? This post will answer that question and look at a few interesting facts about credit cards!
The current credit crisis (also called the financial crisis or the credit crunch) has left many people worried that there will be a worldwide economic recession. This post will explain why the credit crisis is happening and what the expected effects are.
There are many causes of the credit crisis, but these are the main causes.
- Boom and then a rapid decline in housing prices in the United States. Low interests rates