Primary market also know as new issue market is the market for issuing new securities. Majority of the companies opt for issuing new share in the primary market to raise the capital for expansion of business or finance its operations depends upon company strategy. The companies sell their securities through IPO – Initial public offering [...]
Cognition is a term that groups together the mental processes of perceiving, recognizing, conceiving, judging, and reasoning. The cognitive psychology focuses on how people and animals as well, structure their experiences, how they make sense of them, and how they relate their current experiences to past ones that have been stored in memory. At any [...]
A person’s achievement may fall far short of his ability. The college teacher will readily think of students with A-grade ability but C-grade achievement, and it is also true in athletics or dramatics that some persons who seem to have plenty of ability are very disappointing in actual performance. They are not interested in an [...]
Psychology can be defined as the science of activities of the individual. The science of human behavior is actually a group of sciences. On one side we find the physiology investigating the organs and cells that do the work of the organism and on the other hand we see the social sciences studying the nations [...]
The belief in LIFO costing method is based on the assumption that material issued to manufacturing department should carry the cost of most recent purchase, although the physical flow of material inventory may actually be different. It assumes that the most recent costs are significant to match with recent revenues in the profit / loss [...]
Psychology can be defined as the ‘study of mind and body’. The ancient man regarded ‘soul’ as something that was invisible and resided inside a person. He had his own explanations for the behavior of the soul and the body e.g. the soul escaped from the body when the person falls asleep. The escaped soul [...]
Social psychology is the scientific study of how people think, influence, and relate to one another. It is a comparatively younger discipline than the other disciplines of psychology – it is surprisingly a discipline that overlaps with other sub-disciplines of psychology like personality and cognition, and various other human disciplines like anthropology, sociology and communication. [...]
A bond is a long-term debt instrument used by governments, corporations, and firms to raise debt financing. Most of the bonds have following three attributes generally.
• Pay interest annually, semiannually, or quarterly • They have defined maturity period • They have defined face value usually $100 or $1000 [...]
To capitalize upon the opportunities belonging to over the years the companies often fulfill funding requirements through long term debts from banks or financial institutions. These long-standing loans are repaid in yearly installments usually. Annual installments include principle repayments and interest payments both. For the purpose of financial accounting and matching interests over the period [...]
Conventional financial statements i.e. income statement and balance sheet do not give true picture of the cash flows of the firm. Because income statement incorporates many non-cash expenditures and revenues for the sake of ascertaining profitability. Similarly balance sheet tells us the overall financial position with respect to firms’ assets and liabilities and includes monetary [...]