Saturday, May 28, 2011

Stocks-How do they work

The total valuation of a company is called its stock, and must be declared by the organization at the time of company formation. It is divided among the stakeholders of the company in the form of shares.
The first recorded use of shares and stocks can be found in the Roman history. The first company to issue stocks was the Dutch East India Company at the beginning of the 17th century. Stocks of a company fluctuate according to the laws of supply and demand. When a company performs well, the demand for its stocks increase, and the prices go up. Similarly, prices can also plummet according to the performance of the company.

Friday, May 27, 2011

Finance news: Demand pull Inflation

Inflation has become one of the most pressing financial issues of the world today. It is a situation of constant price rise and in the long run when employment is full, it makes the rich richer and the poor poorer. Inflation after a certain extent is mostly proved to be harmful for the economy.
The oil price hike is one of the most important issue now. Oil being a non renewable resource is going on being exhausted and hence situation is coming where the demand exceeds supply. H the price rises constantly leading to an inflationary situation. Very recently the price of petroleum has gone up in India and this has also led to various oil price hike protests which have not been too fruitful.

Wednesday, May 25, 2011

How important is it to stay updated?

With the ever-growing technology advancements and globalization it has become mandatory to keep up with the financial news. No one now-a-days can afford to be ignorant towards the financial events happening around the globe as in some possible way these events affect the lives of everybody. So knowing the basics of finance and getting to know what is happening in the financial world is not only restricted to the finance professionals. Financial news keeps you updated about the latest developments in the important sectors of national as well as international economy. Regular dose of financial news is always beneficial because then you won’t miss out on the important things.