Talking About Business and Investments

Here's another most common words used in business and investments. In order to be rich, you must know the vocabulary of the rich people, right?

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Investment banks have a role in the provision of finance for businesses and advice on takeovers. Retail banks provide overdraft facilities for individuals.
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The underlying cash for a large spot transaction is usually not available until two business days have elapsed.
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Share ownership brings certain benefits including voting rights, dividends and capital growth. Ordinary shareholders do not have priority in the assets of the company if it is wound up.
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The primary market is where companies raise money by issuing shares or bonds to investors for the first time. The secondary market provides the trading environment for shares, bonds and gilts.

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The main advantages of listing are generally seen as:

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capital - the IPO provides the possibility of raising capital, and once listed further offers of shares are much easier to make;

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takeovers - a listed company could use its shares as payment to acquire the shares of other companies. For example, J. Smith plc (a listed company) could issue new shares in itself to provide payment in a takeover of R. Brown plc. Shareholders in R. Brown could either keep the new J. Smith shares or sell them in the market;

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status - being a listed company should help the business in marketing themselves, to customers, suppliers and potential employees;

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employees - stock options to key staff are a way of providing incentives and retaining employees, and when they are options to buy listed company shares that are easily sold in the market they are even more attractive.
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Liquidity risk is the risk that shares may be difficult to trade at a reasonable price. Price risk is the risk that share prices in general may fall and issuer risk is the risk that the issuing company collapses and the shares become worthless.
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A put option is where the buyer or holder has the right to sell the underlying asset at the exercise price. Upon exercise by the buyer, the seller or writer is obliged to take delivery and pay the exercise price.
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Traditional hedge funds seek to eliminate or reduce market risk and attempt to profit regardless of the general movements of the market by carefully selecting a combination of asset classes.

Vocabulary of Rich

Jika anda ingin menjadi kaya dan memiliki pemikiran dan tabiat seorang jutawan, anda perlu menguasai perbendaharaan kata golongan orang kaya. Bukan setakat ingin memiliki apa yang golongan ini miliki sahaja seperti rumah, wang yang banyak, pelaburan dan sebagainya tetapi sebenarnya mengetahui apa yang mereka fikirkan dan pelajari sesuatu daripadanya.
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Berikut saya paparkan petikan beberapa maklumat yang berguna untuk diketahui dan sebahagian lagi akan di kemaskini dari semasa ke semasa di usahawan bistari ini.
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The two main factors underlying the value of a currency and foreign exchange rates are the underlying economic performance of the country and comperative interest rates.
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Borrowers will generally gain during a period of inflation as in real terms the debt will have been reduced but higher rates of inflation tend to cause increased interest rates. Conversely lenders ill suffer from a reduction in real terms unless the debt in index-linked. People, such as pensioners, receiving fixed income returns may find it harder to raise their income to keep pace with inflation.
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The balance of payments is a summary of all the transactions between a country and the rest of the world and will measure the difference as a deficit or surplus. Gross National Product is the measure of a country’s output (Gross Domestic Product) plus Net Property Income from abroad. Public Sector Net Cash Requirement is the difference between Government expenditure and Government income.
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A company is required to hold an AGM. Both ordinary and special resolutions can be considered and voted on at an AGM. Shareholders can either vote in person or have someone else register their vote by completing a proxy voting form.
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Zero coupon bonds carry no coupon and therefore pay no income. They are issued at a significant discount to par vale and the entire return for an investor is received when the bon is redeemed.
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The buyer of a call option has the right to buy a share at a predetermined price by a given date. The buyer of a put option has the right to sell a share at a predetermined price by a given date.
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Term assurance policies are for a set period of time. If the policyholder dies during the term the policy pays out the insured sum either as a lump sum or regular monthly amount,. Endowment, Unit-Linked and With-Profits are types of whole-of-life policies that are linked to investment and pay out any profits made by the underlying investments in addition to the insured sum when the policyholder dies.
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Capital and status are seen as advantages for a company getting its shares traded on the stock market, however the prime motivation is the raising of capital from the public issue of shares.