Tag: how it works and more
Sterling Overnight Interbank Average Rate (SONIA): meaning, how it works and more
The London Interbank Offered Rate (LIBOR) used to be the dominant rate used to provide efficient interest rates in pound denominated loan and mortgage transactions. The LIBOR worked in a style where data is collected from the major banks and financial institutions to create the LIBOR as announced by the Financial Conduct Authority of the …
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Hostile takeover: meaning, how it works and more
The business world is not always a bed of roses. Growth-hungry companies have a vast array of opportunities to reach the coveted top positions in their respective industries. One such possibility is a hostile takeover. A takeover is characterized as ‘hostile’ if a third party or shareholder attempts to take over a company without the …
Shares: Meaning, Types, how it works and more
Shares are a type of financial instrument that represents ownership in a company. They offer a way for individuals to invest in businesses, and a means for companies to raise capital. In this article, we will explore the meaning of shares, how they work, and various other important aspects of investing in shares. Meaning of …
Fiat money: meaning, how it works and more
Fiat money is a common term when discussing business. Nonetheless, most individuals do not understand what it means or how it works. Fiat money is a type of currency that is backed by the government’s legal tender laws and is not backed by a physical commodity. In this article, we will explore the meaning of …
Recurrent expenditure: Meaning, how it works and more
Recurrent expenditure is a term used to describe ongoing expenses that must be regularly paid to maintain the daily operations of an organization. This type of expenditure is different from capital expenditures, which are investments in long-term assets such as buildings or equipment. In this article, we will explore the meaning of recurrent expenditure, how …
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Digital currency: meaning, how it works and more
Digital currency is a type of virtual currency that is exchanged over the internet without the need for a central bank or government. The popularity of digital currencies has grown exponentially in recent years, with more people seeing the potential benefits of this decentralized form of money. However, the concept of digital currency can be …
Dividend: Meaning, types, how it works and more
Shareholders of the company invest in the company in exchange for a share of the company. Shareholders holding a part of the company benefit from certain gains from the company, one of which is the dividends of the company once declared by the directors of the company. This article reveals all there is to know …
Insurance: Meaning, types, how it works and more
Insurance is a term that is commonly used in our daily lives, yet many people do not fully understand its meaning and importance. Insurance is an essential aspect of modern life, as it helps individuals and businesses to mitigate the financial impact of unexpected events such as accidents, illnesses, natural disasters, and other unfortunate incidents. …
Market price: Meaning, how it works and more
Market price is a term used to describe the current value of a financial asset or commodity that is being traded in an open market. It is determined by the forces of supply and demand and can fluctuate rapidly due to a variety of factors. Understanding market price is essential for investors and traders who …