n the past, only the bigwigs in the business arena, central banks, and the larger banks in a country are the ones dominating the forex market. When the Internet came into the picture, the forex market has become much more accessible to individuals, who are interested in investing money in currency trading.
The Internet has truly changed the foreign exchange market totally. Now that one can invest in forex online, more and more people are learning about the business and about the many benefits it has over other equity-related businesses like the stock exchange.
The forex market has over $2 trillion dollars traded every day as compared to the New York Stock Exchange usual $50 billion. So you see, there is a tremendous potential in investing money in currency trading, this is why the volume of transactions is growing day to day across the world.
Foreign exchange is very flexible too, since it operates 24 hours a day, 5 days a week to cover all time zone issues that the may be during the forex transactions. One investor can indulge himself in the business at the most comfortable time for him, in case he is busy with so many other things he does for a living. One will not feel like he'll have to beat a deadline of sort when trading since he can always trade when he wants to.
Online forex sites that provide venues for investing money in currency trading, give assistance through the forex tools they have on the websites and the valuable information about the foreign exchange business.
These web sites or forex trading systems help a beginner become more familiar with the forex trading first before he actually buys or sells currencies. These online trading systems employ demo accounts that the user can use for a given period of time, during which he will invest using play money. This will allow the user to check if he can make it well at the forex without losing real money.
This is especially useful since beginners shouldn't dive drastically into the forex bandwagon without any prior knowledge. If the user thinks that the forex is a business he can deal with through the experience he gained by using the demo account, then he can choose to sign up for the actual system which already involves real money.
Visit www.ForexReviewInsider.com
to view the easiest and
most profitable systems
August 23, 2009
Investing In Currency Trading? How and Is it good?
What is good in investing money in currency trading is that there is no requirement for an economic degree in order to do business. Anybody who has sensibility, logic, and great self-discipline can begin doing currency trading anytime - that is, after he has made a study of the business first.
The forex market is a very liquid market and the volume of transactions are so huge that one can be slapped with huge losses or gargantuan profits if he played it well. The margins may be small but the large volume of traders, makeup for this. In effect, a few cents difference in the value of currencies can spell some thousands of dollars depending on the capital entered.
For the risk takers, investing money in currency trading could be very profitable but they should also learn to adapt to changes as needed so he can continue with his streaks of success. But, one shouldn't set aside the reality that the risks can also result to grand losses.
The forex market is a very liquid market and the volume of transactions are so huge that one can be slapped with huge losses or gargantuan profits if he played it well. The margins may be small but the large volume of traders, makeup for this. In effect, a few cents difference in the value of currencies can spell some thousands of dollars depending on the capital entered.
For the risk takers, investing money in currency trading could be very profitable but they should also learn to adapt to changes as needed so he can continue with his streaks of success. But, one shouldn't set aside the reality that the risks can also result to grand losses.
July 31, 2009
What Is The Best Place To Invest Money ?
There are so many options nowadays especially since the birth of the internet. You may want to invest in an home business such as internet marketing or you may wish to invest in the stock market but I'll get to that in a moment.
First and foremost is that you invest in yourself. Spend a little on a book, take a course, anything that will improve your knowledge will improve the way you feel about yourself which in turn rubs off on the people around you and leads to a generally better atmosphere around you.
That said let's get back to the main question, What is the best place to invest money? Well the easiest way to invest money that can turn into an amazing amount of money is of course through trading.
As soon as people mention trading the first thing that springs to mind is the stock markets, however there are several other markets which are a little easier to make money on your investment from.
One of the most popular ways of trading at the moment is known as Forex trading - or Foreign Exchange Trading.
What is Forex Trading? Basically you trade currencies. A quick example is if you buy a $1000 and you find that the equivalent in pounds sterling would be $1220, then you would exchange and you would make $220 profit.
Also what people love about Forex Trading is that it is non stop, 24 hours a day, as opposed to other markets which close over night meaning if anything bad is happening to your investment their is nothing you can do.
It is an extremely easy way to invest money once you've learned how it is done correctly. Like I said earlier investing a little in yourself and your knowledge ultimately improves what things you are capable, without knowledge you will crash and burn in almost any investment opportunity.
What is the best place to invest money? In my opinion Forex Trading, but this is also the opinion of a lot of experts in market trading simply because if you know what your doing it is hard not to win with your investment.
First and foremost is that you invest in yourself. Spend a little on a book, take a course, anything that will improve your knowledge will improve the way you feel about yourself which in turn rubs off on the people around you and leads to a generally better atmosphere around you.
That said let's get back to the main question, What is the best place to invest money? Well the easiest way to invest money that can turn into an amazing amount of money is of course through trading.
As soon as people mention trading the first thing that springs to mind is the stock markets, however there are several other markets which are a little easier to make money on your investment from.
One of the most popular ways of trading at the moment is known as Forex trading - or Foreign Exchange Trading.
What is Forex Trading? Basically you trade currencies. A quick example is if you buy a $1000 and you find that the equivalent in pounds sterling would be $1220, then you would exchange and you would make $220 profit.
Also what people love about Forex Trading is that it is non stop, 24 hours a day, as opposed to other markets which close over night meaning if anything bad is happening to your investment their is nothing you can do.
It is an extremely easy way to invest money once you've learned how it is done correctly. Like I said earlier investing a little in yourself and your knowledge ultimately improves what things you are capable, without knowledge you will crash and burn in almost any investment opportunity.
What is the best place to invest money? In my opinion Forex Trading, but this is also the opinion of a lot of experts in market trading simply because if you know what your doing it is hard not to win with your investment.
May 11, 2009
Financial Priorities and Goals
Each of us has our own particular relationship to money. Some want as much of it as possible and devote significant time and energy to its pursuit. Others prefer to live simply on minimal resources.
Perhaps most of us fall somewhere in the middle, wanting to live comfortably without sacrificing the quality or balance of our lives. No matter what you want your money to do for you, learning the basics of money management will help you make it happen.
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Perhaps most of us fall somewhere in the middle, wanting to live comfortably without sacrificing the quality or balance of our lives. No matter what you want your money to do for you, learning the basics of money management will help you make it happen.
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April 27, 2009
Smart Strategy Financial Management
Most people find dealing with personal finances a chore. People are loath to manage their finances for all sorts of reasons, including not being comfortable with math, not having time, or even being fearful of finding out that there's just not enough money in the bank to cover the bills.
Being willfully ignorant about your finances is not a smart strategy whether you are flush with cash or not. Having a clear understanding of your finances is a crucial first step in maintaining or improving your financial health and avoiding unnecessary stress. Remember that financial knowledge yields financial power.
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Being willfully ignorant about your finances is not a smart strategy whether you are flush with cash or not. Having a clear understanding of your finances is a crucial first step in maintaining or improving your financial health and avoiding unnecessary stress. Remember that financial knowledge yields financial power.
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Financial Management
To improve your personal financial management skills, you must learn what is involved. The different aspects to financial management include:
* budgeting
* banking and saving
* paying taxes
* investing
* managing debt
* retirement planning, and
* estate planning.
You don’t have to learn everything at once or become an expert. Start with an overview of the basics, and continue to educate yourself over time. The following list will get you started.
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* budgeting
* banking and saving
* paying taxes
* investing
* managing debt
* retirement planning, and
* estate planning.
You don’t have to learn everything at once or become an expert. Start with an overview of the basics, and continue to educate yourself over time. The following list will get you started.
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April 25, 2009
Money and Credit
The Theory of Money and Credit
Money and Credit is an economics book written by Ludwig von Mises, originally published in German as Theorie des Geldes und der Umlaufsmittel in 1912. Along with Carl Menger's Principles of Economics, and Eugen von Böhm-Bawerk's Capital and Interest, this work was a major contribution to economic theory.
Its first English translation was published in 1934, and Part Four was added by Mises to the English language edition in 1953. In this work, Mises looks at the nature and value of money, and its effect on determining monetary policy. Included is his regression theorem, that tries to explain why money is demanded in its own right, as moneys at first glance do not serve a consumable need. Mises explained that moneys only can come about after there has been a demand for the money commodity in a barter economy.read the story....
Man, Economy, and State:
A Treatise on Economic Principles, first published in 1962, is a book on economics by Murray Rothbard, and is one of the most important books in the Austrian School of economics (others are Ludwig von Mises' The Theory of Money and Credit and Human Action). Economist Walter Block has described this volume as "excruciatingly brilliant.
" Wendy McElroy credits the book as being "solely responsible for turning [her] from the advocacy of limited government to a lifetime of work within the individualist-anarchist tradition."
When originally published in 1962, the final eight chapters were removed for political reasons; these were finally published as Power and Market in 1970. The 2004 edition published by the Ludwig von Mises Institute combines both books in a single volume. This book provides a discussion of both microeconomics and macroeconomics.
To calculate the prices of everything from airfare to books to hotel prices into their home currency, aiding your decision-making.
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Money and Credit is an economics book written by Ludwig von Mises, originally published in German as Theorie des Geldes und der Umlaufsmittel in 1912. Along with Carl Menger's Principles of Economics, and Eugen von Böhm-Bawerk's Capital and Interest, this work was a major contribution to economic theory.
Its first English translation was published in 1934, and Part Four was added by Mises to the English language edition in 1953. In this work, Mises looks at the nature and value of money, and its effect on determining monetary policy. Included is his regression theorem, that tries to explain why money is demanded in its own right, as moneys at first glance do not serve a consumable need. Mises explained that moneys only can come about after there has been a demand for the money commodity in a barter economy.read the story....
Man, Economy, and State:
A Treatise on Economic Principles, first published in 1962, is a book on economics by Murray Rothbard, and is one of the most important books in the Austrian School of economics (others are Ludwig von Mises' The Theory of Money and Credit and Human Action). Economist Walter Block has described this volume as "excruciatingly brilliant." Wendy McElroy credits the book as being "solely responsible for turning [her] from the advocacy of limited government to a lifetime of work within the individualist-anarchist tradition."
When originally published in 1962, the final eight chapters were removed for political reasons; these were finally published as Power and Market in 1970. The 2004 edition published by the Ludwig von Mises Institute combines both books in a single volume. This book provides a discussion of both microeconomics and macroeconomics.
To calculate the prices of everything from airfare to books to hotel prices into their home currency, aiding your decision-making.
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Make your Realistic Budgeting
A realistic budget is your best weapon against overspending.
If you want to keep your spending under control, it's essential that you make a budget. A budget allows you to get a handle on the flow of your money -- how much you make and how much you spend. With that information in hand, you can make intelligent choices about what to buy with your hard-earned cash.
Make a List of Your Expenses
The first step in making a realistic budget is figuring out where your money goes. To keep track, make an expense record.
Limitations of computer programs.
Unfortunately, most computer programs that track expenses only analyze your check or credit card payments -- they don't record your cash outlays.
Make your own expense record.
Rather than relying on a computer program, keep track of your expenses in a low-tech but comprehensive way: with some paper and a pen. Here's how:
1. Use one sheet of paper per week to record your expenses for two months. By doing this, you'll avoid creating a budget based on a week or a month of unusually high or low expenses.
2. Begin recording your expenses on the first day of a month.
3. Create seven columns on the page, one for each day of the week. Record the date at the top of each column.
4. Carry that sheet with you at all times.
5. Record every expense you pay by cash or cash equivalent -- check, ATM or debit card, or automatic bank withdrawal. When you make a payment on a credit card bill, list the items paid for.
6. At the end of the week, put away the sheet and take out another. Go back to Step 3.
7. At the end of the two months, list seasonal, annual, semi-annual, or quarterly expenses you incur but did not pay during your two-month recording period. The most common are property taxes, car registration and maintenance, magazine subscriptions, tax preparation fees, insurance payments, and seasonal expenses such as summer camp fees or holiday gifts.
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Best of way to do when making your Budget
If you want to keep your spending under control, it's essential that you make a budget. A budget allows you to get a handle on the flow of your money -- how much you make and how much you spend. With that information in hand, you can make intelligent choices about what to buy with your hard-earned cash.
Make a List of Your Expenses
The first step in making a realistic budget is figuring out where your money goes. To keep track, make an expense record.
Limitations of computer programs.
Unfortunately, most computer programs that track expenses only analyze your check or credit card payments -- they don't record your cash outlays.
Make your own expense record.
Rather than relying on a computer program, keep track of your expenses in a low-tech but comprehensive way: with some paper and a pen. Here's how:
1. Use one sheet of paper per week to record your expenses for two months. By doing this, you'll avoid creating a budget based on a week or a month of unusually high or low expenses.
2. Begin recording your expenses on the first day of a month.
3. Create seven columns on the page, one for each day of the week. Record the date at the top of each column.
4. Carry that sheet with you at all times.
5. Record every expense you pay by cash or cash equivalent -- check, ATM or debit card, or automatic bank withdrawal. When you make a payment on a credit card bill, list the items paid for.
6. At the end of the week, put away the sheet and take out another. Go back to Step 3.
7. At the end of the two months, list seasonal, annual, semi-annual, or quarterly expenses you incur but did not pay during your two-month recording period. The most common are property taxes, car registration and maintenance, magazine subscriptions, tax preparation fees, insurance payments, and seasonal expenses such as summer camp fees or holiday gifts.
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Best of way to do when making your Budget
Demand to see your credit score
Experian's refusal to let consumers see their FICO scores, even for a price, hands more power to lenders. Lawmakers might end this outrage -- if we give them a push.
By Liz Pulliam Weston
MSN Money
After years of inaction and neglect, Washington is finally getting serious about protecting people from abusive credit card practices. Consider:
President Barack Obama last week summoned credit card executives to the White House and signaled that credit card reform is on his agenda.
Meanwhile, the "Credit Cardholders' Bill of Rights" is heading for another vote in the House of Representatives.
Regulators already have imposed significant new restrictions on card issuers, although those won't go into effect until mid-2010.
Reforms are long overdue. But all sides are missing a golden opportunity to protect people from abusive credit bureau practices, specifically the bureaus' ability to cut off our access to our own FICO credit scores.
In February, I wrote about how Experian suddenly had decided not to sell FICO scores to consumers anymore, although it continues to sell the scores to lenders. That decision, which has yet to be challenged by regulators or lawmakers, conceals from consumers a vital piece of their credit information.
Crackdown on the credit card industry
You no longer have any idea, before you apply for a mortgage, what kind of interest rate to expect. That's because most mortgage lenders use the middle of your three credit bureau FICO scores to determine rates and terms. Without access to all three FICOs, you can't know what your middle score might be.
You're also at a disadvantage if you are dealing with a lender that subscribes to only one bureau and you live in the western half of the U.S. Lenders that use just one bureau tend to use the one that specializes in their region: for Experian, it's the West and Midwest; Equifax dominates the South and TransUnion the Northeast.
And it's simply unfair that information gathered specifically about you and used for profit is unavailable to you, yet can affect so many corners of your life.
By Liz Pulliam Weston
MSN Money
After years of inaction and neglect, Washington is finally getting serious about protecting people from abusive credit card practices. Consider:
President Barack Obama last week summoned credit card executives to the White House and signaled that credit card reform is on his agenda.
Meanwhile, the "Credit Cardholders' Bill of Rights" is heading for another vote in the House of Representatives.
Regulators already have imposed significant new restrictions on card issuers, although those won't go into effect until mid-2010.
Reforms are long overdue. But all sides are missing a golden opportunity to protect people from abusive credit bureau practices, specifically the bureaus' ability to cut off our access to our own FICO credit scores.
In February, I wrote about how Experian suddenly had decided not to sell FICO scores to consumers anymore, although it continues to sell the scores to lenders. That decision, which has yet to be challenged by regulators or lawmakers, conceals from consumers a vital piece of their credit information.
Crackdown on the credit card industry
You no longer have any idea, before you apply for a mortgage, what kind of interest rate to expect. That's because most mortgage lenders use the middle of your three credit bureau FICO scores to determine rates and terms. Without access to all three FICOs, you can't know what your middle score might be.
You're also at a disadvantage if you are dealing with a lender that subscribes to only one bureau and you live in the western half of the U.S. Lenders that use just one bureau tend to use the one that specializes in their region: for Experian, it's the West and Midwest; Equifax dominates the South and TransUnion the Northeast.
And it's simply unfair that information gathered specifically about you and used for profit is unavailable to you, yet can affect so many corners of your life.
Dow off 51 as swine-flu fears hit stocks
By Charley Blaine and Elizabeth Strott
MSN
Investors dump airline and cruise stocks, worrying that travelers will skip trips to Mexico and the United States. GM will cut 21,000 jobs and slash 40% of dealerships; bondholders are unhappy. Bank stocks drop ahead of stress test results.
Stocks finished lower today because of the swine flu outbreak in Mexico and United States. But the damage was not nearly as bad as feared.
Hotel and airline stocks and the shares of pork producers were hit hard by the news, and financial stocks dropped on economic fears and worries about how much new capital the companies may need.
But as futures trading overnight had suggested, the day could have been much, much worse.
The Dow Jones industrials ($INDU) ended down 51 points, or 0.6%, to 8,025.
The Standard & Poor's 500 Index ($INX) fell 9 points, or 1%, to 856.
The Nasdaq Composite Index ($COMPX) slipped 15 points, or 0.9%, to 1,679.
The Nasdaq-100 Index ($NDX.X), which tracks the largest Nasdaq stocks, slipped 3 points, or 0.2%, to 1,370.
The selling continued a pattern in force since the market rally began on March 10: Stocks have fallen in six of the last seven Mondays and have moved higher at the end of each week.
The market found support near two key levels: The Dow dropped below 8,000 at 1:50 p.m. and quickly rebounded. The S&P 500 finished fairly close to 860. The Dow
While the swine flu outbreak hit travel and a number of food stocks, it boosted shares of the makers of drugs that can help prevent catching the disease.
The worries spread to energy stocks, pushing the price of crude oil lower, and added to the worries about how long the recession will last.
The downturn came despite a 20.7% gain -- to $2.06 -- in shares of General Motors (GM, news, msgs), which announced a new restructuring plan. GM's gain was the largest among the 30 Dow stocks.
Meanwhile, financial stocks were lower on worries about whether the government's stress test will force several large regional banks to raise new capital.
Regions Financial (RF, news, msgs) was down 11.7% to $4.91; KeyCorp (KEY, news, msgs) fell 12% to $6.16.
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MSN
Investors dump airline and cruise stocks, worrying that travelers will skip trips to Mexico and the United States. GM will cut 21,000 jobs and slash 40% of dealerships; bondholders are unhappy. Bank stocks drop ahead of stress test results.
Stocks finished lower today because of the swine flu outbreak in Mexico and United States. But the damage was not nearly as bad as feared.
Hotel and airline stocks and the shares of pork producers were hit hard by the news, and financial stocks dropped on economic fears and worries about how much new capital the companies may need.
But as futures trading overnight had suggested, the day could have been much, much worse.
The Dow Jones industrials ($INDU) ended down 51 points, or 0.6%, to 8,025.
The Standard & Poor's 500 Index ($INX) fell 9 points, or 1%, to 856.
The Nasdaq Composite Index ($COMPX) slipped 15 points, or 0.9%, to 1,679.
The Nasdaq-100 Index ($NDX.X), which tracks the largest Nasdaq stocks, slipped 3 points, or 0.2%, to 1,370.
The selling continued a pattern in force since the market rally began on March 10: Stocks have fallen in six of the last seven Mondays and have moved higher at the end of each week.
The market found support near two key levels: The Dow dropped below 8,000 at 1:50 p.m. and quickly rebounded. The S&P 500 finished fairly close to 860. The Dow
While the swine flu outbreak hit travel and a number of food stocks, it boosted shares of the makers of drugs that can help prevent catching the disease.
The worries spread to energy stocks, pushing the price of crude oil lower, and added to the worries about how long the recession will last.
The downturn came despite a 20.7% gain -- to $2.06 -- in shares of General Motors (GM, news, msgs), which announced a new restructuring plan. GM's gain was the largest among the 30 Dow stocks.
Meanwhile, financial stocks were lower on worries about whether the government's stress test will force several large regional banks to raise new capital.
Regions Financial (RF, news, msgs) was down 11.7% to $4.91; KeyCorp (KEY, news, msgs) fell 12% to $6.16.
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Financial Changes
Consider larger financial changes.
If you continually come up short, you may need to consider some larger changes. For example, you might sell your newer car for an older used car to free yourself from car payments. As you make adjustments to your budget, give careful thought to your priorities. Think about what you value, and be honest with yourself.
If you continually come up short, you may need to consider some larger changes. For example, you might sell your newer car for an older used car to free yourself from car payments. As you make adjustments to your budget, give careful thought to your priorities. Think about what you value, and be honest with yourself.
Make Adjustments
Review your budget and make adjustments.
Check your figures periodically. If you never have enough money to make ends meet, it's time to adjust some more. Or, if you constantly overspend in one area, change the projected amount for that category and trim the money from another category.
Check your figures periodically. If you never have enough money to make ends meet, it's time to adjust some more. Or, if you constantly overspend in one area, change the projected amount for that category and trim the money from another category.
Make a List
Preserve things you cannot live without.
Make a list of things you feel you can't live without, and whittle down your other expenses to accommodate them. For example, you may decide to give up most of your magazine and newspaper subscriptions because you know you'd go nuts if you couldn't go to the movies once a week. If you make room for at least some of the things you love most, you're much more likely to succeed at your plan.
Make a list of things you feel you can't live without, and whittle down your other expenses to accommodate them. For example, you may decide to give up most of your magazine and newspaper subscriptions because you know you'd go nuts if you couldn't go to the movies once a week. If you make room for at least some of the things you love most, you're much more likely to succeed at your plan.
April 22, 2009
Expenses
Decreasing Expenses
If your expenses exceed your income, you will have to cut expenses or increase your income. If finding more income is not realistic, focus on decreasing your expenses. The trick is doing this without depriving yourself of items or services you truly need.
If your expenses exceed your income, you will have to cut expenses or increase your income. If finding more income is not realistic, focus on decreasing your expenses. The trick is doing this without depriving yourself of items or services you truly need.
How to create budget
How to create your budget.
1. Determine the categories into which your expenses fall (see the chart below for suggested categories.) List your categories of expenses down the left side of a piece of paper (or Excel spreadsheet). Use as many sheets as you need to list all categories. These are your budget sheets.
2. On the sheets containing your list of categories, make 13 columns. Label the first one "projected" and the remaining 12 with the months of the year. Unless today is the first of the month, start with next month.
3. Using your total actual expenses for the two months you tracked and the other expenses you added, project your monthly expenses for the categories you've listed. (Make a note of when smaller expenses, such as magazine subscriptions, are due so you can adjust your budget for that month. These temporary adjustments make more sense than trying to save $1.23 each month to cover an annual magazine subscription.
4. Enter your projected monthly expenses into the "projected" column of your budget sheets.
5. Add up all projected monthly expenses and enter the total into a "Total Expenses" category at the bottom of the projected column.
6. Enter your projected monthly income below your total projected expenses.
7. Figure out the difference.
1. Determine the categories into which your expenses fall (see the chart below for suggested categories.) List your categories of expenses down the left side of a piece of paper (or Excel spreadsheet). Use as many sheets as you need to list all categories. These are your budget sheets.
2. On the sheets containing your list of categories, make 13 columns. Label the first one "projected" and the remaining 12 with the months of the year. Unless today is the first of the month, start with next month.
3. Using your total actual expenses for the two months you tracked and the other expenses you added, project your monthly expenses for the categories you've listed. (Make a note of when smaller expenses, such as magazine subscriptions, are due so you can adjust your budget for that month. These temporary adjustments make more sense than trying to save $1.23 each month to cover an annual magazine subscription.
4. Enter your projected monthly expenses into the "projected" column of your budget sheets.
5. Add up all projected monthly expenses and enter the total into a "Total Expenses" category at the bottom of the projected column.
6. Enter your projected monthly income below your total projected expenses.
7. Figure out the difference.
Monthly Income
Determine monthly income.
Finally, multiply the net amount by the number of pay periods to determine the monthly amount. For example, if you are paid twice a month, multiply the net amount by two. If you are paid every other week, multiply the amount by 26 (for the annual amount) and divide by 12.
When you are done, total up all the amounts. This is your total average monthly income.
After you keep track of your expenses and income for a few months, you're ready to create a budget. Your goals in making a budget are to:
* control your impulses to overspend, and
* start saving money.
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Finally, multiply the net amount by the number of pay periods to determine the monthly amount. For example, if you are paid twice a month, multiply the net amount by two. If you are paid every other week, multiply the amount by 26 (for the annual amount) and divide by 12.
When you are done, total up all the amounts. This is your total average monthly income.
After you keep track of your expenses and income for a few months, you're ready to create a budget. Your goals in making a budget are to:
* control your impulses to overspend, and
* start saving money.
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Net Income
Record net income.
Next to each source of income, list the net (after deductions) amount you receive each pay period. If you don't receive the same amount each period, average the last 12.
Next to each net amount, enter the period covered by the payment -- such as weekly, twice monthly (24 times a year), every other week (26 times a year), monthly, quarterly, or annually.
Next to each source of income, list the net (after deductions) amount you receive each pay period. If you don't receive the same amount each period, average the last 12.
Next to each net amount, enter the period covered by the payment -- such as weekly, twice monthly (24 times a year), every other week (26 times a year), monthly, quarterly, or annually.
Income
Total Your Income
Your expenditures account for only half of the picture. You also need to add up your monthly income.
On a blank sheet of paper, list the jobs for which you receive a salary or wages. Then, list all self-employment for which you receive income, including farm income and sales commissions. Finally, list other sources of income, such as:
* bonus pay
* dividends and interest
* alimony or child support
* pension or retirement income, and
* public assistance.
Your expenditures account for only half of the picture. You also need to add up your monthly income.
On a blank sheet of paper, list the jobs for which you receive a salary or wages. Then, list all self-employment for which you receive income, including farm income and sales commissions. Finally, list other sources of income, such as:
* bonus pay
* dividends and interest
* alimony or child support
* pension or retirement income, and
* public assistance.
Best of way to do when making your Budget
Staying on track
Don't think of your budget as etched in stone. If you do, and you spend more on an item than you've budgeted, you'll get frustrated and be more likely to scrap the budget altogether.
Be willing to sacrifice.
You may have to sacrifice some things that feel important to you. But don't expect to stick to your budget if you take away all but the essentials. Be realistic.
Don't think of your budget as etched in stone. If you do, and you spend more on an item than you've budgeted, you'll get frustrated and be more likely to scrap the budget altogether.
Be willing to sacrifice.
You may have to sacrifice some things that feel important to you. But don't expect to stick to your budget if you take away all but the essentials. Be realistic.
Budgeting
Drafting a personal budget is one of the best ways to control your spending. Until you know what you earn and spend, you can't figure out how to live within your means. Don’t be intimidated by the process. Creating a budget can be simple and easy. For information on budgeting,
April 21, 2009
JCB Creditcard
Japan Credit Bureau, usually abbreviated as JCB, is a credit card company based in Tokyo, Japan. Its English name is JCB Co., Ltd. (株式会社ジェーシービー ,Kabushiki gaisha jē shī bī?). The abbreviation is sometimes thought to stand for Japan Commerce Bank, but this is incorrect.
Founded in 1961, JCB established dominance over the Japanese credit card market when it purchased Osaka Credit Bureau in 1968 and its cards are now issued in 20 different countries. Fifty-nine million JCB cardmembers worldwide use their cards to purchase over US$62.7 billion of goods and services annually in 190 countries worldwide.
JCB also operates a network of membership lounges targeting Japanese, Chinese, and Korean travelers in Europe, Asia, and North America.
Since 1981, JCB has been aggressively expanding its business overseas. Currently JCB cards are issued in 20 countries, most of which JCB is affiliated with financial institutions to license them to issue JCB-branded cards. All the international operation is conducted through its 100% subsidiary, JCB International Credit Card Co., Ltd.
In the United States, JCB is not as well known or as widely accepted as other credit cards such as Visa, MasterCard or American Express. Instead it is primarily accepted by tourism-related businesses such as airlines, car rental companies, and hotels. JCB is also increasingly accepted at businesses such as department stores, gas stations, and Japanese specialty retailers.
JCB accounts in the United States are issued by JCBUSA, but are currently only available to residents of California, Connecticut, Illinois, Nevada, New York, New Jersey, Oregon, Washington and Hawaii
Founded in 1961, JCB established dominance over the Japanese credit card market when it purchased Osaka Credit Bureau in 1968 and its cards are now issued in 20 different countries. Fifty-nine million JCB cardmembers worldwide use their cards to purchase over US$62.7 billion of goods and services annually in 190 countries worldwide.
JCB also operates a network of membership lounges targeting Japanese, Chinese, and Korean travelers in Europe, Asia, and North America.
Since 1981, JCB has been aggressively expanding its business overseas. Currently JCB cards are issued in 20 countries, most of which JCB is affiliated with financial institutions to license them to issue JCB-branded cards. All the international operation is conducted through its 100% subsidiary, JCB International Credit Card Co., Ltd.
In the United States, JCB is not as well known or as widely accepted as other credit cards such as Visa, MasterCard or American Express. Instead it is primarily accepted by tourism-related businesses such as airlines, car rental companies, and hotels. JCB is also increasingly accepted at businesses such as department stores, gas stations, and Japanese specialty retailers.
JCB accounts in the United States are issued by JCBUSA, but are currently only available to residents of California, Connecticut, Illinois, Nevada, New York, New Jersey, Oregon, Washington and Hawaii
Discover Card
The Discover Card is a major credit card, issued primarily in the United States. It was originally introduced by Sears in 1985, and was part of Dean Witter, and then Morgan Stanley, until 2007, when Discover Financial Services became an independent company. Novus, a major processing center, used to be partners with the company as well. The Novus logo has since been retired and now the Discover Network logo has replaced it.
Most cards with the Discover brand are issued by Discover Bank. Discover Card transactions are processed through the Discover Network payment network. As of February 2006, the company announced that it would begin offering Discover Debit cards to banks, made possible by the Pulse payment system, which Discover acquired in 2005.
At the time the Discover Card was introduced, Sears was the largest retailer in the United States. It had purchased the Dean Witter Reynolds Organization (brokerage) and Coldwell, Banker & Company (real estate) in 1981, as an attempt to add financial services to its portfolio of customer services.
Together with the Discover Card (and its issuing bank, the Greenwood Trust Company, owned by Sears), this was named the Sears Financial Network. Early Discover Cards bore a small embossed symbol representing the Sears Tower, the company's headquarters at the time.
In October 2004, the Supreme Court upheld a ruling in Discover Card's favor that challenged exclusionary policies of Visa and MasterCard. Before this ruling, Visa and MasterCard would not allow banks to issue a Discover Card if they issued a Visa or MasterCard. Within days of the court ruling, Discover Card filed a lawsuit in federal court seeking damages from Visa and MasterCard. In 2005, Discover Card acquired PULSE, an electronic funds transfer association, allowing it to issue and market debit and ATM cards.
Shortly after the 2004 Supreme Court ruling, Discover also struck its first deal to have its card issued by another bank, GE Consumer Finance, which now issues three cards for retailer Wal-Mart and its wholesale warehouse stores, Sam's Club; transactions for both cards are processed on the Discover Network. Sam's Club exclusively accepted Discover Card for many years, although, since November 2006, it has also accepted MasterCard for purchases.
HSBC has also issued credit cards processed through the Discover Network, and branded with the Discover logo, since its acquisition of card issuer Metris in late 2005. Metris had originally signed an agreement with Discover in September 2005, only three months prior to the HSBC acquisition.
Morgan Stanley was long thought to want to sell the Discover Card business, and in April 2005, it announced that it would divest Discover Financial Services as an independent company within six months. However, by June industry sources reported that Morgan Stanley was reassessing its plan to spin off Discover.
Finally, in August 2005, the company confirmed it would not sell Discover. In yet another reversal, in December 2006, Morgan Stanley announced it would, again, spin off Discover as a standalone company by the end of August 2007. The spin-off was finalized ahead of schedule, on June 30, 2007.
Most cards with the Discover brand are issued by Discover Bank. Discover Card transactions are processed through the Discover Network payment network. As of February 2006, the company announced that it would begin offering Discover Debit cards to banks, made possible by the Pulse payment system, which Discover acquired in 2005.
At the time the Discover Card was introduced, Sears was the largest retailer in the United States. It had purchased the Dean Witter Reynolds Organization (brokerage) and Coldwell, Banker & Company (real estate) in 1981, as an attempt to add financial services to its portfolio of customer services.
Together with the Discover Card (and its issuing bank, the Greenwood Trust Company, owned by Sears), this was named the Sears Financial Network. Early Discover Cards bore a small embossed symbol representing the Sears Tower, the company's headquarters at the time.
In October 2004, the Supreme Court upheld a ruling in Discover Card's favor that challenged exclusionary policies of Visa and MasterCard. Before this ruling, Visa and MasterCard would not allow banks to issue a Discover Card if they issued a Visa or MasterCard. Within days of the court ruling, Discover Card filed a lawsuit in federal court seeking damages from Visa and MasterCard. In 2005, Discover Card acquired PULSE, an electronic funds transfer association, allowing it to issue and market debit and ATM cards.
Shortly after the 2004 Supreme Court ruling, Discover also struck its first deal to have its card issued by another bank, GE Consumer Finance, which now issues three cards for retailer Wal-Mart and its wholesale warehouse stores, Sam's Club; transactions for both cards are processed on the Discover Network. Sam's Club exclusively accepted Discover Card for many years, although, since November 2006, it has also accepted MasterCard for purchases.
HSBC has also issued credit cards processed through the Discover Network, and branded with the Discover logo, since its acquisition of card issuer Metris in late 2005. Metris had originally signed an agreement with Discover in September 2005, only three months prior to the HSBC acquisition.
Morgan Stanley was long thought to want to sell the Discover Card business, and in April 2005, it announced that it would divest Discover Financial Services as an independent company within six months. However, by June industry sources reported that Morgan Stanley was reassessing its plan to spin off Discover.
Finally, in August 2005, the company confirmed it would not sell Discover. In yet another reversal, in December 2006, Morgan Stanley announced it would, again, spin off Discover as a standalone company by the end of August 2007. The spin-off was finalized ahead of schedule, on June 30, 2007.
April 19, 2009
Credit repair and debt
Except for those folks who are born accountants, most people find dealing with personal finances a chore. People are loath to manage their finances for all sorts of reasons, including not being comfortable with math, not having time, or even being fearful of finding out that there’s just not enough money in the bank to cover the bills. But you must have a clear understanding of your finances to maintain or improve your financial health.
Credit Insurance
Insurance a lender requires a borrower to purchase to cover the loan. If the borrower dies or becomes disabled before paying off the loan, the policy will pay off the remaining balance. Federal and state consumer protection laws require the lender to disclose to existing and potential borrowers the terms and costs of obtaining credit insurance because it can affect the terms of the loan.
April 12, 2009
Credit counseling
Counseling that explores the possibility of repaying debts outside of bankruptcy and educates the debtor about credit, budgeting, and financial management.
Under the new bankruptcy law, a debtor must undergo credit counseling with an approved provider before filing for bankruptcy.
Under the new bankruptcy law, a debtor must undergo credit counseling with an approved provider before filing for bankruptcy.
April 05, 2009
VISA ElectronCard
Visa Electron is a debit or credit card available across most of the world, with the exception of Canada, Australia, and the United States. The card was introduced by VISA in the 1980s and is a sister card to the Visa Debit card.
The difference between Visa Electron and Visa Debit is that payments with Visa Electron require that all the funds be available at the time of the transfer (i.e., Visa Electron card accounts cannot be overdrawn).
As a comparison, Visa Debit cards allow transfers of unavailable funds below a certain limit. As a result, some online stores and all offline terminals (e.g., onboard trains or planes) do not support Visa Electron because their systems cannot check for the availability of funds.
In different regions, the card is issued with different specifications. For example, one bank may issue it as a debit card, while another may issue it as a credit card. It is most commonly issued as a debit card. In this case applying for a credit card requires the applicant to present some proof of regular income (such as an employment certificate) or financial assets invested elsewhere.
In addition to debit facilities, the card also allows the holder to withdraw cash from ATMs even outside the holder's country of residence unlike normal ATM cards issued in some countries. This is because Visa Electron cards are also linked to the PLUS interbank network. While one may not be able to purchase the card in the United States, it can be used to transfer funds from other countries, for example Lebanon.
In the United Kingdom, the card is not as widely accepted as the brother Visa Debit card, but is often issued by banks as a debit card for children's accounts. In some countries, like Australia, retailers are required to accept the card as part of VISA's Accept All Cards Policy, which also applies to the normal Visa Debit card, although the card is not available locally.[citation needed]
In countries that have stricter criteria for issuing credit cards, Visa Electron has become popular with younger people and students alike. As each transaction requires funds to be checked, there is no chance of accounts going overdrawn. Therefore banks will issue a Visa Electron card to customers who may not qualify for another type of card.
As Visa Electron cards lack embossed details, they cannot be used with older card "imprinters" that transfer payment information to a paper slip, unless the card details are manually entered.
As the card carries a low interchange fee, airlines and other businesses which apply a surcharge for credit and debit card payments generally do not apply one for Visa Electron payments.
The difference between Visa Electron and Visa Debit is that payments with Visa Electron require that all the funds be available at the time of the transfer (i.e., Visa Electron card accounts cannot be overdrawn).
As a comparison, Visa Debit cards allow transfers of unavailable funds below a certain limit. As a result, some online stores and all offline terminals (e.g., onboard trains or planes) do not support Visa Electron because their systems cannot check for the availability of funds.
In different regions, the card is issued with different specifications. For example, one bank may issue it as a debit card, while another may issue it as a credit card. It is most commonly issued as a debit card. In this case applying for a credit card requires the applicant to present some proof of regular income (such as an employment certificate) or financial assets invested elsewhere.
In addition to debit facilities, the card also allows the holder to withdraw cash from ATMs even outside the holder's country of residence unlike normal ATM cards issued in some countries. This is because Visa Electron cards are also linked to the PLUS interbank network. While one may not be able to purchase the card in the United States, it can be used to transfer funds from other countries, for example Lebanon.
In the United Kingdom, the card is not as widely accepted as the brother Visa Debit card, but is often issued by banks as a debit card for children's accounts. In some countries, like Australia, retailers are required to accept the card as part of VISA's Accept All Cards Policy, which also applies to the normal Visa Debit card, although the card is not available locally.[citation needed]
In countries that have stricter criteria for issuing credit cards, Visa Electron has become popular with younger people and students alike. As each transaction requires funds to be checked, there is no chance of accounts going overdrawn. Therefore banks will issue a Visa Electron card to customers who may not qualify for another type of card.
As Visa Electron cards lack embossed details, they cannot be used with older card "imprinters" that transfer payment information to a paper slip, unless the card details are manually entered.
As the card carries a low interchange fee, airlines and other businesses which apply a surcharge for credit and debit card payments generally do not apply one for Visa Electron payments.
CHOICE Card
Choice was a credit card test marketed by Citibank in the United States, announced in 1977 and first issued in 1978. It was one of the first cards to offer a cash-refund program and no annual fee. Choice was intended to create a rival to Visa, MasterCard, and American Express, but proved unsuccessful, and was withdrawn in 1987. Citibank has continued to use the "Choice" name on some of its Visa and MasterCard cards.
The card was introduced in 1977, when Citibank bought NAC, a regional credit card based in Baltimore, renaming it Choice. A subsequent campaign in Maryland in 1980 turned the card into a regional success, earning more than one million cardholders in the Baltimore and Washington, DC, area.
With a view to nationwide expansion, the test market was expanded to include Colorado. Ultimately, despite the success of Sears' Discover Card, which offered many of the same features as Choice when it was introduced in 1985 (such as a rebate on purchases and no annual fee), Citibank decided Choice could not compete with Visa and MasterCard in the longer term, and the card was reissued as a Visa at the end of 1987, aimed at entry-level customers and those with poor credit.
Its fate was similar to that of Citibank's first credit card, the "First National City Charge Service" (or "The Everything Card"), introduced on the East Coast in 1967 to compete with BankAmericard (today's Visa) but which became part of Master Charge (now MasterCard) in 1969
The card was introduced in 1977, when Citibank bought NAC, a regional credit card based in Baltimore, renaming it Choice. A subsequent campaign in Maryland in 1980 turned the card into a regional success, earning more than one million cardholders in the Baltimore and Washington, DC, area.
With a view to nationwide expansion, the test market was expanded to include Colorado. Ultimately, despite the success of Sears' Discover Card, which offered many of the same features as Choice when it was introduced in 1985 (such as a rebate on purchases and no annual fee), Citibank decided Choice could not compete with Visa and MasterCard in the longer term, and the card was reissued as a Visa at the end of 1987, aimed at entry-level customers and those with poor credit.
Its fate was similar to that of Citibank's first credit card, the "First National City Charge Service" (or "The Everything Card"), introduced on the East Coast in 1967 to compete with BankAmericard (today's Visa) but which became part of Master Charge (now MasterCard) in 1969
March 22, 2009
The Function of Money
The General Economic Conditions for the Use of Money
Where the free exchange of goods and services is unknown, money is not wanted. In a state of society in which the division of labor was a purely domestic matter and production and consumption were consummated within the single household it would be just as useless as it would be for an isolated man.
But even in an economic order based on division of labor, money would still be unnecessary if the means of production were socialized, the control of production and the distribution of the finished product were in the hands of a central body, and individuals were not allowed to exchange the consumption goods allotted to them for the consumption goods allotted to others.
The phenomenon of money presupposes an economic order in which production is based on division of labor and in which private property consists not only in goods of the first order (consumption goods), but also in goods of higher orders (production goods). In such a society, there is no systematic centralized control of production, for this is inconceivable without centralized disposal over the means of production.
Production is "anarchistic." What is to be produced, and how it is to be produced, is decided in the first place by the owners of the means of production, who produce, however, not only for their own needs, but also for the needs of others, and in their valuations take into account, not only the use-value that they themselves attach to their products, but also the use-value that these possess in the estimation of the other members of the community.
The balancing of production and consumption takes place in the market, where the different producers meet to exchange goods and services by bargaining together.
The function of money is to facilitate the business of the market by acting as a common medium of exchange.
Where the free exchange of goods and services is unknown, money is not wanted. In a state of society in which the division of labor was a purely domestic matter and production and consumption were consummated within the single household it would be just as useless as it would be for an isolated man.
But even in an economic order based on division of labor, money would still be unnecessary if the means of production were socialized, the control of production and the distribution of the finished product were in the hands of a central body, and individuals were not allowed to exchange the consumption goods allotted to them for the consumption goods allotted to others.
The phenomenon of money presupposes an economic order in which production is based on division of labor and in which private property consists not only in goods of the first order (consumption goods), but also in goods of higher orders (production goods). In such a society, there is no systematic centralized control of production, for this is inconceivable without centralized disposal over the means of production.
Production is "anarchistic." What is to be produced, and how it is to be produced, is decided in the first place by the owners of the means of production, who produce, however, not only for their own needs, but also for the needs of others, and in their valuations take into account, not only the use-value that they themselves attach to their products, but also the use-value that these possess in the estimation of the other members of the community.
The balancing of production and consumption takes place in the market, where the different producers meet to exchange goods and services by bargaining together.
The function of money is to facilitate the business of the market by acting as a common medium of exchange.
The Theory of Money and Credit
Money and Credit is an economics book written by Ludwig von Mises, originally published in German as Theorie des Geldes und der Umlaufsmittel in 1912.
Along with Carl Menger's Principles of Economics, and Eugen von Böhm-Bawerk's Capital and Interest, this work was a major contribution to economic theory.
Its first English translation was published in 1934, and Part Four was added by Mises to the English language edition in 1953. In this work, Mises looks at the nature and value of money, and its effect on determining monetary policy.
Included is his regression theorem, that tries to explain why money is demanded in its own right, as moneys at first glance do not serve a consumable need. Mises explained that moneys only can come about after there was a demand for the money commodity in a barter economy.
The German word Umlaufsmittel literally translates as "means of circulation" and was translated into the text of the English version as "fiduciary media".
However, the publisher thought the unusual terminology would irritate readers and substituted "money and credit" in the title, thereby losing the specific distinction Mises had made in selecting his original term.
Along with Carl Menger's Principles of Economics, and Eugen von Böhm-Bawerk's Capital and Interest, this work was a major contribution to economic theory.
Its first English translation was published in 1934, and Part Four was added by Mises to the English language edition in 1953. In this work, Mises looks at the nature and value of money, and its effect on determining monetary policy.
Included is his regression theorem, that tries to explain why money is demanded in its own right, as moneys at first glance do not serve a consumable need. Mises explained that moneys only can come about after there was a demand for the money commodity in a barter economy.
The German word Umlaufsmittel literally translates as "means of circulation" and was translated into the text of the English version as "fiduciary media".
However, the publisher thought the unusual terminology would irritate readers and substituted "money and credit" in the title, thereby losing the specific distinction Mises had made in selecting his original term.
Weather Forecast
Current conditions for select cities
°F °C
City
Current
City
Current
Anchorage, AK
52°
Miami, FL
81°
Atlanta, GA
79°
Milwaukee, WI
45°
Beijing, CHN
50°
Minneapolis, MN
61°
Boston, MA
91°
Moscow, RUS
61°
Buenos Aires, ARG
73°
New York, NY
88°
Cairo, EGY
72°
Orlando, FL
82°
Charlotte, NC
79°
Paris, FRA
46°
Chicago, IL
48°
Philadelphia, PA
86°
Columbus, OH
64°
Phoenix, AZ
84°
Dallas, TX
79°
Portland, OR
52°
Delhi, IND
85°
Rome, ITA
57°
Denver, CO
66°
Salt Lake City, UT
63°
Honolulu
79°
San Diego, CA
63°
Houston, TX
81°
San Francisco, CA
59°
Indianapolis, IN
66°
Seattle, WA
54°
Las Vegas, NV
79°
St. Louis, MO
63°
London, GBR
48°
Sydney, AUS
52°
Los Angeles, CA
64°
Tokyo, JPN
52°
Madrid, ESP
55°
Toronto, CAN
54°
Memphis, TN
75°
Washington, DC
84°
°F °C
City
Current
City
Current
Anchorage, AK
52°
Miami, FL
81°
Atlanta, GA
79°
Milwaukee, WI
45°
Beijing, CHN
50°
Minneapolis, MN
61°
Boston, MA
91°
Moscow, RUS
61°
Buenos Aires, ARG
73°
New York, NY
88°
Cairo, EGY
72°
Orlando, FL
82°
Charlotte, NC
79°
Paris, FRA
46°
Chicago, IL
48°
Philadelphia, PA
86°
Columbus, OH
64°
Phoenix, AZ
84°
Dallas, TX
79°
Portland, OR
52°
Delhi, IND
85°
Rome, ITA
57°
Denver, CO
66°
Salt Lake City, UT
63°
Honolulu
79°
San Diego, CA
63°
Houston, TX
81°
San Francisco, CA
59°
Indianapolis, IN
66°
Seattle, WA
54°
Las Vegas, NV
79°
St. Louis, MO
63°
London, GBR
48°
Sydney, AUS
52°
Los Angeles, CA
64°
Tokyo, JPN
52°
Madrid, ESP
55°
Toronto, CAN
54°
Memphis, TN
75°
Washington, DC
84°
February 18, 2009
Interest
INTEREST
Interest measures the cost of borrowing money from a lender and is usually expressed as an annual percentage of the principal.
Interest is usually paid only on the principal, that is, on the sum of money loaned, and it is called simple interest. In some cases, interest is paid not only on the principal but also on the cumulative total of past interest payments. This procedure is known as compounding the interest, and the amount so paid is called compound interest.
The rate of interest is expressed as a percentage of the principal paid for its use for a given time, usually a year. Thus, a loan of $100 at 10 percent per annum earns interest of $10 a year. The current, or market, rate of interest is determined primarily by the relation between the supply of money and the demands of borrowers .
When the supply of money available for investment increases faster than the requirements of borrowers, interest rates tend to fall. Conversely, interest rates generally rise when the demand for investment funds grows faster than the available supply of funds to meet that demand. Business executives will not borrow money at an interest rate that exceeds the return they expect the use of the money to yield.
Interest costs depends on the inflation rate, the credit risk of the borrower and the time value of money.
Interest measures the cost of borrowing money from a lender and is usually expressed as an annual percentage of the principal.
Interest is usually paid only on the principal, that is, on the sum of money loaned, and it is called simple interest. In some cases, interest is paid not only on the principal but also on the cumulative total of past interest payments. This procedure is known as compounding the interest, and the amount so paid is called compound interest.
The rate of interest is expressed as a percentage of the principal paid for its use for a given time, usually a year. Thus, a loan of $100 at 10 percent per annum earns interest of $10 a year. The current, or market, rate of interest is determined primarily by the relation between the supply of money and the demands of borrowers .
When the supply of money available for investment increases faster than the requirements of borrowers, interest rates tend to fall. Conversely, interest rates generally rise when the demand for investment funds grows faster than the available supply of funds to meet that demand. Business executives will not borrow money at an interest rate that exceeds the return they expect the use of the money to yield.
Interest costs depends on the inflation rate, the credit risk of the borrower and the time value of money.
February 17, 2009
ACCESS Card
Access is a former credit card introduced in Great Britain in 1972 by a consortium of National Westminster Bank, Midland Bank (now HSBC), Lloyds Bank (now Lloyds TSB), and The Royal Bank of Scotland, as a rival to the established Barclaycard (VISA).
It was also issued in both Northern Ireland and the Republic of Ireland by Ulster Bank, a subsidiary of NatWest, Northern Bank, then a subsidiary of Midland; and Bank of Ireland, which was unconnected to the founder banks. The card scheme was run from Southend-on-Sea in Essex, by the Joint Credit Card Company Limited. It participated in the Eurocard/MasterCard systems. Europay International SA has since been taken over by MasterCard International itself.
One of the early slogans was Your flexible friend (which was featured in an episode of Mr. Bean); another slogan which featured in a television advertisement was Does you does, or does you don't take Access? (sung to the tune of Is You Is or Is You Ain't My Baby), accompanied by an animated Access and his friend Money (a pound sign). Access merged with the international credit card brand MasterCard in 1996.
Some businesses still advertise as accepting the Access card as old signage has not been removed. The brand is considered nostalgic in the United Kingdom, in a similar manner to the former Midland Bank griffin logo.
It was also issued in both Northern Ireland and the Republic of Ireland by Ulster Bank, a subsidiary of NatWest, Northern Bank, then a subsidiary of Midland; and Bank of Ireland, which was unconnected to the founder banks. The card scheme was run from Southend-on-Sea in Essex, by the Joint Credit Card Company Limited. It participated in the Eurocard/MasterCard systems. Europay International SA has since been taken over by MasterCard International itself.
One of the early slogans was Your flexible friend (which was featured in an episode of Mr. Bean); another slogan which featured in a television advertisement was Does you does, or does you don't take Access? (sung to the tune of Is You Is or Is You Ain't My Baby), accompanied by an animated Access and his friend Money (a pound sign). Access merged with the international credit card brand MasterCard in 1996.
Some businesses still advertise as accepting the Access card as old signage has not been removed. The brand is considered nostalgic in the United Kingdom, in a similar manner to the former Midland Bank griffin logo.
February 16, 2009
Debt Financing
Debt financing is the process where a firm sells bonds, bills, notes or other promises to reply to individuals or institutions in order to raise capital. In exchange lending money, those individuals and institutions agree to be creditors, and expect to be paid the principal and interest.
Debt financing is opposed to raising capital through equities market or public issues, or equity financing, which reflects an exchange of ownership in the firm in exchange of financing, and does not come with an explicit promise to repay.
Advantages and Disadvantages
Unlike the equity market, debt financing allows a firm to raise capital without having to sell shares to investors, diluting the firmâ??s ownership. Debt financing tends to appeal to smaller businesses which have a harder time finding equity financing or simply wish not to relinquish control of their company. However, the amount of capital a firm may raise through debt financing is, on average, usually lower than through equity markets, and depends heavily on whether potential creditors are willing to provide loans.
Debt instrument
A written, or otherwise recorded promise to repay. Debt instruments enable the issuer to raise capital, by establishing terms attractive to suppliers of capital to invest. Debt instruments typically state a repayment schedule, establish a interest rate on outstanding debt, and explicitly state the issuer's obligation to repay.
Standardize debt instruments make issuing, purchasing and transfering these obligations easy. Such added liquidity makes the purchase and issuance of debt more attractive, since purchases gain confidence that they may trade their debt easily in the market, and issuers may be confident that can find a purchasers of their new debt.
source: gocurrency
Debt financing is opposed to raising capital through equities market or public issues, or equity financing, which reflects an exchange of ownership in the firm in exchange of financing, and does not come with an explicit promise to repay.
Advantages and Disadvantages
Unlike the equity market, debt financing allows a firm to raise capital without having to sell shares to investors, diluting the firmâ??s ownership. Debt financing tends to appeal to smaller businesses which have a harder time finding equity financing or simply wish not to relinquish control of their company. However, the amount of capital a firm may raise through debt financing is, on average, usually lower than through equity markets, and depends heavily on whether potential creditors are willing to provide loans.
Debt instrument
A written, or otherwise recorded promise to repay. Debt instruments enable the issuer to raise capital, by establishing terms attractive to suppliers of capital to invest. Debt instruments typically state a repayment schedule, establish a interest rate on outstanding debt, and explicitly state the issuer's obligation to repay.
Standardize debt instruments make issuing, purchasing and transfering these obligations easy. Such added liquidity makes the purchase and issuance of debt more attractive, since purchases gain confidence that they may trade their debt easily in the market, and issuers may be confident that can find a purchasers of their new debt.
source: gocurrency
Amortization
The gradual elimination of debt in regular payments over time.
This is a specified time period and a constant payment amount at each interval. This amount must be high enough to cover both principal and interest. Another definition of amortization is similar to depreciation. This is the deduction of capital expenses over time, as a method of measuring the consumption of the value of long-term assets, such as equipment or buildings. Because this time period is in effect the life of the asset, it is also a specified time period. The period as a whole is known as the amortization term. It is often pattern of payments is organized in what is known as an amortization schedule, which is a table detailing the payments made and anticipated, in terms of date and amounts.
Amortization method
A distribution calculation method for making penalty-free early withdrawals from retirement accounts. An assumed earnings rate is applied over the duration of the individual's life expectancy, while the life expectancy is determined using IRS tables. Generally, the rate must be within 120% of the applicable federal long-term rate. Once the rate is determined, the withdrawal remains fixed each year.
source: gocurrency
This is a specified time period and a constant payment amount at each interval. This amount must be high enough to cover both principal and interest. Another definition of amortization is similar to depreciation. This is the deduction of capital expenses over time, as a method of measuring the consumption of the value of long-term assets, such as equipment or buildings. Because this time period is in effect the life of the asset, it is also a specified time period. The period as a whole is known as the amortization term. It is often pattern of payments is organized in what is known as an amortization schedule, which is a table detailing the payments made and anticipated, in terms of date and amounts.
Amortization method
A distribution calculation method for making penalty-free early withdrawals from retirement accounts. An assumed earnings rate is applied over the duration of the individual's life expectancy, while the life expectancy is determined using IRS tables. Generally, the rate must be within 120% of the applicable federal long-term rate. Once the rate is determined, the withdrawal remains fixed each year.
source: gocurrency
Know About the Importance of Google Adsense
"for me, i was so happy that adsense gives a lot of help to me. (Help Features Listed in). And I really appreciated it much.
From:
Andy Bustos
Credit cards and Moneymatters and Team.
About Google AdSense
Google AdSense is a program enabling online businesses to earn revenue from serving ads precisely targeted to specific web content and search pages. With service levels ranging from online sign-up to dedicated support management, a broad range of sites profit from AdSense. Thousands of Google advertisers also benefit from AdSense by gaining exposure on sites across the Google Network, which includes many of the Top 100 Media Metrix sites such as AOL, About.com, Amazon, Ask.com, and Lycos.
From:
Andy Bustos
Credit cards and Moneymatters and Team.
About Google AdSense
Google AdSense is a program enabling online businesses to earn revenue from serving ads precisely targeted to specific web content and search pages. With service levels ranging from online sign-up to dedicated support management, a broad range of sites profit from AdSense. Thousands of Google advertisers also benefit from AdSense by gaining exposure on sites across the Google Network, which includes many of the Top 100 Media Metrix sites such as AOL, About.com, Amazon, Ask.com, and Lycos.
February 12, 2009
Banking and Finance
News about rural banks closing sends shivers to Philippine depositors, and also cast doubts on the stability of our banking institution. Can we blame them? It’s their hard earned money so we expect people to guard them with their lives. Investigations are ongoing but people are not so interested with the outcome, they want their money and investments protected.
So given the situation and the economic slowdown, what can banks do to further strengthen their market position?
Where are the opportunities?
Leading independent research and advisory firm Financial Insights, an IDC company, today announces the release of a report that assesses opportunities for banks in the current crisis environment. It highlights pockets of growth in lending in several Asia/Pacific markets, shifts in customer deposits which allow aggressive banks to gain market share, and opportunities for generating fee income.
More insights are revealed in this new study,
"Asia/Pacific Banking in 2009: Opportunities Amid A Crisis".
"A thorough review of the market reveals some opportunities for revenue growth, and for further expansion of customer base and product portfolios despite the economic crisis," remarks Michael Araneta, Senior Research Manager, Financial Insights Asia/Pacific.
‘’The environment however is by no means bright and rosy, and significant risks need to be considered. Market conditions are volatile, causing opportunities to shift quickly. The game will be won by those agile and capable enough to execute strategies efficiently,’’ Araneta continues.
Financial Insights notes that banks’ strategic IT initiatives have been realigned to reflect the opportunities in the market. Despite tight budgets, banks will still spend on technologies that allow them to blunt the adverse effects of the crisis, build business despite the slowdown, and operate efficiently in a crisis environment.
For example, while banks need to continue investing in origination solutions for loan expansion, they also need to invest strategically in modeling and analytics. Investments in scoring, modeling, and analytics will help in key areas such as decisioning, pricing, servicing, fraud prevention, and even collections and recovery.
Highlights of this report
- Even before the escalation of the financial crisis, Asia/Pacific banks were already projecting a slowdown in lending for 2009. Financial Insights have revised downwards the estimated average loan growth for 12 key Asia/Pacific markets to 8.7%. However, there are still significant drivers for lending growth that need to be considered. These include government mandates and interventions, dwindling international funding options, microfinance, and moves by aggressive players to win market share from weakened rivals.
- Deposit mobilization will proceed impressively in under-banked countries like India (where industry deposit growth is expected to be at about 20% year-on-year in 2009) and Vietnam (estimated to be 11%). In most other Asia/Pacific markets however, it will be about acquiring market share from competing banks, or attracting customers away from savings and investment alternatives.
- While some fee income sources like corporate finance, underwriting, credit cards and wealth management sales will be affected by the market slowdown, opportunities to generate service-based fees, such as those charged on transaction accounts, fund transfers and cash management, will remain robust. New strategies will need to consider the ideal mix of fee income sources that the bank is able to support.
Araneta continues,
"New business objectives and requirements are being used to justify traditional technology projects like core banking upgrades. The chase for deposits will hopefully help rebuild the momentum for core banking system projects in the medium term. Business and IT teams will consider the scalability of their current core systems as the bank’s deposit base expands, and as new deposit products need to be brought to market."
"Overall, the financial crisis is expected to bring risk management back into focus. Technology teams should be ready to address risk management issues related to their work, including risks inherent in technologies under implementation, project implementation issues, as well as risks associated with vendors and technology partners," Araneta adds.
The secret to success in this time of crisis is to stay focus and do not panic. It’s a man made problem so there will always be a solution. The key is to stay on course with your corporate objectives and goals and better address customer needs.
So given the situation and the economic slowdown, what can banks do to further strengthen their market position?
Where are the opportunities?
Leading independent research and advisory firm Financial Insights, an IDC company, today announces the release of a report that assesses opportunities for banks in the current crisis environment. It highlights pockets of growth in lending in several Asia/Pacific markets, shifts in customer deposits which allow aggressive banks to gain market share, and opportunities for generating fee income.
More insights are revealed in this new study,
"Asia/Pacific Banking in 2009: Opportunities Amid A Crisis".
"A thorough review of the market reveals some opportunities for revenue growth, and for further expansion of customer base and product portfolios despite the economic crisis," remarks Michael Araneta, Senior Research Manager, Financial Insights Asia/Pacific.
‘’The environment however is by no means bright and rosy, and significant risks need to be considered. Market conditions are volatile, causing opportunities to shift quickly. The game will be won by those agile and capable enough to execute strategies efficiently,’’ Araneta continues.
Financial Insights notes that banks’ strategic IT initiatives have been realigned to reflect the opportunities in the market. Despite tight budgets, banks will still spend on technologies that allow them to blunt the adverse effects of the crisis, build business despite the slowdown, and operate efficiently in a crisis environment.
For example, while banks need to continue investing in origination solutions for loan expansion, they also need to invest strategically in modeling and analytics. Investments in scoring, modeling, and analytics will help in key areas such as decisioning, pricing, servicing, fraud prevention, and even collections and recovery.
Highlights of this report
- Even before the escalation of the financial crisis, Asia/Pacific banks were already projecting a slowdown in lending for 2009. Financial Insights have revised downwards the estimated average loan growth for 12 key Asia/Pacific markets to 8.7%. However, there are still significant drivers for lending growth that need to be considered. These include government mandates and interventions, dwindling international funding options, microfinance, and moves by aggressive players to win market share from weakened rivals.
- Deposit mobilization will proceed impressively in under-banked countries like India (where industry deposit growth is expected to be at about 20% year-on-year in 2009) and Vietnam (estimated to be 11%). In most other Asia/Pacific markets however, it will be about acquiring market share from competing banks, or attracting customers away from savings and investment alternatives.
- While some fee income sources like corporate finance, underwriting, credit cards and wealth management sales will be affected by the market slowdown, opportunities to generate service-based fees, such as those charged on transaction accounts, fund transfers and cash management, will remain robust. New strategies will need to consider the ideal mix of fee income sources that the bank is able to support.
Araneta continues,
"New business objectives and requirements are being used to justify traditional technology projects like core banking upgrades. The chase for deposits will hopefully help rebuild the momentum for core banking system projects in the medium term. Business and IT teams will consider the scalability of their current core systems as the bank’s deposit base expands, and as new deposit products need to be brought to market."
"Overall, the financial crisis is expected to bring risk management back into focus. Technology teams should be ready to address risk management issues related to their work, including risks inherent in technologies under implementation, project implementation issues, as well as risks associated with vendors and technology partners," Araneta adds.
The secret to success in this time of crisis is to stay focus and do not panic. It’s a man made problem so there will always be a solution. The key is to stay on course with your corporate objectives and goals and better address customer needs.
February 06, 2009
Foreign Exchange Market
Foreign Exchange Trading
Foreign Exchange Trading or FX Trading, clients are able to hedge against, or speculate upon, changes in the exchange rate of two currencies. For example, a speculator can long EUR/USD in foreign exchange market in order to profit from capturing the appreciation of Euro against the U.S. Dollar. Foreign exchange services provide an opportunity for clients to trade FX. Foreign Exchange Trading is done on the foreign exchange market.
Foreign Exchange Spot Trading
Foreign exchange spot trading is buying one currency with a different currency for immediate delivery, rather than for future delivery.
The standard settlement timeframe for Foreign Exchange Spot trades is T+2 days; i.e., 2 days from the date of trade execution. A notable exception is the USD/CAD currency pair which settles T+1.
Foreign Exchange Reserves
(also called Forex reserves) in a strict sense are only the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, SDRs and IMF reserve positions. This broader figure is more readily available, but it is more accurately termed official international reserves or international reserves. These are assets of the central bank held in different reserve currencies, such as the dollar, euro and yen, and used to back its liabilities, e.g. the local currency issued, and the various bank reserves deposited with the central bank, by the government or financial institutions.
Foreign Exchange Option
In finance, a foreign exchange option (commonly shortened to just FX option or currency option) is a derivative financial instrument where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date.
The FX options market is the deepest, largest and most liquid market for options of any kind in the world. Most of the FX option volume is traded OTC and is lightly regulated, but a fraction is traded on exchanges like the International Securities Exchange, Philadelphia Stock Exchange, or the Chicago Mercantile Exchange for options on futures contracts. The global market for exchange-traded currency options was notionally valued by the Bank for International Settlements at $158,300 billion in 2005.
Foreign Currency Control
Foreign exchange controls are various forms of controls imposed by a government on the purchase/sale of foreign currencies by residents or on the purchase/sale of local currency by nonresidents.
Common foreign exchange controls include:
a. Banning the use of foreign currency within the country
b. Banning locals from possessing foreign currency
c. Restricting currency exchange to government-approved exchangers
d. Fixed exchange rates
e. Restrictions on the amount of currency that may be imported or exported
Countries with foreign exchange controls are also known as "Article 14 countries," after the provision in the International Monetary Fund agreement allowing exchange controls for transitional economies. Such controls used to be common in most countries, particularly poorer ones, until the 1990s when free trade and globalization started a trend towards economic liberalization. Today, countries which still impose exchange controls are the exception rather than the rule.
Foreign Exchange Committee
Founded in 1978 the Foreign Exchange Committee is an industry group that provides guidance and leadership to the global foreign exchange market. The FXC includes representatives of major financial institutions engaged in foreign currency trading in the United States and is sponsored by the Federal Reserve Bank of New York.
Past Committee members include:
John Spurdle of JP Morgan,
Jeff Feig of Citigroup,
Lloyd Blankfein of Goldman Sachs,
Paul Kimball of Morgan Stanley,
Michael deSa of Deutsche Bank,
Robert Savage of American Express,
Mark De Gennaro of Lehman, and John Key,
The incoming prime minister of New Zealand.
source: wikipedia
Foreign Exchange Trading or FX Trading, clients are able to hedge against, or speculate upon, changes in the exchange rate of two currencies. For example, a speculator can long EUR/USD in foreign exchange market in order to profit from capturing the appreciation of Euro against the U.S. Dollar. Foreign exchange services provide an opportunity for clients to trade FX. Foreign Exchange Trading is done on the foreign exchange market.
Foreign Exchange Spot Trading
Foreign exchange spot trading is buying one currency with a different currency for immediate delivery, rather than for future delivery.
The standard settlement timeframe for Foreign Exchange Spot trades is T+2 days; i.e., 2 days from the date of trade execution. A notable exception is the USD/CAD currency pair which settles T+1.
Foreign Exchange Reserves
(also called Forex reserves) in a strict sense are only the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, SDRs and IMF reserve positions. This broader figure is more readily available, but it is more accurately termed official international reserves or international reserves. These are assets of the central bank held in different reserve currencies, such as the dollar, euro and yen, and used to back its liabilities, e.g. the local currency issued, and the various bank reserves deposited with the central bank, by the government or financial institutions.
Foreign Exchange Option
In finance, a foreign exchange option (commonly shortened to just FX option or currency option) is a derivative financial instrument where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date.
The FX options market is the deepest, largest and most liquid market for options of any kind in the world. Most of the FX option volume is traded OTC and is lightly regulated, but a fraction is traded on exchanges like the International Securities Exchange, Philadelphia Stock Exchange, or the Chicago Mercantile Exchange for options on futures contracts. The global market for exchange-traded currency options was notionally valued by the Bank for International Settlements at $158,300 billion in 2005.
Foreign Currency Control
Foreign exchange controls are various forms of controls imposed by a government on the purchase/sale of foreign currencies by residents or on the purchase/sale of local currency by nonresidents.
Common foreign exchange controls include:
a. Banning the use of foreign currency within the country
b. Banning locals from possessing foreign currency
c. Restricting currency exchange to government-approved exchangers
d. Fixed exchange rates
e. Restrictions on the amount of currency that may be imported or exported
Countries with foreign exchange controls are also known as "Article 14 countries," after the provision in the International Monetary Fund agreement allowing exchange controls for transitional economies. Such controls used to be common in most countries, particularly poorer ones, until the 1990s when free trade and globalization started a trend towards economic liberalization. Today, countries which still impose exchange controls are the exception rather than the rule.
Foreign Exchange Committee
Founded in 1978 the Foreign Exchange Committee is an industry group that provides guidance and leadership to the global foreign exchange market. The FXC includes representatives of major financial institutions engaged in foreign currency trading in the United States and is sponsored by the Federal Reserve Bank of New York.
Past Committee members include:
John Spurdle of JP Morgan,
Jeff Feig of Citigroup,
Lloyd Blankfein of Goldman Sachs,
Paul Kimball of Morgan Stanley,
Michael deSa of Deutsche Bank,
Robert Savage of American Express,
Mark De Gennaro of Lehman, and John Key,
The incoming prime minister of New Zealand.
source: wikipedia
Know the Forward Exchange Market
The forward exchange market is a market for contracts that ensure the future delivery of a foreign currency at a specified exchange rate. The price of a forward contract is known as the forward rate.
Forward Rates
Forward rates are usually negotiated for delivery one month, three months, or one year after the date of the contract's creation. They usually differ from the spot rate and from each other.
What determines the forward rate?
If there is no government intervention on the value of a currency, the forward market will be governed by supply and demand.
In such a case it is possible that the forward rate provides information on the future spot rate, but ultimately uncertain. What is certain is that the forward rates reflect the expectations forward market participants have on the changes of the spot rate during the specified interval. If the forward rate and the spot rate are the same, forward market participants do not expect much change in the price of a currency over the given period of time.
Forward contracts can be used to hedge or cover exposure to foreign exchange risk.
Forward Rates
Forward rates are usually negotiated for delivery one month, three months, or one year after the date of the contract's creation. They usually differ from the spot rate and from each other.
What determines the forward rate?
If there is no government intervention on the value of a currency, the forward market will be governed by supply and demand.
In such a case it is possible that the forward rate provides information on the future spot rate, but ultimately uncertain. What is certain is that the forward rates reflect the expectations forward market participants have on the changes of the spot rate during the specified interval. If the forward rate and the spot rate are the same, forward market participants do not expect much change in the price of a currency over the given period of time.
Forward contracts can be used to hedge or cover exposure to foreign exchange risk.
Shares of Bankrupt Firms?
Buying the shares of a bankrupt firms
Business failures have been running at high rates, and that's a shame. But many investors are finding bargains in bankrupt firms.
They buy up the stocks and bonds of big, bankrupt corporations at distress prices. These speculators hope that the companies will come out of their court-directed reorganizations slimmed down and comparatively dept-free, and that the increased value of their securities will amply reward investors for the steep risks they are taking. Investors' eye glisten at memories of the huge fortunes that were made on such bankrupt companies of the past. Of course, there are investors in bankrupt firms have lost considerable money.
So, bankruptcy investors tend to stick with secured dept. At times they will venture further down the pecking order to buy preferred or common stock. But usually they will do that only after a company has just come out of reorganization, shining with such virtues a clean balance sheet, an accumulation of tax losses that can be carried forward to offset future earnings and a talented management with definite ideas about where it's heading.
Investing in bankrupts is not for the faint of heart or short of pocket. Even situations that look promising often do not pan out. Since the bankruptcy investment game is dominated by the professionals, it would be foolhardy to sit in without coaching from the experts at a brokerage house.
Example:
David Howard Murdock
(born April 10, 1923)
Is an American businessman. Forbes estimates he is the 214th richest person in the world, with a net worth of 4.7 billion US Dollars. A high-school dropout, Murdock was drafted by the U.S. Army in 1943.
In 1985 he took over the nearly bankrupt Hawaiian firm Castle & Cooke, which owned pineapple producer Dole Food Company. He developed Castle & Cooke's real estate portfolio into residential and commercial properties and turned Dole into the world's largest producer of fruits and vegetables.
Dole has generated "negative free cash flow (defined as cash flow from operations less dividends and capital expenditures) annually since 2005, the company remained free cash flow negative during the first half of fiscal 2008"
(Fitch Ratings, July 30th 2008).
source: wikipedia
Business failures have been running at high rates, and that's a shame. But many investors are finding bargains in bankrupt firms.
They buy up the stocks and bonds of big, bankrupt corporations at distress prices. These speculators hope that the companies will come out of their court-directed reorganizations slimmed down and comparatively dept-free, and that the increased value of their securities will amply reward investors for the steep risks they are taking. Investors' eye glisten at memories of the huge fortunes that were made on such bankrupt companies of the past. Of course, there are investors in bankrupt firms have lost considerable money.
So, bankruptcy investors tend to stick with secured dept. At times they will venture further down the pecking order to buy preferred or common stock. But usually they will do that only after a company has just come out of reorganization, shining with such virtues a clean balance sheet, an accumulation of tax losses that can be carried forward to offset future earnings and a talented management with definite ideas about where it's heading.
Investing in bankrupts is not for the faint of heart or short of pocket. Even situations that look promising often do not pan out. Since the bankruptcy investment game is dominated by the professionals, it would be foolhardy to sit in without coaching from the experts at a brokerage house.
Example:
David Howard Murdock
(born April 10, 1923)
Is an American businessman. Forbes estimates he is the 214th richest person in the world, with a net worth of 4.7 billion US Dollars. A high-school dropout, Murdock was drafted by the U.S. Army in 1943.
In 1985 he took over the nearly bankrupt Hawaiian firm Castle & Cooke, which owned pineapple producer Dole Food Company. He developed Castle & Cooke's real estate portfolio into residential and commercial properties and turned Dole into the world's largest producer of fruits and vegetables.
Dole has generated "negative free cash flow (defined as cash flow from operations less dividends and capital expenditures) annually since 2005, the company remained free cash flow negative during the first half of fiscal 2008"
(Fitch Ratings, July 30th 2008).
source: wikipedia
Stock Market Tips
Do you want an Inside Tips on the Stock Market?
Tips are most likely the trend others need before starting of any kind of business, most likely on stocks. Well then, watch for those times when high executives buy or sell shares in the company they work for. Information on such insider trading is easy to find and simple to use.
When officers of the company trade its stock, they often know something you don't know, and their deals have to be reported to the Securities and Exchange Commission. When they buy a lot of their own stock, it usually does much better than the market averages.
When insider sell, watch out. Heavy sales by insiders preceded many of the market's disaster. at the end of that year, insiders were selling four times as many stocks as they bought. Sure enough, despite many predictions.
Thus, when you see heavy significant insider selling of a stock, consider cashing in your own shares in the company. the situation is particularly dangerous when insider selling suddenly increases after a stock has started to decline. You can protect yourself by leaving a standing order with your broker to sell your stock if and when it declines a few points. That way, if disaster does strike, you can scape with limited damage. That doesn't mean you have to stay out of the market. It's a good time to look at the stocks those knowing insiders have been buying.
You can follow the trading of high company officers by subscribing to news letters that follow the subject.
related articles:
Real-Time Stock Symbol Tweets
Real-Time Stock Market Tweets
Real-Time Stock Symbol News
Crude Oil
Commodities and Futures
World Market Watch
Tips are most likely the trend others need before starting of any kind of business, most likely on stocks. Well then, watch for those times when high executives buy or sell shares in the company they work for. Information on such insider trading is easy to find and simple to use.
When officers of the company trade its stock, they often know something you don't know, and their deals have to be reported to the Securities and Exchange Commission. When they buy a lot of their own stock, it usually does much better than the market averages.
When insider sell, watch out. Heavy sales by insiders preceded many of the market's disaster. at the end of that year, insiders were selling four times as many stocks as they bought. Sure enough, despite many predictions.
Thus, when you see heavy significant insider selling of a stock, consider cashing in your own shares in the company. the situation is particularly dangerous when insider selling suddenly increases after a stock has started to decline. You can protect yourself by leaving a standing order with your broker to sell your stock if and when it declines a few points. That way, if disaster does strike, you can scape with limited damage. That doesn't mean you have to stay out of the market. It's a good time to look at the stocks those knowing insiders have been buying.
You can follow the trading of high company officers by subscribing to news letters that follow the subject.
related articles:
Real-Time Stock Symbol Tweets
Real-Time Stock Market Tweets
Real-Time Stock Symbol News
Crude Oil
Commodities and Futures
World Market Watch
January 15, 2009
Your Borrowing
Your Best Deals in Loans
It used to be that borrowing could actually save you money in the long run. When inflation was running wild, it made sense to avoid future prices increases by buying on credit. No longer, inflation has been so low lately that the real cost of borrowing has been at one of its highest points in year.
There is nothing wrong in borrowing-provided you do it wisely. Never borrow more than you can reasonably pay off. Never borrow for luxuries, such as gifts and vacation travel, if that means you will not be able to borrow for necessities, such as mortgage, medical expenses.
You should be sure, of course, that you are getting the most economical interest-rate deal. you may well be best off borrowing from a credit union, if you belong to one. Or taking out a lump-sump loan from a bank or a savings institution and paying it back in installments. Bankers were charging a percentage for personal loans that you could secure with collateral such as savings account, stocks or bonds.
For unsecured loans-which you often can get if you have a good job or regular income and can afford the repayments-they were charging a percentage too. The rates are considerably less than you pay on your credit-card debts. So, if you are paying interest on big credit-card balances, it makes sense to switch to an unsecured credit line and pay off your credit cards.
If you own publicly traded stocks or bonds, you can go to a stockbroker and take out a margin loan, commonly for half the value of your securities. He or she will charge you interest of only a point or two avobe the prime rate.
When you are looking for money, you generally should canvass several different kinds of lenders.
The best place to start searching for a general -purpose loan is where you keep your checking and savings accounts. Many banks charge as much as two percentage points less loans to customers than to noncustomers.
Financing for a new car
If you are shopping for financing for a new car, you can often drive a better bargain on the showroom floor than at the bank.
Purchase of a House or Apartment
If you want to finance the purchase of a house or apartment, you will find that rates on mortgages do not vary a lot from lender to lender. Still, it pays to shop around because small variation can become significant over the long term of the mortgage. Generally, you will get the most competitive rates and terms at savings and loan associations and at mortgage banking firms.
If you already have bought a home, you can turn it into a piggy bank. you usually can borrow up to 80% of your equity - that is, the current market value of your house or apartment minus the amount that you still owe on your mortgage. you do that by applying for either a second mortgage or a home-equity line of credit.
Second Mortgage
The place to get a second mortgage is a bank or savings and loan association.You can get a home-equity credit line from banks, savings and loans and brokerage firms.Another source of cheap credit may be your whole life insurance policy.Many companies also let employees borrow from their assets in corporate profit-sharing or stock plans, and from corporate savings plans.
It used to be that borrowing could actually save you money in the long run. When inflation was running wild, it made sense to avoid future prices increases by buying on credit. No longer, inflation has been so low lately that the real cost of borrowing has been at one of its highest points in year.
There is nothing wrong in borrowing-provided you do it wisely. Never borrow more than you can reasonably pay off. Never borrow for luxuries, such as gifts and vacation travel, if that means you will not be able to borrow for necessities, such as mortgage, medical expenses.
You should be sure, of course, that you are getting the most economical interest-rate deal. you may well be best off borrowing from a credit union, if you belong to one. Or taking out a lump-sump loan from a bank or a savings institution and paying it back in installments. Bankers were charging a percentage for personal loans that you could secure with collateral such as savings account, stocks or bonds.
For unsecured loans-which you often can get if you have a good job or regular income and can afford the repayments-they were charging a percentage too. The rates are considerably less than you pay on your credit-card debts. So, if you are paying interest on big credit-card balances, it makes sense to switch to an unsecured credit line and pay off your credit cards.
If you own publicly traded stocks or bonds, you can go to a stockbroker and take out a margin loan, commonly for half the value of your securities. He or she will charge you interest of only a point or two avobe the prime rate.
When you are looking for money, you generally should canvass several different kinds of lenders.
The best place to start searching for a general -purpose loan is where you keep your checking and savings accounts. Many banks charge as much as two percentage points less loans to customers than to noncustomers.
Financing for a new car
If you are shopping for financing for a new car, you can often drive a better bargain on the showroom floor than at the bank.
Purchase of a House or Apartment
If you want to finance the purchase of a house or apartment, you will find that rates on mortgages do not vary a lot from lender to lender. Still, it pays to shop around because small variation can become significant over the long term of the mortgage. Generally, you will get the most competitive rates and terms at savings and loan associations and at mortgage banking firms.
If you already have bought a home, you can turn it into a piggy bank. you usually can borrow up to 80% of your equity - that is, the current market value of your house or apartment minus the amount that you still owe on your mortgage. you do that by applying for either a second mortgage or a home-equity line of credit.
Second Mortgage
The place to get a second mortgage is a bank or savings and loan association.You can get a home-equity credit line from banks, savings and loans and brokerage firms.Another source of cheap credit may be your whole life insurance policy.Many companies also let employees borrow from their assets in corporate profit-sharing or stock plans, and from corporate savings plans.
General Purpose Card
Card that identifies its owner as one who is entitled to credit when purchasing goods or services from certain establishments. Credit cards originated in the United States in the 1930s; their use was wide-spread by the 1950s.
They are issued by many businesses serving the consumer;
such as oil companies
retail stores and chain stores
restaurants
hotels
airlines
car rental agencies and banks
Some credit cards are honored in a single store, but others are general-purpose cards, for use in a wide variety of establishments.
Bank credit cards are examples of the general purpose card. Establishments dispensing almost every form of product or service are honoring such cards, and it is predicted that credit cards might some day eliminate the need for carrying cash.
When a credit card is used, the retailer records the name and account number of the purchaser and the amount of the sale, and forwards this record to the credit card billing office. At intervals, usually monthly, the billing office sends a statement to the cardholder listing all the charged purchases and requesting payment immediately or in installments.
The billing office reimburses the retailer directly.Most of the work involved in credit card operations is now handled by computers. Charges for the use of a credit card are sometimes paid directly by the cardholder, and sometimes borne by the retail establishments that accept them.
In the latter case, the cost is absorbed into the price of the merchandise. Department stores usually charge interest to credit customers who do not settle their bills within a month, but certain credit plans do not charge interest until a bill has been outstanding for several months.
Interest rates for overdue balances are regulated by state law. A continuing problem involved in the use of credit cards is the ease with which they can be used fraudulently if stolen or lost, although the liability of the owner is limited.
They are issued by many businesses serving the consumer;
such as oil companies
retail stores and chain stores
restaurants
hotels
airlines
car rental agencies and banks
Some credit cards are honored in a single store, but others are general-purpose cards, for use in a wide variety of establishments.
Bank credit cards are examples of the general purpose card. Establishments dispensing almost every form of product or service are honoring such cards, and it is predicted that credit cards might some day eliminate the need for carrying cash.
When a credit card is used, the retailer records the name and account number of the purchaser and the amount of the sale, and forwards this record to the credit card billing office. At intervals, usually monthly, the billing office sends a statement to the cardholder listing all the charged purchases and requesting payment immediately or in installments.
The billing office reimburses the retailer directly.Most of the work involved in credit card operations is now handled by computers. Charges for the use of a credit card are sometimes paid directly by the cardholder, and sometimes borne by the retail establishments that accept them.
In the latter case, the cost is absorbed into the price of the merchandise. Department stores usually charge interest to credit customers who do not settle their bills within a month, but certain credit plans do not charge interest until a bill has been outstanding for several months.
Interest rates for overdue balances are regulated by state law. A continuing problem involved in the use of credit cards is the ease with which they can be used fraudulently if stolen or lost, although the liability of the owner is limited.
American Express Company
American Express Company, financial and travel services company based in New York City.
American Express invented the traveler’s check and introduced one of the first credit cards in the United States.
These financial services established American Express worldwide and helped build the company into a multibillion-dollar corporation with dozens of subsidiaries.
American Express invented the traveler’s check and introduced one of the first credit cards in the United States.
These financial services established American Express worldwide and helped build the company into a multibillion-dollar corporation with dozens of subsidiaries.
American Express
American Express began in 1850 in New York City as a company that transported valuables. It resulted from the merger of three rival express transport companies: Wells & Company; Butterfield, Wasson and Company; and Livingston, Fargo and Company.
Henry Wells served as the first president of American Express and William G. Fargo was the vice president. In addition to their duties at American Express, Wells and Fargo began a separate company two years later, Wells Fargo & Company, which provided express delivery and banking services to California.
American Express prospered in the 1850s by transporting money and other valuables on rail and steamship lines in areas north and west of New York. The company grew even larger during the American Civil War (1861-1865) by transporting supplies, parcels, and other items for the Union Army.
Henry Wells served as the first president of American Express and William G. Fargo was the vice president. In addition to their duties at American Express, Wells and Fargo began a separate company two years later, Wells Fargo & Company, which provided express delivery and banking services to California.
American Express prospered in the 1850s by transporting money and other valuables on rail and steamship lines in areas north and west of New York. The company grew even larger during the American Civil War (1861-1865) by transporting supplies, parcels, and other items for the Union Army.
American Express Money Orders and Traveller's Checks
Fargo became president of American Express after Wells retired in 1868. Fargo died in 1881 and was succeeded as president by his brother, James Fargo, who further expanded the business. He guided the introduction of the money order in 1882 and the traveler’s check in 1891.
Most money orders could be issued and redeemed only in banks or post offices, which distinguished them as exceptionally reliable draft notes—or certificates negotiable as money—for a variety of personal and business transactions.
The American Express traveler’s check was a draft note purchased from a bank or directly from American Express. It could be redeemed for goods or services in many businesses around the world.
The American Express traveler’s check was an immediate success with travelers who found that the checks were easier to redeem than letters of credit from banks, which were commonly used overseas instead of cash. In addition, travelers preferred American Express traveler’s checks because the company would reimburse them if the checks were lost or stolen.
Traveler’s checks provided a substantial infusion of revenue to the company, and helped establish the American Express brand name among American travelers.
Most money orders could be issued and redeemed only in banks or post offices, which distinguished them as exceptionally reliable draft notes—or certificates negotiable as money—for a variety of personal and business transactions.
The American Express traveler’s check was a draft note purchased from a bank or directly from American Express. It could be redeemed for goods or services in many businesses around the world.
The American Express traveler’s check was an immediate success with travelers who found that the checks were easier to redeem than letters of credit from banks, which were commonly used overseas instead of cash. In addition, travelers preferred American Express traveler’s checks because the company would reimburse them if the checks were lost or stolen.
Traveler’s checks provided a substantial infusion of revenue to the company, and helped establish the American Express brand name among American travelers.
American Express business in 1918
During World War I (1914-1918) the U.S. government nationalized and consolidated express deliveries on American railroads, eventually forcing American Express to discontinue its express business in 1918.
In an effort to maintain steady revenues, American Express diversified by offering international banking services in 1919. After steady but relatively modest overseas growth during the 1920s and 1930s, the company dramatically increased the number of its offices around the world during the late 1940s and 1950s.
In an effort to maintain steady revenues, American Express diversified by offering international banking services in 1919. After steady but relatively modest overseas growth during the 1920s and 1930s, the company dramatically increased the number of its offices around the world during the late 1940s and 1950s.
American Express Card
In 1958, eight years after Diners Club came out with the first credit card that could be used at a variety of establishments, American Express introduced its own credit card.
The American Express credit card offered cardholders the convenience of being able to buy goods and services without needing cash at the time of purchase. The company generated revenues by charging cardholders an annual fee and by receiving a small percentage of card purchases from participating businesses.
American Express did not charge cardholders interest for using the card, but it required them to pay their balances in full each month. Within three months of the card’s introduction, half a million people became American Express cardholders.
In less than ten years, 2 million people carried American Express credit cards and annual charges on those cards exceeded $1 billion.
The American Express credit card offered cardholders the convenience of being able to buy goods and services without needing cash at the time of purchase. The company generated revenues by charging cardholders an annual fee and by receiving a small percentage of card purchases from participating businesses.
American Express did not charge cardholders interest for using the card, but it required them to pay their balances in full each month. Within three months of the card’s introduction, half a million people became American Express cardholders.
In less than ten years, 2 million people carried American Express credit cards and annual charges on those cards exceeded $1 billion.
American Express as Global Financial Giant
During the 1960s, 1970s, and early 1980s American Express grew into a global financial giant, acquiring a number of companies, including Fireman’s Fund Insurance Company in 1968 (which it sold in 1985) and the brokerage firms Shearson Loeb Rhoades Inc. in 1981 (which later grew into Shearson Lehman Brothers Holdings Inc.), Investors Diversified Services in 1984, and E. F.
Hutton in 1987. In 1987 the company introduced the American Express Optima credit card to compete with the growing popularity of cards issued by competitors MasterCard and Visa.
Unlike its original American Express credit card, the Optima card did not require cardholders to pay their balances in full each month. Instead, like MasterCard and Visa, the Optima card allowed cardholders to pay balances in installments, plus interest.
Hutton in 1987. In 1987 the company introduced the American Express Optima credit card to compete with the growing popularity of cards issued by competitors MasterCard and Visa.
Unlike its original American Express credit card, the Optima card did not require cardholders to pay their balances in full each month. Instead, like MasterCard and Visa, the Optima card allowed cardholders to pay balances in installments, plus interest.
American Express Recent Developments
In the late 1980s and early 1990s a downturn in the U.S. economy, coupled with increased competition from other credit card companies, led to a sharp decrease in earnings for American Express.
In 1991 the company initiated a major reorganization at a cost of $110 million. At the same time American Express invested $155 million in a reserve to cover expected losses from its various credit lines.
Harvey Golub took over as chairman of American Express in 1993. Golub sold many of the company’s holdings and cut millions of dollars in costs. Earnings at the company rose steadily during the mid-1990s, as American Express broadened its credit card business, strengthened its investment-services group, and expanded its international business holdings.
The number of American Express cardholders grew from 26 million in 1993 to 59 million in 2001.
In 1991 the company initiated a major reorganization at a cost of $110 million. At the same time American Express invested $155 million in a reserve to cover expected losses from its various credit lines.
Harvey Golub took over as chairman of American Express in 1993. Golub sold many of the company’s holdings and cut millions of dollars in costs. Earnings at the company rose steadily during the mid-1990s, as American Express broadened its credit card business, strengthened its investment-services group, and expanded its international business holdings.
The number of American Express cardholders grew from 26 million in 1993 to 59 million in 2001.
MasterCard International Incorporated
Credit card and payment system company based in Purchase, New York, near New York City. As of 2001, MasterCard had more than 1.7 billion credit, charge, and debit cards in circulation.
MasterCard is collectively owned by more than 20,000 member financial institutions around the world. Each of these institutions issues its own localized version of the MasterCard, and each establishes the terms—such as fees and interest rates—that it offers to cardholders.
MasterCard is collectively owned by more than 20,000 member financial institutions around the world. Each of these institutions issues its own localized version of the MasterCard, and each establishes the terms—such as fees and interest rates—that it offers to cardholders.
MasterCard Origins
In 1966 a group of bankers from across the United States organized the Interbank Card Association (ICA) to establish credit card transaction procedures for their member institutions. ICA issued its first credit card for nationwide use in 1966.
In 1968 the ICA began to form partnerships overseas, beginning with Banco Nacional in Mexico, and then with institutions in Europe and Japan later that year.In 1973 ICA established the Interbank National Authorization System (INAS), a computer system that eliminated the need for merchants to place telephone calls to bank clerks to get authorization for transactions.
In 1974 the ICA introduced magnetic strips on its credit cards that contained encoded information about the cardholder’s account. By swiping the cards through electronic devices at the place of purchase, this information could be quickly read and transmitted to banks, enabling merchants to authorize transactions even more quickly.
Use of the Master Charge card increased during the mid-1970s, accounting for 60 percent of all credit card transactions worldwide by 1977.
In 1968 the ICA began to form partnerships overseas, beginning with Banco Nacional in Mexico, and then with institutions in Europe and Japan later that year.In 1973 ICA established the Interbank National Authorization System (INAS), a computer system that eliminated the need for merchants to place telephone calls to bank clerks to get authorization for transactions.
In 1974 the ICA introduced magnetic strips on its credit cards that contained encoded information about the cardholder’s account. By swiping the cards through electronic devices at the place of purchase, this information could be quickly read and transmitted to banks, enabling merchants to authorize transactions even more quickly.
Use of the Master Charge card increased during the mid-1970s, accounting for 60 percent of all credit card transactions worldwide by 1977.
MasterCard Reorganization
ICA changed the name of both its organization and its card to MasterCard in 1979. In 1980 Russell E. Hogg became president of the company. Hogg restructured the organization, relocated several support offices, and began pursuing the international market more aggressively.
That same year MasterCard began offering debit cards, or cards that drew money from consumers’ bank accounts rather than from lines of credit. Many of the changes to the company were made in order to challenge Visa, which had bypassed MasterCard to become the worldwide leader in credit card transactions, owning 60 percent of the billings by 1983.
Despite losing this market share to Visa, usage of credit cards in general increased dramatically during the 1980s, enabling MasterCard to continue expanding.
That same year MasterCard began offering debit cards, or cards that drew money from consumers’ bank accounts rather than from lines of credit. Many of the changes to the company were made in order to challenge Visa, which had bypassed MasterCard to become the worldwide leader in credit card transactions, owning 60 percent of the billings by 1983.
Despite losing this market share to Visa, usage of credit cards in general increased dramatically during the 1980s, enabling MasterCard to continue expanding.
MasterCard New Services
In 1988 Hogg engineered the purchase of Cirrus, the world’s largest automated teller machine (ATM) network. ATMs—electronic machines in public places that enable users to conduct cash withdrawals and other banking transactions—had gained widespread popularity during the 1980s.
By 1990 the Cirrus system was linked with MasterCard’s existing ATM system to form the MasterCard/Cirrus ATM Network, with more than 50,000 locations worldwide. Within five years that network featured more than 200,000 ATMs.During the early 1990s a lackluster U.S. economy and fears about growing credit-card debt brought about a brief slowdown in the use of credit cards.
But by the mid-1990s a rejuvenated economy helped push card usage past all previous levels. MasterCard attracted consumers to its card by expanding the range of its services. The company signed agreements with companies to offer users airline rebates and other premiums; increased the use of debit cards; and encouraged a wider variety of businesses to accept the cards, including supermarkets and health care providers.
MasterCard and Visa continued to dominate the market during the mid-1990s. MasterCard’s sales increased from $450.5 million in 1992 to $946 million in 1996. Of the $798.3 billion in credit-card transactions in the United States in 1996, 27.6 percent used MasterCard and 49.2 percent used Visa.
By 1990 the Cirrus system was linked with MasterCard’s existing ATM system to form the MasterCard/Cirrus ATM Network, with more than 50,000 locations worldwide. Within five years that network featured more than 200,000 ATMs.During the early 1990s a lackluster U.S. economy and fears about growing credit-card debt brought about a brief slowdown in the use of credit cards.
But by the mid-1990s a rejuvenated economy helped push card usage past all previous levels. MasterCard attracted consumers to its card by expanding the range of its services. The company signed agreements with companies to offer users airline rebates and other premiums; increased the use of debit cards; and encouraged a wider variety of businesses to accept the cards, including supermarkets and health care providers.
MasterCard and Visa continued to dominate the market during the mid-1990s. MasterCard’s sales increased from $450.5 million in 1992 to $946 million in 1996. Of the $798.3 billion in credit-card transactions in the United States in 1996, 27.6 percent used MasterCard and 49.2 percent used Visa.
Visa International
Credit card and payment system company based in Foster City, near San Francisco, California. Visa is the world’s largest consumer payment company, with more than one billion cards issued, more than $1.8 trillion in transactions annually, and more than half of the world’s market in transactions.
Visa is collectively owned by more than 21,000 member financial institutions around the world. These institutions issue Visa cards, and each establishes the terms that it will offer to consumers, such as rates and fees.
Visa is collectively owned by more than 21,000 member financial institutions around the world. These institutions issue Visa cards, and each establishes the terms that it will offer to consumers, such as rates and fees.
Visa International Origins
Visa traces its roots to 1958, when Bank of America, based in San Francisco, issued the BankAmericard. At the time, many banks in the United States offered charge cards, or cards that enabled consumers to charge goods and services to an account.
Banks required cardholders to then pay their account balances in full each month. Unlike charge cards, the BankAmericard offered cardholders credit privileges, so they could pay their balance over a longer period of time in increments, plus interest. Bank of America licensed the card throughout California and eventually in other states as well.
The BankAmericard suffered from transactions problems and fraud during the early 1960s because of unreliable interchange systems between Bank of America and other banks licensed to issue the card. In 1968 Dee Ward Hock, an executive of the National Bank of Commerce in Seattle, Washington, headed a committee of BankAmericard licensees that was formed to resolve the problems among credit-card issuers.
Two years later Hock was instrumental in creating National BankAmericard Inc. (NBI), a consortium of BankAmericard licensees designed to conduct more reliable transactions between the banks. NBI bought the domestic bankcard system from Bank of America, and Hock became the head of NBI.
By 1970 the BankAmericard and its biggest competitor, Master Charge (later MasterCard), were offered nationwide, and most banks had eliminated their own bankcard programs to join one or both of the national systems.
Banks required cardholders to then pay their account balances in full each month. Unlike charge cards, the BankAmericard offered cardholders credit privileges, so they could pay their balance over a longer period of time in increments, plus interest. Bank of America licensed the card throughout California and eventually in other states as well.
The BankAmericard suffered from transactions problems and fraud during the early 1960s because of unreliable interchange systems between Bank of America and other banks licensed to issue the card. In 1968 Dee Ward Hock, an executive of the National Bank of Commerce in Seattle, Washington, headed a committee of BankAmericard licensees that was formed to resolve the problems among credit-card issuers.
Two years later Hock was instrumental in creating National BankAmericard Inc. (NBI), a consortium of BankAmericard licensees designed to conduct more reliable transactions between the banks. NBI bought the domestic bankcard system from Bank of America, and Hock became the head of NBI.
By 1970 the BankAmericard and its biggest competitor, Master Charge (later MasterCard), were offered nationwide, and most banks had eliminated their own bankcard programs to join one or both of the national systems.
Visa Card introduced
In 1974 Hock formed IBANCO, which took over administration of BankAmericard’s foreign operations. In 1977 Hock changed the name of the BankAmericard to the Visa card.
NBI became Visa U.S.A. and IBANCO became Visa International. Visa International Incorporated became the umbrella organization for Visa’s business units.
Visa International and Visa U.S.A. share corporate headquarters in Foster City.
NBI became Visa U.S.A. and IBANCO became Visa International. Visa International Incorporated became the umbrella organization for Visa’s business units.
Visa International and Visa U.S.A. share corporate headquarters in Foster City.
Visa International Growth
In 1977 MasterCard held 60 percent of the bankcard business, compared with 40 percent for Visa. By 1983 those percentages were reversed, making Visa the leading U.S. credit card.
Credit-card use expanded dramatically in the 1980s, and Visa continued to dominate the market. Visa had 56 million cardholders worldwide in 1979, but that figure rose to 220 million ten years later.
Credit-card use continued to grow in the 1990s as businesses ranging from supermarkets to health care providers began accepting payment with cards. Visa also offered premiums, such as airline discounts, for using its card.
The number of Visa cards worldwide increased from 255 million in 1990 to more than one billion in 2000. The company’s revenues grew from $720 million in 1990 to $1.8 billion in 2000.Of the more than $1.6 trillion in credit-card transactions worldwide in 1996, 55.8 percent used a Visa card, making it the worldwide leader in the credit-card industry.
Credit-card use expanded dramatically in the 1980s, and Visa continued to dominate the market. Visa had 56 million cardholders worldwide in 1979, but that figure rose to 220 million ten years later.
Credit-card use continued to grow in the 1990s as businesses ranging from supermarkets to health care providers began accepting payment with cards. Visa also offered premiums, such as airline discounts, for using its card.
The number of Visa cards worldwide increased from 255 million in 1990 to more than one billion in 2000. The company’s revenues grew from $720 million in 1990 to $1.8 billion in 2000.Of the more than $1.6 trillion in credit-card transactions worldwide in 1996, 55.8 percent used a Visa card, making it the worldwide leader in the credit-card industry.
Credit Control Act
The Credit Control Act of 1969 authorized the U.S. president to give additional controls to the Federal Reserve.
In 1980 the act was used as a means of controlling various types of consumer credit. The Gramm-Leach-Bliley Act of 1999 gave the Fed regulatory authority over the new financial services holding companies.
These companies can offer banking, issue securities (stocks and bonds) and insurance, and other financial services all “under one roof.”
The Glass-Steagall Act of 1933 had prohibited banks from engaging in many of these activities, such as underwriting securities and insurance, because they were deemed risky at the time.
In 1980 the act was used as a means of controlling various types of consumer credit. The Gramm-Leach-Bliley Act of 1999 gave the Fed regulatory authority over the new financial services holding companies.
These companies can offer banking, issue securities (stocks and bonds) and insurance, and other financial services all “under one roof.”
The Glass-Steagall Act of 1933 had prohibited banks from engaging in many of these activities, such as underwriting securities and insurance, because they were deemed risky at the time.
Credit Enhancement
Another important business service performed by banks is a credit enhancement. Commercial banks back up the performance of businesses by promising to pay the debts of the business if the business itself cannot pay.
This service substitutes the credit of the bank for the credit of the business. This is valuable, for example, in international trade where the exporting firm is unfamiliar with the importing firm in another country and is, therefore, reluctant to ship goods without knowing for certain that the importer will pay for them.
By substituting the credit of a foreign bank known to the exporter’s bank, the exporter knows payment will be made and will ship the goods. Credit enhancements are frequently called standby letters of credit or commercial letters of credit.
This service substitutes the credit of the bank for the credit of the business. This is valuable, for example, in international trade where the exporting firm is unfamiliar with the importing firm in another country and is, therefore, reluctant to ship goods without knowing for certain that the importer will pay for them.
By substituting the credit of a foreign bank known to the exporter’s bank, the exporter knows payment will be made and will ship the goods. Credit enhancements are frequently called standby letters of credit or commercial letters of credit.
Credit Lyonnais
France has a large, well-developed financial system. Banking, finance, insurance, real estate and other business services accounted for nearly 30 percent of France’s GDP in 1998.
France’s major banks are among the largest in the world. They include Banque Nationale de Paris (BNP), Crédit Agricole, Crédit Lyonnais, and Société Générale.
The French insurance sector is the world’s fifth largest. In the late 1990s a wave of mergers, corporate restructuring, foreign investment, and continued privatization encouraged unprecedented consolidation in the banking and insurance sectors.
France’s major banks are among the largest in the world. They include Banque Nationale de Paris (BNP), Crédit Agricole, Crédit Lyonnais, and Société Générale.
The French insurance sector is the world’s fifth largest. In the late 1990s a wave of mergers, corporate restructuring, foreign investment, and continued privatization encouraged unprecedented consolidation in the banking and insurance sectors.
Credit Mobilier of America
Business venture that precipitated one of the greatest financial and political scandals of the 19th century in the United States.Oakes Ames and his brother Oliver, Thomas C. Durant, and other principal Union Pacific Railroad stockholders purchased the Pennsylvania Fiscal Agency in 1864, changed the name to Crédit Mobilier of America (named after Crédit Mobilier of France), and established it as a construction company.
Crédit Mobilier then purchased the remaining Union Pacific stock and offered a reissue to its stockholders. In this way, the ownership of the two corporations was combined.At this time, the federal government had chartered the Union Pacific to complete the railroad from the Midwest to the Pacific coast. Loans, subsidies, and land grants were also part of the government's assistance to the railroad.
The Union Pacific Railroad awarded the contract for the actual construction to Crédit Mobilier, in effect awarding it to itself as owner of the company. The construction costs reported by Crédit Mobilier for the 1074 km (667 mi) were grossly inflated. Crédit Mobilier charged more than $94 million for construction that actually cost only $44 million. As a result the company's dividends to its stockholders increased 500 percent a year in 1867 and 1868.
When suspicions became aroused concerning the relationship between the Union Pacific and Crédit Mobilier, Oakes Ames, in his capacity as a congressman from Massachusetts, attempted to stave off a congressional investigation into both the Union Pacific Railroad and Crédit Mobilier by distributing Crédit Mobilier stock among his colleagues in the House of Representatives.
Congressmen were allowed to make long-term purchases of the stock by using the interest and dividends to pay for the stock itself. No risk was involved, and the profits were high; a reported $33 million profit was made by those who accepted these bribes.During the 1872 presidential election a list of those congressmen owning Crédit Mobilier stock was published by the New York Sun along with letters written by Oakes Ames describing his dealings. The taint of this scandal permeated the government.
Crédit Mobilier's operations were halted, and the Union Pacific Railroad, stripped of all its assets except the roadbed and the machinery in order to repay the government loans, was left debt-ridden. Among those implicated in the scandal were Vice President Schuyler Colfax, Representative James A. Garfield, House Speaker James G. Blaine, and Henry Wilson, the Republican candidate for vice president.Although not all charges were proven and the full investigation was finally dropped, many political careers were ruined as a result of these disclosures.
A number of judges were impeached or forced to resign, and Oakes Ames was finally censured by Congress in February 1873; he died a few months later. This scandal brought to the public's attention the extent of widespread political corruption and unethical business practices, and as a result, new concern was shown for reform in both areas.
Crédit Mobilier then purchased the remaining Union Pacific stock and offered a reissue to its stockholders. In this way, the ownership of the two corporations was combined.At this time, the federal government had chartered the Union Pacific to complete the railroad from the Midwest to the Pacific coast. Loans, subsidies, and land grants were also part of the government's assistance to the railroad.
The Union Pacific Railroad awarded the contract for the actual construction to Crédit Mobilier, in effect awarding it to itself as owner of the company. The construction costs reported by Crédit Mobilier for the 1074 km (667 mi) were grossly inflated. Crédit Mobilier charged more than $94 million for construction that actually cost only $44 million. As a result the company's dividends to its stockholders increased 500 percent a year in 1867 and 1868.
When suspicions became aroused concerning the relationship between the Union Pacific and Crédit Mobilier, Oakes Ames, in his capacity as a congressman from Massachusetts, attempted to stave off a congressional investigation into both the Union Pacific Railroad and Crédit Mobilier by distributing Crédit Mobilier stock among his colleagues in the House of Representatives.
Congressmen were allowed to make long-term purchases of the stock by using the interest and dividends to pay for the stock itself. No risk was involved, and the profits were high; a reported $33 million profit was made by those who accepted these bribes.During the 1872 presidential election a list of those congressmen owning Crédit Mobilier stock was published by the New York Sun along with letters written by Oakes Ames describing his dealings. The taint of this scandal permeated the government.
Crédit Mobilier's operations were halted, and the Union Pacific Railroad, stripped of all its assets except the roadbed and the machinery in order to repay the government loans, was left debt-ridden. Among those implicated in the scandal were Vice President Schuyler Colfax, Representative James A. Garfield, House Speaker James G. Blaine, and Henry Wilson, the Republican candidate for vice president.Although not all charges were proven and the full investigation was finally dropped, many political careers were ruined as a result of these disclosures.
A number of judges were impeached or forced to resign, and Oakes Ames was finally censured by Congress in February 1873; he died a few months later. This scandal brought to the public's attention the extent of widespread political corruption and unethical business practices, and as a result, new concern was shown for reform in both areas.
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