This may be as good a time as any to learn about IPOs and how they work

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Taken from investorjunkie.com

An Initial Public Offering (IPO), sometimes also known as a “float”, is the first time or instance that the stock of a private organization is offered to the public.

IPOs provide the investors with an opportunity to have the first slice of the pie, and after the IPO investors will be able to buy or sell shares on the public exchange. It offers an opportunity for investors to buy and own shares in a growing business.

A company has certain determinations to make during the IPO process — how much will it need to raise in the IPO, the financial goals, and the listing price to name a few.


Its never too late, but the earlier you master them, the better

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Photo by CDC on Unsplash

If you are wondering that you passed high school without ever undergoing any financial skill courses, you are not alone. Over 65% of the total sample size of 30,000 students surveyed in the 2019 survey by Everfi revealed this same information as well. These students did not undergo any financial education in high school at all.

To add salt to the wound, parents themselves typically do not have money discussions or conversations with their children. …


Research says merely writing down your goals can make it 42% more likely for you to achieve them

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Photo by S O C I A L . C U T on Unsplash

It’s finally the start of the new year. People had been eagerly waiting for 2020 to be over. What a year it was, unlike no other. With all the pain and misery humankind has suffered, hopefully, with the advent of 2021, all this suffering is behind us.

As is the norm, many people all around the world make some new year's resolutions at this time of the year — whether it be to lose weight, buying a car or a house, taking that trip that you’ve always wanted to go to, etc.

But as you might already know, the majority of these resolutions are not achieved and the reasons for this are manifold.

Firstly, there are not clear or well-articulated goals set in the first place to refer back to.

Secondly, there are cases where people set so many goals or targets — and then find it really hard to tackle all of them — and so they never even try to start the process and give up before even starting. …


Business loan terminology used in banks and what it means for you and your startup

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Photo by Ehud Neuhaus on Unsplash

If you are a startup owner, chances are you are considered a high-risk borrower for the bank. The reasons are pretty straightforward as well — you haven’t proven your product/ service quality for long enough (there is not a long enough track record), the company’s financials and ability to pay the debt are unknown, the management team running the business can be susceptible to market or competitive pressures. The reasons are endless. You get the idea!

So, in order to protect the banks' interest and in order for them to not lose money, there are certain things the banks can do. …


Choosing the right loan for you by understanding the lexicon of business loans

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Photo by JESHOOTS.COM on Unsplash

Business loan terminology can be rather confusing, even for the more sophisticated business owners. Most of these owners would rather focus on generating profit for their business than talk about loan interest and various financing charges.

Having said that, if you approach a lender without researching or knowing anything about loan terminology, you could be borrowing trouble — that's a simple truth.

To make informed decisions and choices, listed below are a few of the more common terms that will help you understand small business funding — and the options and the obligations that normally come with them.

Amortization

Amortization is simply the allocation of payments designed in a way to pay off the loan within a stated repayment term or period. Amortization schedules are structured and used in such a way that most of the money is utilized in early payments towards paying down the interest and later, larger portions of these payments go on to repay the principal amount. …


The wealth gap is increasing leading to heightened inequality

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Photo by vu anh on Unsplash

No one could have predicted the year 2020 would turn out to be this way. The word “unprecedented” has been thrown around a lot in the media, but if you were to sum 2020 in just one word, it's certainly been unprecedented.

And to see what is happening in the economy, with massive unemployment across the globe and pandemic led casualties at an all-time high (with some nations experiencing third and fourth waves of the virus) on the one hand, while on the other hand, we have the stock markets at an all-time high and property prices booming in most major economies, this does not seem justifiable at all and even the most distinguished of economists have been proved wrong. …


What, and how much can you realistically spend in retirement?

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Photo by Huy Phan on Unsplash

The 4% rule came into existence and was created using historical data on various stocks and bond returns over a 50 year period from 1926 to 1976. In a nutshell, the 4% rule states that you can withdraw up to 4% of your portfolio each year in your retirement to lead a comfortable lifestyle.

Now, having mentioned that it is imperative to say that life expectancy plays a vital role in determining if this withdrawal rate will be sustainable, as retirees who live longer, would obviously want their nest egg to last longer. …


How FDI affects your life and its benefits

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Taken from corporatefinanceinstitute.com

Foreign Direct Investment happens when a business entity or a particular individual buys or owns 10% or more of a foreign company. While this 10% ownership doesn't give the entity/individual a controlling interest in the foreign company, it does allow for certain influential power over the company’s management, policies, and operations.

Countries around the world, and the respective government of these countries, for these reasons stated above, very closely track down the investments made in their country's businesses.

Importance of FDI for emerging market economies and developed economies

Emerging market countries and other developing nations around the world need foreign investment to expand their international sales, reach, and hence, their profitability.


And why you need one now, more than ever

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Taken from Onefrugalgirl.com

Have you ever wanted to talk to someone about your money situation, your savings, and expenses but not have anyone in your corner to bounce ideas around? Surely everyone in their working life has worried about money and needs a trusted source who can listen to your financial questions and provide you with the necessary guidance and support you need to fully formulate your money decisions.

It doesn't matter if you are a total newbie or a financial adviser yourself. It's always advisable to ask for a second opinion and have an open mind to intake information without any bias. I would go as far as saying that often times it’s better to be a novice investor and ask for help than to be under the false impression that you are a financial guru so you “know it all”. …


Lifestyle creep could be sabotaging your savings and its high time to act on it now

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Photo by Helena Lopes on Unsplash

In a nutshell, lifestyle creep is where you typically start spending more money because you are earning more money. It’s basically spending more on that dress you’ve always wanted, your yearly phone upgrades, your expensive bottles of wines, or to throw a lavish party — just because you feel you can now afford to.

Now, of course, I am definitely not against having a good time and enjoying a bit. That’s what we earn for, right? Each of the above examples in isolation does not affect and is not seen as harmful, but it is exactly this kind of incremental spending that resets your lifestyle expectations and eventually your baseline (means what your lifestyle costs on a periodic basis). …

About

Anshul Gupta

A freelance writer, I have been a finance enthusiast from my childhood and am really intrigued by investing, stock markets and personal finance.

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