The topic of workplace drug testing has proven controversial over the years. While people are entitled to do as they please in their spare time, what if the effects of those pursuits carry over into their time on the job? Or what if they are indulging in substance use while on the clock? When does a company’s concerns cross over into a violation of a worker’s personal privacy? There is a fine line between each party’s views that can be difficult to navigate.
Companies are understandably worried about the safety of both their employees and members of the public who come into contact with those workers. For example, a truck driver doing his job while drunk has the potential to crash his vehicle. This could injure or kill innocent people, leading to both potential legal issues and loss of company assets (the vehicle and its contents).
Most firms have a set list of policies regarding what is and what is not appropriate conduct in the workplace; these rules almost always include warnings about substance use and working while under the influence.
The vast majority of workers adhere faithfully to those rules, but some don’t, either by accident or very much on purpose. Because of this, some companies use a drug and alcohol test to monitor whether employees are following the guidelines. A few firms do this in-house, but many use a third-party company for the task. This helps to ensure that all of the appropriate rules are followed and there can be no accusations of bias in the results.
In the UK, a Privacy Agreement assists make it possible for a business or person to initially explore the possibilities for a deal without very first needing to sign a main agreement. It provides a good way of protecting your trade tricks or any information that you think about to be delicate.
Asking her to sign a privacy agreement is a great idea, in this case. It assists to protect your trade secret.
Tips and Tricks About Non Disclosure Agreement
Confidentiality Agreement just with a celebration you trust to keep your sensitive information personal.
Working capital is the liquid capital readily available to the company to carry on with its daily activities. It is the difference in between the existing assets and the present liabilities of a business. To comprehend what is working capital ratio, an appropriate understanding of the present assets and present liabilities is extremely important.
Working capital, occasionally called networking capital or present working capital, is the difference in between current assets and current liabilities. Assuming all the above numbers are in the thousands, working capital in this case is $100,000. Another method to look at this is that there appears to be two dollars offered in present possessions to pay each dollar of current liabilities. The ratio of existing assets to existing liabilities is $200 to $100 or 2 to 1. Many people believe that a ratio of 2 to 1 is good. As a matter of fact, some textbooks use the 2 to 1 ratio as a normal example.
More Working Capital….
Present Assets: Current assets are the short term possessions of a company, which are made use of within one year. Cash, receivable, inventory, short term financial investments and pre-paid expenses constitute the existing possessions of a business.
Existing Liabilities: Current liabilities are the short term liabilities of a company, which are settled within one year. Accounts payable, impressive expenses, payable taxes and short term loans constitute the current liabilities of a company.
Let’s take an example of a fictitious business named ‘Tensa International’, to discover how to compute the working capital ratio. Suppose the present possessions of Tensa International are USD 200,000 and the existing liabilities are USD 150,000, then the working capital ratio for Tensa International is determined as current possessions/ existing liabilities, that is, USD 200,000/ USD 150,000, which is 1.33.
Preferably, the working capital ratio ought to be someplace between 1.2 and 2.0. In case of Tensa International, the working capital ratio is 1.33. This shows that its current liquidity position is great. A very high ratio, that is, above 2, shows that the business has actually underutilized existing assets, that is, it is not investing its possessions correctly.
On the other hand, negative working capital, that is, working capital ratio, which is less than one, indicates that the business might not be in a position to fulfill its short term liabilities. It shows that business will certainly not be able to pay its lenders in time. A negative working ratio might also be because of minimizing current possessions. The negative working ratio needs to be examined very intently, as it might show that the sales of a business are dropping and hence, balance dues are shrinking, hence triggering a reduction in the current asset value.
For preserving an ideal ratio, working capital management is really required. Working capital management is an extremely important part of the money management of a company. This is because the investors base their investment choices on a number of ratios, such as working capital ratio, financial obligation ratios, return on equity ratios, ROI ratio and return on possession ratio. For handling its working capital appropriately, a business ought to keep a few things in mind. First of all, the credit duration given to the customers ought to not be too long. This will certainly ensure that the business has enough cash in hand from the recognized sales. Secondly, to increase its liquidity position, the business itself need to request longer credit duration from its suppliers. Third, the level of stock kept by a business ought to not be too low or too high. It should be sufficient enough to reduce the total raw material expenses. Furthermore, cash and money in a bank must be managed, in such a way that cash holding expenses to business are reduced to a fantastic level. These measures will certainly guarantee that the cash conversion cycle of a company is not too long and therefore, the company will certainly have enough working capital in hand at any given time.
An appropriate working capital ratio is important for the smooth performance of a business. A negative ratio can hamper the future financial investments of a company, as the investors might feel that business is not being run efficiently. Unavailability of sufficient liquid capital, which emerges in the negative working capital ratio can often, lead to bankruptcy too.
World Bank President Jim Yong Kim announced Monday that a minimum of $700 million would be offered over the next two years for females’s and children’s health requires in bad nations.
Speaking at the United Nations, Kim said the money was to help developing countries fulfill the targets of the Millennium Development Goals, by focusing programs on accomplishing outcomes as opposed to simply the gross deployment of resources.
This Could Lead To Other Ideas
The brand-new funding comes from the World Bank’s International Development Association, and adds to $600 million pledged for IDA millennium relevant to the millennium goals in 2010.
The bank stated its approach has promoted concrete results in decreasing maternal and infant death and in expanding health care access.
It said, its method enabled sharp gains in simply one year in Burundi: births in health facilities increased 25 percent, prenatal assessments rose 20 percent, and the number of kids fully immunized enhanced by 10 percent.
Kim was speaking at a conference of international political, company and development-focused leaders on the best ways to attain the anti-poverty Millennium Development Goals with just over 2 years to precede the time frame.
The goals, established in 2000, lay out tough targets for lowering poverty and hunger, improving education, and enhancing health and health care for the world’s most impoverished.
Corruption is a worldwide phenomena and it is all over on the planet. Corruption in India has prevailed since the unidentified history of the country. What is today the worst aspect in India, which ruins the nation is corruption. In the old days bribes are paying for wrong things to be getting done, however today bribes are provided for the right things to be getting done. The politicians and the government authorities are the major group to do corruption on a huge scale, thereby harming this excellent nation and its people. Political corruption is worse in India. In some parts of the country political parties and politicians are getting elected by paying cash to the people, or by threatening them. The damaged leaders are getting elected and ended up being ministers.
A positive step against corruption in India is the Anti-corruption movement led by the decent social activist Anna Hazare. Anna Hazare was a previous soldier of the Indian Army. He is renowned and appreciated by the people. His battles advise us about the battle led by Mahatma Gandhi. As soon as again waging war against corruption, the power of Gandhi’s non physical violence. People from different parts of the country supported him. Among the excellent benefit of his activity is that it is not involved or influenced by any political party. His quick ended on a positive indicator that the Lokpal Bill was accepted by the Government but we are yet to see the result. As per the Lokpal Bill, there will be a separate body to suppress and investigate corruption in India. We have to see if loopholes will be there in Lokpal Bill also like in all other expenses and laws.
Arvind Kejriwal is the new member in this league who is in the race to exploit every corrupt political leader and official members. Arvind Kejriwal is an Indian social activist who is working under the banner India versus Corruption. He began defending corruption with Anna Hazare and Kiran Bedi. Due to some differences with Anna Hazare and Kiran Bedi, he became a go-getter of politics. Anna Hazare even alerted Kejriwal not to use his name for political purposes. Kejriwal formed his own celebration to eliminate against corruption.
Were you aware of those issues?
People look forward to Anna that he may be able to bring a corruption complimentary India. We have to wait and see how the bill comes to us in the midst the commoner in India.
If you run a business in a city as big as Toronto, you know how hard it is to stick out from the crowd. Social media site marketing (SMM) can offer you the edge.
With a population of over 5 million in the GTA, the market is huge, however so is the competitors. Social media site marketing offers a affordable and relatively simple marketing option. The secret is to learn how doing it. Social media site marketing training can teach you ways to harness the power of social networks.
Social media marketing is a multi-channel approach to marketing. It uses social media sites, sites, social bookmarking, blogging and articles to help produce interest in your business. It’s truly like the next incarnation of word-of-mouth marketing. Instead of people chatting about you, they are connected to you and sharing those links with buddies.
Were you aware of those issues?
A Toronto marketing company has a blog. The blog appears on the business’s Web site, with posts connecting to other pages on the company’s site. People making use of Google to find information about Toronto marketing companies find an article, which links them to the company’s site.
Social Media Marketing Conundrum
The company has a Facebook page. It includes blog posts as notes on its Facebook page. People finding the business through Facebook share the post with other Facebook users. Some users have been looking for the blog for more information, and discover their method to the company’s major site.
The business likewise writes a series of posts and articles them in an online article database. These articles also connect to the company’s site and appear in the Google search results page.
The business’s articles and blog posts are consisted of on a social bookmarking site, enhancing the possibilities of links being shared.
None of these initiatives have cost the company cash, yet they have actually increased the company’s inbound links and drew in interested prospects. They have actually also led people to share links to their post and articles, which, in turn, connect to their main site.
You need to always upgrade your Facebook page with a message indicating that you have written a new blog post and a link back to the blog. This will certainly enhance traffic to your blog from your close friends and generate the possibility that your pals will share your link on their page.
Now that your interest in social network marketing is stimulated, you’re most likely questioning the best ways to get going.
Training is the secret. Without it, you’ll be hopelessly lost in a sea of social network sites, and probably exhaust yourself trying to stay up to date with them all.
With social media marketing training, you can find out which sites and strategies are best for your business. You can establish a method to guarantee your social media sites marketing is manageable. You can produce an editorial schedule for your blog posts and articles, so you know what you are covering and when you need to publish. (Fresh material is crucial to success in SMM.) You can learn all about RSS, and the difference in between social networking and social bookmarking. You can likewise find out some fundamentals about optimizing your content to bring in targeted traffic to your business.
A financial investment in social media marketing training will certainly pay off right away. Don’t get lost in the shuffle of Toronto companies. Get going with social media sites marketing today and prosper of the competitors.
When you want to provide your business or company the huge internet appeal without having the huge internet company behind you, then you have to go to cloud computing class. Cloud computing allows you to rent applications and pay as you go. You just pay for the resources that you utilize. This gives you endless resources to use and you can use them at your discretion. The applications are used which are opened through an internet browser and then kept on the internet server for simple use. This computing system is complicated, with a great cloud computing education, you will be able to get begun up swiftly and easily.
More and more internet business is seeing the effectiveness of online cloud computing and understand that this system of technology is the future. That is why these business are contributing thousands and millions of dollars to programs all around the world to begin systematic classes in Cloud computing. Such classes can be found online or in excellent organizations with a computer science program. Classes are open to anybody with the desire to learn about this incredible internet business tool.
A Cloud computing education is absolutely essential throughout these new technological times, specifically in business. Students who are presently studying computer technology may discover an excellent cloud computing course at their current institution. Working in class the traditional way may be more hassle-free for you or you may find it simpler listening to your teacher’s voice and knowing that he exists in front of you. There are numerous other students who choose online computer classes. Such classes might be more hassle-free for your schedule since you will certainly not need to be compromised to a specific schedule. You will certainly likewise have the luxury of finding out anywhere you desire from internet classes. So if you have a complex schedule or simply no time at all to commute, then you might wish to think about a cloud computing class online and if not, you can constantly discover the traditional way, in the class.
Such cloud computing education courses can be taken in class or online. Knowing in a classroom might be excellent for social communication and the safety of having the ability to consult directly with your trainer. However, throughout the stressful way of lives that we lead, taking the time out to commute to classes might be uncomfortable and even difficult. This is why there are various classes for internet wise students who can take a course in cloud computing to please their desire in discovering this new information.
There are different parts which help to structure a course in cloud computing. Such application that is used in courses might include Utility computing, software as a service, platform as a service, service commerce, internet services, handled service providers and internet combination. These applications are provided by cloud computing online and can be reached through your internet browser with the information being directly kept in your internet server.
Cloud Computing Conundrum
You might be surprised to find out that cloud computing can be confused with other courses that you might have checked out descriptions of or took part in. For those of you who are interested in this topic, you should not confuse this new internet principle with those of utility computing, grid computing or autonomic computing which may seem similar in appearance however are completely various.
There are lots of online courses that you can participate in, which will completely teach the ins and outs of cloud computing, including basic computing ideas related to cloud computing. These courses are perfect for internet professionals and students making a degree in any type of computer associated field. Cloud computing courses are also advised for business students as this is an ideal computer innovation that can help your business to broaden without the necessary costs that are commonly associated with common IT investments.
Every cloud computing course differs. Your understanding of the motifs may differ depending on your experience in IT associated fields and in the type of atmosphere where you are discovering. Some courses are provided over a few days while others are offered as soon as a week, like seminars. The best part of cloud computing courses is your hands on experience with screening out your new computer skills in the labs set up for cloud testing. To find out more regarding such computer science courses, you can check online or at your university to see what is offered to you in regards to cloud computer courses. Satisfy your cloud computing education today.
Those of you who are not familiar with this kind of calculation system may want to find out a little bit more about what it is before registering in a cloud computing class. Cloud computing is a standardized IT program that provides its users the capability to lease internet services such as IT facilities, software application and other services, by a trustworthy company. When needs are needed, you are then able to access the rented services through any computer online and has the ability to change services. This program can either be leased or spent for by an advertising basis.
There is no need to prevent cloud computing classes any longer. With a background knowledge in computing systems, you will have the ability to change every aspect of your business. If you are not at the center of IT solutions in your company, you must see to it that your IT is. As a student, you ought to currently be discovering the significance of cloud computing classes.
Bad credit customers always have concerns concerning their ability to obtain, suitable loan options, and lenders that fund poor credit grades. There abound options of borrowing options, even for individuals with severe credit problems.
While both, safe and unsecured loans are available to bad credit customers, it is essential to develop which one would be helpful to you. Unsecured loans are the most searched for, as they have no security requirements. They likewise feature lower approval rates, restrictive terms, and greater rates you may end up getting less cash at a greater rate. They are only good if you have no possessions you might pledge, or if you do not wish to risk your house or a vehicle. Protected loans are less high-risk for lenders, as they have the right to take possession of security in case of a loan default, and therefore are almost always approved by banks and other lending institutions, along with having extremely good rates and terms.
Protected loans (or property owner) loans are secured versus some type of security. These loans are usually protected versus your house or automobile as they are usually an individual’s greatest asset. By securing your loan versus a product, it enables the loan provider to offer your residence or car if you default on your loan payments. By having the loan secured, the loan provider is taking less run the risk of in financing your money as there is a good chance of them getting their money back. This will certainly result in a lower rate of interest being charged on the loan. Protected loans are normally taken over an extended period of time and for a huge amount. An example of a secured loan is a residential home mortgage.
Unsecured (or personal) loans are not secured against any collateral or possessions. The loan carriers base their choice on whether or not to lend you any cash on the basis of your credit score. By scrutinizing your credit score helps the unsecured loan provider to determine the opportunity of you paying back the money they have provided you. If you have a bad credit score or county court judgements (ccj’s) versus you call, you might still have the ability to obtain an unsecured loan, nevertheless the interest rate you will pay will certainly be much greater. This is due to the increased viewed threat for the unsecured loan carrier.
Moving The Discussion Forward
Borrowing options are unlimited today and lender information is widely readily available online. It is time to discover a couple of lenders that would likely authorize you as soon as you have chosen exactly what type of loan you desire to go with. If you figured you only need a short-term payday advance, you may consider yourself excepted, as payday lenders accept everybody who has a job and a checking account. The most crucial element right here is to find a payday advance loan with a more affordable interest rate. In case you choose to go for a long-term unsecured loan, then you ought to think about non-bank lenders concentrating on bad credit loans.
Brad: That’s cost accounting talking. Its amazing the owner is still in business, stating something like that. He would be out of business if his competition didn’t all think the very same way.
Dr. Lisa: Truly variable commissions is, outsourcing, freight, sales commissions is typically simply a fraction of the selling price. There are just two methods to lose money on a job: 1) charge less than your real variable costs; or 2) re-work a job over and over again triggering you to sustain the genuinely variable costs multiple times and the total of all the really variable costs are more than the price you charged.
Additional Information on Cost Accounting
Dr. Lisa: Its the allowance of overhead cost, the primary conceptual error of cost accounting. Keep in mind, cost accounting was created back at the turn of the last century, when labor was paid piece rates and overhead was less than 10 % of total costs.
What really took place was that the job took more time than approximated. And because cost accounting designates cost to that time, the job cost more than expected, maybe more than the price. This is a mirage. The margin got the list prices minus the really variable costs is the same no matter how long the job took to produce.
Brad: So, the problem is that using more time than approximated, there is less time left in the month to produce and deliver the margin on subsequent jobs. Often, what margin is shipped in total is less than the fixed costs for the month, and afterwards there is a loss for the month.
If there are significant fluctuations in your cash flow, as an example, when you get considerable amounts in one month that represent payment for a number of months of work, the accrual basis will certainly more correctly reflect your net income month to month. And when your business includes managing inventory, you should utilize the accrual basis for your accounting.
Dr. Lisa: Yes, which is the issue that the majority owners are trying to stay clear of. And the way we were all taught to do that is– cost allotment. Nevertheless, you can see to it that you make enough margin in total without allocating any costs and it’s actually easier and more straight forward.
Job cost accounting in fact starts by studying the job and having the ability to keep an eye on all the costs which are associated with a specific job. It then tries to gather all invoices and make certain that they are forwarded to the consumer in a thorough way. Further, they likewise have to document and develop how the incomes justify the costs which have been sustained.
Simply outline the Margin dollars you ship daily (exactly what we call Throughput) and compare that to your Operating Expenses. And remember, if you work overtime, you’ve increased your Operating Expenses. You have all the information you require to guarantee you ship sufficient work in total to make money when you understand the relationship between Throughput and Operating Expenses.
A business can lose money, but a job rarely does. Jobs aren’t unprofitable, and for that matter, products are seldom unprofitable and consumers are hardly ever unprofitable. Since the margin in a month does not cover the fixed costs for a month, business loses money. Otherwise, the margin on all jobs, products, and clients in extra of that month fixed costs all collectively add to the general earnings for that month.
A few of the costs incurred to operate a business will certainly be the same quantity every month. Those fixed costs, like bank loans on plant equipment or land and building purchases will certainly not vary every month and can be more easily allocated. Administrative incomes would fall under this category too.
Variable costs, on the other hand, are those business expenses that cannot truly be allocated due to their altering amounts weekly or month. Costs that fall into this classification include plant staff member salaries, which vary depending upon the variety of hours worked and if overtime is involved. Another variable cost would be raw material purchases, which differ depending upon the quantity of sales orders taken within the month.
Brad: Who cares? Is this really that essential? In the last 20+ years since Throughput Accounting was created to replace cost accounting, not very many entrepreneurs have actually even become aware of it, much less felt a need to change.
Dr. Lisa: True. The majority of simply failed slowly. Like the frog in the pot when the heat gradually enhanced, and never jumped before it was cooked.
Brad: When I changed the label printing business I possess from cost accounting to throughput accounting back in 1997, it was unpleasant. The process took time and perseverance. And there had not been much assistance readily available for me at that time. But I discovered the sweet spot where conventional cost accounting leads the entrepreneur to think they ‘d be losing money on jobs, and where throughput accounting clearly showed we were making a load of money.
Dr. Lisa: It is actually unreasonable to competitors when you understand throughput accounting, and price appropriately. We call that taking on blind kittens since cost accounting is such an inferior technology.
Dr. Lisa: I don’t know the answer to that, however, my guess is that they are more comfortable with new technology in their area of knowledge and less comfortable with new technology where they are not a professional financial management. And, even if they have some interest in this new Throughput Accounting technology, it’s hard to quit the old till you totally understand the new. you’re sounding familiar.
Brad: Whoa, you’re right! It did take me a great deal of time to make the change. I think that does explain why it’s easier to remain with the old technology.
Customer engagement is akin to numerous of the catch expressions that appear in advertising terminology from time to time. These commonly take the advertising world by storm, and then eventually decrease. Customer engagement appears here to stay. Basically, it is a strategic technique to marketing that seeks to engage customers on a more individual level. The rationale being, that this will certainly enable the business to be more receptive to modifications in customer requirements, and behavior. Customer engagement takes direct marketing up a number of notches, by focusing more on 2 method communications.
Moore just recently business has actually extended their customer experience measurement programs by including the voice of the customer and customer engagement programs focused on identifying exactly what real customers think about their brand. While mystery shopping aids in the process of comprehending your customer experience from employing buyers paid to try products and deal with personnel, customer engagement programs help to provide feedback and opinions from customers who are reflective of your customer demographic.
With the customer engagement method the business seeks and gets the feedback and opinions of real customers on a vast array of issues. Since numerous of these individuals could be routine customers, their viewpoints add to the important information you collect from the mystery buyer sent out in and paid to learn the specifics of the customer experience you want to check out.
An included benefit is that the voice of customer is heard. It is empowering and encouraging for a customer to feel they are heard and have the chance to offer feedback on their customer experience. When they see their changes first hand, they commonly feel more valued after they have given their viewpoint and are even more signed on to your brand. You are making modifications to your business strategy based on market needs when you hear them. There’s an excellent opportunity numerous other customers of yours feel the exact same way if one customer believes favorably or adversely about something.
Random Mind Blab About Customer Engagement
If companies choose not to engage customers, they run the risk of being caught unawares by unfavorable feedback, as they will certainly not understand exactly what is being stated about their brand. Social media websites have empowered consumers, so that they are now able to affect how well a brand sells. They have the ability to utilize e-mail, sites, blog sites, or other social networking devices, to reveal viewpoints about services and products, and influence what others buy.
So customer engagement needs to move beyond words, and make sure that stated brand promise are stuck to. These pledges ought to focus on the essential areas of customer service, and product quality. When a brand loses ground in the marketplace, it can have immediate repercussions, and this is specifically hazardous to the small company, that relies greatly on social media marketing.
Customer engagement is a more individual approach to advertising. It centers around appealing individual customers so that they feel linked to the business procedure, and become loyal to the brand. It has actually emerged that it is far more than a catchy expression, but is advancing into a key part in a business’ capability to survive in the marketplace.
KSA Associates are among the leading management accounts companies in Birmingham and as such we desire our clients have a good understanding of capital management. Cash flow is an important part of the capability and any business to manage and predict cash flow is one that is overlooked by all a lot of company owner, frequently resulting in bad repercussions for the business. Capital management for businesses in Birmingham can be made easy by utilizing KSA Associates Financial Director Package, however, we always recommend our clients to discover as much as they can about the significance of cash flow and the best ways to anticipate it.
To that end, we have put together a checklist of things that any company owner can do to help keep an eye on capital, and for that reason, the wellness of business. Having a profit and loss account is part and parcel of running a company, but a lot of people rely upon this to reveal them whether the business is healthy or not. Profit and loss won’t show fixed asset purchases or loan repayments but each will certainly have an effect of the readily available cash in a financial account. Connecting the balance sheet to the profit and loss account is required to offer an accurate image of where the business is. Focusing just on the bank balance is likely to provide a skewed version of the real state of a company’s financial resources.
The Whole Cash Flow Projection Enchilada
Preparing a cash flow projection can look like a great deal of work for a currently overworked company owner, but it is something that will certainly pay dividends in times to come and really conserve money and time. Understanding that there is deposited to pay the bills makes life less difficult and understanding that there are huge bills coming and not much cash indicates that the business owner can concentrate on chasing after up those outstanding invoices. If you regularly pay your providers when you state you will, instead of fobbing them off and making late payments, then you will certainly build up an excellent relationship and if times do get difficult they are more probable to provide you freedom. Cash flow management for the businesses of Birmingham is essential then.
Of course, there are other things to consider when talking about cash flow projection…
Preparing a cash flow projection is not as difficult as it seems. A short term projection will certainly be more beneficial if the company is currently experiencing cash flow problems. When times are difficult, ensuring suppliers are paid is more crucial than total earnings. Make the projection as detailed as possible and include all outgoings no matter what they are. Any loan payments, including interest, wages, ink for the printer and even milk and tea for office staff must be taped. All incomings ought to also be included in the spreadsheet as well as the bank balance at the beginning of the period of cash flow projection. It is useful to separate all inbound payments instead of lumping them together to provide more of an idea of where each payment is coming from and when it is due.
Moving The Discussion Forward
You don’t need to be an accountant to develop a capital projection. You can forecast cash flow if you can balance a checkbook.
In reality, your cash flow projection ought to resemble your check register, only with your deposits and checks jotted down, one to 3 months in advance of when you‘ll actually make them.
If you’re still not sure of ways to make a start with anticipating your company’s future capital, then we at KSA Associates will be happy to recommend and assist you. As a leading management accounts firm in Birmingham we want our clients to do well and we are committed to helping them grow effective and vibrant businesses as part of Birmingham’s dynamic economy.
Stock exchanges form an important part of stock trading, as for stocks to be traded they have to be listed with the stock exchanges. The history of stock exchanges dates back to the eleventh century when the courtiers de change in France regulated and looked after the operations in the agricultural community. Today, the stock exchanges have come a long road with large exchanges across the world, for The Bombay Stock Exchange (BSE) in India, example, and the New York Stock Exchange (NYSE) in the United States. Some of these are physical exchanges, where trading happens on the floor, while some are electronic exchanges, where trading happens over electronic media.
Companies across the world have to fulfill certain criteria, with a view to be listed and their stocks to be traded on any stock exchange. These criteria comprise minimum market capitalization, the minimum number of shares, and minimum annual revenue produced by a company. Commonly, a company’s stocks are listed only in one exchange; however, big corporations may get themselves on the roster of more than one exchange. Various kinds of stock trading information are also provided to public through exchanges besides trading. The time for which activities take place under an exchange is referred to as its trading hours. No stock can be traded or trading information obtained after the trading hours are over for an exchange.
Stock exchanges play a very important role in shaping the economy of any country. Foremost, it is a mirror of a nation’s financial conditions. When the economy is booming, there is a flurry of work in the stock exchange. When it is n’t, the stock exchange may show a state that is known as financial ‘depression. ‘ The ownership of huge companies lies within the scope of its big shareholders. But shares floated by companies in stock exchanges, through their initial public offerings, help a common man or a very small investor to own a part (though may be small) of a very large company. This entitles him/her to the part of the profit incurred by these companies. On one hand, it helps companies to gather capital to develop their businesses and on the other, these small investors are made a part of this success. This may also assist in the redistribution of wealth from the richer section of the corporation to the common man.
Stocks are a means for companies to sell shares in their companies so as to obtain financing to fund the activities of their companies and to expand their business. The people who purchase these stocks are referred to as investors. Once the company is in profit, these profits are paid out to the investors who hold the stocks. The payments that are paid are called dividends.
Are There Any Stock Exchange Secrets?
Not only shares, but bonds and unit trusts are also traded on exchanges. These provide very good investment options to those who want to save and invest. While they enjoy the benefits out of such investments, the cash invested can be made ‘liquid’ and used for financial transactions occurring in the economy. Simply put, the government may borrow money from the public through the sale of bonds and utilize this money for some developmental activity. As there are numerous benefits that can be combined with stock exchanges, speculative trading can sometimes lead to the volatility of the stock market.
The number of stock exchanges around the world is quickly increasing. Although physical exchanges exist, the future of exchanges may lie in the electronic exchanges. Stock exchanges comprise an important part of the economy and will continue to be so with increasing number of people trusting to invest their money in stock trading.