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Why do Companies Opt for ICOs?
Initial Coin Offerings are ways for new cryptocurrency or other technology companies to raise capital and put their coins into circulation. For companies too small to attract the attention of a big investment bank, this may be the best option for “going public.” In initial coin offerings, as opposed to using venture capital and initial public offerings of stock in regulated markets, the new company doesn’t actually give up any of their equity (i.e., control) in the company to third parties. Continue reading...
How Do You Accept Bitcoin Payments for Your Store?
Several services make it easy to accept bitcoin payments, or a programmer can help you set up your own node. The most convenient way to accept bitcoin payments as a merchant is to use the services made available by exchanges like Coinbase and Bitpay, who make it simple enough to add a button to your website and to accept payments in person via NFC and QR codes. These exchanges have established what is called Full Nodes on the blockchain, which are slightly more efficient than using regular client software on the blockchain, and have optimized them for merchant services. Continue reading...
What is a Bank Guarantee?
When a lending institution offers a Bank Guarantee, they are reducing the risk involved in a transaction by guaranteeing payment to the seller. Bank Guarantees often come into play with deals made internationally, where the participants in the deal prefer to have some assurances before they do business. The guarantee acts as insurance to protect the parties involved in transactions where they are not fully able to assess the strength and reliability of the other, such as when small companies bid for projects or when bids for a job come-in from around the world. Continue reading...
What is an Investment Banker?
Investment bankers are proficient analysts themselves, but they have subordinate financial analysts that crunch the numbers for them. They are primarily in the business of procuring clients for deals such as IPOs which their investment bank will underwrite. Investment bankers are employees of investment banks whose role is to acquire clients for the bank and to be the liaison between clients and the back office of the investment bank. Continue reading...
How Have Barcodes Shaped the Dynamics and Implications in the Modern Economy?
Unlock the world behind the lines! Dive into the intricate dynamics of barcodes, from their humble beginnings in the 1970s to their profound impact on today's commerce. Discover how these simple black and white patterns revolutionized business efficiency and their deeper symbolic meanings. Continue reading...
What Is Cash? An In-depth Exploration of Its Role and Evolution?
From ancient civilizations using seashells to today's digital transactions, cash has been at the heart of trade and commerce. Dive into the evolution and significance of cash, and discover its impact on our modern economy and societal structures. Continue reading...
What is an ABA Routing Transit Number?
Most people recognize this as a “routing number.” The American Bankers Association (ABA) assigns a number to each banking institution registered with them, for the purposes of electronic transfers; this is commonly known as a routing number, and officially an RTN, or Routing Transit Number. Consumers and bank clients are familiar with this number as the 9-digit number that appears beside their account number on the bottom of their personal checks. Every client with a particular bank will have have the same routing number on their checks. Continue reading...
When should I sell my IPO shares?
If you see that there is a high premium that others are willing to pay for your IPO shares, you may want to sell them as soon as possible, or you may feel that you got a reasonable price and are more willing to hold the shares for a long time because you believe in the long-term growth potential of the company. If there is a lot of hype surrounding the IPO, and share prices are driven upward in the following weeks, it may be a good strategy to immediately sell them while the frenzy is on. After the Lock-up Period of 90 -120 days, the insiders and investment bankers who were required to hold onto their shares may start to sell theirs off, and in some cases, this can cause a significant price drop as they flood the market. Continue reading...
What is Accelerated Life Insurance?
Life insurance contracts sometimes contain provisions by which the death benefits can be paid out to an insured person while they are still alive. This is called “accelerating” the benefits. Certain terms must be met for the benefits to be accelerated, and different policies have different contract language and exclusions. Sometimes these provisions are attached to a regular contract as a Rider, which might require an additional premium, or might be included by default. Continue reading...
What is Euro LIBOR?
The primary benchmark for short-term interbank loans around the world is the LIBOR, and the Euro Libor is the LIBOR denominated in Euros. There are 16 banks in London that set the LIBOR at the start of each day, and it signifies the average lending rate that the banks would charge each other for short-term loans. The EURO LIBOR is the same, denominated in euros. LIBOR stands for the London Interbank Offered Rate. Continue reading...
What is a Point of Sale (POS) System and How Does It Transform Modern Commerce?
Point of Sale (POS) systems have become the cornerstone of modern commerce, transforming the way businesses operate and engage with customers. These intricate systems, a blend of hardware and software, not only facilitate transactions but also offer insights into market trends, inventory management, and customer behavior. From the traditional cash register to the sophisticated digital platforms of today, POS systems have evolved to meet the dynamic needs of retailers. They play a pivotal role in both physical stores and e-commerce domains, ensuring seamless transactions and providing valuable data for strategic decision-making. With innovations like Amazon Go redefining the shopping experience, the future of POS systems promises even greater convenience and efficiency. As technology continues to advance, POS systems stand as a testament to the symbiotic relationship between innovation and commerce, shaping the way we buy and sell in the 21st century. Continue reading...
What is a currency peg?
The currency pairs you are most familiar with, such as EUR/USD or USD/JPY, are floating currencies, meaning that their value changes freely with market forces. Some countries have chosen to peg their currency to another currency, most commonly the USD. The exchange rate between their currency and the peg currency never changes, unless policy makers tweak things slightly. Currencies can also be pegged to commodities or baskets of other currencies. Pegged currencies are not discussed often in the Forex market because their value is tied directly to the value of another, more liquid floating currency, or to a basket of currencies, or to a commodity. Continue reading...
What is Deflation?
Deflation is an economic term used to describe a trend of broad-based price declines for goods and services. Deflation is generally considered a big negative in the realm of economics. If a country is experiencing deflation, it is usually because demand for goods has fallen substantially, pushing prices down. It can also be tied to falling investment and government spending, both factors that signal weak demand in an economy. Continue reading...
What is Abnormal Earnings Valuation?
The abnormal earnings valuation method is one in which the future cash flows of a business are given significant weight in a valuation, especially when there are not many hard assets to use for valuation purposes. If a company is rich in human capital or has significant cash flows, whether or not it has many hard asset or book value, the Abnormal Earnings Valuation Model can be the most useful method for arriving at an accurate valuation of a business and its stock. Continue reading...
What is Tokenization?
Tokenization is a concept that can take several forms, but essentially it means to create a tradeable item which holds value anchored in an asset which is not itself readily tradeable. If something of value is not easily traded, it is natural that a token is created which represents part or all of such value, which can then be held until redemption or circulated as currency. Historically, some things, such as hours of labor, could not easily be accounted for without a physical token. Continue reading...
What Is Marketing and Why Is It Crucial in the Modern Business Era?
In today's rapidly changing business environment, marketing stands as the beacon guiding companies towards success. It's no longer just about selling a product; it's an art form, a science, and a relationship builder. Delving beyond traditional methods, modern marketing harnesses digital strategies, from search engine optimization to social media branding, ensuring businesses resonate with their target audience. At its core lies the "marketing mix" – a blend of product, price, place, and promotion, each element crucial in crafting a compelling brand narrative. But as the digital age advances, so do marketing techniques. From personalized email campaigns to influential content marketing, businesses are equipped with tools to not only reach their audience but to engage, educate, and inspire loyalty. As the boundaries between traditional and digital marketing blur, one thing remains clear: understanding and adapting to these shifts is not just beneficial—it's essential for sustainable growth. Continue reading...
What is Cash-Flow Financing?
Cash flow financing is an alternative method of securing a loan, in which cash flows are the collateral, not assets. In cash flow financing, also known as cash flow loans, a lending institution will base their decisions regarding the size of the loan and the loan repayment schedule on future expected cash flows of the company. The cash flows serve as collateral instead of assets, as in an asset-backed loan. Continue reading...
What is a CUSIP?
CUSIP is basically like a Dewey Decimal number for stocks and U.S./local government bonds. CUSIP stands for Committee on Uniform Securities Identification Procedures. CUSIPs are alphanumeric identifiers of certain types of securities, but most commonly used for stocks and bonds. The first six characters identify the issuer and use letters; the seventh and eighth characters (which can be alphabetical or numerical) identify the type of issue; and the last digit is used as a check digit. Continue reading...
What is an Investment Bank?
An investment bank is a financial institution that typically specializes in large, complex transactions, such as underwriting an Initial Public Offering (IPO), mergers and acquisitions, direct investment into start-up firms, or advising large institutional clients on investments/transactions. In short, investment banks help create the bridge between large enterprises and the investor. In that sense, IPOs are one way to accomplish this, but they also help businesses secure financing in other ways, such as through bond issues or derivative products. Continue reading...
What can I learn about venture capital?
Many people know about venture capitalists that help provide the funding for startup companies in Silicon Valley and other areas. In reality, only a small portion of venture capital is directed at seed money for startups. The rest of it is directed at companies in various phases of growth that need capital to fuel a new expansion or to turn their business around. Venture capital comes from individual investors or venture capital firms who agree to infuse new money into a business in exchange for an equity stake in the business going forward. Continue reading...