Finance and Economics » Archive
What are mortgage banks?
Mortgage banks are taking deposit and use this capital to fund mortgages. This type of bank are more popular is some economies than in others. For example UK is one economy where mortgage banks are popular; they are called here building societies. A lot of building societies became banks after the Building Societies act of 1986. At the beginning of 20th century there were few thousands building societies, but now there are around 50. The biggest is Nationwide followed by Britannia. Germanys biggest mortgage bank is Eurohypo, which is owned by Commerzbank. In Germany and Holland most of the mortgage banks are subsidiaries of big banks. Some insurance companies have subsidiaries that are used as mortgage banks. Capital invested in mortgage a for long time, exactly what pension funds and insurance companies … Read entire article »
Filed under: Banks
What are Commercial Banks?
Commercial banks are doing the classic business of taking money for deposits and lending money. Commercial banking has 2 important parts, retail banking and wholesale banking. Retail banking is the part of the bank that has branches opened on high-streets and deal with general public, small business and shops. The volume of this part of bank transactions are very big, but they have a low value. The core business of retail banking is dealing with cheques, credit/debit cards and mortgages. Retail banking includes private banking. Private banking is used to by high net worth individuals for deposits, loans, fund management or investment advice. Private banking is also know as wealth management because it helps high net worth individuals manage and invest their wealth. Swiss banks are the most know to manage this type of … Read entire article »
Filed under: Banks
Trading Pro System Review – Why People Fail at Forex Trading
If you enter the Forex market without the proper tools and without knowing or understanding the basics of the business, you will not get anywhere. It is a fact. Have you ever wondered why so many people fail at it? Well the reason is that they believe that they could easily learn the tricks of the trade through experience. While, such a thing is possible however, at the same time, you could incur potential massive losses in the way. Since you’re just beginning, you would definitely not want that to happen. That is why it would be wise if you invested first and foremost on your education. But how can you learn the methodologies? Well, you can spend hour upon hour reading and trying to understand many of the trading related … Read entire article »
Filed under: Forex
Certificates of deposit
Certificates of deposit(CD) are receipts issued by banks when they are soliciting wholesale deposits. The advantages for the lender is that in case they need the money earlier, they can easily sell the certificates to someone else, there is a strong market in US and in European economies. The yield rate is less than for deposits, but the big advantage is the liquidity. The lenders can be banks, investment institutions or companies. The money are usually lent for a specific period of time, for example 6 months. … Read entire article »
Filed under: Investing
Google buys Motorola for $12.5 billion
Google buys Motorola for $12.5 billion. But the main purpose of this offer is not that Google want to make mobile phones but in fact they bought Motorola for its mobile patents. They are trying to force Apple and Microsoft to agree for settlements in the there lawsuits against Google over smartphone technology. The history of Motorola Mobility has its roots in Chicago in 1928 and in 1973 they made the first handset phone. … Read entire article »
Filed under: Companies
Trend indicator for newbies in Forex Trading
If you have been trading in Forex for sometime you are probably familiar with the saying, “The trend is your friend”. It’s because, Forex currency pairs can move in one general direction for an extended period of time. There is tremendous profit potential in each and every large trend and thus, this is great news for Forex traders. A question, commonly asked by the newbies is, “How can I determine the direction of the trend?” The answer is so simple because often times the answer is right in front of us. One of the easiest ways to determine a trend is by looking at a Forex price chart. All you have to do is think in which direction are the prices going. If the prices move from the lower left-hand section … Read entire article »
Filed under: Forex
Using trend lines to maximize Forex earning
It has been seen that many share traders and investors like to draw trend lines on their charts which can really help them to increase their overall profits. They are considered to be so effective because they are widely used by many people, so they are points on a chart that naturally attract lots of buying or selling. Before going any further, you need to know what a trend line actually is. Simply quoting, it is a line connecting the low or high points of a particular trend. That is, if you have an upward price trend, you can plot a line joining two (or preferably three or more) of the high points to indicate the point of high resistance, and connect the low points to indicate where there is strong … Read entire article »
Filed under: Forex
The Concept of Bollinger Bands in Forex Trading
In Forex Trading, Bollinger bands are widely used to measure the unstable changes in the price action. They work in almost all market and with any type of security. Standard deviations in statistics are used to measure the Volatility of prices. So, Bollinger Bands design the standard deviation above and below the simple moving average, where a simple moving average is used to smooth out the price action. By plotting the standard deviations above and below the moving average you can create a design, showing how much volatile the market is. If the bands widens in width, this shows that the market is becoming more volatile while if the width of the bands narrow, it shows that the market volatility is decreasing. Overbuying/overselling conditions in the market as well as divergence … Read entire article »
Filed under: Forex
Financial ratios
Financial ratios are probably the most important when we analyse a company from a fundamental analysis point of view. Companies offer financial statements to general public, but there are sometimes confusing and you want to know how the company is actually doing. Financial rations are the favorite weapons of fundamental analyst all over the globe, because of there powerful insight information. Using different financial ratios with the data provided by the companies in financial statements we can get useful information about the companies financial health and many more. Financial ratios are split-ed in different categories: Valuation ratios – help investors to find out if the stock price is cheap or expensive. The most important valuation ratios is P-E (price-to-earnings ratio). Financial Health ratios – some of them called liquidity ratios shows us if the company is able … Read entire article »
Filed under: Fundamental Analysis