Bonds are debt instruments issued by governments, corporations, or other entities to raise capital. There are many types of bonds, each with unique features and purposes. Below, we’ll explore some of the most common types, including Global Bonds, Foreign Bonds, Eurobonds, and more. 1. Global Bonds Global bonds are issued and traded in multiple countries…
When companies or individuals borrow money, lenders often look for ways to reduce the risk of not being repaid. Two key tools used for this purpose are collateral and credit enhancement. Let’s break down these concepts in simple terms and explore how they work together to make borrowing safer and easier. What is Collateral? Collateral…
In the world of finance, indenture and debenture are two important terms that often come up when companies borrow money. Let’s break them down in simple English and look at a recent example to understand how they work. What is a Debenture? A debenture is like an IOU (I Owe You) that a company or…
What is Yield Duration? Yield duration is a measure that tells us how sensitive a bond’s price is to changes in its own interest rate (yield). In simple words, if the interest rates in the market go up or down, yield duration helps us understand how much the price of the bond will change. Types…
Trade wars and tariffs have been big topics in recent years, especially during Donald Trump’s presidency. Whether you’re studying economics, business, or just curious about how the world works, understanding tariffs and their effects is important. This article will explain Trump’s tariff war, its goals, and its impact on the global economy in simple terms….
Introduction When analyzing a company’s financial performance, just looking at big numbers can be confusing. A business might be growing fast, but is it becoming more profitable? Are its expenses under control? This is where a common-size income statement helps! It shows every item as a percentage of revenue, making it easier to compare different…
Introduction An income statement shows how much money a company makes and spends. One key part of this is revenue recognition, which means deciding when and how to record income. This article explains revenue recognition in simple terms, with clear examples. Basic Rules of Revenue Recognition Companies follow rules called accrual accounting to record income…
Auditors help make sure that companies tell the truth about their finances. They check financial records to ensure they are accurate and trustworthy. For public companies in the U.S., auditors have important duties set by the Sarbanes-Oxley Act (SOX) of 2002 and the Public Company Accounting Oversight Board (PCAOB). What Does an Auditor Do? 1….
India’s tariff program plays a crucial role in shaping its economic landscape, striking a fine balance between protecting domestic industries and fostering global trade relations. As one of the world’s fastest-growing economies, India’s approach to tariffs reflects its evolving priorities—boosting local manufacturing, attracting foreign investment, and ensuring fair competition. Understanding Tariffs: The Backbone of Trade…
Introduction The re-election of Donald Trump as the 47th President of the United States has once again brought attention to his “America First” policies, which focus on protectionism, trade barriers, and strategic economic nationalism. For India, a key U.S. trading partner, these policies have both economic and geopolitical implications. The U.S.-India trade relationship has seen…