Standard and Poor`s downrades Greek Debt

Rating agency standard and poor`s has classified Greek debt as an ``selective default``. this follows the deal that was attached to the dabt by the creditors.S&P says the terms of the deal triggered the latest downgrading.the agency had already classified the debt as `junk`.but the firm indicaded that it would possibly raise its ratings when the debt exchange after it has assesed it.

The Nation of SACCOs

Saving and credit coorperative societies(SACCOs) äre associations of people who have come together with common goals geared at improving their livelihood economically.kenyan saccos are ranked highly globaly positioned at number one in Africa. they have almost 6000 registered saccos in kenya which they operate under FOSA(they accepted the depositing of funds).majority of members of saccos are farmers and teachers .it is formed through coming together of groups with common interest.Sacco members do not need stringent conditions like having a credit history to join or to access credit unlike banks. CHALLANGES FACING SACCOS 1.low uptake of information technology 2.they have low level of professional skills. 3.they have weak governance. 4.stive competition from banks that view them as competitors. Saccos are among key pillars that are drive the economy of kenya its emboded into vision 2030.the vision that want to see kenya as developed country by the year 2030 .

How to invest in government securities

There are several types of government securities available for investment, they are available in primary markets and secondary markets and each one of them is used by different kind of investors;
EXAMPLE OF GOVERNMENT SECURITIES
1.TREASURY BILLS
this kind of bonds are the shortest government security available.there are no interest payment during the life time of the bond,interest are only received at the end.This is the avenue for your short time investment.
2.ZERO COUPON BONDS
coupon bond operates in the same manner as treasury bills, the payment of interest is made at end of the life time of bond.the only difference is that treasury bills as a shortest life time.
3.TREASURY BONDS
it as a maturity period of one year, the payment are made every six months.many economist use this bond to measure the performance of given country.when the demand is high then that economy is performing well but when demand is low it means that the economy is not in good shape
4.TREASURY NOTE
the maturity period of this bond start after ten years and onwards.this bond is usually used by pension and insurance companies.it is usually good for individual or organization that are looking for long term investment,payment are made after every six months.

Greece second bailout

Eurozone finance minister have agreed a second bailout for greece at talks held at Brussels. Under the agreement Greece will get loans of more than 130bn euros and have about of its 107bn debt written off.in return it must slush its debt from 160% to 120% of GDP within 2020, and accept a permanent EU economic monitoring mission.Private holders of Greek debt will take losses of 35.5% on the value of the bonds with the real loss as much as 70%.Also Greece will have to amend its constitution to give priority to debt repayment over the funding of government services.

Banking And Finance Home: Undrstanding the stock market

Banking And Finance Home: Undrstanding the stock market: Stock market is complex and hardly understood by many it is dynamic sector.before starting to invest at stock market you should look for eno...

Watered capital

Term used where successful company issues bonus shares and this tends to reduce the price and yield of all its shares though is does not affect the return to original shareholders

Double option

It gives the right to buy or sell at the prevailing price on the day options arranged over the following three months period.

A put option

It gives the right to sell at prevailing prices on the day the option is arranged over the following three months period.

A call option

It gives the right to buy a given share at the prevailing prices on the day the option is arranged at time over the following three months

Blue chips

This are high grade eguity shares i.e the ordinary shares of companies which have a good dividend records extending over many over years such shares are in high demand in the stock exchange.

Gilt edged securities

Thase are securities sold by the goverment, these are considered as absolutely save regarding to the payment of interest and refund of capital.

The governer must go! mps say

Kenya parlimentary committee that was investigating the reason behind down fall of the kenya shilling. They have recomended the kenya central bank boss to step down, or failer to do the president forms a commision.They blame the central bank governer for failing to act fast to save the shilling and for not doing enough to control banks who were manupulating the trading of the currency.Last year the shilling hit all time low, just in four months the currency lost almost 30%. but thanks to the late intervention by monitary committee who is chaired by the governer.the shilling as now regained its ground.

Clean flatuating

A government policy allowing a countries currency to flatuate without direct intervention in the foreigh exchage markets.

Endowment fund

A non profit organization fund whose principle must be maintained permanenly or temporary and whose income is expendable by the organization for a specified or elective purpose

Encumbrances accounting

An accounting method for government funds of a government entity that entails a debit to encumrances and a credit to fund balance reserved for encumbrances when purchase orders or contract for nonrecovering expenditure are issued by the funds

Economic unit concept

A concept of consolidated financial statement of a parent company and one or more partially owned subsidiaries that views the consolidated enterprise as a single entity with ownership by parent company stockholders and subsidiary minority stockholders

Discrete theory

A theory of a interim financial reporting that considers each interim period a basic accounting period whose operating results are measured in essentially the same manner as for an annual accounting period

Permissible capital payment

Permissible capital payment made out of capital when a company is redeeming or purchasing its own shares and his used all available distributable profits as well as the proceeds of any new issue of shares

Per capita income

The avarage income of a group obtained by dividing the groups total income by its number of members

Personal financial planning

Financial planning for individuals which involves analysing their current financial position predicting their short-term needs and recommending a financial strategies.

Appropriation

Authorised expenditure of a government entitys general fund and special revenue funds as aproved by the legislative and executive authories of entity and set forth in the annual budget

Phantom withdrawals

The removal of funds from bank account through automated teller machine (ATMs) by unauthorized means and without the knowledge or consent of the account holder

Annuity fund

A fund established by a non profit organization to account for asset contributed to the orginization the income from which is the source of fixed periodic payment to designated receipient for a special time period.

Acquisition of common stock

A business combination in which an investor enterprise issue cash or equity or debt securities to acquire a controlling interest in the outstading common stock of an investee enterprise which is not liquidated but become a subsidiary of the investor parent company.

Preferential form(pink form)

An application form in a flotation that is printed on pink paper and usually distributed to embloyees of the company to give them preference in the allocation of shares.

Placing

The selling of shares in a company to a selected group of individuals or companies used in raising additional fund.

What is junk bond

A bond that offers a high rate of interest because it carries a higher than usual probability of default

Who is a jobber

A dealer in stocks and shares who had no contact with the general public except through a stock broker.

Swap

Borrowers can exchange the type of funds most easlly raised for the type of funds required usualy throught the intermediary of a bank

What is Simulation

A financial modelling technique that considers the likely outcomes of different hypothetical circumstances

Share premium

The amount payable for shares in a company and issued by the company itself in excess of their normal value

The principle of subrogation

State that having a claim an insurer has the right to take over any other methods that the policyholder may have obtained compenzation for the same event

Sterilization

The process of offsetting the inflationary effects that results when government intervenes in foreigh-exchange markets

Share option

A benefit sometimes offered to employees aspecially new employees in which they are given an option to buy shares in the company for they work at a favourable fixed price or at a discount to the market price.

Share index

An index formed by selecting a numberof prominent share traded on a stock exchange and comparing the value of these shares with their value on a stated date in the base year.

Share-for-share offer

A takeover bid in which the director of a company offer share in that company as the payment of acquiring the shares in the target company.

Share certificate

A document that provides evidence of ownership of a share of Company

Stag

A person who apllies for share in new issue in the hope the price when trade begins will be higher than the issue price

Speculation

The purchase or sale of something for the sole purpose of making capital gain

Security market line

A line plotted on a graph that specifies the reguired rate of return obtained by the the capital assets pricing model(CAMP)

Securitized mortgage

A mortgage that has been converted into a marketable security which can be sold to an investor

Sovereigh loan

A loan made by a bank to a foreigh government often the government of a third world country

Single premium assuarance

A life assuarance policy in which the insured pays one capital sum rather than regular premiums

Secondary market

A market in which existing securities are traded rather than primary market in which securities are sold for the first time

Screen trading

Any form of tradind that relies on the use of a computer screen rather than personal contact as in floor trading.

How to make money with Facebook

Here are some of the application deverloped to allow you to make money with facebook;
1.MUSIC BLASTER
with music blaster you can put a simple little musicstore on your facebook page and sell music from blatermusic.com, you earn 5% for each song sold.
MY MECH STORE
this allows you to create and design any product on there site and sell them on your facebook page
3.ETHER
you make money in this website by giving advice to people,by charting. also gives you a chance to teach others other language that you good at.eg teaching people kiswahili.
RADICAL BUY
you can sell any thing on facebook using this app.your product that your selling are made visible to your users instantly.have been told this app seem it stopped.
E-BAY
this app allows you to add e-bay auction to your profile.and allows you to sell product in e-bay.
E3BUY AUCTION
this app allows you to buy sell and trade anything.you can open and customise store upload you logo and start selling things.
7.GARAGE SALE
adds garage sale to your profile page and list everything you want to sell.
Its high time your start earning from your time that you spend on facebook, try any of this app that pleases you.

What Affects Currency Rates

Have you ever wonder why the value of currencies give on changing time to time .currencys are traded at forex market. there are many factors that contibute to this changes.These fundermantals include:, 1.POLITICAL FACTORS; Political stability of any country determine the rates at which its currency will be be traded.For example the currency of zimbabwe went down because of of political instability. 2.DATA REPORTS; reports that are released by various bodies within a country or outside determine the way a currency will be traded.these bodies include such as World Bank, IMF, Central Bank any others.these report include projected economic growth. 3.INTEREST RATES LEVELS;the interest rates determine the value in which the currency will be traded at.4;MONETARY POLICIES; monetary policies that central bank of any country will greately influence the direction on which the currency will be exchanged.5; INTERNATIONAL TRADE FLOW; countries trade policies with other countries influence wich direction in which will be going at.

Determinant of short-time cash investments

Investing in cash for a short time is determined by many factors. you should understand factors before you decide on your investment plans.these factors are:, 1.INTEREST RATES Generally short time cash investment contain high interest rates compared to the long time investment.unless the project you have decided to start will yield a good return then you should be careful before you decide to borrow. 2.OPTIONS there are many alternatives that will facilitate your short time investment,it only you to choose the best option after understanding each. This options include (a) money markets (b) savings accounts (c) short time CDs 3. SAFETY safety of your cash investment should be major concern for you.where you decide to place your money be the place where your assured to access it in future or when you need it.4. AVOID PENALTIES before you decide to invest in any place please read and understand the terms and condition that contained in the agreement.Breaking of the rules placed on the investment agreement will cost you alot. Talk with your lawyer if are not getting it right.

Consolidated balance sheet

The balance sheet of a group providing the financial information contained in the individual financial statement of the parent company of the group and its subsidiary

Computer-to-interface(CTCI)

It is computer system which allows the simultaneous reporting of trade and the recording of the same trade on the securities house`s own data store

Computer assisted trading CAT

The use of computers by brokers and traders on a market such as stock exchange to facilitate trading by displaying prices recording deals

Cumulative preference shares

A type of preference share that entitles the owner to receive and dividends not paid in previous

Current ratio [working -capital ratio]

The ratio of the current assets of a company to the current liabilities and used to test liguidity

what is current assets

Assets that form,part of the working capital of a business and are turned over frequently in the caurse of trade.

What is current liabilities

Amount owed by a business to other organization and individuals that should be paid within one year from the balance sheet date

Certificate of Deposits(CD)

A negotiable certificate issued by a bank in return for a term deposits of upto five years

Cash ratio(liquidity ratio)

The ratio of the cash reserve that a bank keeps in coin banknotes ,to its total liabilities to its customers

Capped mortgage

A morgage in which the variable interest rate paid by the borrower cannot rise above a specified levels usually for the first few years of the loan

Capital turnover or Asset turnover

The ratio of sales of a companyy or other organization to its capital employed

Capital outflow

A decrease in a country foreigh assets held in its own country or an increase in assets held abroad

Capital Maintainance concept

The financial capital maintainance concept is that the capital of a company is only maintained if the financial or monetary amount of its net assets at the beggining at the period excluding and distribution to or contribution from owners.

Capital Inflow

An increase in a country in foreigh asset within its own country or a decrease in its assets held abroad

Capital impairment

A situation in which a bank has insufficient capital at risk to cover the risk it is undertaking either from a risk management or a regulatory perspective.

Capital Gain

The gain on the disposal of an asset calculated by deducting the cost of the asset from the proceeds received on its disposal

Capital Employed

Either the sum of the shareholders equity in a company and its long-term debts or the capital assets of a company plus its net current assets

Capital asset pricing model(CAMP)

A statistical model to explain the expected or avarage return on an investement.it assumes that this return will be composed of the risk free rate of return and a risk premium

Capital Adequacy

The ability of a bank to meet the needs of its depositors and other creditors

Cap and collar morgage

A mortgage in which the variable interest rate paid by the borrower cannot rise above or fall below specified levels, such a morgage may be granted for the first few years of a loan

Call provision

A clause in the agreement between the issuer and the holders of bond that entitles the issuer to redeem the bond before maturity

Call money

Money put into the money market that can be called at short notice

A grace period

A period in which the borrower is unable to call the bond

Callable Bonds

Fixed rate bonds usually convertable in which the issuer has the right, but not the obligation to redeem(call) the bond during the life of the bond

Accounting software

Is application software record and processes accounting transactions within functional models such as account payable, account receivable,payroll and trial balance

Buying in

Buying of securitie, commodities and foreigh exchange by a broker because the original seller has failed to deliver

Buying forward

Buying commodities, securities, and foreigh exchange for delivery at a date in the future in order to establish a bull position

Buy earnings

To invest in a company that has loww yield but whose earnings are increasing so that substantial gain can be made

What is Buy Back

The buying back by a company of its shares from an investor who put venture capital up for the formation of a company

What is a Bull market

This is a market in which prices are raising or expected to raise

What is budget deficit

An excess of government expenditure over government income which must be financed either by borrowing or by printing more money

What is budget

A financial statement prepared prior to a specific accounting peroid, containing the plans and policies to be pursued during that period

What is budget

A financial statement prepared prior to a specific accounting peroid, containing the plans and policies to be pursued during that period

Who is a Broker

An agent who brings two parties together enabling them to enter into a contract to which the broker is not a principal

What is Bonus Dividend

A dividend issued to a shareholder in addition to those expected

What is bill of landing

A document acknowledging the shipment of a consignor`s goods for carriage by sea

What is bank loan

A specific sum of money lent by a bank to a customer usually for a specific time at a specific rate of interest

What is Bill of Exchange

An unconditional order in writing addressed by one person (the drawer) to another(the drawee) and signed by the person giving its reguiring the drawee to pay an demand or at a fixed or determined future time a specified sum of money to or to the order of a specified person(the payee)

What is Bear Market

It is the market in which prices are falling or expected to fall

What is Base stock

A certain volume of business stock assumed to be constant in that stock levels are not allowed to fall below level

What is meant By Bank rate

The rate of interest used as a basis by banks for the rate they charge their customers

What is Bank note

An item of paper currency issued by a central bank

What is Bank quarantee

An undertaking given by a bank to settle a debt should the debtor fail to do so

What is Bank bill

A bill of exchange issued or quarenteed(accepted by a bank)

What is Bad Debt

An amount owed by a debtor that is unlikely to be paid

What is Audit report

A report by the auditors appointed to audit the account of a company or organization. The auditors of a limited company are reguired to form an opinion as to whether the annual accounts of the company give a true and fair view of its profit or loss for the period ended

Who is an Auditor

A person who is appointed to carry out an audit of an organization

What is Audit opinion

An opinion contained in an audit report it expresses a view as to whether or not the financial statement audited have been prepared consistently using appropriate accounting policies

What is an Audit

Audit is an independent examination of an the subsequent expression of opinion on the financial statement of an organization

Who is accountant?

Accountant is a person who passed the accountancy examination of one of the recognized accounting bodies and completed the reguired work experience