Author: Leonard Hofstadter

Leonard Hofstadter

I am an expert in finance. Writing about different topics in business and finance is my passion. Follow me at facebook and twitter.

I’ve heard a lot of talk about Wall Street and how it’s this evil place. Stealing money from everyday Americans. I’m going to tell you something, though; they run our economy. The average American citizen has no idea what Wall Street is or does. I am here to change that. Come with me as we explore together what Wall Street actually is and. Why it’s important that we not only understand where our money comes from but also who controls it. Wall Street – The Term “Wall Street” Can Refer Either To: An actual street in New York City…

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For most people buying a car is not something that can be done every day. It’s an investment that will live on for many years, which means you need to do your research and make sure that you are making the right decision with your money. Car finance can help you spread payments over time, so they don’t seem as hard to afford. First of all, it’s important to think about how much car finance you actually need. There are some things you should consider before taking the plunge with any kind of product like this: Do I Really…

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If you don’t know what investment banking is, in basic terms. It’s when a bank negotiates deals on behalf of large companies to get the money for projects or purchases. For example, if company X needs 100 million dollars to start up production on a new chemical. They would go to a bank that has expertise in international finance (such as Goldman Sachs). Who are able to get the 100 million dollars from multiple sources at cheaper rates. Then what it could be bought at by doing market research and finding the best deal. The people who do…

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Business loans are typically secured with some kind of collateral that is owned by the borrower. Which can be sold off in case the borrower defaults on its payments. This property would typically have to exceed the value of the loan. By a certain percentage determined by the lender. The amount required will vary based on how risky it appears. To be either to sell off the property or collect back payments from the business loan. Therefore, riskier loans would require less collateral than more secure ones. Interest rates depend on several factors, including credit history. Market conditions,…

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A personal finance plan is a road map for your financial goals. It summarizes what you have. What you owe and breaks down your financial goals so that you can measure where you are headed. A personal finance plan might include many of the following items: 1) Create A Budget This would include all income and expenditures for a specific period. The budget should at least be yearly, but monthly would probably be more helpful. 2) Assess Your Net Worth Track everything from cash in the bank to stocks, bonds, mutual funds, and real estate. Calculate how much money you…

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You lose an element of control that otherwise would be all internal, so in a very broad sense, it’s a bad thing. Often, the interests of an external stakeholder are not aligned with those of the original company. These external stakeholders may take advantage of their position and force you to sacrifice something once internal. Furthermore, there is the cost associated with it. The founder or its principals should always have skin in the game – that’s how they should be judged. But let me give you some real-world examples of what I’m talking about: The company gets a term…

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Capital is more important than labor for economic growth because capital can easily be translated into goods and services. These goods and services are what drive the economy forward. Labor, on the other hand, is not as easy to translate into current production. Capital means many things to many people in the business world. In simplest terms. Capital is money, equipment, and other assets that can be used to produce goods and services. Labor refers to the work done by humans. The labor market includes everyone from high-salaried managers today laborers paid by the hour. While labor is…

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Asset: An asset is an item with economic value that is owned by a person or company. Assets can be tangible (something concrete like land or equipment) or intangible (something that cannot be touched, such as goodwill, intellectual property, trademarks, and patents). Ownership of assets leads to the accumulation of wealth and can provide future income. Capital : Capital is money used to do business by investing in assets or setting up a company. Capital can also be thought of as wealth that results from saving income that is not spent on living expenses, either by an individual, a business,…

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The use of outside capital has been a staple for small and mid-sized businesses since the beginning of time. And, if we’re being honest with ourselves, it is not usually the primary source of financing that most need to worry about. The primary sources of financing (debt or equity) will be either internal or external. However, there are some pitfalls associated with the use of outside capital that should be highlighted before you jump into financing. Standardized procedures for lending and receiving money make it. Inherently risky to approach an individual angel investor for a loan. Compared with the…

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One of the most effective means by which to organize and govern. Society is through public administration. Governments rely on the concept to create and enforce policies and regulations. And maintain order within state and local communities. Public administration is supported by economics. Which provides three major functions: The allocation of goods and services. The distribution of goods and services. The determination of the direction in which an economy will grow. Although economics and public administration are two separate disciplines. There is a great deal of overlap between them. An understanding of each discipline is necessary. To create sound governing…

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