The term “spread” comes from economics and means the price difference between two economic variables of a unit. The price-related spread is also known as the “bid-ask spread”. Types of spreads In the banking world, a distinction is made between different types of spreads: The price-related spread The spread in the interest rate The spread… Read More »
The gross return on an investment quantifies the return that an investor receives from an investment without taking any other factors into account. Depending on the type of investment, however, various factors reduce the gross return, so that the ultimate net return is significantly lower. On the other hand, the net return may, under certain… Read More »
Equity financing at the OHG The general partnership (OHG) as a private company is not for sale able shares or spend even shares. Who participates in a Supreme Court, shall be liable automatically unlimited , as with partnerships usual. Therefore it can happen that you have founded and built your company as a general partnership,… Read More »
How do you calculate equity funding? The basis for any financing is the mentioned financing requirement, which has to be covered. Once this amount has been determined, it must be clarified how the company is currently valued. The company valuation is then the basis for the amount of shares in the company transferred in return… Read More »
While deflation appears to have a positive impact on the household budget for consumers, it is more dangerous to the economy than inflation. Deflation is the opposite of inflation and means a fall in prices. If there is no more price increase, one speaks of stagnation. Deflation can turn into a dangerous downward spiral for… Read More »
Financing types of equity financing So far, we have focused on companies or individuals investing in a company by contributing in-kind contributions or equity to the company. In the following, we will take a closer look at a few different financing options. Self-financing With self-financing , profits are retained in the company, which is also… Read More »
In the various forms of financing, the company open to play equity financing a central role. We have therefore taken a closer look at how equity financing can be designed, what options are available and what effects the respective forms of financing have on the company. What is equity finance? Any financing of the company… Read More »
Save costs and determine the right funds. The rapid development of funds officially approved in Germany shows the interest investors have in this form of capital investment. The assets collected in Germany by the capital management companies rose from 12.7 billion euros in 1990 to 102.9 billion euros in 2012. It is also not surprising,… Read More »
Money market funds are a special type of open-ended investment fund. They are considered very safe, but are generally not suitable for long-term investments. The reason for this is the relatively low return. In connection with the capital market, the money market refers to investments with terms of less than one year. Direct participants in… Read More »
The term monetary value is used less frequently in the context discussed here; the terminology of purchasing power is more popular. However, both terms denote the same state. Monetary value is the value that is required to acquire a certain commodity in a currency area. The rule is that the monetary value is variable. The… Read More »