Insider trading is a trade executed by a person who has access to unpublished price sensitive information of a company which can have an impact on the pricing of securities after getting published.Having insider information will give an advantage to the insider to make profit before such information is available to public. If such person executes a trade by passing on this … [Read more...] about What is Insider Trading and How It Works
Finance
How crowdfunding works – A Beginner’s Guide
Crowdfunding is the pooling of money in small amount from a large number of people, using the internet and social media. Money can be raised to fund a project or for charity or to start a new business.There are three major players involved in crowdfunding:The campaigner is the person who is looking to raise money for a cause by showcasing the story to potential donors … [Read more...] about How crowdfunding works – A Beginner’s Guide
Fixed assets on the company’s balance sheet
Asset held with the intention of being used for the purpose of producing goods or providing services and is not held for sale in the normal course of business is known as fixed assets.Fixed assets are shown on the balance sheet at its historical cost less accumulated depreciation.Cost of fixed assetsCost of fixed asset is the purchase price and any thing that is … [Read more...] about Fixed assets on the company’s balance sheet
Cash vs Accrual basis of accounting – which on is better
Financial accounting is a major source of information for success of business. Most important aspect of financial accounting system is referred to as recognition, it's the decision about when to record revenue and expense transactions. We have two type of accounting used to record transactions, cash and accrual.In this article, we will be discussing both cash and accrual … [Read more...] about Cash vs Accrual basis of accounting – which on is better
Understanding Current liabilities on the balance sheet
Balance sheet has three components, assets, liabilities and owner's equity. One of the section under the component liability is “current liability”.Current liabilities are obligations that is due and payable within 12 months from the date of balance sheet or within one operating cycle, whichever is longer.In balance sheet, under the current liability section company … [Read more...] about Understanding Current liabilities on the balance sheet