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Banking & Finance Articles
Page 98 of 102
Mention the difference between corporate strategy and business strategy.
The major differences between corporate strategy and business strategy are as follows −Corporate strategyIt helps the business to operate a whole organisation.Its main aim is to elevate profits and making company grow faster.It is formed by top level management.It deals with operations of total business organisation.It is long term strategy.It is formulated at organisation level.Examples − expansion, etc.Business strategyIt is concerned with ameliorating the overall performance of an organisation.Its main aim is to compete with other products in the market.It is developed by middle level management.It deals with particular unit/division of a business.It is short term strategy.It is formulated for ...
Read MoreState the difference between NSE and BSE.
The major differences between National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are as follows −NSENational Stock Exchange was founded in 1992.Its vision is “Continue to be a leader, establish a global presence, facilitate the financial well-being of people”.It is largest stock exchange in India.It is 11th largest stock exchange in the world.It facilities trading equity, equity derivatives, debt and currency derivatives segmentsbenchmark index is nifty.It is also called as The Largest Stock Exchange.The number of companies in this index are 50.More than 5000 companies are listed in NSE.It has high trading volume.BSEBombay Stock Exchange was founded in 1875.Its ...
Read MoreState the difference between NBFC and Bank.
The major differences between NBFC and Bank are as follows −NBFCProvides banking services without holding banking license.Incorporated under companies Act 1956.Demand deposits are not accepted.100% foreign investments are accepted.Maintenance of reserve ratio are not compulsory.No deposit insurance facility is available.They don’t create credit creation.No transaction services are provided.BankIt is an authorised financial intermediary to provide banking services.Incorporated under banking regulation Act 1949.Demand deposits are accepted.Allows up to 74% for foreign investments in private sector.Maintenance of reserve ratio is compulsory.Deposit insurance facility is available.Banks create credit creation.Transaction services are provided.
Read MoreDifference between book value and market value.
The major differences between book value and market value are as follows −Book valueReal value of an asset.Reflects firm’s equity.Not related to financial market.Depreciation is taken into account.Book value = (assets – liabilities)/ number of outstanding shares.Book value = cost of asset – (depreciation + amortization).Frequency of fluctuations happens at periodic intervals.Accounted in balance sheet based on historical cost, amortized value or fair value.Market valueMaximum value of an asset/security which can be bought/sold in the market.Reflects current market price.Market value is dependent on financial market.In most cases, depreciation is not accountable.Market value = market price per share * number of ...
Read MoreCompare equity and commodity.
The major differences between equity and commodity are as follows −EquityCommodityInvestment/capital invested in a firm/entity to acquire ownership.Known as shareholder.Have ownership of that particular firm.Less volatile.Long term investments.Less risk compared to commodity trading.They get dividends.Better liquidity.Very few regulations, free market.Don’t need margin.Risk is not diversified.Do not have lot size.Traded on stock exchanges.long duration.Infosys, reliance etc.Refers to undifferentiated product on which traders can invest.Known as an option holder.No privileges are available.Highly volatile.Highly risky.Not eligible for dividends.Low liquidity compared to equity.Supervised by SEBI, derivative market.High margins required.Risk is diversified.Traded in lot size.Short term trades.Traded on commodity exchanges.They have time frame because they ...
Read MoreDifferentiate between investing and trading.
The major differences between investing and trading are as follows −InvestingCreates wealth over a long period of time.Buying and holding.Market fluctuations has no effect.Add on benefits − bonus, dividends etc.Fundamental indicators are EPS, price to earnings, current ratio etc.Long term period.Creates wealth by compound interest and dividends.Low risk.Industry, economics, financials, competitors etc. will be affected.Very few brokerage charges.Makes sound investments.TradingGenerates profit frequently.Buying and selling of stocks.Daily market fluctuations will effect.No add on benefits.Technical indicators: moving averages, stochastic oscillators etc.Short term period.High risk.Psychology of market, money management, risk rewards etc. will be affected.Have brokerage charges.Requires active environment.
Read MoreCompare stock market and commodity market.
The major differences between stock market and commodity market are as follows −Stock marketHave same security in same grades.All securities have same face value and characteristics.Doesn’t deteriorate over a period of time.Derive its value from an underlying asset.Supply is fixed.Commodity marketHave several grades/varieties of products/commodity.Grade may vary from other lots in same grade.Greater implications for buyers and sellers.Has basic role in future market.Supply is not fixed.
Read MoreCompare CAPEX and OPEX.
The major differences between CAPEX and OPEX are as follows −CAPEXBenefits organization more than one year.Also called as capital expenditure, capital expense.One-time purchase.Long term tenure.They are depreciated or amortized over the time.Listed as property or equipment.Earns profits slowly/gradually.Lending institutions act as source of finance.CAPEX comes in balance sheet.Examples − buying of fixed assets, expansion of buildings, purchasing vehicles etc.OPEXOngoing expenses to run day to day operations.Also called as operating expenses, operating expenditure, revenue expenditure.Pay as you go.Relatively shorter term tenure.Fully deducted in the accounting period in which they were incurred.Listed as operating cost.Earned profits for shorter time.Personal saving act as ...
Read MoreWrite the difference between present value and net present value.
The major differences between present value and net present value are as follows −Present valueSum of discounted value of cash flow at a particular discounting rate.Measures future cash flows today.Does not measures additional wealth.Does not provide any information about incremental value of a project/investment.Present value = Future value / (1 + r)^n.Calculates present value of future cash flow.Easier to use.Uses time value of money concept.Decision making by individuals.Net present valueSum of discounted value of future cash flows net of initial investments made by the company.Measures value of a project.Calculates additional wealth generated.Calculates incremental value.Net present value = present value of ...
Read MoreDifferentiate between invoice and bill.
The major differences between invoice and bill are as follows −InvoiceWill have detail list of purchased products, their quantity, price, taxes (if any) etc.Handed over by seller to buyer at any time (before/after service or product).Advanced has to be paid.Records all the items placed.Invoices may arrive along with the goods or after they arrive.If invoice bills arrive late, it serves as a record to cross-checked the contents with the buyer.Examples − amazon, bike showrooms etc.BillServes as request for payment.Handed over directly to buyer from seller.Payment is made immediately.Records sold items, their price, total cost, services etc.For online goods, there will ...
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