The arena of financial services there is many shades of gray, or green if you prefer. Some things have a simple and clear definition, while others defy pigeon holing. Penny stocks are one of those very concepts. Penny stocks are high risk, but can yield rewards. There is no accepted, official designation for the term “penny stocks” and which are and which are not will depend on exactly whom you ask. Each brokerage firm and financial entity will have a different set of criteria for deciding whether or not a stock is “penny stock” or not.

In the simplest of terms, penny stocks are usually determined by three factors. These factors are (1) the price per share, (2) the market that the stock trades upon and (3) the market capitalization of the company from which the stock derives. Of course, there are some variations on each of these factors, and some brokerage firms will treat all stock from companies under a certain market cap as penny stock. (more…)

Financial Spread Betting is a rapidly growing area of investment that does not require the parties involved to exchange, or even own, the assets they are speculating on.

Spread betting is generally easiest to think of as a bet on the value of an asset, such as stocks and shares, to either increase or decrease at some specified point in the future. (more…)

I have had the pleasure of listening to successful people who have positively impacted the world. It still perplexes me how they achieve such feat and become millionaires, most of them from very humble beginnings. But recently, I got curious and decided to investigate by reading some of these peoples’ biographies and autobiographies. One thing that these individuals had in common was that they always had a vision.

The next time you look and admire at the financial achievement of an individual, realize that he/she went to great lengths to map his/her life. Therefore, if you want to attain financial independence you must start planning your finances now since tomorrow may be too late.

Do a monthly breakdown of what you need by putting it down on paper before you set out to go and purchase anything. This will help prevent impulse buying. In addition, it assists you monitor your actual expenditure against your income or earning. Constantly, keep finding ways of amending and cutting down on your expenditure. (more…)

Beware of hidden charges

Article written by Anastasia Fiatmita

IF YOU buy a slice of papaya for 60 cents, not much can go wrong. You could get a rotten papaya or it might be sliced too thin, but you can always check before buying. The worst that can happen is you lose 60 cents.

‘Buyer beware’ works well with papaya.

When it comes to financial products, there are more places to hide the real risks, returns and costs. The stakes are also higher since people invest their life’s savings in financial products, but not papaya.

Banks, life insurers and financial planners offer help. What they sell you, however, comes with charges that you pay but never see. (more…)

Do not over-stretch yourself but rather live according to your means. This can be quite taxing if you do not have a well laid out financial plan. The best and prudent way of attaining financial independence is having a budget. But the dilemma that most people face is how to determine whether their budget will work for them. Research has proved that a very small fraction of people have a monthly budget, thus many have ended up financially frustrated and while others get deep in debts.

Having a budget helps you to be financially disciplined; in that it assists you to exercise strict spending habit. This is because to acquire wealth you need to be in full control of your money. What would be the reason to plan your finances if you will not adhere to your budget? People who become wealthy in life are focused, determined and most importantly not greedy. (more…)

Approaching a bank for a loan can be beneficial especially when you need capital to invest in a worthwhile project. Unless you have the capability of paying back, getting a loan can prove to be quite a financial disaster. Therefore, before acquiring a loan, make sure you have the required income to be able to repay the loan.

It is prudent to plan before taking a loan. For example, taking a loan to invest in the stock market can prove to be quite trick considering that trading in stocks is speculative. Though in business you need to take risks, it is also advisable to mitigate those risks.

When going for a loan, it is imperative to also consider the interest rates and whether your monthly income can afford to service the same. In addition, take into consideration the additional cost or penalties incurred in late payments or even early loan repayment. (more…)

Financial Spread Betting is a rapidly growing area of investment that does not require the parties involved to exchange, or even own, the assets they are speculating on.

Spread betting is generally easiest to think of as a bet on the value of an asset, such as stocks and shares, to either increase or decrease at some specified point in the future.

A bet on the value to increase is usually called a ‘Buy’ bet or a ‘Long’ position, whereas a bet on the value to decrease is a ‘Sell’ bet or ‘Short’.

The profitability of such a bet is then determined by the accuracy of the bet made by the trader and the stake based on a ‘per point’ system.

If an investor risked £2 per point and the market was to move by 14 points then there would be a profit of £28 made if the trader was correct and a loss of £28 if they were not. (more…)

If you are one of the lucky ones who have your finances under control at the moment, then you are in better shape than a lot of other people are. It is becoming really difficult to have enough income to keep current with monthly bills and expenses without going deeper in debt and creating even more expenses.

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Prudential Financial – SWOT Analysis company profile is the essential source for top-level company data and information. Prudential Financial – SWOT Analysis examines the company’s key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy.

Prudential Financial (Prudential or ‘the company’) is one of the leading financial services companies, with approximately $558 billion of assets under management as of December 31, 2008. The company offers a range of financial products and services including life insurance, mutual funds, annuities, pension and retirement-related services, asset management, banking and trust services, real estate brokerage and relocation services. The company operates primarily in the US, Asia, Europe and Latin America. The company is headquartered in Newark, New Jersey and employs 41,844 people. The company recorded revenues of $29,275 million in the financial year ended December 2008 (FY2008), a decrease of 14.9% over 2007. The operating loss of the company was $1,118 million in FY2008, compared to an operating profit of $4,686 million in 2007. The net loss was $1,073 million in FY2008, compared to a net profit of $3,704 million in 2007. (more…)

The United States has not always conformed to worldwide standards. A well-known example would be our refusal to use the metric system. However, another standard that differed from other countries is our Generally Accepted Accounting Principles, or GAAP. These principles are the guidelines for accounting and financial reporting. Beginning in the year 2014, however, the United States will be converting from GAAP to International Financial Reporting Standards, or IFRS. These are the international accounting standards that the U.S. will begin adopting.

Although the conversion from GAAP to IFRS may take some time to get used to, there are several reasons that this change will, in the long run, greatly benefit U.S. companies. The main reason for this alteration is to match all accounting standards internationally. Not only does this increase comparability between companies in different countries, but it also decreases the amount of money multinational companies spend on preparing their financial statements because their statements for every country will be using the same standards. International standards facilitate comparable financial reports from companies throughout the world. (more…)