AAA|DEFINITION OF 'STOP-LOSS ORDER'An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investors loss on a position in a security. Although most investors associate a stop-loss order only with a long position, it can also be used for a short position, in which case the security would be bought if it trades above a defined price. A stop-loss order takes the emotion out of trading decisions and can be especially handy when one is on vacation or cannot watch his/her position. However, execution is not guaranteed, particularly in situations where trading in the stock is halted or gaps down (or up) in price. Also known as a stop order or stop-market order.http://economictimes.indiatimes.com/markets/commodities/is-it-time-to-buy-gold-a-little-wait-may-be-worth-it/articleshow/48195524.cmshttp://economictimes.indiatimes.com/markets/commodities/here-is-why-gold-is-in-a-multi-year-bear-market-historical-price-behaviour-from-1920s/articleshow/48199438.cms?intenttarget=no&utm_source=newsletter&utm_medium=email&utm_campaign=Dailynewsletter&ncode=8c8e04f96b3131cb8bd40141030f7843http://factchecker.in/railway-ministry-8-achievements-that-really-arent/http://economictimes.indiatimes.com/markets/stocks/news/government-to-offload-5-stake-in-pfc-on-monday-at-rs-254/share/articleshow/48214075.cms?intenttarget=no&utm_source=newsletter&utm_medium=email&utm_campaign=Dailynewsletter&ncode=8c8e04f96b3131cb8bd40141030f7843http://economictimes.indiatimes.com/news/international/business/anshu-jain-gets-clean-chit-on-charges-of-lying-to-german-bank-in-rigging-case/articleshow/48213960.cms?intenttarget=no&utm_source=newsletter&utm_medium=email&utm_campaign=Dailynewsletter&ncode=8c8e04f96b3131cb8bd40141030f7843http://www.differencebetween.net/business/finance-business-2/difference-between-bank-rate-and-repo-rate/http://www.differencebetween.net/business/finance-business-2/difference-between-bank-rate-and-repo-rate/file:///C:/Users/siddharth/Desktop/Mutual%20Fund,Your%20Vehicle%20to%20Multiple%20Assets.pdfhttp://www.livemint.com/Money/roW0YKd48YmqV3lvgucz8J/Indian-economy-shows-sign-of-a-nascent-recovery.htmlhttp://www.business-standard.com/article/economy-policy/industry-fears-cascade-of-woes-over-rs-panel-proposal-on-1-tax-on-gst-115072200019_1.html

INVESTOPEDIA EXPLAINS 'STOP-LOSS ORDER'With a stop-loss order for a long position, a market order to sell is triggered when the stock trades below a certain price, and it will be sold at the next available price. This type of order works well if the stock or market is declining in an orderly manner, but not if the decline is disorderly or sharp.For example, if you own shares of ABC Co., which is currently trading at $50, and want to hedge against a big decline, you could enter a stop-loss order to sell your ABC holdings at $48. This type of stop-loss order is also called a sell-stop order. If ABC trades below $48, your stop-loss order is triggered and converts into a market order to sell ABC at the next available price. If the next price if $47.90, your ABC shares would be sold at $47.90.But what if ABC closes at $48.50 one day, and then reports weak quarterly earnings after market close? If the stock gaps down, and opens at $44.90 the next day, your stop-loss order would be automatically triggered and your shares sold at the next available price, say $45. In this case, your stop-loss order did not work out as you expected, since your loss on ABC is 10% rather than the 4% you had expected when you placed the stop-loss order.This is a major drawback of stop-loss orders, and is a reason why experienced investors use stop-limit orders instead of stop-market orders. Stop-limit orders seek to sell the stock at a specified limit price rather than the market price once a specified price level is breached. Although stop-limit orders will also not work if the stock is halted down or has a price gap, the risk of the long position being sold at a significantly lower price than the specified stop price is lower than with a stop-market order.Note that these orders can also be used to protect unrealized gains, although in this case it would be more accurate to refer to them as stop orders rather than stop-loss orders.

Covered CallDEFINITION OF 'COVERED CALL'An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. These is often employed when an investor has a short-term neutral view on the asset and for this reason holds the asset long and simultaneously have a short position via the option to generate income from the option premium.This is also known as a "buy-write".INVESTOPEDIA EXPLAINS 'COVERED CALL'For example, let's say that you own shares of the TSJ Sports Conglomerate and like its long-term prospects as well as its share price but feel in the shorter term the stock will likely trade relatively flat, perhaps within a few dollars of its current price of, say, $25. If you sell a call option on TSJ for $26, you earn the premium from the option sale but cap your upside. One of three scenarios is going to play out:a) TSJ shares trade flat (below the $26 strike price) - the option will expire worthless and you keep the premium from the option. In this case, by using the buy-write strategy you have successfully outperformed the stock.b) TSJ shares fall - the option expires worthless, you keep the premium, and again you outperform the stock.c) TSJ shares rise above $26 - the option is exercised, and your upside is capped at $26, plus the option premium. In this case, if the stock price goes higher than $26, plus the premium, your buy-write strategy has underperformed the TSJ shares.

Butterfly SpreadDEFINITION OF 'BUTTERFLY SPREAD'A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration but three different strike prices to create a range of prices the strategy can profit from. The trader sells two option contracts at the middle strike price and buys one option contract at a lower strike price and one option contract at a higher strike price. Both puts and calls can be used for a butterfly spread.INVESTOPEDIA EXPLAINS 'BUTTERFLY SPREAD'Butterfly spreads have limited risk, meaning you can only lose your initial investment. Your maximum return is when the price of the underlying asset remains around the middle strike price.

BetaDEFINITION OF 'BETA'A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.Also known as "beta coefficient."INVESTOPEDIA EXPLAINS 'BETA'Beta is calculated using regression analysis, and you can think of beta as the tendency of a security's returns to respond to swings in the market. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market. For example, if a stock's beta is 1.2, it's theoretically 20% more volatile than the market.Many utilities stocks have a beta of less than 1. Conversely, most high-tech, Nasdaq-based stocks have a beta of greater than 1, offering the possibility of a higher rate of return, but also posing more risk.

Rights Offering (Issue)DEFINITION OF 'RIGHTS OFFERING (ISSUE)'An issue of rights to a company's existing shareholders that entitles them to buy additional shares directly from the company in proportion to their existing holdings, within a fixed time period. In a rights offering, the subscription price at which each share may be purchased in generally at a discount to the current market price. Rights are often transferable, allowing the holder to sell them on the open market.INVESTOPEDIA EXPLAINS 'RIGHTS OFFERING (ISSUE)'For example, a company whose stock is trading at $20 may announce a rights offering whereby its shareholders will be granted one right for each share held by them, with four rights required to buy each new share at a subscription price of $19. The company will also specify that the rights expire on a certain date, which is usually anywhere from one to three months from the date of announcement of the rights offering.Companies typically issue rights to give their existing shareholders the opportunity to buy additional shares before other buyers, and also to enable current shareholders to maintain their proportionate stake in the company.

DEFINITION of 'Operating Leverage'A measurement of the degree to which a firm or project incurs a combination of fixed and variable costs.1. A business that makes few sales, with each sale providing a very high gross margin, is said to be highly leveraged. A business that makes many sales, with each sale contributing a very slight margin, is said to be less leveraged. As the volume of sales in a business increases, each new sale contributes less to fixed costs and more to profitability.2. A business that has a higher proportion of fixed costs and a lower proportion of variable costs is said to have used more operating leverage. Those businesses with lower fixed costs and higher variable costs are said to employ less operating leverage.INVESTOPEDIA EXPLAINS 'Operating Leverage'The higher the degree of operating leverage, the greater the potential danger from forecasting risk. That is, if a relatively small error is made in forecasting sales, it can be magnified into large errors in cash flow projections. The opposite is true for businesses that are less leveraged. A business that sells millions of products a year, with each contributing slightly to paying for fixed costs, is not as dependent on each individual sale.For example, convenience stores are significantly less leveraged than high-end car dealerships.

What is the difference between operating leverage and financial leverage?ByInvestopediaAAA|A:Operating leverageand financial leverage both magnify the changes that occur to earnings due to fixed costs in a companys capital structures. Operating leverage magnifies changes in earnings before interest and taxes (EBIT) as a response to changes in sales when a company's operational costs are relatively fixed. Financial leverage magnifies how earnings per share (EPS) change as a response to changes in EBIT where the fixed cost is that of financing, specifically interest costs.Operating leverage measures the extent to which a company or specific project requires some aggregate of both fixed and variable costs. Fixed costs are those not altered by an increase or decrease in the total number of goods or services a company produces. Variable costs are those that vary in direct relationship to a companys production -- variable costs rise when production increases and fall when production decreases. Businesses with higher ratios of fixed costs to variable costs are characterized as using more operating leverage, while businesses with lower ratios of fixed costs to variable costs use less operating leverage. Utilizing a higher degree of operating leverage increases the risk of cash flow problems resulting from errors in forecasts of future sales.Thedegree of financial leverage(DFL) measures a percentage change of earnings per share for each units change in EBIT that result from a company's changes in its capital structure. Earnings per share become more volatile when the DFL is higher. Financial leverage magnifies earnings per share and returns because interest is a fixed cost. When a company's revenues and profits are on the rise, this leverage works very favorably for the company and for investors. However, when revenues or profits are pressured or falling, the exponential effects of leverage can become problematic.

Corporate Finance - Financial LeverageFinancial leverage can be defined as the degree to which a company uses fixed-income securities, such as debt and preferred equity. With a high degree of financial leverage come high interest payments. As a result, the bottom-line earnings per share is negatively affected by interest payments. As interest payments increase as a result of increased financial leverage, EPS is driven lower.

As mentioned previously, financial risk is the risk to the stockholders that is caused by an increase in debt and preferred equities in a company's capital structure. As a company increases debt and preferred equities, interest payments increase, reducing EPS. As a result, risk to stockholder return is increased. A company should keep its optimal capital structure in mind when making financing decisions to ensure any increases in debt and preferred equity increase the value of the company.

Degree of Financial LeverageThis measures the percentage change in earnings per share over the percentage change in EBIT. This is known as "degree of financial leverage" (DFL). It is the measure of the sensitivity of EPS to changes in EBIT as a result of changes in debt.Formula 11.19DFL =percentage change in EPSorEBIT percentage change in EBIT EBIT-interest

A shortcut to keep in mind with DFL is that, if interest is 0, then the DLF will be equal to 1.

Example: Degree of Financial LeverageWith Newco's current production, its sales are $7 million annually. The company's variable costs of sales are 40% of sales, and its fixed costs are $2.4 million. The company's annual interest expense amounts to $100,000 annually. If we increase Newco's EBIT by 20%, how much will the company's EPS increase?

Answer:The company's DFL is calculated as follows:DFL = ($7,000,000-$2,800,000-$2,400,000)/($7,000,000-$2,800,000-$2,400,000-$100,000)DFL = $1,800,000/$1,700,000 = 1.058

Given the company's 20% increase in EBIT, the DFL indicates EPS will increase 21.2%.

DEFINITION of 'Comprehensive Income'The change in a company's net assets from nonowner sources over a specified period of time. Comprehensive income is a statement of all income and expenses recognized during that period. The statement includes revenue, finance costs, tax expenses, discontinued operations, profit share and profit/loss.INVESTOPEDIA EXPLAINS 'Comprehensive Income'Companies typically report comprehensive income in a separate statement from income resulting from owner changes in equity, but have the option of providing information in a single statement. Many firms shy away from the single statement approach because it mixes owner and non-owner activity, which can muddle the underlying information.

How do you find the level of EBIT where EPS doesn't change?One of the primary valuation metrics used by investors to assess a business' worth and financial stability isearnings per share (EPS). EPS reflects a company's net income divided by the number of common shares outstanding. EPS, of course, largely depends on a company's earnings. For the purposes of EPS calculation, earnings before interest and taxes (EBIT) is used because it reflects the amount of profit that remains after accounting those expenses necessary to keep the business going. EBIT is also often referred to as operating income.The relationship between EBIT and EPS is as follows:EPS = (EBIT - Debt Interest) * (1 - Tax Rate) -Preferred Share Dividends/ Number of Common Shares OutstandingWhen assessing the relative effectiveness leverage versus equity financing, companies look for the level of EBIT where EPS remains unaffected, called the EBIT-EPS break-even point. This calculation determines how much additional revenue would need to be generated in order to maintain a constant EPS under different financing plans.To calculate the EBIT-EPS break-even point, rearrange the EPS formula:EBIT = (EPS * Number of Common Shares Outstanding) + Preferred Share Dividends / (1 - Tax Rate) + Debt InterestFor example, assume a company generates $150,000 in earnings and is financed entirely by equity capital in the form of 10,000 common shares. The corporate tax rate is 30%. The company's EPS is ($150,0000 - 0) * (1 - 0.3) + 0 / 10,000, or $10.50. Now assume the company takes out a loan of $10,000 with a 5% interest rate and sells an additional 10,000 shares. To calculate the level ofEBITwhere EPS remains stable, simply input the debt interest, current EPS and updated shares outstanding values and solve for EBIT: ($10.50 * 20,000) + 0 / (1 - 0.3) + $500 = $300,500. Under this financing plan, the company must more than double its earnings to maintain a stable EPS.

DEFINITION of 'Zombies'Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to the high costs associated with certain operations, such as research and development. Most analysts expect zombie companies to be unable to meet their financial obligations.Also known as the "living dead" or "zombie stocks".INVESTOPEDIA EXPLAINS 'Zombies'Because a zombie's life expectancy tends to be highly unpredictable, zombie stocks are extremely risky and are not suitable for all investors. For example, a small biotech firm may stretch its funds extremely thin by concentrating its efforts in research and development in the hope of creating a blockbuster drug. If the drug fails, the company can go bankrupt within days of the announcement. On the other hand, if the drug is successful, the company could profit and reduce its liabilities. In most cases, however, zombie stocks are unable to overcome the financial burdens of their high burn rates and most eventually go bankrupt.Given the lack of attention paid to this group, there can often be interesting opportunities for investors who have a high risk tolerance and are seeking speculative opportunities.

DEFINITION of 'Dove'An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that inflation and its negative effects will have a minimal impact on society. This term is derived from the docile and placid nature of the bird of the same name, and is the opposite of the term "hawk".Statements that suggest that inflation will have a minimal impact are called "dovish".INVESTOPEDIA EXPLAINS 'Dove'Doves prefer low interest rates as a means of encouraging growth within the economy because this tends to increase demand for consumer borrowing and spur consumer spending. As a result, doves believe the negative effects of low interest rates are negligible in the larger scheme of things. However, if interest rates are kept low for an indefinite period of time, inflation could rise considerably.

Why Israel Is Attracting Chinese Investors

In June 2014, the UN Conference on Trade and Development forecast (pdf) that outflows of foreign direct investment from China would surpass inflows to the country within two or three years. That moment, when it comes, will mark a dramaticshift: in 2000, foreign direct investment in China amounted to about $40 billion, while China's investment abroad was negligible.TheAsian Infrastructure Investment Bankis a concrete example of China's new position as one of the world's economic leaders, rather than just its factory. The institution, a newcomer to a field long dominated by the IMF, the World Bank, and the Asian Development Bank, has signed on most of the developed world, including many Americanallies, despite vocal objections from the White House. Besides being a diplomatic coup for China, the situation is widely seen as an embarrassingmisstepfor the United States.Other examples of China's growing clout abound. Peru, Brazil, Venezuela, and Argentina nowtrademore with China than the United States; 2,500 Chinese companiesoperatedin Africa in 2013. This expansion has met with some resistance: Michael Sata, the late president of copper-rich Zambia,wonthe 2011 election largely based on his anti-China platform. But the trend is clear enough.CHINESE INVESTMENT IN ISRAELOne recipient of Chinese investment provides some interesting nuance to the picture: Israel. China became the country's third-largesttrading partnerin 2013, behind the EU and the United States. That year, Ohad Cohen of Israel's Economy Ministry estimated that Chinese investment made up $4 billion out of an overall $32 billion in foreign direct investment, up from nothing in 2011.Chinese investors are increasingly active in the country'stech sector, through both Chinese and Israeli investment funds. As of September 2014, the Ping An Insurance Group, a Chinese conglomerate, had invested in six Israelistart-upsthrough a $100 million fund it set up the previous November. Chinese tech giantBaidu(BIDU) has partnered with Israel's Carmel Venture Fund. Among the partnership's beneficiaries isTonara, an Israeli start up whose apps help aspiring musicians practice more effectively.Chinese attention is not solely focused on Israel's tech sector. Tsing Capital has said it wouldinvestin Israeli clean energy ventures. Partly in response to Chinese consumers' budding taste for dairy products, Bright FoodacquiredIsrael's largest food maker, Tnuva, for $1.1 billion. Some in Israelquestionthe wisdom of that particular sale. Shelly Yachimovich, a Labor member of the Knesset, asked, "What normal country puts its food security and its entire milk industry in the hands of China?" Tnuvacompanyhad been British-owned since 2007.FROM ISRAEL'S PERSPECTIVEFor Israel, China's piqued interest comes at a convenient time. In response to last summer'swarin Gaza and the growing presence of Jewishsettlementsin the West Bank, condemnation of Israel's policies has spread to the political mainstream.In October, Sweden became the third EU member state to officiallyrecognizethe state of Palestine, followed by a spate of symbolic resolutions from other EU members and theEuropean Parliament. Palestinejoinedthe International Criminal Court in April, in hopes of bringing charges against Israeli officials. Calls toboycottIsraeli companies have intensified. Diplomaticspatsover the Iranian nuclear deal, exacerbated by fractious domestic politics in both Israel and the United States, have strained relations between Prime Minister Netanyahu and President Obama (although that issue has an expiration date).Israel continues to enjoy strong strategic alliances with the United States and Europe, which continue to takepriorityover Israel's ties to China. But given the pushback Israel's policies are generating; China's couldn't-care-less approach to the situation in Palestine makes it a welcome alternative source of capital from an Israeli perspective. Ophir Gore, trade attach at the Israeli embassy in Beijing,toldtheFinancial Timesthat in some parts of the world, mentioning Israel brings "other things" to mind; in China, on the other hand, "they think innovation, and they think high technology - so in that aspect, my job here is pretty easy."FROM CHINA'S PERSPECTIVEThat China would invest heavily outside its borders is not surprising. It is the single most populous nation on earth and an industrial powerhouse, requiring staggering amounts of resources. This need helps to explain Chinese investments in commodity-rich African and Latin American countries.Israel, however, is different. The "start-up nation" is famously techy,spendingthe second most of any country on research and development as a share ofGDP. Excepting the Tuna acquisition, the bulk of Chinese investment in Israel has gone into the tech sector. China is investing in knowledge and innovation rather than fuel for its industrial engine. As signs increasingly point toslowinggrowth, Chinese business leaders are beginning to eye a post-industrial future.THE BOTTOM LINEChinese investment in Israel is accelerating, with tech companies as the main beneficiaries. As relations with Western democracies falter, the addition of an alternate stream of capital is welcome news for Israel. Meanwhile, though much of China's investment abroad has been focused on resource-rich countries like Peru or Zambia, the flow of Chinese investment into Israel's knowledge-based economy shows there is another side to the story.

MBA or CFA: Which is Best for a Career in Finance?ByJoseph A. DallegroAAA|Financial advisors, stock brokers and investment professionals of all stripes swim in a sea of designations and certificates. Because each title comes with its own three- or four-letter abbreviation, the designations are known as the "alphabet soup" of the investment advice industry.Two of the most strenuous but financially rewarding titles are theMaster of Business Administration, MBA, and theChartered Financial Analyst, CFA. A potential financial advisor or anyone considering a career in finance or investing should consider their differences.The question is whether to invest the time, resources and money in an MBA or CFA. Both are valuable, but there are clear differences between them.THE MBAThe MBA takes two years of full-time study, with classes covering various aspects of running a business. Courses range from human resources to accounting, from marketing and sales to managing operations, supply chains and technology. The CFA, on the other hand, is specifically meant for those pursuing careers in finance or investing and requires passing a series of three grueling exams rather than taking full or part-time classes. (For more, see:Should You Get a CFA, MBA or Both?)First, the MBA. Students get MBAs in specific topics such as healthcare, communications, information systems technology depending on which field most interests them. These degrees still stress broad knowledge of core business concepts.Watch out, because getting an MBA is usually pricey. Not only are students paying for two years of full-time graduate school, or its part-time equivalent, but they're also missing out on potential earnings during that time.MBA COST AND POTENTIAL REWARDA two-year MBA program can cost upwards of$111,000from a top business school, not counting room, board, books and peripheral expenses. TheNew America Foundationfound the average debt load for an MBA graduate in 2012 was $42,000. Also consider the effects of any wages you forgo while in school. Of course, financial aid can reduce this burden somewhat, and some corporations will assume a portion of expenses for employees seeking an MBA.The return on your investment, however, might make it worthwhile. Average starting salaries for those with MBAs is more than $50,000, according toPayscale, and those with 10 to 19 years of experience average more than $98,000. Getting an MBA from a well-regarded school can make you more attractive to employers because it demonstrates drive and work ethic. It also provides life-long professional contacts with scores of other Type A overachievers with whom you've shared a long, tough challenge. (For more, see:What's the Average Salary for an MBA Graduate?)If you want a management role at a large company or those in areas like marketing, consulting, finance, or investment banking, you'd do well to at least consider getting an MBA. Health care is another field where mid- and upper-management is increasingly populated with MBAs to better cope with changes in insurance, government regulation and patient record keeping standards. (For more, see:The Real Cost of an MBA.)THE CFAThe CFA designation, first introduced in 1963, provides those who pass three exams, known as charter holders, with specialized skills like investment analysis, portfolio strategy and asset allocation. It is less general than an MBA and quite coveted by investment professionals. Regulatory bodies in 27 countries recognize the charter as a proxy for meeting certain licensing requirements, according to theCFA Institute, which administers the test and awards the certification. (For more, see:An Introduction to the CFA Designation.)Financially, getting a CFA is a comparative bargain compared to earning an MBA, as the program is based on self-study and not going to class. The only required expense being exam fees. These costs vary depending on how early you register, but standard fees are $825 for each test, plus a one-time enrollment fee of $450.GRUELING AND TIME CONSUMINGWhile affordable, the time requirement to earn a CFA is substantial.CFA examshave three sections, which take six hours each. You must pass each section before proceeding to the next. The first section, Level I, is offered in December and June, while sections II and III are only offered in June.That means if a candidate passes every part in their first attempt, pursuing the CFA is still at least a 19-month journey.Indeed, the CFA Institute says candidates usually spend more than 300 hours of study for each section and that the average candidate takes four years to pass every section. Pass-rates for each section are only 40%-65% in a given year, making the CFA one of the mostgruelling testsyou're likely to face.Pay scaleputs the national average salary for a CFA at $80,000, according to its surveys. In fact, the general consensus is that the CFA exam is harder to pass, and requires more study, than theCPA exam. And that exam is hardly a cake-walk. Forum commentators on the CPA information and review siteAnother71familiar with both exams generally view the CFA as the greater challenge requiring more study time. They note though, that as the CFA exam includes audit problems, those with an accounting background have an advantage in taking it.A FEATHER IN YOUR CAPWhat sort of professionals might choose to get a CFA? The most traditional career paths for which the CFA charter has been most relevant are for research analysts and those who might go on to be portfolio managers, said Stephen Horan, Ph.D., CFA, CIPM, managing director and co-lead for education at theCFA Institute. The charter, however, is a generalist investment credential. Increasingly, it is a useful resource for a wide range of careers, such as traders, brokers, academics, risk managers, regulators and chief executives. These non-traditional roles are the single largest category of charter holders.Some motivated individuals pursue both MBAs and CFAs. An MBA and the CFA program are complimentary in many ways, Horan noted. Traditional MBA programs are more broad than the CFA program, covering topics such as management, marketing, and strategy, while the CFA program provides deeper coverage of investment management than typical MBA programs. Most MBA programs teach principles of finance, particularly corporate finance, but do not delve deeply into sophisticated issues like derivative securities, hedging strategies, portfolio management and wealth planning. The CFA program synthesizes application in these areas.Having both an MBA and CFA is especially valuable for portfolio and corporate manager positions, Horan added. Charter holders are increasingly working in corporate finance roles that would naturally be populated by MBAs.The average age of a CFA program candidate is 29, though it's been trending younger as students frequently enter the program in their last year of school or shortly thereafter. Some graduate schools teach the CFA program within their MBA coursework, allowing students to both obtain a degree and prepare for the certification at almost the same time.THE BOTTOM LINEIn the end, both the MBA and CFA are valuable. The CFA, however, is widely coveted by professional investors who work at money managers and registered investment advisors, the types of firms that many financial advisors get their first jobs and initial training and background. One of Another71's commentators summed it up well in noting that all these certifications are just tools that help you stand out a bit. Don't forget experience and networking trumps most certifications by themselves.

DEFINITION of 'Bagel Land'A slang term that represents a stock or other security that is approaching $0 in price. Arriving in bagel land is usually the result of one or more major business problems that may not be resolvable. This term is typically used to describe an asset that has fallen from grace as opposed to a penny stock or other historically cheap security.INVESTOPEDIA EXPLAINS 'Bagel Land'If a stock or other asset is headed toward bagel land or is approaching $0 (resembling the hole in the middle of a bagel), investors generally feel that the security is nearly worthless. In such cases, a company may be nearing bankruptcy or facing major solvency issues. While returning from bagel land is possible, the likelihood that equity investors will lose their entire stakes in the company becomes very high.

EBIT-EPS Capital StructureApproachThe EBIT-EPS capital structure approach focuses on finding a capital structure with the highest EPS (earnings per share) over the expected range of EBIT (earnings before interest and taxes).The reason why we are interested in finding a capital structure which will permit maximization of the EPS over the expected range of EBIT is because it partially helps us to achieve the ultimate objective of the enterprise. The ultimate objective of the enterprise is to maximize shareholders wealth by maximizing its stock price. Two key variables that affect stock price are return (earnings attributed to owners of the enterprise) and risk (which can be measured by required return (rs)). This approach explicitly considers maximization of returns (EPS). However, it is important to note that this approach ignores risk (does not explicitly consider risk).Major shortcoming of the EBIT-EPS approach

The fact that this approach fails to explicitly consider risk is the major shortcoming of this method. As firm obtains more debt (its financial leverage increases), the risk also increases and shareholders will require higher returns to compensate for the increased financial risk. Therefore, this approach is not completely appropriate because it does not consider one of the key variables (risk), which is necessary for maximization of shareholders wealth.Considering financial risk

As per above, the approach does not explicitly consider financial risk. However, when utilizing the approach, financial risk can be considered in two ways:1) The approach measures financial risk by the financial breakeven point. The higher the breakeven point the greater the financial risk.2) The approach also measures the financial risk by the slope of the capital structure line. The steeper the capital structure line the greater the financial risk.EBIT-EPS graph

It is a graphical approach. EPS is plotted on the vertical axis (x-axis) and EBIT on the horizontal axis (y-axis). By connecting the coordinates for different capital structures (different variations of equity versus debt), capital structure lines for each capital structure are graphed.We will need to represent EBIT-EPS coordinates (capital structure lines) for different capital structures to ascertain at which levels of EBIT which capital structure is preferred. This will allow us to find a capital structure with the highest EPS over the expected range of EBIT.For the purposes of this article it is sufficient to mention that to find EBIT-EPS coordinates we can assume particular EBIT values (and associated earnings available for common stockholders values) and calculate EPS in line with such values for different capital structures.The formula to calculate EPS is as follows:EPS = Earnings Available for Common Stockholders/ Number of Shares of Common Stock Outstanding Another easy way to find one of the EBIT-EPS coordinates is to use the financial breakeven point calculation. Financial break-even point occurs at the level of EBIT (earnings before interest and taxes) at which EPS (earnings per share) equals zero. At this level of EBIT all fixed financial costs are covered. The formula for calculation of the financial break-even point is as follows:Financial break-even point = I + PSD/1-TWhere:I interest chargesPSD preferred stock dividendsT tax rate***This capital structure approach does NOT allow us to determine the point where weighted average cost of capital is at a minimum and where stock price is at a maximum (where wealth of the owners of the firm is maximized). The approach focuses on maximizing earnings rather than on maximizing wealth. Therefore, although it is helpful to use when analysing alternative capital structures, the major shortcoming of this approach should be taken into account.

Cairn India to merge into Vedanta Ltd; board approves merger

MUMBAI: Metal and mining giant Vedanta Ltd and its subsidiary oil explorer Cairn India will merge in an all share swap deal, giving the parent access to Cairn's $2.7 billion, or about Rs 17,000 crore, cash pile that would help it reduce debt.

Independent directors of both the companies, owned by billionaire Anil Agarwal, have approved the merger. Minority shareholders of Cairn India will receive one equity share of Vedanta and one redeemable preference share of Rs 10 face value with 7.5..annual dividend, for each share held in Cairn India.

"The merger consolidates our position as India's leading diversified natural resources champion, uniquely positioned to support India's economic growth," said Agarwal, chairman of Vedanta Plc, which owns 50.1% stake in Vedanta Ltd. A diversified portfolio from metal to oil exploration will help Vedanta derisk earnings volatility in an economic slowdown, allocate capital to projects with better returns, build a stronger balance sheet AND REDUCING OVERALL COST OF CAPITAL..

Most Important Abbreviations===============================* VIRUS - Vital Information ResourceUnderSeized.* 3G -3rd Generation.* GSM - Global System for MobileCommunication. * CDMA - Code Divison MultipleAccess.* UMTS - Universal MobileTelecommunicationSystem.* SIM - Subscriber Identity Module .* AVI = Audio Video Interleave* RTS = Real Time Streaming * SIS = SymbianOS Installer File* AMR = Adaptive Multi-Rate Codec* JAD = Java Application Descriptor* JAR = Java Archive* JAD = Java Application Descriptor* 3GPP = 3rd Generation Partnership Project *3GP = 3rd Generation Project* MP3 = MPEG player lll* MP4 = MPEG-4 video file* AAC = Advanced Audio Coding* GIF= Graphic Interchangeable Format* JPEG = Joint Photographic Expert Group * BMP= Bitmap* SWF = Shock Wave Flash* WMV = Windows Media Video* WMA = Windows Media Audio* WAV = Waveform Audio* PNG = Portable Network Graphics * DOC =Document (MicrosoftCorporation)* PDF = Portable Document Format* M3G = Mobile 3D Graphics* M4A = MPEG-4 Audio File* NTH = Nokia Theme (series 40)* THM = Themes (Sony Ericsson) * MMF =Synthetic Music Mobile Application File* NRT = Nokia Ringtone* XMF = Extensible Music File* WBMP = Wireless Bitmap Image* DVX = DivX Video* HTML = Hyper Text Markup Language * WML =Wireless Markup Language* CD -Compact Disk.* DVD - Digital Versatile Disk.* CRT - Cathode Ray Tube.* DAT - Digital Audio Tape.* DOS - Disk Operating System. * GUI -GraphicalUser Interface.* HTTP - Hyper Text Transfer Protocol.* IP - Internet Protocol.* ISP - Internet Service Provider.* TCP - Transmission Control Protocol.* UPS - Uninterruptible Power Supply. * HSDPA -High Speed Downlink PacketAccess.* EDGE - Enhanced Data Rate for GSM[GlobalSystem for Mobile Communication]Evolution.* VHF - Very High Frequency.* UHF - Ultra High Frequency. * GPRS - GeneralPacketRadio Service.* WAP - Wireless ApplicationProtocol.* TCP - Transmission ControlProtocol .* ARPANET - Advanced Research ProjectAgency Network.* IBM - International Business Machines. * HP -Hewlett Packard.* AM/FM - Amplitude/ Frequency Modulation.* WLAN - Wireless Local Area Network

List of 31 Index PDF- Ranks of India in 2015*********************************************1.GLOBAL PEACE INDEX -1432.CHOICE OF FDI-1433.EASE OF DOING BUSSINESS -1424.ENVIRONMENTAL PERFORMANCE INDEX -1555.WORLD PRESS FREEDOM INDEX -1366.ECONOMIC FREEDOM INDEX 1287.HUMAN DEVELOPMENT INDEX -1359.GENDER INEQUALITY INDEX 1299.GENDER GAP INDEX -11410.WOMENS REPRESENTATION IN PARLIAMENT -11111.WORLD PROSPERITY INDEX 10612.SOCIAL PROGRESSIVE INDEX -10113.HUMAN CAPITAL INDEX 10014.GLOBAL INFORMATION INDEX(WEF) 8915.CORRUPTION PERCEPTION INDEX -85

NEW DELHI: Easing prices of fuel, food items and manufactured goods kept inflation in the negative zone for the seventh consecutive month in May, although prices fell at a slower rate of (-)2.36 per cent as against the previous month.

The Wholesale Price Index (WPI) based inflation was (-)2.65 per cent in April. It has been in the negative zone since November 2014.

Inflation in May last year was 6.18 per cent.

The lower inflation comes amid a forecast of deficient mon..sRead more at:http://economictimes.indiatimes.com/articleshow/47673324.cms?intenttarget=no&utm_source=newsletter&utm_medium=email&utm_campaign=Dailynewsletter&ncode=8c8e04f96b3131cb8bd40141030f7843&utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst