1. ## How Is Carry Trade Return Calculated?

Basically, in a carry trade you borrow a currency that has a low interest rate, then use that money to buy another currency that pays a higher interest rate. You make profit on the difference between the interest rates. So the steps to calculate this amount is firstly assume that a trader notices thRead more

Basically, in a carry trade you borrow a currency that has a low interest rate, then use that money to buy another currency that pays a higher interest rate. You make profit on the difference between the interest rates. So the steps to calculate this amount is firstly assume that a trader notices that rates in Japan are 0.25 percent, while they are 2 percent in the United States. This means the trader expects to profit 1.75 percent; the difference between the two rates. The first step is to borrow yen and convert them into dollars. The second step is to invest those dollars into a security paying the U.S. rate. Assume the current exchange rate is 230 yen per dollar and the trader borrows 100 million yen. Once converted, the amount that he would have is:
U.S. dollars = 100 million yen Ã· 230 = \$434,782.61
After a year invested at the 2 percent U.S. rate, the trader has:
Ending balance = \$434,782.61 x 1.02 = \$443,478.2622
Now, the trader owes the 100 million yen principal plus 0.25 percent interest for a total of:
Amount owed = 100 million yen x 1.0025 =100.25 million yen
If the exchange rate stays the same over the course of the year and ends at 230, the amount owed in U.S. dollars is:
Amount owed = 100.25 million yen Ã· 230 = \$435, 869.5652
The trader profits on the difference between the ending U.S. dollar balance and the amount owed, which is:
Profit = \$443,478.2622- \$435, 869.5652 = \$7,608.697
Notice that this profit is exactly the expected amount: \$7,608.697 Ã· \$434,782.62 = 1.75%

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2. ## How Do Corporate Raiders Make Money?

As we know that a corporate raider is an investor who buys a large interest in a corporation whose assets have been judged to be undervalued with the goal to affect profitable change in the company's share price. Letâ€™s work through an example of how do they do it. So, firstly an investor uses a stocRead more

As we know that a corporate raider is an investor who buys a large interest in a corporation whose assets have been judged to be undervalued with the goal to affect profitable change in the company’s share price. Letâ€™s work through an example of how do they do it. So, firstly an investor uses a stock screener and identifies a company whose market value is trading significantly below its book value. Then in determining the rationale for the low market value of the company, the investor finds that its historical profitability ratios are comparable to competitors, but that the companyâ€™s management demonstrates a poor track record in sourcing deals to grow the business. As such, the investor acquires a majority interest in the company by purchasing shares on the open market. At the companyâ€™s annual general meeting, the investor votes out the current management team and reconstitutes the management team with seasoned veterans. On this news, the companyâ€™s share price skyrockets and that is how he mints money.

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3. ## What Does A Corporate Raider Do?

The main agenda behind a corporate raider is to effectively generate an attractive return for their investment. As we know, Corporate raiders scout for companies that are proven undervalued. And to Identify an undervalued company requires a deep understanding of a companyâ€™s current financial positioRead more

The main agenda behind a corporate raider is to effectively generate an attractive return for their investment. As we know, Corporate raiders scout for companies that are proven undervalued. And to Identify an undervalued company requires a deep understanding of a companyâ€™s current financial position, the managementâ€™s competence, business model, and future business prospects. The beginning of identifying an undervalued company can be done through a stock screener and looking for companies that are trading at a low valuation. Or we can say, if the valuation multiples of the company in question are materially lower than its peers, it is considered undervalued. After then, the corporate raider will delve into analyzing the business and its financial statements to determine whether the low valuation multiples are justified or not. If the corporate raider believes that the company is undervalued, he will start the raid process. The most common method that raiders use to acquire an undervalued company is by purchasing shares on the open market. Upon acquiring an undervalued company, the corporate raider will attempt to increase the value of the company by replacing its poorly performing management, delving assets, or positioning the business for a sale or merger.corporate raiders make capital markets more efficient by identifying underperforming companies and improving them.

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4. ## What Is Corporate Raiding?

In business, a corporate raid is the mechanism of buying a large stake in a corporation to make profit and then using shareholder voting rights to require the company to undertake novel measures designed to increase the share value, generally in opposition to the desires and practices of the corporaRead more

In business, a corporate raid is the mechanism of buying a large stake in a corporation to make profit and then using shareholder voting rights to require the company to undertake novel measures designed to increase the share value, generally in opposition to the desires and practices of the corporation’s current management. It involves a corporate raider, who is an investor that buys a large number of shares in a corporation whose assets comes out to be undervalued. The large share purchase would permit the corporate raider significant voting rights, which could then be used to bring some changes in the company’s leadership and management. So basically raiding generally occurs when the company’s share price has recently fallen significantly. It is also called venture arbitrage.

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5. ## What Are The Disadvantages Of Intellectual Property?

As every coin has two sides, intellectual properties also have their own disadvantages. They are: 1. It may lead to additional costs. Protecting your intellectual property could cost a lot of money, particularly if you have a very complex product that involves designs, methods, and processes. Youâ€™llRead more

As every coin has two sides, intellectual properties also have their own disadvantages. They are:
1. It may lead to additional costs. Protecting your intellectual property could cost a lot of money, particularly if you have a very complex product that involves designs, methods, and processes. Youâ€™ll also need to pay filing fees and other costs associated with the patent application process.
2. It may lead to reduced quality. As intellectual property rights become reduced, so too will the quality of the product being created. That is because there is much less of an incentive to do the work and put the time and resources in, especially if the company knows that its intellectual property rights arenâ€™t absolute.
3. It can reduce customer base overtime as it could be seen that when it comes to highly sought-after intellectual property, it is hard to stop consumers from taking such intellectual property.

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6. ## What Are Intellectual Property Rights?

There are a lot of intellectual property rights and to be frank that would depend upon where you are dealing them with, it depends from region to region. While these rights come in two major areas, firstly, copyright and rights related to copyright. The rights of authors of literary and artistic worRead more

There are a lot of intellectual property rights and to be frank that would depend upon where you are dealing them with, it depends from region to region. While these rights come in two major areas, firstly, copyright and rights related to copyright. The rights of authors of literary and artistic works (such as books and other writings, musical compositions, paintings, sculpture, computer programs and films) are protected by copyright, for a minimum period of 50 years after the death of the author. The other one is industrial property rights, they are protected primarily to stimulate innovation, design and the creation of technology. In this category fall inventions (protected by patents), industrial designs and trade secrets. A functioning intellectual property regime should also facilitate the transfer of technology in the form of foreign direct investment, joint ventures and licensing.

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7. ## What Is An Example Of An Intellectual Property?

These are the intangible assets of the business which prove to be useful in certain ways. There are patents, copyrights, trademarks etc. While a lot of innovative companies goes for patents of their innovation, so that they are not claimed by anyone else and only they have the right to its productioRead more

These are the intangible assets of the business which prove to be useful in certain ways. There are patents, copyrights, trademarks etc. While a lot of innovative companies goes for patents of their innovation, so that they are not claimed by anyone else and only they have the right to its production. A common example of copyrights are movies, as you may know that plagiarism is not a legal thing, what makes it illegal is copyright which is done for all the movies, and also for books, songs etc. An example of trademark could be seen when companies get their logos trademarked, like that of Intel.

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8. ## What Are The Four Types Of Intellectual Property?

There are four basic types of intellectual properties, they are: 1. Patents: This is important for all the new innovations and discoveries as it is used to protect inventive ideas or processes for the things that are new, useful and nonobvious. Patents are what most often come to mind when thinkingRead more

There are four basic types of intellectual properties, they are:
1. Patents: This is important for all the new innovations and discoveries as it is used to protect inventive ideas or processes for the things that are new, useful and nonobvious. Patents are what most often come to mind when thinking of IP protection.
2. Trademark: A trademark is unlike a patent in that it protects words, phrases, symbols, sounds, smells and color schemes. Trademarks are often considered assets that describe or otherwise identify the source of underlying products or services that a company provides.
3. Copyright: Copyrights do not protect ideas, but rather the manner in which ideas are expressed like written works, art, music, architectural drawings, or even programming code for software. With certain exceptions, copyrights allow the owner of the protected materials to control reproduction, performance, new versioning or adaptations etc.
4. Trade Secret: Trade secrets are proprietary procedures, systems, devices, formulas, strategies or other information that is confidential and exclusive to the company using them. They also act as competitive advantages for the business.

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9. ## How Do I Maximize Conversion Rate?

Its important for every industry to get out of the average bracket and work for a higher conversion rate. Here are few ways you can include in your working to maximize your conversion rate. Firstly try to optimize your web page by reducing unnecessary stuff from it, trust me, more is less. Be carefuRead more