Posts Tagged ‘Banks’

Reasons for Bad Credit Loans

Friday, May 6th, 2011

With the World recently emerging from recession it is more difficult than ever to get credit. There were many people who had a bad credit rating before the credit crunch and the legacy of the global financial crisis for them is a poor credit report. But with every piece of bad news about the recovery there is also some positive news. Bad credit loans offer customers a way to obtain credit in circumstances where their bank or mortgage providers have said no. Bad credit loans may seem daunting but they really can help.

People want money for all the same reasons they did before the crisis and there is still a high demand for loans. The problem is that the banks are less likely to lend and they are more risk averse since it was through lending and the trading of ‘toxic’ debt finance that got them into the mess in the first place. However, for consumers the picture is getting brighter as smaller companies are taking advantage of this and offering customers the products which the big banks are holding back. The downside for a borrower are the extra expense. There is also more risk involved and because the lending organisation are smaller and do not have the luxury of economies of scale; because of this the borrowing is more costly.

There are some people who have not felt the hit of the financial crisis in such an acute manner and still have expendable income which they can use for borrowing for anything from holidays to new cars or money to renovate a home. Home renovation is also an important area for borrowing at the moment as the housing market has bottomed to such an extent that the only way is up. In addition, assets such as land and corporate property are a sensible thing to spend your money on at the moment with the economy in the state that it is. It would seem that despite the financial meltdown, the US economy has rallied to create a solution in the form of smaller lenders to the problem that Americans will always want to spend money and this often means borrowing money.

The Different Types of Stock Market Trading

Wednesday, August 25th, 2010

The stock market is a place where long term securities are bought and sold. It is a market used to raise long term finances for the businesses and provides the businesses with the necessary liquidity.

There are different participants in a stock exchange and each one of them has their own objectives. They carry their share trading on the basis of their objectives. The different kinds of share trading which are in practice are intraday trading, swing trading, commodity trading etc. Trading can be done both on the equities as well as on commodities. Trading on commodities is known as commodity trading. Commodity trading includes trading of commodities like gold, crude, silver, nickel, lead etc. The Indian commodity market opens at 9:55 in the morning and functions till 11:30 in the night. The commodity trading is largely influenced by the change in price of the commodities in the international commodities market. In India a large number of investors do engage in commodity trading. Most of the large players in commodity trading are traders like jewelers etc. They see commodity trading as a tool to mitigate the risks of their business. In commodity trading the commodities are bought and sold in a lot or individually. The parties involved in commodity trading may sometime go for margin money and if the value of their security falls down then they cannot hold it for a longer period of time as they are in short of funds.

Intraday trading and swing trading are two tools of speculation. Swing trading is a practice where by the instrument is bought or sold at the end of volatility in price. So swing trading makes use of the volatility of the share price for a period of one week. Intraday trading is the most commonly used speculative tool in our stock exchanges. In intraday trading, the securities that are brought on that day are sold before the market closes for that day. So people who indulge in intraday trading are not real investors and they are really interested in making quick profits. Intraday trading can give you quick profits as well as the chances for loss making are many when compared to delivery trading. Most people who indulge in intraday trading end up making losses because they do not know anything about the stock exchanges and listening to others words them start intraday trading expecting quick profits. Most people who go for intraday trading use the margin money system and therefore they cannot hold their shares for a longer time due to the shortage of funds.