Asset Finance is the art of fund management. Basically types of finance are business finance, personal finance and public finance. Asset Finance is related to saving money and lending money. When a person or organization or charity deposits money in bank then bank provides interest them on their money. Then bank lends out money to individual, organizations or corporations for utilization or investment and charges interest on the loan. If a person who wants some money for his business, construction or study then bank provides him loan according to requirement for fix time period. After finishing this period bank charges that person. This includes original money and some interest also.
Some people invest in share market also. Investors buy the bond from organizations like companies, government or charity. Bonds are some specific money decided by organizations. Bonds values are depend on company’s financial status. If company has profit then bonds value is increased than fair money. If company gets loss then value of bonds decreased. So according to profit or loss investor can sell bonds in secondary market. But there are risks with handling bonds. Because there is no surity that owner will be always in profit if he invests in share market.
Asset FinanceSome people invest in share market also. Investors buy the bond from organizations like companies, government or charity. Bonds are some specific money decided by organizations. Bonds values are depend on company’s financial status. If company has profit then bonds value is increased than fair money. If company gets loss then value of bonds decreased. So according to profit or loss investor can sell bonds in secondary market. But there are risks with handling bonds. Because there is no surity that owner will be always in profit if he invests in share market.
No comments:
Post a Comment