IPO stands for initial public offering of a company’s stock. When a private limited company issues an IPO, it offers its stock to the public for the first time. IPOs are issued by smaller companies for raising funds or expanding. Once investors subscribe to the IPO of a company, they become shareholders in the company. Every public company listed on the stock exchange started with an IPO. However, before a company can list its stocks on an exchange via an IPO, it is required to fulfill a series of obligations, which can take from six months to a year. How is an IPO valued? An IPO is valued based on the demand and supply. Market analysts or experts determine the worth of a stock. Pricing is the trickiest part of an IPO. It should neither be overpriced nor underpriced. Because past performance or history data are not available for a stock offered in an IPO, various methods and techniques like financial modeling, comparable company, and precedent transaction analysis are employed to determine its value. If the stock is underpriced, the company has a long way ahead of itself to catch up on the gains. If it is overpriced, there will be a few takers.

Ever since commodities have been identified as trading instruments, investors have been allocating some assets to commodities. Commodities are now valued as investments. A commodity is a good that can be used for business purposes and exchanged for other commodities of the same type. A futures contract is the most preferred way of investing in commodities. It refers to an agreement to buy or sell a specified commodity in the future. Is investing in commodities a good idea? These days, the investors are realizing the value associated with commodity trading. As a result, commodity trading is gaining importance. A few global commodities are attracting investors with excellent returns. Exchange-traded funds (ETFs) have made it easier to invest in commodities for an average investor. Although commodities outperform the markets at times, several factors lead some investors to believe that one should not invest in commodities. No interest or dividends The commodity market works on the principle of demand and supply. Unless there is a demand, the commodity market will not work. Unlike stocks and bonds, commodities do not offer any interests or dividends to investors. Good price not guaranteed Commodities trading is speculative by nature. Moreover, an investor always looks for the liquidity factor, which is missing with commodities.

It is important for youngsters to begin investing as soon as possible. The fundamental purpose of investing is to acquire the capability of self-multiplying dividends. It is essential for young adults to invest in a smart manner to earn enough income after retirement. Five great books about investment Although it is important to invest immediately, it is equally imperative to invest prudently. Listed below are five great contributing books, which can give essential investment knowledge to young investors. Rich Dad, Poor Dad – Robert Kiyosaki For young investors, this exemplary book is an unquestionable requirement read. According to Kiyosaki, poor people and the white-collared class clash for money, while the wealthy people work to acquire information. He focuses on the significance of money-related proficiency and presents budgetary autonomy as a definitive objective keeping in mind the end goal to stay away from the competitive life in the corporate world. The Essays of Warren Buffett: Lessons for Corporate America – Warren Buffett Warren Buffet, broadly thought to be present-day history’s best financial specialist, gives his perspectives on different subjects essential to investors in this book. Young adult investors can look at the amalgamation of an organization’s administration and its investors, and the ways as to how to improve an organization’s self-esteem.

Although you may have little money, it is important to save for the bigger things in life. Unfortunately, not everyone is born with an eight-digit account balance, and therefore, it becomes a necessity to save and invest for the future. Since it is impossible for everyone to afford a private investor who would guide them throughout the investment process, here are seven tips to start investing with less money right away. Use the piggybank Believe it or not, using a piggybank to save your money is the best initiative towards investment. Generally, homemakers have a tendency to save whatever little amount they are left with in a piggybank at the end of every month. You can save as little as $1 a day or as much as $20 a week in your piggy bank and since the only way to get your money is by breaking it, you would not spend it. Invest using your smartphone You may not be aware of this but there are many apps, which are providing free broker services to people who are ready to make investments with even a dollar. While many are providing free services, there are a few that are offering the service at a small amount just to get you started.

Time value of money (TVM) is the fundamental concept in financial management. The simplest meaning of the term is that the value of a certain amount is more in the present than it is in the future. Therefore, getting the same amount of returns in the present instead of the future is insisted upon. This concept is used to compare investments like bonds, mutual funds, and loans. The value of money depends entirely on the value of the market. If the market suffers inflation, the value of money would consequently decrease. Therefore, there is a direct correlation between the two variables. Time value of money is also called the present discounted value. People invest in financial plans to get a fixed amount in the future, simply to feel a sense of security, even if the money would not hold the same value then as it does now. It is a product of the concept of interests. There are two considerations in calculating the time value of money, Present value In simple terms, the present value is an amount that has to be paid today in either installments or sum to get a bigger amount in the future along with a specified rate of interest.

There are many reasons why quite a few investors avoid subscribing to an initial public offering (IPO) and prefer investing in stocks that are already listed. Why is it that while investing in an IPO, investors are a bit skeptical? Several investors have benefitted from an IPO, while others have not. Although every investor has their own preference and reasons for investing in an IPO, it is important to have an overview of investing in IPOs. Should you invest in an IPO? IPOs are offered by a public limited company, which gives an investor the opportunity to invest in their company. Before one decides to invest in an IPO, one needs to analyze certain factors about an IPO. Not easily accessible For an individual investor, IPO is not easily accessible or within their reach, unlike financial institutions. The reason being, most of the IPO stock is reserved for banks, fund houses, and other retail institutions, leaving just a small portion for individual investors. Unpredictable Investing in an IPO is unpredictable. Either you hit or not. The investors who are not allotted shares during an IPO have to be content by buying from secondary markets, which do not work for some investors, as they have to pay the market price, which is generally higher than the IPO.

The most powerful driving force of any organization is the people associated with it. It’s the professional and personal relationships that determine its resilience during challenging times. Therefore, networking becomes the foundation of all business endeavors. If you too are an aspiring entrepreneur who wants to make it huge in your respective industry, then you should give great importance to networking. But how do you start? You can do so by joining a business networking group. To help you gain an insight of how a business networking group can help your business grow, the following article lists down its advantages. New connections – Primarily, a business networking group presents an incredible opportunity to connect with fellow professionals and potential clients. You can also get a chance to meet up with industry experts who could mentor you about the current market landscape. If you meet someone like-minded people, then possibly it could also offer you with a prospect of collaboration or partnership. Increasing your organization’s visibility – By regularly being a part of the business and social circles, people will get increasingly familiar with you and your organization. You can use such occasions to build your reputation and knowledge. Even being acquaintances can work wonders for your business as they can give your referrals to potential customers.

Advertising and marketing are no longer confined to television, radio, billboards, and print media. Thanks to the Internet and mobile devices, traditional advertising and marketing have a newfound platform. Digital marketing is the new buzz word in the marketing and advertising domain these days. The Financial Times Lexicon defines digital marketing as follows: “The marketing of products or services using digital channels to reach consumers.” With digital marketing, businesses (product-based as well as services-based) can now get closer to their customer base. Whether you are an online business or a local land-based business, you can get a better understanding of your target audience if you know how to use digital marketing tactics effectively. If you are new to the digital marketing game, here are a few things you should know about. Or if you already know digital marketing or perhaps just heard about it, here are a few things you can use as a refresher. The main elements of digital marketing : Digital marketing is an all-encompassing term for a lot of things; these include search engine optimization, email marketing, social media marketing, mobile applications, and pay-per-click advertisements. Each of these aspects of digital marketing requires different skillsets. Depending on their size and reach, a business can use any one or all the disciplines of digital marketing.

Executive coaching is a training approach that is generally recommended for high potential employees and people who are working in managerial positions to hone their leadership skills. Executive coaching mainly focuses on helping high potential employees gain self-awareness, assess goals (short term and long term), achieve objectives, and unlock maximum potential to contribute and grow with the organization. The method and approach for executive coaching is more based on a question-answer approach, wherein the executive professional asks questions as part of the training process to understand your current preferences and goals. Executive coaches normally refrain from giving advice, but are at liberty to give suggestions. Executive leadership coaching involves the coach asking questions, challenging assumptions, helping in providing clarity for issues and overall personality, and leadership development. To gain and develop executive leadership skills, behavioral assessment and confidential interviews are conducted by the coach. This helps in the overall development and ensures that the employee gain expertise and insight to develop these skills. Benefits of executive leadership training As a leader, it is necessary to possess certain qualities, especially when you are a person of importance and hold a good position in the hierarchy. Proper guidance is required to hone these skills and qualities, which is where executive coaching comes in handy.

Executive positions at the executive management, management team, or senior management level are top-level positions in an organization where day-to-day decisions are undertaken. Executives oversee the daily tasks of running an organization. Although they are involved in the strategic decisions and management-level policies, the quality of work of people at the executive management levels does have an impact on the overall organization. To be efficient in their job, people at executive management positions need to incorporate certain practices and habits. These help them to not only deal with day-to-day issues but also accomplish their daily target. Here are a few things that help a person to do their job well when they are in an executive position. Make an action plan : Making an action plan involves planning a course of action, stating the required results, the possible constraints, the probability of change in the action plan, and allocating appropriating resources to get the desired results. Action plans state what the person in the executive management role intends to do; action plan is not a statement of commitment. The action plan should be regularly calibrated to match expectations with results. Acquire all the necessary knowledge : The necessary knowledge involves knowing about what needs to be done in a given scenario or to accomplish a particular goal.

In simple terms, financial trading is the buying and selling of financial instruments like stocks, shares, bonds, and bills. The motive behind trading of financial instruments is to make a profit. To become financially independent, having an understanding of banking and the finance industry is imperative. With cutting-edge technologies available today, it isn’t a difficult task to educate ourselves on anything, including financial trading. Beginners can get involved in trading by learning the basics. Trading stocks is a big part of financial trading, and beginners can learn by reading books, opening a brokerage account, reading about the market and trends, gaining knowledge from sources worldwide, and finding a mentor and learning from the greatest investors like Warren Buffet, Benjamin Graham, Peter Lynch, and George Soros. A simple Internet search can lead one to many books written on stocks and financial trading. The Intelligent Investor, written by Benjamin Graham, has interesting insights on financial trading and investing. Books like How to Make Money in Stocks by William J. O’Neil provide a perfect guide for beginners to start trading and develop a sound understanding of the finance world. Books on investing, trading, the stock market, etc. are in abundance and can be found either online or in libraries and bookstores.