Third Party Marketing Contract--

Third party technique is a marketing strategy commonly employed by Public Relations (PR) firms, that involves placing a premeditated message in the "mouth of the media."While Hedge Funds may enlist prime brokers, or sometimes may have internal departments at their disposal to liaise with investors, Third Party Marketers (TPM's) provide the benefits of specialization and exclusivity to facilitate the connection between Fund managers and investors.

Although third party marketers usually require an exclusive agreement and 20% of earnings on assets raised, they provide services such as strategy and market positioning, market intelligence, identification of potential investors, creation of marketing materials and a slew of other benefits that maximize a fund’s ability to establish and maintain investor relationships.

A  third party marketing consultant unlike a prime broker, can benefit the fund manager with global connectivity. A third party marketer often may specialize in a certain fund strategy, allowing them to effectively target the investors most likely to gravitate toward that specific arena.Also, an exclusive arrangement helps bolster the credibility of the fund, as investors have the convenience of dealing with only one third party marketing consultant and manager.

The contractual relationship between a third party marketer often stipulates:

1. The third party marketer being licensed as a broker dealer with the SEC, FINRA and with the states it will pursue investors.
2. Who the manager is, including everyone controlled by that manager in order ensure the third party marketer receives it full compensation from all relevant investors.
3. Who the investor is- since the third party marketer must be compensated for ANY investment made within the term of agreement, this clause protects the third party marketers compensation.
4. The exact nature of the compensation-must include all payments due to the third party marketer, including profits made post-termination derived from investments made during the tenure of the contract.
5. Exclusivity-this involves not just the agreement to be mutually exclusive but also dictates the duration of the term.

Source:http://thirdpartymarketing.com/2008/10/third-party-marketing-contracts-hedge.html

Stock Repurchase or Share Buyback--

The term literally refers to a company’s move to repurchase its own shares. By doing so, the company reduces the number of its shares available in the open market. 

This will lead to the rise of earnings per share (EPS) and the return on assets of the company, indicators on the balance sheet of an improvement in the performance of the company. As an investor, it will mean an increase in his/her stake in the company. The companies generally indulge in a buyback when they feel that their share price in the market has fallen drastically. At other times, it may simply be a way of using excess cash. However, there are also cases when this may be an attempt at preventing a takeover of the company.

But the question is how a company repurchases its own shares??A company can buy back shares either using tender offer or in an open market buyback . Under the first method, the company issues a tender offer with details regarding the number of shares that the company plans to repurchase and indicates their price range. An investor keen on accepting the offer needs to fill the form & send it back to the company. 

But the most common share repurchase method is the open-market stock repurchase,(especially in US) representing almost 95% of all repurchases. According to SEBI guidelines, if the company has decided to accept your shares, then it needs to intimate you in 15 days after the closure of the offer.

Any details regarding buybacks are available from the stock exchange as it is mandatory for the companies to intimate them of such resolutions or on the SEBI website.

 

 

 

 

Trade Cycle--

Trade cycle is a cyclical process. The trade cycle refers to the ups and down in the level of economic activity which extend over to a period of several years. The trade cycle come in the capitalistic economies. J.M. Keynes says, "A trade cycle is composed of periods of good trade characterized by rising prices and low unemployment percentage, with periods of bad trade characterized by following prices and high unemployment percentages." This shows how economic growth can fluctuate within different phases, for example:

i) Prosperity or boom (which is high growth causing inflation)
ii) Peak (top of trade cycle)
iii) Downturn or Recession ( fall in economic growth)
iv) Recovery (upturn of economic growth)

A trade cycle is composed of periods of good trade a characterized by rising prices and low un-employment percentage. The average length of trade cycle is a little more over eight years. The course of a trade cycle is generally traced through its various phases. Each of the phases is characterized by different economic conditions. In each phase the business face the different situation and pas through different experience.

Here's History of Credit Card--

Most of us use credit card.Today every individual needs or desires to have a credit card as its easy to carry and is known as "anytime_money". But do you know the real history or beginning of the credit card.Many of us won't be knowing and before seeing this video even I wasn't aware of it.So,here I am sharing an interesting video, which will help you to know the history of credit card. 

So enrich your credit card knowledge by watching this video. 

Denmark to enter recession in 2009

The Danish government slashed its growth forecasts for 2008 and 2009, predicting that the economy would contract by 0.2 per cent in 2009 after growing 0.2 per cent this year. 

"Financial turbulence and the weak international growth outlook will along with the wavering housing market and weakening competitiveness lead to weak GDP (gross domestic product) growth in coming years," the Finance Ministry said in a statement. 

Denmark's economy is not expected to grow before 2010, when its GDP should rise by 0.7 per cent.The government also said it now expected Danish unemployment to double from this year's 1.7 per cent to 3.5 per cent in 2010. The Danish economy can not avoid being affected by the global financial crisis and the poor outlook abroad.

 

 

200 million dollar note--WOW..!!

Inflation-wracked Zimbabwe plans to introduce a 200 million dollar note just days after a 100 million dollar note came into circulation.The 200 million dollar not will bring to 28 the number of notes put into circulation by the central bank this year alone, as the country struggles with the world's highest inflation rate of 231 million percent. 

The central bank introduced 100 million, 50 million and 10 million dollar notes while at the same time increasing withdrawal limits for individuals and companies. Cash  can now only be withdrawn once a week from banks, according to the latest measures by the central bank. Ordinary people can withdraw 100 million dollars a week while companies are permitted to withdraw 50 million dollars. This is strange and insecure as the cash has to be kept in houses or in wallets or in the corporate treasury.

Can you relate the rising of the prices of basic goods and services when the 100 million dollar note was introduced? The 100,000 banknote is worth only one US dollar on the widely-used parallel black market and is only half the amount needed to buy a loaf of bread. 

The Finwikian: Your Two Cents on Personal Finance—

Those who are interested in Blogging and love finance would always wonder like me that "Why there's no wiki of personal finance and PF bloggers?"So the good news for everyone whose interested is that , there is something now for us called as The Finwikian: Your Two Cents on Personal Finance.

                            But,What is The Finwikian?

    

 

A community has grown up around personal finance blogs. As a librarian-type, I felt compelled to organize it into a useful resource. Obviously, no one site will ever capture the multiplicity of viewpoints and experiences found in the individual sites. However, I hope that this one will be valuable for bloggers and for those looking for information.

For example, each blog page links to tables of blogs—such as Personal Finance Bloggers, Tax Bloggers, or Frugality Bloggers. These tables allow you to discover other blogs with similar interests, to learn a little bit about them by visiting their Finwikian pages and then to visit the blogs themselves if you’re interested.That makes it an excellent tool for writers and readers, you can share your blog with others, you can contribute to pages on other blogs you read, and hopefully you will discover new blogs in the process.

 

So all my  PF friends can add their blog to the wiki list, it will also increase the traffic to your blog. 

For further updates, you can also visit http://blog.finwikian.com