GemAnalyst | Investment Research & Financial Literacy

Menu

Loan financing (Debentures & Term loans)

By Leave a Comment

Loan financing (Debentures & Term loans)

Hi guyz, how has your week been? Today we would be taking a look at the different types of loan capital for business. I hope you enjoy. Let’s start with debentures and types of debentures.

Debentures

Debentures: Debentures are written acknowledgement of debt incurred by a limited liability company. The thing about debentures is that unlike normal loans that are backed by a collateral, i.e. physical asset of the business, land certificates etc, debentures are generally not secured by any physical asset (except a fixed charge/secured debenture). Instead, they are backed by the general creditworthiness or reputation of the issuer. Due to this, a debenture is generally considered more risky than an asset backed loan.  A debenture like any normal loan provides for repayment of the underlying debt in the future and with interest.
[Read more…] about Loan financing (Debentures & Term loans)

Share this:

Preference Shares (preferred stock)

By Leave a Comment

Preferred stock (Preference Shares)

Preferred stock are equities (capital stock) which gives the holder the right to a fixed dividend  (usually a fixed percentage of the nominal value of the share) from the earnings of the company.

Preferred stocks are generally referred to as a hybrid instrument, meaning it bears properties of both equity and debt instrument. Preference shareholders are given a higher priority than common stockholders when it comes to liquidation and distribution of firm’s earnings. The preferential treatment is that preference shareholders are given precedence over ordinary shareholders with respect to the distribution of the firm’s earnings as well as the distribution of assets in the event of liquidation.
[Read more…] about Preference Shares (preferred stock)

Share this:

Balance Sheet (Statement of financial position)

By Leave a Comment

Balance sheet

Today we would be looking at the balance sheet, also called the statement of financial position. The balance sheet is one of the required statements a company must file at the end of an accounting period, alongside two other statements which are the income statement and the Statement of cashflows.
[Read more…] about Balance Sheet (Statement of financial position)

Share this:

Importance and function of Accounting

By Leave a Comment

The importance of accounting to modern day business cannot be overemphasized. In this post we would be analyzing just how important a good accounting record is to an organization. Later on, we would take a look at the functions of accounting. Before delving into the topic for today, let’s first discuss what accounting is.
[Read more…] about Importance and function of Accounting

Share this:

Accounting careers

By Leave a Comment

Career Opportunities in Accounting 

Hey guys thought I should write some employment opportunities for accountants because most people think that it is the big 4 (Deloitte, kpmg, pwc and ernst & young) or nothing else. This is far from the truth as accountants are needed in almost every organization of modern day business. Today I would be looking at career prospects for graduate accountants such as myself. Hope you enjoy.
[Read more…] about Accounting careers

Share this:

Child Protection

By Leave a Comment

Child Protection

Growing up, and even till present time, we heard and witnessed a lot of harm being done to children. These included but not limited to child abuse, rape, kidnap incest by older family members such as uncles, and much more. Seeing or hearing about harm done to children tears my spirit, so I decided to carry out a research on ways children can be protected so as to reduce the occurrence of these malicious acts done to the innocent young ones. The research is going to be divided into child protection in school, child protection at home and child protection in the community.
[Read more…] about Child Protection

Share this:

Sustainable Living

By Leave a Comment

Sustainable Lifestyle

We were privileged enough (I and my sister) to be sent to one of the expensive schools in Nigeria in those days. It was not because there was an abundance of money, but because my parents wanted the best for us. I must say, even though gaining admission into the school was tough and the tuition fees ludicrous, I still regret I ever attended the school. In my opinion, they didn’t lay a good foundation for me and other students as well and they did little to further the good work my primary school started (I was the best student in my primary school). I felt they were just living on past glory, but still I was able to learn a lot about life from there.
[Read more…] about Sustainable Living

Share this:

God’s take on debt

By Leave a Comment

My story on avoiding debt

My father lost his job in June 2012, just some days to his birthday (harsh right?)….Yeah I know. He worked in a bank for a long time (Afribank) and was laid off in the said date due to the distress that hit the bank in the fall of 2011. The central bank of Nigeria had to intervene in the bank and two other banks with similar problems. In my the bank my father worked in, older staffs were retrenched, and as if that was not enough, they refused to pay them their entitlements on the termination of their employment, and instead of the bank to avail its ex-staff the opportunity of resigning, they sacked them out rightly, thereby debarring them from seeking gainful employment elsewhere.
[Read more…] about God’s take on debt

Share this:

Overhead

By Leave a Comment

What is Overhead?

Overhead has been defined as the total cost of indirect materials, indirect wages and other indirect expenses. The word “indirect “ in this context means that which cannot be allocated but which can be apportioned to or absorbed by cost centers or cost units.
[Read more…] about Overhead

Share this: