Difference between Merger and Acquisition | 7 Vital Differences

difference between merger and acquisition

Gaint companies often take over small enterprises. There are typically two scenarios that exist, while one company takes over another company. Either a larger company buy the entire (small) company or two companies merge together to form a new company.

Mergers and acquisitions both seem to be words for joining two or more companies that result in a shift in their company structure. They are intended to improve synergies within the enterprise to improve competence and productivity. However, in terms of initiation, method, and effect, there is a significant difference between merger and acquisition.

Read more

Difference between Index Funds and Mutual Funds

difference between index funds and mutual funds

The stock market has always been volatile and completely unpredictable, hence, making a desired return on the investment is not a cakewalk for new investors. Even if, you have been investing in the stock market or mutual funds for years, nevertheless a tiny mistake that could obstruct achieving your investment goal or sometimes leads to even loss.

Therefore, if you are a beginner, it is always recommended to invest through mutual funds. You must have heard the terms ‘mutual funds’ and ‘index funds’; when it comes to an investment vehicle. And it’s possible to get mixed up between the words “mutual fund” and “index fund.”

This article intends to ellaborate the difference between index funds and mutual funds based on various significant perspectives.

Read more

Business Line of Credit | Requirements, Types – How does it work?

business line of credit

Funds are the backbone of any business, especially at the growing phase for small and medium organisations. Although there are plenty of options available to fund a startup yet the business line of credit is the most popular and convenient method to get access to a fixed amount of money for businesses.

Even if, many other sources of finance available to small businesses or startups, but the lines of credit could be the best and easy to obtain as other options have lots of hassle, requirements and involve numerous complicated procedures.

Hence in this article, we shall go through the meaning, types, functions and requirements of a business line of credit. Let us first understand what exactly the business lines of credit are?

Read more

Difference between Buyer’s Credit and Letter of Credit

difference between buyer's credit and letter of credit

Buyer’s Credit and Letter of Credit, both are utilised during cross border trade between two parties (importer & exporter). Though both seem similar term, but are completely different from each other and hence shouldn’t be misunderstood similar.

This article intends to distinguish between a letter of credit and a buyer’s credit based on every significant perspective.

Read more

Supplier Credit | How does it work? | Explained

supplier credit

In the case of high-value international transactions, there is always a requirement for a credit to promote export businesses of a country. Hence, the Trade Credit has a significant role in cross border trade/ transactions.

There are basically, two types of trade credit viz buyer’s credit & supplier credit. For detailed information about the Buyer’s credit follow the link below.

Read more