Best Forex Online

Category: general , Asked by: L. N. From Dundee, United Kingdom

A: Definitely "Global Forex Trading (GFT)". The tech support service they provide is wonderful, the guys there seem totally responsive, and also really efficient.

Category: glossary , Asked by: A. Y. From Exeter, United Kingdom

A: A problem that arises when a company exchanges its low-risk assets for high-risk investments. This substitution transfers value from a firm's bondholders to its shareholders. The transfer of assets places more risk on the debt holders without providing them with additional compensation. High-risk projects can yield higher profits, however more risk is incurred by the firm. The added profit may only benefit the shareholders, as the bondholders require only a fixed return. The increase level of risk does affect the bondholders, since the company increases its chance of defaulting on its debt.

Category: glossary , Asked by: S. P. From United States

A: a "dawn raid " is The action of a firm or investor buying a substantial amount of shares in a company (making it a target firm) first thing in the morning when the stock markets open. This is done by a stock broker acting on behalf of a company. Because the bidding company builds a substantial stake in its target at the prevailing stock market price, the takeover costs are likely to be significantly lower than they would be had the acquiring company first made a formal takeover bid. Like the dawn raid in war, the corporate dawn raid is done early in the morning, so by the time the target realizes it's being attacked, it's too late - the investor has already scooped up some controlling interest. However, only a maximum of 15% of a firm's shares can be bought this way. So, after a successful dawn raid, the raiding firm is likely to make a takeover bid to acquire the rest of the target company.