Is It A Good Option To...
If you’re speaking to someone who calls themselves an “investor”, you are bound to hear the phrase: “Mutual Funds”. Everyone keeps talking about it, but do people really know whether...
If you’re speaking to someone who calls themselves an “investor”, you are bound to hear the phrase: “Mutual Funds”. Everyone keeps talking about it, but do people really know whether...
When you think of investments, the first thing that comes to your mind would be stocks, bonds, deposits, etc. You also think that we invest to ‘become rich in a...
Mutual Funds (MF) are trust funds managed by an Asset Management Company (AMC) with the money pooled from investors. The money is invested in assets like bonds, equities, stocks and...
Investment options for our savings are available in abundant, choosing the right one based on the investor’s objectives is crucial to minimize risks. You can choose to discuss with your...
When a person decides to invest in the financial markets, there is a plethora of options available. One can choose to invest in stocks, debt, derivatives, commercial paper, debentures and...
When you have just stepped on the income generation mode (say early 20s), you would have plans to set up milestones to ear mark each achievement. Purchase of a car,...
In our big wide world today, income can be generated quite easily. While most people work hard for years to ensure that they have enough savings when they retire, there...
Day Trading is a form of Share dealing where shares are bought and sold in a single day. The intention of a Day Trader is to make use of the...
Day Trading and Day Traders Traders who participate in day trading are called day traders. Day trading is speculation in securities, specifically buying and selling financial instruments within the same...
We might have heard about a lot of strategies of fund managers but it is difficult for a lay man to get a perfect picture of what it is. So...
In our big wide world today, income can be generated quite easily. While most people work hard for years to ensure that they have enough savings when they retire, there are quite a few who make careful decisions on how to save their earnings. Some of them even employ consultants who manage their wealth for them. Although those are the people from the affluent part of the society, there are similar options for normal people like us.
Normal, educated and sensible people take simple efforts which have greater repercussions (a positive one) in their investment decisions. They read a lot of business newspapers and journals, closely follow credit ratings assigned to companies whose stocks they plan to buy, watch business information broadcasted over television and so on. If you haven’t heard of the impact that credit rating has on investments made by individuals, then this is the article for you. Before I jot down the points you need to know how credit rating agencies work.
Credit Rating Agencies
Some of the global leaders in credit rating are Standard and Poor (S&P) and Moodys. These two companies have presence across the world and make detailed study on the performance of companies, markets and even countries. Briefly, credit rating agencies, collect information from the company under discussion, meet the professionals of the company, discuss the various standpoints of the company related to their operational and financial performance, closely analyze these points and provide a rating based on their assessment of the risks involved. This rating is the critical part of the rating process for this is the health report of the company.
Importance of Credit Rating Agencies
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