Basics 4 finance

This blog is not for the Geeks of Finance..

Its for the beginners of finance and who wants to know the basics of Finance.



Let me Go with the Start ups of the meal of Finance.....



What is Finance?

Finance is nothing, but money.

Financing your gal friend for the movie,Restaurant,shopping.. etc

According to Newtons 3rd Law- Every action has an equal and opposite reaction.
Here, according to Finance for every investment(financing) you make,you expect Return.

Here the Return from your girl friend can be anything you expect and it is called Expected Return.

What your girl friend gives is called Rate of Return.It can be called possitive Returns if it is more than you expected and it could be called Negative Returns if you get less than you expected.



Now I would like explain the Trade-Off



You have a boy friend who is lovely,good and earning a decent salary of 5 lacs p/a.
and Now your parents for a marriage proposal showed you a snap of a guy who is also lovely,good and earning a salary of 7 lacs p/a. What will you do?



If you go with 7 lacs p/a guy it means that you have traded of 5 lacs p/a for 7 lacs p/a.

This is as simple as it is....