Economic prosperity and the banks

Article Abstract:

The banking industry is in a good position to help spur economic growth. This is because banks can facilitate the much-needed infusion of capital into small and medium-sized businesses which support the economy. Activities pertaining to capital, a basic element of business growth, fall under two categories: capital formation or savings and capital allocation or investment. The banks have been an important source of long-term finance for businesses for over the years, although the high costs of regulation and personal attention have been hindering efforts of smaller companies to raise capital. It is imperative for industry to gain a better understanding of its role in stimulating economic growth and how it can eliminate the barriers that are holding back business expansion.

Commercial Banks, Banking industry, Economic aspects, Economic development

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Investment value for shareholders: a benchmark

Article Abstract:

Corporate value depends on a rate of return that is higher than the cost of capital goal rate, and the ability to earn a similar return on greater amounts of capital in the long run. Achieving a long-term high rate of return involves a great deal of judgment. Market values will deviate less from investment values if investors pay more attention to the rate of return. There are fewer and larger institutional investors that have less freedom to enter and exit the market because they must meet the needs of their constituents. The institutional investors have less liquidity, so they must focus more on long-term investments.

Evaluation, Institutional investments, Return on investment, Rate of return

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New risk for investors

Article Abstract:

The risks that go with investing in small companies may increase if the SEC's proposal to relax the reporting and disclosure requirements for small business is implemented. Such a development would be a blow to small investors who rely on disclosures and prospectus summaries to assess if they could expect reasonable returns for their investments. The SEC's proposal appears to be an indication that the agency may be abandoning its duty to protect small investors by ensuring that accurate information will always be available to them.

Regulation misc. commercial sectors, Laws, regulations and rules, Disclosure (Securities law), United States. Securities and Exchange Commission

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