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Money Making: Finance And Life.

What communication exists between the price which we pay for shares of company at a stock exchange, and annual earnings of this company? Certainly, there is a straight line. Than more company earns today and that it is even more important, the more it can earn in the future, the above individual share cost in the business expressed by market price of shares of this company. The second rule of an estimation of the investment from here follows: the cash spent for share acquisition should pay off company incomes in strictly certain proportion characteristic for economy for this or that sector.

Let’s understand what this speech is about. Almost any mathematical calculations which have been torn off from the real market, inspire personally to me not enough trust, as I all the same is an expert, instead of the theorist of financial business. Nevertheless, at a company value assessment it is impossible to do without some (rather simple) calculations. Buying the car, it is possible to compare its cost to goods of competitors, buying individual share in the company, to compare its cost practically there is nothing – it is necessary to consider.

Acquiring shares of the public company, whether it will be “Coca-Cola” or “Boeing”, you buy a share in business of this company, and together with it and the right to a share in the future incomes. If to reject aside mythical advantages from sensation of the accomplice in the property of the huge company (if you are not Bill Gates, of course), the unique purpose of share purchase is profit earning from their ownership or sale.

Buying a share in business every normal person assumes that its money not only will pay off, but also will make profit. Speaking with more professional language, the investor hopes that the total cash generated by business in the set time interval will be above than the sum of the spent cash expressed in comparable sizes.

Pedants can carp at such determination, considering that the public companies practically never pay to shareholders all cash received in a type of income. Acquiring the company entirely, the buyer receives the absolute control and together with that also the right to dispose of incomes, putting them again in business or putting in a pocket. At share purchase of the public companies the order right their incomes exists more likely theoretically (by voting at joint-stock meetings) than practically. Nevertheless, the principle is important: ?At investment in business the business approach is necessary?.

Any business exists for the only purpose and it is to get profit on the put up money by means of existing assets. After the profit is received, the company can already decide what to do with that: to reinvest, pay dividends, to use for purchasing of other companies or own shares. However the sum of all received profit during the company existence, expressed in today’s dollars, constitutes real cost of business.

The times when governments have been showering people with all types of grants are over. At least for a while. But that does not mean that one must forget the idea of getting small business grants.

Everything is possible with smart approach; small business grants including.

Visit this blog for more practical tips about grants, how to apply for grants, grant samples, traps and ticks of the grants. This information will help you to get small business grants or any other grants easier.

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