SigmaWay Blog

SigmaWay Blog tries to aggregate original and third party content for the site users. It caters to articles on Process Improvement, Lean Six Sigma, Analytics, Market Intelligence, Training ,IT Services and industries which SigmaWay caters to

Credit card balance: An Insight

One may think how anyone can make a profit by issuing credit cards. Lending money to people up front, so they can buy what they want to with it, then 30 days to pay it back without interest. But the contradiction is with a market valuation of about $133 billion and profit margins at 42%, Visa has proven that extending credit to consumers and assuming they'll be irresponsible is as gainful an industry as any. The process involved in the Visa model is: Bank X distributes its Bank X Visa cards to accountholders, who now have the convenience of not having to carry wads of bills for every commercial transaction. Now the banks start charging 14% or 19% or 24% interest which keeps adding to its total revenue. Visa, in the form which it is today would not have existed if people bought only what they could afford and saved for their large purchases. If you pay your Visa bill entirety every month, it costs your financial institution to accommodate you. They'll lose money on the deal. On the other side if you incur a balance and add to it with each pay period, you'll be contributing to a scenario whereby Visa's stock price has not only tripled over the past three years, but remains well shy of an ambitious one-year target estimate. Read more at: : http://www.investopedia.com/articles/markets/080714/how-visa-counts-your-credit-card-balance.asp

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Stock market myths: what keep investors from investing?

Many investors think whether or not investing in stocks is worth. Inspite of the real problems, the following common myths often arise.

 • Investing in Stocks Is Just Like Gambling.

Investors often mistake that stock represents the ownership of a company. Gambling on the contrary takes money from a loser and gives it to a winner.

• The Stock Market Is an Exclusive Club For Brokers and wealthy People.

Most brokers are notoriously inaccurate. Furthermore, the discovery of the internet has made the market much more open to the public.

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