Common Mistakes Agents Make in the Real Estate Business

With property prices skyrocketing, the real estate industry has become quite dynamic and competitive. In fact, the real estate market is growing remarkably, and the employment of brokers and agents is expected to rise by 7% by 2028, faster than most other professions. In this market, property sellers either conduct all related dealings through realtors or opt for house-buying companies that offer a simple home selling process. The former is much more common, and its smooth flow depends on the competence of real estate agents.  Most new real estate agents misunderstand that working in this industry often means going into business for yourself. Whether you’re a beginner or an expert, there are some mistakes that you need to steer clear of to keep your real estate agency off the ground. Let’s explore common real estate agents’ mistakes that kill their home-selling business. 1. Client Communication  Proper communication with your clients Continue reading

Composition and Importance of Money Market

Composition of Money Market The money market is not a single homogeneous market. It consists of a number of sub-markets which collectively constitute the money market. There should be competition within each sub-market as well as between different sub-markets. The following are the main sub-markets of a money market: Call Money Market. Commercial Bills Market or Discount Market. Acceptance Market. Treasury bill Market. Indian money market was highly regulated and was characterized by limited number of participants. The limited variety and instruments were available. Interest rate on the instruments was under the regulation of Reserve Bank of India. The sincere efforts for developing the money market were made when the financial sector reforms were started by the government. Money markets are the markets for short-term, highly liquid debt securities. Examples of these include bankers’ acceptances, repos, negotiable certificates of deposit, and Treasury Bills with maturity of one year or less Continue reading

Merger Approaches

Irrespective of the type of merger, there are at least two firms involved. One, the buying company that acquires the other company, and survives after merger. This firm is known as an acquiring firm or transferee company. The other is the company, which is merged and loses its identity in the process. This is called the acquired company, or transferor company or the target firm. There are various modes in which the acquiring firm can attempt a merger move and therefore, merger can also be classified on the basis of initiative style or the procedure adopted by the acquiring firm. The most important merger approaches are as follows: 1. Negotiated Merger It is also called friendly merger. In this case, the management/owners of both the firms sit together and negotiate for merger. The acquiring firm negotiates directly with the management of the target firm. So, the willingness of the management Continue reading

The Role of HRM in Developing Organizational Strategy

Human Resource Management (HRM) business strategy emphasizes the importance of individual relationships against collective relations between managers or managers and workers. Human Resource Management (HRM) refers to an activity that depends less on hierarchies, orders and mandates, and stresses the importance of active participation of all employees of the company. The aim is to foster a cooperative relationship between management and workers to prevent frequent clashes resulting from a traditional hierarchical relationship. When HRM is working properly, employees are committed to long-term goals of the organization, allowing it to adapt better to changes in markets. Human Resource Management (HRM) involves taking a range of measures which include: the commitment of employees with corporate objectives, the payment of wages according to productivity of each employee, fair treatment to them, continuing vocational training and link procurement policy to other aspects of organizing work and production, marketing and sales. Some companies carry out Continue reading

Summary of important sections of Banking Regulation Act

The Banking Regulation Act was passed as the Banking Companies Act 1949 and came into force wef 16.3.49. Subsequently it was changed to Banking Regulations Act 1949 wef 01.03.66. Summary of some important sections is provided hereunder.(Note:   The section no. is given at the end of each item. For details, kindly refer the bare Act.) Banking means accepting for the purpose of lending or investment of deposits of money from public repayable on demand or otherwise and withdrawable by cheque, drafts order or otherwise (5 (i) (b)). Banking company means any company which transacts the business of banking (5(i)(c) Transact banking business in India (5 (i) (e). Demand liabilities are the liabilities which must be met on demand and time liabilities means liabilities which are not demand liabilities (5(i)(f) Secured loan or advances means a loan or advance made on the security of asset the market value of which Continue reading

Primary Market Intermediaries: Underwriters

Underwriting is an agreement, entered into by a company with a financial agency, in order to ensure that the public will subscribe for the entire issue of shares or debentures made by the company. The financial agency is known as the underwriter and it agrees to buy that part of the company issues which are not subscribed to by the public in consideration of a specified underwriting commission. The underwriting agreement, among others, must provide for the period during which the agreement is in force, the amount of underwriting obligations, the period within which the underwriter has to subscribe to the issue after being intimated by the issuer, the amount of commission and details of arrangements, if any, made by the underwriter for fulfilling the underwriting obligations. The underwriting commission may not exceed 5 percent on shares and 2.5 percent in case of debentures. Underwriting has become very important in Continue reading