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How to understand the financial pages

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How to understand the financial pages

Alexander Davidson at Times Online has posted an article on some important aspects and definitions on financial. It should give you enough special terms to understand financial pages in the newspaper. Pretty useful:

… Business-to-consumer

This describes a business model where the company provides goods or services directly to the public. Within e-commerce, it is the least proven model. This type of internet company must buy items from producers and store them, and so it pays middlemen for inventory space and for extra administration. Market leaders such as Amazon, the online bookseller, are best placed to survive.

Buyback

This is when a company buys back its own shares from the shareholders. The move might be seen as positive for investors in that it will reduce the number of shares in issue and so increase the earnings per share. It is also a way for investors to sell their shares without incurring such costs as broker’s fees that would apply if they sold in the open market. But a buyback is only possible when a company has a surplus of cash, and it may suggest that it has nothing better to do with it…

How to understand the financial pages – [Times Online]

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