Let us make an in-depth study of the Theory of Tobin's q. After reading this article you will also learn about: 1. Concept of Tobin's q 2. Implications of Tobin's q 3. Factors of Tobin's q. Concept of Tobin's q: Stock market fluctuations cause investment fluctuations. Stock prices are high when firms have various profitable investment opportunities. The reason is [...]
The below mentioned article provides quick notes on the Residential (Housing) Investment. Investment in housing is much riskier than having a fixed deposit in a bank. The reason is that prices of houses and flats rise most of the time, but at times such prices remain constant or even fall, as in a period of recession. No doubt a bank [...]
Let us make an in-depth study of the Inventory Investment. After reading this article you will learn about: 1. Subject-Matter of Inventory Investment 2. Reasons for Holding Inventories 3. The Acceleration Model of Inventories. Subject-Matter of Inventory Investment: Although inventory investment is a very small part of total business investment, it is of considerable importance to the economy of a [...]