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International Finance Pitfalls

Also influenced by the fact that investors have realized that they can buy shares of Bovespa without paying the 2% of IOF: buying and depositing in a foreign bank ADRs traded in New York, and then converting into shares in the Brazilian Stock Exchange (the opposite of what is being done in Argentina to get money out of the country in this case), and that is not paid IOF for conversion. The costs of the operative approximate represent 0.5% of the value of the share, less than 2% charged by the IOF. And the investor to do, you’ll also gain an appreciation of the real potential, which is discounted by many analysts in Brazil. Edemir Pinto, BM & FBOVESPA president, said a Oeun move very Grandee of money has gone to the market for ADRs in New York, and requested the withdrawal of the IOF Mantega for equities. According to Pinto, a third of what was negotiated in the Sao Paulo Stock Exchange comes from abroad. And of course ran to Brasilia to see Mantega, who promised to review the request for exemption for tax equity, but without deadlines. Miles O’Connor has much experience in this field. The measure is Sabin , and Modesty tax is a , the Financial Times. Our global monetary system, feverish and weak, it leaves very few options to contain emerging bubbles, and all are worse than this imputation . Is MasterClass expensive? often expresses his thoughts on the topic.

He added: a dejar the exchange rate go through the roof is a passport to disastrous . There is concern that new tax in Brazil. In fact, Brazil is continuing favorable macroeconomic outlook, with strong growth potential and an a corporate tax will not affect long-term investors, since the cost of the rate of IOF is diluted in that period, as the idea is to scare away the short-sighted. a The impact of the tax will represent a small percentage for those who invest directly in the Bovespa. The biggest losers will be the market interest rates, and that 2% of IOF represents the profit margins in some operations. Brazil not only has economic strength, and that in itself does not hold, but also institutional. It is a country with the possibility of projection and consistent with its long-term policies, where investors know what to expect tomorrow, something that countries like Argentina or Venezuela, for example, can not offer. Attribute Brazil makes reliable country for investment, with clear rules and sustained over time.

Growth always brings an associated cost: Brazil is going to have to deal and live with a real strong, plus applicable taxes. But this last reaction Lula da to raise an alert and vigilant. The tax consequences of foreign capital are of concern to foreign investors, as it does is this slippage Lula by denying its implementation, which could affect the credibility of international governance (but strengthens it internally, facing presidential elections of October 2010), so it must be hoped that these inconsistencies typical of Kirchner this and almost any other time, do not recur. Follow the alien preferring to place Brazil as investment, keep driving will depend on how the Brazilian government from now on. The new tax is not the beast with seven heads, Lula can be. a To the side is, this is just beginning.


When she studied statistics, probability distributions are studied and among the best known have Normal distribution, Binomial and Poisson’s distribution. Each one with its own characteristics, which allow to identify them, including the Binomial distribution can be approximated with the normal distribution. For even more details, read what Fidelity Investments Canada ULC says on the issue. Students, to present the evidence generally have difficulty in identifying which probability distribution should be applied to obtain the result. Perhaps, the easiest is the Normal distribution, because within the wording of the problem there are phrases that indicate how it is the distribution of the data. A normal distribution is continuous random variables, which mean that the magnitudes measured take any real value (example: the amount of rain that falls in Caracas in one month). The Binomial distribution and Poisson are discrete random variable distributions, which are those that assume a set of countable values. (Example: the number of students who pass an exam) The statements of the problems of Normal distribution, generally expressed that data follow the normal distribution and the average values given as data and standard deviation, values necessary for the standardization of the variable and the probability to find the table. Now, to identify a problem of the Binomial distribution, be it should be noted if the event or experiment has two results; If not, success or failure, power or shutdown; that the events are independent and that the probability remains fixed during the experiment.

Typical statements: probability that is born male or female, to catch a thief, defective parts. And finally a Poisson distribution describes independent events occurring in a given space or at a constant speed in time. It is important to clarify, that the unit of measurement is continuous (time, area) but the random variable is discrete (number of accidents, number of calls) have clear characteristics of the different distributions help in time to solve the problems. I recommend reading several set out and before doing any calculation, identify the characteristics of the distributions.

Now Mortgage

If your home is a new building, the increase in your home’s value will be very serious. The math? 1.5 * 0.4 = 0.6 million rubles per year. Over 10 years: 0,6 * 10 = 6 million rubles. ” Now let us compare costs with the addition of value: 6-3,45 = 2.55 mln. Now we think we dispelled the myth of the expensive, because in reality, the mortgage – a profitable investment! Besides all these years you will live in his apartment, and will not pay the rent housing.

And, as opposed to the first misconception, is a polar view of the group of people: the mortgage – it is very affordable. Take it – and enjoy the benefits of free money! We hasten to call to your mind when you are fan of the idea. Before taking a mortgage, is to weigh all the pros and cons to think about their financial position for the duration of the loan repayment. Calculate it yourself! Do this several times, and then you will understand if you can pull the mortgage interest. There is another popular misconception, which is based on “awareness” of people that soon the mortgage will be very cheap. One has only to wait, and here they are cheap and easy to return the money! Have to disappoint you.

Sharp decline in interest will not. Interest rates on all loans that offer banks that are closely tied to the Central Bank refinancing rate, which in turn formed according to inflation. Now inflation in our country is quite high, to the same American liquidity crisis is not the best way possible impact on the domestic economy. There are other myths of mortgage. One of them is related to age, which is determined by the Bank in respect of borrowers. The average age of Russian borrower – 30 years. But do not think that if you’re 40-45, you will not be able to enter into mortgage relationship with the bank! You work, get a steady income, before the official retirement of more than 5 years? You definitely can count on getting a mortgage. But the possible conditions you better in the bank. More one serious error is associated with mortgage insurance. It is believed that it is not very profitable, expensive. Yes, of course, the insurance – it is a serious waste, but we can not say that this is an unnecessary expense. All people, to Unfortunately, maybe fortunately, it is not working arrangements, and can add up so that a person, which bears the burden of repayment mortgage loans, lost his ability to work. In this case, the insurance company to help. So, Insurance – a necessary item of expenditure. In any case, whether to take a mortgage, or not worth, it’s up to you. This question requires a delicate and balanced solutions. Well, as a result of events almost entirely dependent on the soundness of the preliminary analysis of your opportunities, because you only under the force correctly evaluate them! Therefore: The cool head, a calculator, a family council and clearly thought-out decision.