BC GOVERNMENT
Saved by @CodyyyGardner

A super simple thread to help everyone understand the concept of 'Fiscal Deficit' and what happens when government spends more than its receipts. 👇🧵

#fiscaldeficit #economics #financialliteracy

 1. Let us understand everything bit by bit.
Say, Raju is a businessman. Now, like every businessman, Raju is ambitious and curious to know his profit. Hence, he keeps his accounts to calculate his profit.
2. Throughout the year, his total revenue was Rs.10 lakh and his total expenditure was Rs.8 lakh. Hence, Raju is having profit or surplus of Rs.2 lakh.
3. The next year, due to lack of demand, his revenue fell to Rs.7 lakh and his expenses increased to Rs.9 lakh. Hence, Raju is now having loss or deficit of Rs.2 lakh.
4. Now, let us replace ‘Raju’ with ‘Government’ and you get the concept of ‘Fiscal surplus/ deficit’.
5. To put in simple words, every year government receives income through sources like Taxes, fines, penalties, license fees, etc. and expends money on various infrastructure projects, salaries to its employees, etc.
6. Now if,
👉The Government Receipt (excluding borrowings) > The Government Expenditure, then the difference is called as ‘Fiscal Surplus’.
👉The Government Receipts (excluding borrowings) < The Government Expenditure, then the difference is called as ‘Fiscal Deficit’.
7. Now, in India’s case we rarely see a situation like ‘Fiscal Surplus’ as Government ‘Expenditure’ almost always exceeds Government ‘Receipts’.
Many people see this in a bad light. But, it is not as bad as it looks. Why so? Lets find out!
8. India is a developing country. And when we say this, it would mean that the government is always trying hard to increase the economic growth rate.
9. Now, one way of doing this is by increasing the government expenditure. Let’s dig deep to understand how increased government expenditure could mean good for economy.
10. One man’s income would mean another man’s expenditure. Hence, with government increasing the expenditure, there will be more government projects like construction of airports, roads, dams, flyovers, etc. This would mean more money in the hands of people.
11. Whenever, there is increase in income of people, there will be increase in demand of goods and services due to increase in the purchasing power. Hence, this will cause the money cycle to move faster.
12. More income would also mean more savings and hence the bank deposits will boost. More bank deposits would also boost the loan and credit flow.
More credit would mean businesses would invest more money and there will be increase in employment, output and income.
13. Thus, the government expending more will have a multiplier like effect. You may read this to get a better picture. https://t.co/HiBrbbgXBW
14. Now, another question that may pop up here is how can government spend more than it is earning. Well, that is where the borrowing part comes.
15. The fact that there is Fiscal Deficit and not Fiscal Surplus would mean that the government needs more money for expending that what it actually has.
16. Hence, the government will have to borrow money to finance the deficit. It may borrow from RBI (Reserve Bank of India) or even from International organizations like IMF (International Monetary Fund) or even the World Bank.
17. Every year the government plans its income and expenditure through what we popularly know as ‘Union Budget’. Fiscal Deficit is always expressed as a percentage of GDP (Gross Domestic Product) which truly represents the value of economy for an year.
18. If you want to understand the concept of GDP, you may refer this thread,
https://t.co/hf9ucOopdY
Tagging @gvkreddi, @Dinesh_Sairam, @MehHarshil, @dmuthuk for better reach.
Let us spread financial literacy!

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Layman’s explanation to PE Ratio and how it works.
A long thread! Do Bookmark this for patient reading.

#investing #investors #PEratio

1/ PE (Price Earning) ratio is one of the most important metric used by investors to make decisions while picking up stocks. But, more often than not, it is grossly misunderstood.
Let us decode this metric.

2/ Table of contents
•How to decide what to buy?
oCase A: Case A: Fresh Apple vs Stale Apple
oCase B: Costlier Fresh Apple v/s Cheaper Fresh Apple
oCase C: Apple vs Orange
•How to read PE ratio
•How is PE Ratio misunderstood?
•When will PE Ratio not work?

3/ How do you decide, what to buy?
Case A: Fresh Apple vs Stale Apple


You go to a market and buy an apple. You have a choice to make.
Apple ‘A’ is fresh and juicy. Apple ‘B’ is clearly stale. Apple ‘A’ costs you ₹.20 while Apple ‘B’ costs you only ₹.10.
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Have you ever wondered why price of large cap cos like Reliance ind. Ltd. or Apple inc. fluctuates less in magnitude but share price of a small cap co witnesses huge volatility?
A simple thread to explain the economics behind stock fluctuations!👇🧵
#investing #financialliteracy

1. Penny stocks show huge volatility but on the other hand stock of large cap companies show little fluctuations.
Did you ever observe how ‘Foreign Exchange’ rates show little fluctuation and are range bound?
Let us understand the economics behind it.

2. In this thread we will learn two things,
👉Why large companies show quick change in their prices though the magnitude of change is less?
👉What causes huge jump in prices of penny stocks? Or why on a bad day they can easily fall with huge magnitude?

3. First things first. Let us understand who decides the price of goods? Is it the ‘Buyer(s)’ or the ‘Seller(s)’?
The answer to this basic question is that price is decided by both of them.

This is because,
👉 A ‘Buyer’ would always be willing to buy any commodity at lesser price.
👉 A ‘Seller’, on the other hand would try to sell his product at a greater price.
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In India, 'RBI' is responsible for 'Monetary Policy' through which it controls 'Inflation' and Economic Growth'.

In this thread, I am going to focus mainly on the role of RBI and how it uses ‘CRR’ and ‘SLR’ as two major tools to control economy. 🧵👇
(1/n)

Let us first understand few basics before we dig into the details. (2/n)

👉The Businesses:
They are the producers of the goods and services. Any business would be happy if it is growing and the prices of the goods and services sold are ever rising. They would be more interested in ‘Economic growth’. (3/n)

👉The Households:
These are the people who are consumers and they spend money to buy goods/ services which are sold by the businesses. Any consumer would be happy if the prices of goods/ services are low. Hence, they would be interested in ‘Less Inflation’. (4/n)

As the prices of goods and services rise, there will be economic growth in nominal sense but then there will also be inflation which is perceived as a problem in developing countries like India. (5/n)
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A small thread to explain the tax implications of dividend of Rs.974 per share declared by #majesco Ltd which is winding up its business🧵👇

1. For starters, Majesco is declaring such huge dividend on account of it selling its US business. But, as an investor, should one think of buying the shares now? Let us find out.

2. The current market price per share of Majesco is Rs.980. This is almost at par with the dividend per share. Now, if you buy shares of Majesco, you will be entitled to dividend of Rs.974 per share.

3. Please keep in mind that dividend income is not exempt in the hands of the shareholders. It will be taxed as per regular slabs.

4. Say you are in highest slab of 30%, you will be taxed at that rate. To simplify you will be getting a net amount of Rs.681 per share (Rs.974- 30% tax).
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A simple thread to help all understand ‘Futures and Options’ in an easy way. Though I would personally not recommend new investors to trade in F & O, but it is always good to know things. 👇🧵

#Investing #Investors #Options #Futures

1. What is a ‘Derivative’?
‘Derivative’ simply means a product which is derived or dependent on some asset. This asset is called as ‘underlying asset’.
Let me simplify this by putting this example.

Both ‘Coffee’ and ‘Tea’ require ‘Milk’ for their making (assuming that you drink it that way, of course) . Hence, if the price of ‘Milk’ increases, the prices of ‘Tea’ and ‘Coffee’ will also increase.


To sum up:
1.‘Milk’ is the independent product. So, it will be considered as ‘Underlying Asset’.
2.‘Tea’ and ‘Coffee’ derive their prices from the price of ‘Milk’. Therefore, these are ‘Derivatives’ of Milk.

Hence, the derivative of a company will derive its price from the price of the shares of a company. Thus, share of a company is the ‘underlying asset’.
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#BREAKING
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https://t.co/fsmrOtgImm

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Riley J. Williams is charged in the Capitol riot.
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Williams appears to have “fled”.


From the affidavit against her: Riley Williams’ former romantic partner called the FBI several times in the days following the riots to report that they had seen her in videos inside the Capitol, but friends of Williams had shown the tipster a video of Williams taking a laptop...

... computer or hard drive from Speaker Pelosi’s office. The witness told the FBI that “WILLIAMS intended to send the computer device to a friend in Russia, who then planned to sell the device to SVR, Russia’s foreign intelligence service...”

“... but that the transfer of the computer device to Russia fell through for unknown reasons and Williams still has the computer device or destroyed it. “This matter remains under investigation.”

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Talking with Georgie about the horrible crime committed against Brittany Higgins.

I hope Brittany finds some justice, somehow.

Here's the thing: nothing that matters will change.

A thread:

Two side notes:
* Content warning for trauma and sexual assault
* I initially drafted this and was going to delete it because it's too cynical and very bleak, but it's also the truth and Georgie asked me to be brave and post it.

A Royal Commission has changed nothing.
Paris Street's revelation about St Kevin's changed nothing.
Grace Tame's bravery has changed nothing.
The Pell case has changed nothing.
The Wilson case has changed nothing.
The Redress Scheme has changed nothing.

Georgie burning two careers to jail a serial child rapist has changed nothing.
The National Apology has changed nothing.
The hundreds, if not thousands, of people who report sexual assaults each year have changed nothing.

Because the rules don't apply to the people at the top.

If you're at the top, it doesn't really matter if you're a politician, a political staffer, a journalist, a senior police officer, an ADF officer, a bishop, a business tycoon, or anything else.
If you're in the club, you're in the club.
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2017 https://t.co/kiqQoWR57e


https://t.co/W18nqFlLru


The GOP got rid of the SCOTUS filibuster so they could jam through three fringy right-wing Alito clones, including one right before the election, but sure thing, bud.

“Uh, actually, they got rid of the SCOTUS filibuster because Harry Reid did it first for something totally different! I am very smart!”

No. Knock it off.

Here’s the thing about the “But Harry Reid...” excuse:

1. McConnell was holding up Obama nominees, some *for literal years* without a vote.

2. Had he *not* done that, Trump would have inherited *even more* vacant seats.
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Task of locating Mata Sita in Lanka.

Prathishta of Hanuman is done by Sage Vasishta. Eventhough this is Shri Ram Temple, importance is given to Hanuman
Shri Rama shares with Hanuman the Abhignana Vaakhyam, the words that would enable him to gain the confidence of Mata Seetha.


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Alathiyur Hanumane
Pedi Swampnam kanarudhe
Pedi Swapnam Kandalo
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