Finance Numericals

Dow Theory:  It is originated by Charles Henry Dow, he was an American and co-founded the Dow Jonas & company. He was the first to create an index to measure the overall price movement in US stock. Charles Dow was the father of modern technical analysis. After he died in 1902, William Peter Hamilton writes a journal based on Dow theory principals. Alfred Cowles III is the first person who formally tested the theory in 1934. After the death of Hamilton's, Robert rhea refined the theory and in 1932 he wrote a book whose name was "The Dow Theory: An explanation of its Development and an attempt to define its usefulness as an aid to Speculation". Dow Theory has 6 tenets which are as follows:   Average Discount:  The stock price shows all the effects of change in market demand and supply. All other factors which affects the stock price. That’s why stock price shows the discount rate. Market has 3 Trends:  1.      P...

Commercial bank and central bank both the banks help to regulate cash in an economy. The number of commercial bank is more than one in a country while the central bank is only one in a country. Bank performs the general function of accepting deposits and lending money to general public but there is a slight difference between central bank and commercial bank. Let’s find out the basic difference between central bank and commercial bank. Point of difference Central bank Commercial bank What is Commercial bank and Central bank? It is an apex financial institution which formulates the monetary policy and regulates the work of commercial bank. It is financial institutions which accepts deposits, lending money to general public and follow the rules formulated by central bank. Which bank provides the basic function of bank? Central bank performs the basic function of bank. It accepts deposits from centr...