finance vs economics

Economics serves to explain the factors involved in scarcity or surplus of goods and services that affects and can be applied to almost every sphere in society, business in general, and also governments. Finance mainly involves saving and lending money, keeping in mind the time available, cash at hand, and the risk involved. Finance can thus be considered a small subset, or a cousin, of economics.

It is important for investors to avoid “either/or” arguments regarding economics and finance; both are important, and both have valid uses and applications. In many respects, economics is “big picture” (how a country/region/market is doing) and concerned about public policy, while finance is more company/industry-specific and concerned about how companies and investors evaluate and price risk and return. Historically, economics has been more theoretical and finance more practical, but this has changed in the last 20 years.

It is interesting to note, though, that the two disciplines seem to be converging in some respects. It seems that academics in finance are trying to incorporate more and more theory into their work and appear more academically rigorous. At the same time, there is at least a movement within some schools of economics to lean more heavily on math and appear practical and applicable to everyday business and policy decision-making processes. (This decision-making tool integrates the idea that every decision has an impact on overall risk. See Multivariate Models: The Monte Carlo Analysis.)

At some fundamental level, there will always be a separation, but both are likely to remain very important to the economy and financial markets for some time to come.

Hence i named this Blog 

DiscVentionsEconomics and not DiscVentionsFinance





file your Income Tax Return Online

  1.     Log on to the Income Tax Department’s portal ( meant for filing taxes online. Register yourself using your Permanent Account Number (PAN), which will act as your user ID.
          2.     Once you login then goto e File -> Prepare and Submit Online ITR
          3.     Select
a.       ITR Form Name – ITR 1
b.      Assessment Year – 2013 -14
c.       Address – You can choose the “New Address” incase your address has changed
d.      Digitally Sign – No (in case you have one then select Yes).
e.      Click on Submit
          4.     Read the instructions
          5.     Go to Personal information Tab and fill all the * fields. Some of the fields in this tab are already filled based on your PAN data. Most of the time we have to fill fields with following data ()please check in your case).
a.       Address – In case you have chosen new address on first page
b.      Employer Category – Other
c.       Tax Status – Nil Tax Balance (You can choose refund in case any refund is pending)
d.      Residential Status – RES
e.      Refund file under section – Before Due Dt 139 (1)
f.        Whether Original or Revised Return – Original
          6.     Go to Income Details – Put all your income details from form 16
a.       In B1 – you have to put the income after HRA/Medical/LTA etc deduction
b.      If you want show house loan interest – Put that amount in B2 with –Ve
c.       Filll other fields from form 16
          7.     Go to TDS tab
a.       Add the TDS deatails from form 16 incase it’s not present
          8.     Go to Taxes Paid & Varification Tab
a.       Verify Tax Payable & Refund field – Ideally it should be 0.
b.      Put your bank details
          9.     Go to 80G tab – declare all your charity here
          10.  Submit the form
a.       Take the Ack (ITR-V) Printout and sign it
b.      Post that ITR V to IT Banglore office
the password for the final ITR-V PDF document (generated in step 10) is pan card + DOB all in small case.

Futures and options

Futures and options contracts are often confused, but they are similar in that each involves subsequent events. A futures owner has the obligation to buy or sell a specified quantity of an asset at a specified price on a specified date. In contrast, an options holder has the right (but not the obligation) to buy or sell a specified quantity of an asset at a particular price over a specified time period.

What is the difference between a quote driven market and an order driven one?

§Stock Exchange:  Quote driven system

§OTC Exchange:  Order driven system

The difference between these two market systems lies in what is displayed in the market in terms of orders and bid and ask prices. The order driven market displays all of the bidsand asks, while the quote driven market focuses only on the bids and asks of market makers and other designated parties.

Some confision here