What is the Opposite of Risk Aversion?Risk aversion is an approach to making investments in safe and stable financial instruments, even though if they… Read Article
Working Capital Management DefinitionThe term working capital management refers to the efforts of the management towards the effective management of current assets and current… Read Article
The aggressive investment strategy is focused on gaining maximum returns from selecting a highly risky group of assets, and the objective of capital preservation… Read Article
There are three strategies or approaches or methods of working capital financing – Maturity Matching (Hedging), Conservative and Aggressive. The hedging approach is an… Read Article
The aggressive approach is a high-risk strategy of working capital financing wherein short-term finances are utilized to finance the temporary working capital and a… Read Article
The Conservative approach is a risk-free strategy of working capital financing. A company adopting this strategy maintains a higher level of current assets and,… Read Article
What is Maturity Matching / Hedging Approach?Maturity matching or hedging approach is a strategy of working capital financing wherein we finance short-term requirements with… Read Article
There are broadly 3 working capital management strategies/ approaches to choosing the mix of long and short-term funds for financing the net working capital… Read Article