The history of silk is shrouded in mystery. Some historians say that silk originated in China about 10,000 years ago. In China, however, legend has it that Empress Si Ling Chi of China was the first one to discover silk more than five thousand years ago. The story goes that while sitting under a mulberry tree in her palace garden, …

The term refers to conditions that all countries of the European Union had to adhere to while adopting the Euro as a common currency. To do so, the countries had to show that their economic condition was stable and their fiscal deficit did not exceed 3%. Initially, Poland and some other countries did not join because of their poor growth …

The Swiss Watch & Clock Industry first appeared in Geneva, Switzerland, in the middle of the 16th century. From 1541 onwards, reforms introduced by Jean Calvin led to prosperity of the watch-making industry in Switzerland. The mass production of Swiss watches began in the 20th Century due to industrialization and new technologies. The end of World War I witnessed the …

The Freedom From Oil campaign is working to end America’s oil dependence, reduce oil-related conflicts, and stop global climate change by convincing the auto industry to dramatically improve fuel efficiency and eliminate vehicle greenhouse gas emissions. Considering that the American transportation industry alone uses nearly 70% of the oil consumed in the country, making cars and trucks that go farther …

The Domino Effect is a chain reaction that occurs when a small change causes a similar change nearby, which then causes another similar change, and so on in linear sequence. The term is used as an analogy to a falling row of dominoes. It typically refers to a linked sequence of events where the time lag between successive events is …

Bonus issues are shares issued free of charge to shareholders. When a company accumulates a large fund from profits, much beyond its needs, the directors may decide to distribute a part of it among the shareholders in the form of bonus. Once a bonus is issued, the price of the shares is likely to drop as the value of the …

‘Catfish effect’ is a term used in human resource management to describe how groups are motivated by the addition of a strong competitor. The phrase comes from the practice of Norwegian fishermen, who add a single catfish into their haul of live sardines. In this way, the sardines swim vigorously to avoid contact with the catfish, and can be brought …

The anchor investor is a recently introduced category of investor in the Initial Public Offer (IPO). A Qualified Institutional Buyer who gets firm allotment in an IPO of up to 30% of the institutional quota is an anchor investor. The lock-in period for such an investor is 30 days. This is done to instill a higher degree of confidence among …

The phrase ‘sweat equity’ refers to equity shares given to the company’s employees on favorable terms, in recognition of their work. With sweat equity, employees become part owners and participate in the profits, apart from earning salaries. The Companies Act defines ‘sweat equity shares’ as shares issued to employees or directors at a discount, for providing knowhow or making available …

Rumourtrage is the practice of spreading false news about a company, leading to a drop in its stock price, and followed by increased trade in its shares. This is usually done before a takeover bid. Rumourtrage is common in the corporate world and authorities have found it tough to stamp out the practice as it hinges on hearsay. It is …