We find ourselves in a situation where we have some savings and wish to make more out of it. So you find different ways to invest it like stocks, property, other securities, or maybe gold. Something that could help you make more out of it. 

What if this amount is $50,000? The amount can be overwhelming, and people may get confused as there could be multiple options. What is more confusing is to decide if you want to invest the whole amount in a single place or at numerous locations. Or should you invest the entire amount in one go or support it little by little, maintaining a buffer. 

Plan Before Investing 50k

When you want to invest 50,000 dollars, there are a few things that you should keep in mind. First, as it is a considerable amount to invest, one must be careful with the plans they make and at the same time be sure about all the things affecting the decision to invest. 

The simple reason to invest to gain returns is to safeguard your future. Many people invest in having a buffer or keeping earning when they don’t have a job or any income source when they get old. But is it okay to safeguard your future when you are facing a financial crisis at present?

Let’s look into some of these questions that the financial advisors recommend; one must ask themselves before investing 50k.

• Do you have any overdue debts?

A debt is something that feels like a burden that you need to pay off. It can reduce your savings and income, especially when you have to pay higher interest rates on it. If you find yourself in a situation where you have money to invest, your first step should be to pay off all your debts. Paying off these debts can save you many you have been paying off as interest. And you can again find yourself with some savings that you can invest in the future. 

• Do you have funds for any unforeseen events or emergencies?

There are situations when people find themselves stuck in cases where they need emergency funds but cannot get them. In such situations, one must have enough liquid funds that could cater to the needs. Experts advise that one must have at least three months of expenses that are needed for a living. These funds will help them be stable in case of medical emergencies, unemployment, natural disasters, and many more. 

One important thing to remember here is that these funds must be available in a liquid form or in a form where they can be quickly put into use. These should be kept safe and must be checked from time to time. 

• What category of investors do you fall in?

By category of investors, we mean the type of investor you are or the type of investment you are comfortable in. You have a variety of investment categories you can choose from. For example, if you wish to have a single and safe source of income, you can plan to invest in a stock that you think is stable from the charts or maybe choose a broker or a financial advisor who can advise you on the investment decisions.

If you don’t want to invest your entire 50,000 in a single place, you can invest in mutual funds or create a portfolio of some promising stocks and securities. There are plenty to choose from, ETFs, Target-date funds, CFDs; all you have to do is understand your investing style. 

• What are your objectives for investing 50k? 

Apart from considering your investing style, emergency funds, and financial condition, before investing 50,000, other factors need your consideration too. 

These factors involve your plans, age, expectations from the investments, and the time you are willing to give to the investment. Some people plan their investments with a goal. These goals could be to buy a car, a house, or save for higher studies of their young children. 

According to these goals, people can plan on the investment time, long or short, or the risk they are willing to take. For example, if someone wants to purchase a car in a few months or within a year, they may not take enough risk as they do not have enough time up their sleeve. On the other hand, if a person wants to invest to gain funds for the future of their young children or to buy a house, they may invest for the long term and are willing to take risks to some extent.

• What type of investment do you want?

One can find many ways and ideas to invest 50k. If you look at the options available to you, you may get confused about choosing just one. The best way is to consider what type of investment do you want? 

According to how an investor invests in a market, it can be classified into two types, i.e., Active Investment and Passive Investment.

Active investment is a way that suits someone willing to take risks for higher returns. It is a hands-on approach to investment where investors, or someone else on their behalf, actively buy or sell securities in the market. This type of investment requires total concentration on the market. Therefore, one must have done enough research before getting into this type of investment.

Passive investment, on the other hand, involves lesser risks but requires time to generate favorable returns. Investors create portfolios of different securities and hold the investments. This type of investment is best suited to invest $50,000.

If an investor wants to try, having a passive and active investment mix can also be an excellent decision to invest $50,000. 

• Are your investments safe and secured?

Investments can be hazardous, primarily when you are investing in a stock market. Markets are uncertain, but investors should always secure their investments and be ready for anything that may come uninvited. 

One must always safeguard their investments. It could be by using a broker for the stock market, using encrypted websites while trading, or using a VPN. Before investing 50k entirely, create a reserve fund that may be used in case of any loss due to such risks.   

Where to Invest 50k?

Once you have received answers to the above questions, you will be very clear about your investment expectations and financial goals. You will be able to create a clear picture of what you want to do with $50,000. 

As the investment sector is booming day by day, it is attracting more and more people. As a reaction to this growing demand, people now have plenty of options available to invest. But, which of these options available would fit your goals to invest $50,000.

Read on to find out some of the best ways to invest 50k, and check if these options suit your goals.  

• Invest in Stocks

Stocks or individual stocks mean investing in stocks of a particular company. It is suitable for those who are looking for long-term investment and a stable income. Stocks not only help you earn capital gains but also offer dividend payments at equal intervals. 

The returns on this type of investment depend upon the company whose stocks you purchased. If the company is performing well in the industry, it will help you earn profits. But, if the company is incurring losses, so will your investment. 

So, before investing in stocks, make sure to have a good check on the company’s past and future of this company in terms of demand, current growth, and market position.

• Invest in Mutual Funds

If you are unwilling to trade actively and want to invest passively, then mutual funds are the answer for you. You can hand over your investment to a fund manager and brief them about your investment needs. Then, the fund manager pools your investment funds along with others and creates a portfolio accordingly.

Mutual funds are beneficial because the investment is made in a diversified way. In simple words, the fund manager creates a portfolio that has more than one type of securities. For example, it could be equity, bonds, CFDs, ETFs, etc. Furthermore, the portfolio is created in such a way so that it establishes favorable outcomes for the investors.

A drawback in mutual funds could be the cost it includes. The fund manager charges fees to make the investments on your behalf, reducing your earning shares. Also, mutual funds are subject to market risk, for which the fund manager is not responsible. 

• Invest in Bonds

Bonds are similar to lending money. When you lend money, your income is the interest you get in return. Bonds work similarly; only, you get the interest twice a year till the maturity of the bond. And you get back the bond’s face value when it reaches its maturity.

Bonds are usually issued by big companies, MNCs, and federal governments. They issue bonds to raise capital. These bonds have a face value depending upon the position of the company in the market. Those who purchase these bonds pay the face value of the bonds for a fixed maturity period and a fixed rate of interest.

You can make money by buying bonds with your 50k in two different ways. You can either retain the bonds till the maturity period and earn by receiving the interest. Or you can resell the bonds at a price higher than the face value to get more than what you paid. One must always be aware of how the company (issuing the bonds) performs in the market. 

• Invest in Property or Real Estate

Real estate is a booming industry. With little ups and downs, there is visible growth if we look at the charts. Investing in real estate has helped many people to gain on their investment. 

But can you invest $50,000 to purchase a property? This amount may not be enough to own a property completely. You can choose from many available options to invest in real estate with the spare $50,000 in your hands. You can either invest in Real Estate Investment Trusts (REITs), where stocks of properties like retail space, office buildings, housing societies, and many more are sold. Instead of owning the entire property, you own a fraction of it by buying its stocks. Or you can also go for crowdfunding which is also similar to REITs.

You can always study about the options available to you and choose the best suitable to your plans.

• Invest in CDs

If you plan on investing your $50,000 just for some time and want to get a higher return than any other option available to you, then CDs are your option.

CDs or Certificate of Deposit is fixed savings account that most banks offer to their customers. You lock your funds with the bank for a specified period till maturity. At the end of maturity, you get a higher interest rate, more than any savings account can offer you. The benefit of CDs is that you can lock your funds for some time suitable to you. For example, you can lock it for a few months to even years, as per your requirements. 

Before investing in CDs, make sure to know the interest rates offered by the bank and compare them with other available investment options in the market. Also, pre-withdrawal of CD accounts can cost a penalty. So, set the period of maturity according to your needs. 

• Invest in your Children’s Future

It is said that your children are your future. Therefore, how you raise them, what type of education you give them, and the morals they learn directly or indirectly affect your future.

What is a better investment than securing the future of your children? Planning about their higher education, saving funds for their tuition fees are also a sort of investment. 

Professional courses and degrees look promising in terms of financial gains and status. But they may cost a fortune. So, if you want your child to go for professional studies like Doctor, Lawyer, Engineer, etc., try saving for it from the very beginning. Your $50,000 saved now would help you build a stronger future.  

• Invest in ETFs

Exchange-traded funds or ETFs are a bunch of different securities that have qualities of both stocks and mutual funds. Like Mutual funds, they are pooled together by professional funds managers. And like stocks, they are traded in a securities exchange throughout the day.

If you do not wish to put your money in a long investment, like in stocks, you can go for ETFs. They involve a low cost of trading and can be easily traded in the securities exchange.

• Invest in Retirement

Sometimes the motive of savings is to safeguard old age. After your retirement, your income sources reduce, and your needs rise. This is when people want to relax and have a comfortable life, after working hard their entire life. 

The best way to ensure a relaxing future is to invest your 50,000  worth of savings somewhere, which can offer you a better return in the future. Some companies provide their employee’s ways to form a retirement account in which both the employer and the employee contribute. You can also choose from the many government-run policies for retirement. 

Conclusion

Having $50,000 worth of savings is highly fortunate. But, if you want to make more out of it, do your research, find ways to invest it, and choose wisely.

There are plenty of options available to you to invest $50,000. All you have to do is set your goals, make your investment plans and wait for the returns.

It is easy to own stocks and make a little profit. However, one needs to trade options to make a profit from the stocks. Trading options can be a little complex at first, but not when you understand everything very well. 

Options were initially made with the idea to transfer the risk from one trader to another trader. People generally trade options for either of these three reasons: 

1. As a speculative tool
2. As a hedge
3. As a source of additional income

The best thing about trading options is that there is no right or wrong way of trading. Instead, one can use multiple strategies to trade them based on the individual objectives and risk tolerance ability. 

To begin trading options, you need first to have options approval. Let us see how to get approved for options on TD Ameritrade:

TD Ameritrade Options Approval

To get TD Ameritrade options approval, you need to do the following steps:

• Log in to your TD Ameritrade account
• Select My profile under the Client Services tab 
• Find General Tab and check your approval status for options trading.
• If you aren’t already approved, click on the linked text to redirect you to the application and the form for options agreement.
• Once your application gets approved, you will be ready for options trading.
  

The first thing to learn after approval is what are calls and puts. A call option contract permits the owner to purchase a hundred shares of the underlying security anytime before the option’s expiration date at the strike price. In this case, the seller of the option is obligated to sell the shares when the owner chooses to buy them. 

A put option contract provides the owner with a right to sell a hundred shares of the underlying security anytime before the option’s expiration date at the strike price. In this case, the seller of the option is obligated to buy the shares when the owner chooses to sell them. 

What is selling a put and selling a call called?

Selling a put and selling a call is called a short straddle and represents an options strategy that sells both a call option and a put option with the same strike price and expiration date. Common ways to sell options are:

1. Selling call option contracts: The seller of a call option must supply the underlying asset whenever the buyer exercises the call contract at the strike price. In this case, the option seller is known to be “assigned.”
   
2. Selling put option contracts: The seller of the put options must purchase the underlying asset whenever the buyer exercises the put contract. 

What is it called when you buy a put and a call option?

Buy a put and buy a call is called a long straddle and represents an options strategy comprised of buying both a call option and a put option with the same strike price and expiration date. Common ways to buy options are:

1. Buying call option contracts: The buyer can choose to buy the underlying stock at the strike price. However, they are not obligated to do so. 
2. Buying put options contract: The put option buyer can sell the underlying asset at the strike price. However, they are not obligated to do so.

Even though this process might seem a little intimidating at the moment, whenever you start trading options, things will automatically become clear to you. 

How to sell covered calls on TD Ameritrade?

• To sell covered calls, you need to short an OTM call against the stock you own.
• When OTM expires, you can keep the stock and sell another call if you want.
• If the stock moves above the call’s strike price, you can r let the in-the-money (ITM) call be assigned and deliver the long shares.
• Additionally, you can take a loss on that call when the stock moves above the strike price, and you can repurchase the short call before expiration and keep the stock.

If the objective behind entering options trade is to earn additional money, then you can try selling and writing a covered call. 

When a call option is sold, a premium equal to the price of that option is collected. This premium amounts to your income from the trade. However, this does not mean that the trading options with the maximum compensation are consistently profitable. To analyze the best investment, you must look up the risk and reward trade-offs by analyzing what you are risking and what you will gain. For instance, if the risk profile of any covered call appears in figure 1, it means that profit is limited and the risk involved is unlimited. Further, you must remember that all options contracts have an expiration date, and thus, you cannot always keep it with yourself, expecting the price to scale up or down to your desired level. 

Here is an example to get you started: 

A standard options contract stands for 100 shares. Pick a stock from your portfolio:

1. You have at least 100 shares of
2. Are you currently trading at a higher price than when you bought it 
3. You assume to move up only slightly or not at all in the coming period. 

How to trade options on TD Ameritrade?

To trade options on TD Ameritrade you need to do the following steps:

• Check did you get approval to trade options at Ameritrade at Client Services/ My profile/ General tab.
• Go to the Trade tab and choose Options.
• Study the options
• Choose Underlying symbol
• Define Strike Price and Expiration Date
• Review order
• Make a trade

Step 1: Study the Options

Open your options trading account and study your options in detail. Here, you can view all option contracts’ expiration dates and strike prices in the analyze tab.

Click on the Trade tab to enter the symbol of the stock you have chosen. The underlying stock details will appear at the top of the page, followed by the option chain below it listing the expiration dates. Each date displayed will have multiple strike prices visible by clicking the drop-down arrow on the left of the date. The option chain will show the calls and puts prices for the expiration date chosen. Calls are displayed on the left, and puts are displayed on the right, organized by the strike price. There is also an option to customize this layout which you can try as you progress in the trading journey. 

Step 2: Select the Strike Price and Expiration Date

Initially, it is best to select an expiration date three weeks – 2 months ahead to play safer. Choosing the expiration date will show you a premium for the risk you are taking. The risk and reward profile of the trade gets majorly determined by the strike you choose to sell and the current price of the underlying stock. Further, another essential factor is to consider: should you sell a call with a strike price the same as, lower than, or higher than the ongoing stock rate? 

Here is what you should know: 

1. The call option will be in the money if the strike price is lower than the current stock rate (ITM). 
2. The call option will be at the money (ATM) if the strike price is similar to the stock rate. 
3. The call option will be out of the money (OTM) if the strike price is higher than the current stock rate. 

It is best to sell an OTM call if your outlook is bullish on the stock. The premium will be less than an ITM and ATM call. However, if the stock price goes up, you can make more money. On the other hand, if you are neutral, then choose to write an ITM or ATM call. It will provide a chance to get a better premium than the OTM call but accompanied with upside profit probability for the stock. 

Step 3: Start the Trade

Click on the trade tab and select the strike price. After this, click on the sell option and then on the single option. Next, select the bid price to create an order, followed by a sell option and a single option to place your trade. 

Step 4: Send the Order

You will see your order presented in the order entry section appearing below the option chain. The price here can alter based on the time when you place the order. There is also an option to review your order before placing the trade in the order entry section. It is suggested to double-check all the details you have selected and then alter the number of contracts to one. Further, if you are satisfied with the chosen options, go ahead and click on confirm and send. After confirming, a dialog confirming your order will appear, mentioning details like break-even price, maximum profit, maximum loss, and the trade price. If all the points mentioned are to your liking, click on the Send button to start the trade. It is the last step in successfully making your first options trade. 

However, do not forget about the trade you have made, even though it is in a simulated account. You must keep observing how the trade works and add to your knowledge. The three possible trade scenarios are: 

1. The stock price goes down: In this scenario, your option will expire without any benefit. So even though you can keep the premium amount, the value of the stock you hold will decrease. 
2. The stock price remains below the strike price: Your option will expire without any benefit in this scenario, and you can keep the premium amount. 
3. The stock price rises above the strike price: The option buyer chooses to exercise the call in this scenario. Therefore, you will have to trade 100 shares from your stock at the strike cost. However, you will get a profit consisting of the premium cost, along with the difference between the strike price and stock price, reducing the transaction cost.  

There are multiple strategies and choices while trading options. You only have to find the system that suits you best. There are other advantages of covered calls besides collecting premiums. As you go ahead in your journey of trading options, you will get a sense of how to manage risk and make the best moves. You can eventually build strategies that help you derive the maximum profit. 

Trading options can be a piece of cake once you get the hang of them. It can provide good profits without much effort. However, you must fully acquaint yourself with the trade options proceedings to play safe and derive maximum profits before entering a trade.

Understanding the velocity of money is the measurement of evaluating and assessing the flow rate of capital and monetary tools. This involves the transference of currency from one entity to another, the issuance of currency notes, and the rate of economic conveyance. It is defined as the average movement of currency used to purchase domestically manufactured items, goods, or services in an allotted time.

What is the Velocity of Money?

The velocity of money represents the frequency at which one unit of currency (for example, $1) is used to purchase domestically produced goods and domestic services within a given period. Thus, the velocity of money is a measurement of the rate at which money is exchanged in an economy. 

The frequency of consumed capital is determined per unit of time. This is considered a subcategory of economic activity. The commercial activity is controlled by the movement of money and the frequency or the speed at which the money was spent on the exchange of assets and variables. By identifying the velocity of money, the gross national product of a country can be discovered. If the momentum of money is snowballing, then the transactions and supply of money are frequently occurring. If the velocity of money increases, then it means that the rate of monetary transaction is also increasing, therefore assisting the economy. A variety of factors determines the frequency of money spent, and its fluctuations depend on certain variables.

Is the velocity of money constant?

No, the velocity of money is not constant because it increases when money is spent more frequently. When GDP, spending, and investment rise, then the velocity of money rises too.

The escalation and decay of a country‘s economy depend on the speed at which transactions are materializing. If more transactions are apparent throughout the country, then the economy and velocity tend to increase. Similarly, if the transactions are dropping, the velocity of money condenses therefore dwindling a country’s economy. On the other hand, a country with a fast velocity exhibits the need for more production, thus, enriching the local economy. This entire economic concept confirms the significance of each dollar note that travels from one individual to the next retailer to increase the productivity trade and industry. As per the Federal Reserve, it is the average rate of gross revenue noticed in the money supply.

The velocity of Money Formula

The velocity of money formula represents the nominal gross domestic product (GDP) ratio to the money supply (V=PQ/M). This velocity of money formula calculates the frequency at which one unit of currency is used to purchase goods and services within a given period.

The velocity of money can be identified as the total ratio of typical gross domestic product, which is the GDP to the money supply—using the following equation MV = PQ, where M is the monetary allowance. Thus, V is the velocity of money, or the rate people like to spend their money. P is their average price level, and Q relates to the total quantity of items and goods manufactured. In other words, it is calculated by dividing the total economic productivity or output by the money supply.

V=PQ/M

To calculate the velocity of money, the equation must include nominal GDP because the measure of money production does not entail inflation. Thus, there is a difference between the gross domestic product and the nominal GDP of the country. The only difference is that the latter identifies the country’s total economic output, whereas GDP is determined without being adjusted for inflation.

The velocity of money values per year

Factors affecting the velocity of money

Two main factors affect the rate of money transfer.
1. the change in the economy is GDP 2.
2. the transition and modification in the money supply.

Factors and variables that alter the shape of velocity are the total value of money, trade volume, the number of times transactions have taken place, and credit facilities that have been used.

Factors affecting velocity

• Money supply

The velocity of money and money supply are inversely proportional in the mathematical explanation. Therefore, they are not directly dependent on each other, and if the money supply increases, then there is a decrease in velocity or the circulation of money and vice versa.

• Frequency of monetary transactions

The velocity of money tends to increase with the rise of want to transactions. Therefore, it is clear that if that cash or liquid assets are exchanged faster, the velocity will increase dramatically.

• Income regularity

Suppose Individuals are paid through a stable system of income where there is a fixed input of money. In that case, that income is expected to be spent frequently and systematically, increasing the velocity of money.

• Payment system

Income is directly linked to the velocity of money. If individuals are based on a weekly, fortnightly, or monthly basis, the cash rate will fluctuate according to the income payment system. The bills and dues are matured through a standardized process of monetary input.

• Credit facilities

The velocity of money is expected to increase if there is an enlargement of loaning and borrowing services. If the credit institutions double, the velocity of money will also increase, therefore leaving a positive effect on the economy.

• Trade volume

The presence of trade and investment activities increases the circulation of money as well. Therefore, it is also favorable for the overall economy, and it helps strengthen the current and prospective state regulations.

• Business memberships

If the existing business regulations and establishments are on the rise, it is evident that the philosophy of money and every transaction will also increase. But, on the other hand, if the businesses are not operational, the transactions will be hard to track.

• Consumption

If items, goods, services, and businesses are purchased at a higher rate than the average great, then the velocity of money could be increased. But, on the other hand, if individuals are inclined to minimalistic consumption, people will start saving and harming the economy.

How do credit cards affect the velocity of money?

Using credit cards increases the velocity of money. Credit cards transactions reduce the need for cash and this increased velocity of money. Additionally, using credit cards increases tax collection and increases GDP which is the most important part of velocity of money formula.

The velocity of money for the US was 1.427, observed in the fourth quarter of 2019. This shows that a particular note of dollar was used 1.427 times in that year. This rate is the lowest turnover recorded for the velocity of money. It clearly shows that people and businesses in 2019 were more interested in holding cash than spending it on goods, services, and items for purchase and retail. As a result, a dollar was accumulated, saved, invested, or utilized to pay off debts at this rate.

It is being highlighted that the velocity city of money is gradually still is increasing. The introduction of the expansionary monetary policy in the 2008 financial crisis has given birth to a liquidity gap. People and small and large-scale businesses began accumulating liquid assets instead of spending them, disturbing cash flow. As a result, the economy becomes stagnant and financial productivity is just dropped. The expansionary monetary policy suggested lowering the federal funds rate to zero in 2008 and stagnated until 2015.

The velocity and circulation of cash are valuable in understanding and evaluating the inflation levels of a country. To assess the prospective economy, the frequency of money spent should be assessed by the economist to predict and foresee the overall aspect of a country’s economy.

A company with many shareholders is obligated to have an AGM, that is, Annual General Meeting. During this AGM, the company shareholders and the company heads decide upon the company’s matters that need to be discussed at least once a year, like distributing profits, funds required for growth, the company’s performance, and much more.

But, when there is any matter in the company that requires urgent attention of the shareholders, the EGM is held. EGM or Extraordinary General Meeting or Emergency General Meeting is a meeting that is not pre-scheduled but is organized in case of an emergency. The purpose of the extraordinary general meeting is the agenda, which could be anything that was not planned, like a legal matter. As AGMs are held once a year, EGMs can be held many times between two AGMs, depending upon the severity of the matter.

What Is an EGM?

EGM or Extraordinary General Meeting represents any company shareholders meeting other than its scheduled annual meeting. Usually, this is an emergency meeting and an unscheduled meeting of a company’s members.

Although all the shareholders meeting with the company executives and heads only once a year, at the time of an AGM, to be briefed about how the company business is going and discuss some simple annual matters, some urgent matters can call for an emergency meeting of shareholders on concise notice, that requires their attention. The matters are mostly related to crucial management decisions and cannot be made without the shareholders’ input.

Some of these crucial management decisions could be related to some legal matters, any situation or decision that cannot be delayed till the next AGM, or to decide upon the removal of a company executive.

Difference Between AGM and EGM – AGM vs. EGM

The difference between an annual and an extraordinary general meeting is urgent, and who can call for these meetings. An AGM is generally organized and scheduled by the company board, while the board can schedule an EGM on the shareholders’ demand.

Also, the company tribunals have the right to call for an EGM. One more difference is the time at which they are held or scheduled. While an AGM is organized only during business hours and the working days only, that means, not after the working hours or on national holidays; the EGM can be scheduled on any day, even if it’s a holiday.

What Is AGM?

AGM or Annual General Meeting is a meeting that is to be held once every year on a scheduled date and time, only working hours. The purpose of this meeting is to present all its shareholders, the records of the company’s achievements and performances and discuss its plans and policies for the upcoming year.

All the shareholders need to attend this meeting to get information about how their invested company is working. Apart from these report readings, certain decisions need to be made by the shareholders. These decisions could be about the compensation to the executives, dividends to be paid, the appointment of a company CEO, board of directors, or an auditor, deciding upon the company’s general reserve, and many more. The shareholder’s voting usually makes these decisions. Note that not all shareholders have the right to vote. So, only those who have the privilege can vote.

The AGM is compulsory for all private and public companies. However, the rules and regulations for organizing an AGM depend on jurisdiction to jurisdiction or state to state. Though, in most cases, it is observed to be a little strict in public companies. All publicly-traded companies are obligated to submit an annual proxy statement with the SEC (Securities and Exchange Commission). This statement must have the following details about the AGM clearly mentioned:

• Date of the AGM
• Time of commencement of the AGM
• The venue where AGM is to be held
• Executive Compensation
• Decisions or matters that require shareholders voting

Conclusion

An EGM is an emergency meeting scheduled for any emergency in a company that requires its shareholders’ attention. It is extremely different from the AGM in terms of matters, time, and schedule. Also, an AGM is bound to happen once a year, but an EGM may or may not happen for years if no such situation arises. Also, conducting an EGM can be very difficult because, unlike AGM, it is scheduled on short notice, and it can get troublesome to get a quorum.

When you say the name Madagascar, the first thing that comes to most people’s minds is the movie based on a jungle in South Africa. But, Madagascar is more than just a movie. The second-largest island country in the world, Madagascar, has a long history. Because of its geographical location has been an important place that makes trade possible, connecting many lands through the Indian Ocean. This could be the reason that the population in Madagascar is growing due to its good resources.

What is the Main Currency in Madagascar?

The main currency in  Madagascar is Malagasy Ariary which Madagascar currency code is Ar. Malagasy Ariary means silver dollar. Ariary is subdivided into 5 iraimbilanjais as a non-decimal currency, which means division units are not based on a power of ten.

Madagascar Ariary current price

Malagasy Ariary USD chart:

Madagascar currency to USD:
To exchange Malagasy Ariary (Madagascar currency to USD) please use free currency converter below:

Madagascar Economy

Madagascar is an island country in the Indian Ocean. It works as a virtual port connecting India and East Africa. Being an important port for trading, it encouraged Madagascar to increase its exports. The rich resources available on the island helped the country improve its exports and grow from the low level in the past. Madagascar exports mainly agricultural and forestry products. Being an island, fishing is also prevalent here. This whole account accounts for approximately 25% of the country’s GDP.

After years of being discovered by Portugal Voyagers, Madagascar is now a socialist economy that follows the liberalized policies of the World Bank and the IMF.

Madagascar Ariary

Before the Malagasy Ariary was introduced, Malagasy Franc was widely used on the island. Even after Ar was introduced in 1961, Malagasy Franc enjoyed popularity for a few years. Ar was valued at 5 Francs.

In 1978, there was an increase in the use of Malagasy Ariary over Francs. The increased usage could be the banknotes with denominations 500 and 5000 that made the exchange convenient. Against this, Francs were also introduced in denominations 2,500 and 25,000.

The issuing authorities, keeping the demand of these currencies in mind, issued the currencies accordingly. They gave more banknotes for Ariary as compared to Francs and also introduced lower denominations for Ariary currency. Thus, on the first day of the year 2005, Malagasy Ariary was declared the official currency of Madagascar. The central bank of Madagascar, Banque Centrale de Madagascar, is responsible for issuing the Malagasy Ariary.