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Share Market Terminology: Part 2

<<<< Share Market Terminology: Part 1

1.     NASDAQ

The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange located in New York City. “NASDAQ” originally stood for “National Association of Securities Dealers Automated Quotations Systems,” but the exchange’s official stance is that the acronym is obsolete. It is the largest electronic screen-based equity securities trading market in the United States and fourth largest by market capitalization in the world. As of January 13, 2011, there are 2,872 listings. The NASDAQ has more trading volume than any other electronic stock exchange in the world.

NASDAQ has three indices; NASDAQ Composite, NASDAQ-100 and NASDAQ Biotechnology Index. Its market capitalization is US$3.08 trillion (Aug 2010).

2.     Blue Chip

A blue-chip stock is stock in a company with a national reputation for quality, reliability and the ability to operate profitably in good times and bad. The most popular index which follows blue chips is the Dow Jones Industrial Average. The Dow Jones Industrial Average is a price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry.

3.     Book Value

In accounting, book value or carrying value is the value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization or impairment costs made against the asset. Traditionally, a company’s book value is its total assets minus intangible assets and liabilities. However, in practice, depending on the source of the calculation, book value may variably include goodwill, intangible assets, or both.

4.     Market Capitalization

Market capitalization (often market cap) is a measurement of size of a business enterprise (corporation) equal to the share price times the number of shares outstanding (shares that have been authorized, issued, and purchased by investors) of a publicly traded company. As owning stock represents ownership of the company, including all its equity, capitalization could represent the public opinion of a company’s net worth and is a determining factor in stock valuation. Likewise, the capitalization of stock markets or economic regions may be compared to other economic indicators. The total market capitalization of all publicly traded companies in the world was US$51.2 trillion in January 2007 and rose as high as US$57.5 trillion in May 2008 before dropping below US$50 trillion in August 2008 and slightly above US$40 trillion in September 2008.

5.     P/E Ratio

The P/E ratio (price-to-earnings ratio) of a stock (also called its “P/E”, or simply “multiple”) is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. P/E reflects the capital structure of the company in question. P/E is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower P/E ratio. The P/E ratio has units of years, which can be interpreted as “number of years of earnings to pay back purchase price”, ignoring the time value of money. In other words, P/E ratio shows current investor demand for a company share.

6.     Spread

The difference between the price paid for a bond (the bid) and the price at which it is offered to an investor (the offer).

7.     Preference Share

Capital stock which provides a specific dividend that is paid before any dividends are paid to common stock holders, and which takes precedence over common stock in the event of liquidation. Like common stock, preference shares represent partial ownership in a company, although preferred stock shareholders do not enjoy any of the voting rights of common stockholders. Also unlike common stock, preference shares pay a fixed dividend that does not fluctuate, although the company does not have to pay this dividend if it lacks the financial ability to do so. The main benefit to owning preference shares are that the investor has a greater claim on the company’s assets than common stockholders. Preferred shareholders always receive their dividends first and, in the event the company goes bankrupt, preferred shareholders are paid off before common stockholders.

8.     Equity share

Equity shares are those shares which are ordinary in the course of company’s business. They are also called as ordinary shares. These shareholders do not enjoy preference regarding payment of dividend and repayment of capital. Equity shareholders are paid dividend out of the profits made by a company. Higher the profits, higher will be the dividend and lower the profits, lower will be the dividend.

9.     Convertible Preference Share

These are preferred issues that the holders can exchange for a predetermined number of the company’s common stock. This exchange can occur at any time the investor chooses regardless of the current market price of the common stock. It is a one way deal so one cannot convert the common stock back to preferred stock.

10. Debenture

The term is used for a medium- to long-term debt instrument used by large companies to borrow money. In some countries the term is used interchangeably with bond, loan stock or note.

Debentures are generally freely transferable by the debenture holder. Debenture holders have no rights to vote in the company’s general meetings of shareholders, but they may have separate meetings or votes e.g. on changes to the rights attached to the debentures. The interest paid to them is a charge against profit in the company’s financial statements.

11. Mutual Fund

An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. mutual funds raise money by selling shares of the fund to the public, much like any other type of company can sell stock in itself to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase various investment vehicles, such as stocks, bonds and money market instruments. In return for the money they give to the fund when purchasing shares, shareholders receive an equity position in the fund and, in effect, in each of its underlying securities. For most mutual funds, shareholders are free to sell their shares at any time, although the price of a share in a mutual fund will fluctuate daily, depending upon the performance of the securities held by the fund. Benefits of mutual funds include diversification and professional money management. Mutual funds offer choice, liquidity, and convenience, but charge fees and often require a minimum investment. A closed-end fund is often incorrectly referred to as a mutual fund, but is actually an investment trust. There are many types of mutual funds, including aggressive growth fund, asset allocation fund, balanced fund, blend fund, bond fund, capital appreciation fund, clone fund, closed fund, crossover fund, equity fund, fund of funds, global fund, growth fund, growth and income fund, hedge fund, income fund, index fund, international fund, money market fund, municipal bond fund, prime rate fund, regional fund, sector fund, specialty fund, stock fund, and tax-free bond fund.

12. Open-end Mutual Fund

A fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Open-end funds raise money by selling shares of the fund to the public, much like any other type of company which can sell stock in itself to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase various investment vehicles, such as stocks, bonds and money market instruments. In return for the money they give to the fund when purchasing shares, shareholders receive an equity position in the fund and, in effect, in each of its underlying securities. For most open-end funds, shareholders are free to sell their shares at any time, although the price of a share in an open-end fund will fluctuate daily, depending upon the performance of the securities held by the fund. Benefits of open-end funds include diversification and professional money management. Open-end funds offer choice, liquidity, and convenience, but charge fees and often require a minimum investment.

13. Closed-end Mutual Fund

A fund with a fixed number of shares outstanding, and one which does not redeem shares the way a typical mutual fund does. Closed-end funds behave more like stock than open-end funds: closed-end funds issue a fixed number of shares to the public in an initial public offering, after which time shares in the fund are bought and sold on a stock exchange, and they are not obligated to issue new shares or redeem outstanding shares as open-end funds are. The price of a share in a closed-end fund is determined entirely by market demand, so shares can either trade below their net asset value (“at a discount”) or above it (“at a premium”).

14. Asset Management Company (AMC)

An Asset Management Company (AMC) is an investment management firm that invests the pooled funds of retail investors in securities in line with the stated investment objectives. For a fee, the investment company provides more diversification, liquidity, and professional management consulting service than is normally available to individual investors.

The diversification of portfolio is done by investing in such securities which are inversely correlated to each other. They collect money from investors by way of floating various mutual fund schemes.

15. Front End Load

A sales charge paid when an individual buys an investment, such as a mutual fund, limited partnership, annuity, or insurance policy. The load is clubbed with the first payment made by an investor, so the total initial payment is higher than the later payments. The purpose of a load is to cover administrative expenses and transaction costs and sometimes to discourage asset turnover.

16. Back End Load

A sales charge or commission paid when an individual sells an investment, such as a mutual fund or an annuity, intended to discourage withdrawals.

17. Company

A company is a form of business organization. It is a collection of individuals and physical assets with a common focus and an aim of gaining profits. This collection exists in Law and therefore a company is considered a “Legal Person”.

18. Common Seal

A common seal (sometimes referred to as the corporate seal or company seal) is an official seal used by a company. Company seals were predominantly used by companies in common law jurisdictions, although in modern times, most countries have abrogated the use of seals.

Traditionally, the seal was of some legal significance because the affixing of the seal signified that the document was the act and deed of the company, whereas when a document was merely signed by a director, then that was deemed to be an act carried out on behalf of the company by its agents, which was subject to applicable restrictions and limitations under the ordinary law of agency.

Corporate seals are generally only used for two purposes by corporations today:

Documents which need to be executed as deeds (as opposed to simple contracts), may be executed under the company’s common seal

Certain corporate documents, for example share certificates are often issued under the company seal (and some countries required that share certificates be issued under the common seal)

19. Company Secretary

A company secretary is a senior position in a private company or public organization, normally in the form of a managerial position or above. In the United States it is known as a corporate secretary.

The Company Secretary is responsible for the efficient administration of a company, particularly with regard to ensuring compliance with statutory and regulatory requirements and for ensuring that decisions of the Board of Directors are implemented.

Despite the name, the role is not a clerical or secretarial one in the usual sense. The company secretary ensures that an organization complies with relevant legislation and regulation, and keeps board members informed of their legal responsibilities. Company secretaries are the company’s named representative on legal documents, and it is their responsibility to ensure that the company and its directors operate within the law. It is also their responsibility to register and communicate with shareholders, to ensure that dividends are paid and to maintain company records, such as lists of directors and shareholders, and annual accounts.

20. Subsidiary Company

A subsidiary, in business matters, is an entity that is controlled by a separate higher entity. The controlled entity is called a company, corporation, or limited liability company; and in some cases can be a government or state-owned enterprise, and the controlling entity is called its parent (or the parent company).

A parent company does not have to be the larger or “more powerful” entity; it is possible for the parent company to be smaller than a subsidiary, or the parent may be larger than some or all of its subsidiaries (if it has more than one). The parent and the subsidiary do not necessarily have to operate in the same locations, or operate the same businesses, but it is also possible that they could conceivably be competitors in the marketplace. Also, because a parent company and a subsidiary are separate entities, it is entirely possible for one of them to be involved in legal proceedings, bankruptcy, tax delinquency, indictment and/or under investigation, while the other is not.

The most common way that control of a subsidiary is achieved, is through the ownership of shares in the subsidiary by the parent. These shares give the parent the necessary votes to determine the composition of the board of the subsidiary, and so exercise control. This gives rise to the common presumption that 50% plus one share is enough to create a subsidiary. There are, however, other ways that control can come about, and the exact rules both as to what control is needed, and how it is achieved, can be complex. A subsidiary may itself have subsidiaries, and these, in turn, may have subsidiaries of their own. A parent and all its subsidiaries together are called a “group”, although this term can also apply to cooperating companies and their subsidiaries with varying degrees of shared ownership.

Subsidiaries are separate, distinct legal entities for the purposes of taxation and regulation. For this reason, they differ from divisions, which are businesses fully integrated within the main company, and not legally or otherwise distinct from it.

Note

This list is being compiled using definitions provided at various sources. I tried my best to give the best general explanation of all the term. If any term need correction or improvement in its explanation, please use the comment section to do so. I will look through it.

Is Sonia Gandhi Eligible To Become The Prime Minister?

SG

Can She Be An Indian PM

As the election campaign is drawing to its close (April-May 2004) the issue of Sonia Gandhi being suitable or not for Prime Minister-ship due to her being a foreigner are coming out once again. Here one is not talking of her suitability for holding the top place in Indian administration but is restricting to the point whether Indian Citizens, whose place of birth does not happen to be in India are eligible for such a post or not? Needless to say
this issue is being raked up since Sonia Gandhi first joined the Congress and has been contender for the top job in the country. Needless to say this also reflects the bankruptcy of the electoral campaign in a country, which is riddled with infinite problems for the poor masses irrespective of its being shining for a minuscule section of the society. It also hides the fact that those raising it can twist the logic the other way around when it suits their own electoral needs.

The latest argument being put forward is that giving the sensitive posts to such people may be a security risk. In between the same argument has been extended to other posts apart from the one of Prime minister. In between the argument was also put forward that the children of such citizens also are not eligible for the top jobs. For those raising this issue, it is not much of their concern about what does constitution says on this. It is not of much concern here that people have accepted whole-heartedly, such people through the electoral system. Lately, Amma (Jayalalitha) has come forward to ask that is there not a single Indian capable for such a post, that we have to look at a foreigner to lead the country? It must be pointed out that two words are used interchangeably here, the word foreigner and the word person of foreign origin.

Talking of Sonia Gandhi, she has been the main target of such snipers. Initially it was also said that the work of conversion being carried on is also drawing support from her. Her connections with Italy are ridiculed by posing the alternative between Ram Rajya and Rome Rajya. The mudslinging has no end and bucket full of muck can be smeared on this issue. How does a country decide this point in a globalised world?

One recalls that there is a great joy and celebration when we hear about the person of Indian origin holding top jobs in other countries. There are small countries where the people of Indian origin have held the top job. Bobby Jindal’s surge for the medium level job was a matter of three or four cheers in Indian media and psyche. While talking about the people who were born in other parts of the world but adopted this country for their major commitment one recalls the likes of Maulana Abul Kalam Azad, Annie Beasant and Mother Teresa to be the shining examples in this category. Even the worst of communist would not have objected to Maulana Azad holding the post of Indian National Congress or than becoming the education minister just because he was not born in this part of the land.

Where does one draw the cut off date? A person of Indian origin in the proper sense of the word is the current dictator of Pakistan, and had been the most hated name just prior to the cricket series. Currently, a person of Pakistani origin happens to hold the post of Deputy Prime minister in India.

Today there are some countries where their constitution says that only person who has been born in that country can be Prime minister or President. There are also countries where such a norm does not prevail. Our constitution does not hold any prescription about he place of birth of the citizen. Citizenship is the criterion for holding the top posts. To begin with those saying that being born in this land is a must, are saying something, which violates the Indian constitution. Any way the people of Sangh combine, who began it all, have no respect for this constitution, as this constitution has emerged from the freedom struggle, due to India becoming a modern nation-state through the anti-British struggle, with which they had nothing whatsoever to do. They are itching with all their might to do away with this and are waiting in the wings to do so. None other than RSS supremo K.Sudarshan went on to say the same.

Other politicos, like Sharad Pawar and Amma, those who have picked up the cue initially thrown in the circuit by RSS progeny, are doing so in a purely opportunistic way. Sharad Pawar who broke away from the Congress on this ground did come back to ally with the same party for electoral reasons. Amma and others again are playing the role of holier than thou, lacking other political issues they are trying to make an issue out of it. It can whip up emotions of the society, that’s for sure. This politics like the one of Ram temple movement is a sort of one based on emotional pitch.

Is being a citizen not good enough for holding any post of the people find you fit enough for that? The transnational movement of people across the countries is on the rise. Many of those of Indian origin are active in the politics in other countries. Sonia Gandhi or no Sonia Gandhi, the guidance should be derived from the constitution. We have multitude of examples of Islāmic countries, where fundamentalism prevails, where the concept of citizenship is modulated according to the whims of the ruling coterie. Taliban in Afghanistan during their brief tenure did dictate about how people of different religions should wear and behave.

In our own country books of Golwalkar and Savarkar have given the guidelines about the status and ranking of citizenship according to their religion. Savarkar defines the citizen on the ground of one’s Holy land and Father land. Golwalkar calls Christians and Muslims as Foreign races. If we keep going back in time the results will be disastrous. Mahatma Jotiba Phule calls the Aryans as the invaders, and thereby foreigners. In Sri Lanka, the dominant Buddhists called themselves as the first comers and so having a bigger ownership of the country. Golwalkar also says that the country is of the Hindu race, and the Muslims and Christians, who as they are foreigners, should have no citizenship rights. When this was being written large section of Muslims and Christians were participating in the process of building of India as a nation-state through the struggle for freedom, along with the Hindus and people of all the religions of the country.

Where will the logic of all this takes us is any body’s guess. The politics should work within the constitutional limits, it should be purged of the emotive content so that the real issues of the people are to the fore and there by headway can be made for a more egalitarian society, a society where the concept of human rights is the final arbiter of social and political norms.

Share Market Terminology: Part 1

  1. Sensex

    Sensex is the short form of Sensitive Index. The Sensex is value-weighted index composed of 30 stocks. The Sensex is regarded as the pulse of the domestic stock markets in India. It consists of the 30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange. It is also called as BSE 30.

  2. Nifty

    Nifty or Nifty 50 is the leading index for large companies on the National Stock Exchange of India. The Nifty is a well diversified 50 stock index accounting for 21 sectors of the economy. During 60s and 70s this term was used to denote 50 popular large cap stocks on the New York Stock Exchange.

  3. Bull

    Bull means cause or attempt to cause prices to rise (in the stock exchange).

  4. BEAR

    Investor who believes a share or the overall security market will go down.

  5. Squaring Off

    Square off means to settle the position. If someone square off a trade, it means he have no position at the end of the day – only profit or loss. When you give cash order it means you give order with intention to take delivery. Thus, if you change your mind and want to sell the stock the same day (buy in case of a sell), you have to notify the broker that you are changing your trade from delivery based trade to intraday trade and thus squaring off your position.

  6. RALLY

    A rally is a term used to describe a sudden rise in stock prices, especially after a period of falling ones. For example, if the stock market drops in the morning and investors rush in to buy companies at the cheaper prices, the stock market has rallied.

  7. Crash

    A stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a stock market, resulting in a significant loss of paper wealth.

  8. Correction

    A correction is a short term price decline of 5% to 20% or so. A correction is a downward movement that is not large enough to be a bear market.

  9. Bonus Shares

    The term bonus means an extra dividend paid to shareholders in a joint stock company from surplus profits. When a company has accumulated a large fund out of profits – much beyond its needs, the directors may decide to distribute a part of it amongst the shareholders in the form of bonus. Bonus can be paid either in cash or in the form of shares.

  10. Dividend

    Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend.

  11. Book Closure Date

    When shares of a joint stock company invariably change hands during market trades, identifying the owner of some shares becomes difficult. So it is difficult to pass on certain benefits (like share bonus issue, splits and dividend payments) to shareholders.

    So, when a joint stock company declares dividends or bonus issues, there has to be a cut-off date for such benefits to be transferred to the shareholders. This date is termed as “Book Closure” date or “Record Date”. It is the date after which the company will not handle any transfer of shares requests until the benefits are transferred. Only shareholders marked in the company’s register at the Book Closure Date or the Record Date would be entitled to receive these benefits. In other words, shareholders that are on the company’s records as on that date are eligible for these benefits.

  12. Bonds

    A bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals.

  13. Splits

    A stock split increases the number of shares in a public company. The price is adjusted such that the before and after market capitalization of the company remains the same and dilution does not occur.

    Ratios of 2-for-1, 3-for-1, and 3-for-2 splits are the most common, but any ratio is possible. Splits of 4-for-3, 5-for-2, and 5-for-4 are used, though less frequently. Investors will sometimes receive cash payments in lieu of fractional shares.

    It is often claimed that stock splits, in and of themselves, lead to higher stock prices; research, however, does not bear this out. What is true is that stock splits are usually initiated after a large run up in share price. Momentum investing would suggest that such a trend would continue regardless of the stock split. In any case, stock splits do increase the liquidity of a stock; there are more buyers and sellers for 10 shares at $10 than 1 share at $100. Some companies have the opposite strategy: by refusing to split the stock and keeping the price high, they reduce trading volume and volatility. Berkshire Hathaway is a notable example of this.

  14. Futures

    Investment contracts which specify the quantity and price of a commodity to be purchased or sold at a later date. On contract date, the buyer must take physical possession or make delivery of the commodity, which can only be avoided by closing out the contract(s) before that date. Futures can be used for speculation or hedging.

  15. Index Trading

    Index Trading is a fairly new concept based on short term financial trades or wagers. Unlike most other emerging ways to Trade on Share markets, Index Trades are mostly contracts bought for a fixed duration with a fixed return (often up to 97% of the investment).

    Index trades rely on the trader’s ability to predict whether a Share index will effectively rise or fall over a set period.

    If the trader has picked the correct direction and their trade is successful once the time has elapsed then they are generally paid out on the agreed return within minutes. This has added to the recent popularity of Index Trading however it still hinges completely on one’s ability to predict Share index movements and it is common knowledge that such a thing is not easy.

  16. Trading on Margin

    Margin buying or margin trading is buying securities with cash borrowed from a broker, using other securities as collateral. This has the effect of magnifying any profit or loss made on the securities. The securities serve as collateral for the loan. The net value, i.e. the difference between the value of the securities and the loan, is initially equal to the amount of one’s own cash used. This difference has to stay above a minimum margin requirement, the purpose of which is to protect the broker against a fall in the value of the securities to the point that the investor can no longer cover the loan.

    Most investors buy the futures, but there are times when margin trading makes more sense. If a stock is not in the futures list, the client can go for margin funding.

    Since futures are generally not available beyond one or two months, if the client has a longer view, then margin trading is better. Also, some brokers offer lower interest rates on margin trading than the prevalent rates in the futures market.

  17. Stock

    The capital stock (or just stock) of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors. Stock is distinct from the property and the assets of a business which may fluctuate in quantity and value.

  18. Bid

    The bid for securities (such as stocks, futures contracts, options, or currency pairs) is the difference between the prices quoted (either by a single market maker or in a limit order book) for an immediate purchase.

  19. Broker

    A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors. A broker may be employed by a brokerage firm.

    A transaction on a stock exchange must be made between two members of the exchange—an ordinary person may not walk into the New York Stock Exchange (for example), and ask to trade stock. Such an exchange must be done through a broker.

  20. Dow Jones Industrial Average

    The Dow Jones Industrial Average (DJIA), also referred to as the Industrial Average, the Dow Jones, the Dow 30, or simply the Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow. It is now owned by the CME Group, who is the majority owner of Dow Jones Indexes. The average is named after Dow and one of his business associates, statistician Edward Jones. It is an index that shows how 30 large, publicly owned companies based in the United States have traded during a standard trading session in the stock market. It is the second oldest U.S. market index after the Dow Jones Transportation Average, which was also created by Dow.

    To calculate the DJIA, the sum of the prices of all 30 stocks is divided by a Divisor, the Dow Divisor. The divisor is adjusted in case of stock splits, spinoffs or similar structural changes, to ensure that such events do not in themselves alter the numerical value of the DJIA. Early on, the initial divisor was composed of the original number of component companies; which made the DJIA at first, a simple arithmetic average.

Note

This list is being compiled using definitions provided at various sources. I tried my best to give the best general explanation of all the term. If any term need correction or improvement in its explanation, please use the comment section to do so. I will look through it.

>>>> Share Market Terminology: Part 2

Summer Marketing Tips for Small Businesses

This is a Guest Post through Postrunner by Beth Longware Duff who writes about small business merchant resources. For more information, click here.

Summer will be here before you know it, which means hot times, cool vibes and unique marketing opportunities for small businesses that are versatile enough to take advantage of them. Latch onto the laid-back attitude that prevails this time of year and use it to your advantage to reach out to current and potential customers.

Regardless of where you do business, the U.S. Small Business Administration (SBA) offers the following five strategies to keep it booming right through to the fall:

  1. Take Part in Summer Festivals and Fairs

Everyone loves a good time, so sponsoring or participating in a local community event not only brings you together with customers in an unpressured environment, but it can work wonders for your brand as well by getting your products or services out for all to see. As an active member of your community, you should be familiar with ongoing events and know which would best serve your marketing objectives. Your local Chamber of Commerce is a great resource, as are the local newspaper, community flyers and town website.

  1. Take Your Customers Out

A long-time common practice in the corporate world, small business owners should consider hosting an activity for their valued loyal customers and vendors. A barbecue in the park, chartered fishing expedition or a visit to a nearby attraction, show or sporting event are all outings that they’ll truly appreciate when you’re picking up the tab. Perhaps best of all, customer entertainment expenses are tax deductible as long as there is a clear business purpose for them and business discussions are held at some point during the event. More information about business tax deductions is available from the SBA.

  1. Take Your Business on the Road

By going where the customers are you can extend your reach, supplement your revenue and increase your brand recognition. Running a concession at sporting events, local carnivals and festivals and other tourist attractions can help you make the most of the summer season, and it’s easier than ever with mobile and wireless solutions that make accepting credit cards quick, easy and secure no matter where the sales occur.

  1. Sponsor a Contest

Everyone loves the chance to win something for nothing, and contests are a great way to raise your visibility in the community and gain publicity. Get your employees involved by asking for their contest ideas. A few suggestions include a cook-off or eating contest sponsored by a restaurant, a yard makeover by a landscape designer, or a pet show by a groomer or veterinarian. Be sure to make the prize(s) something that’s directly related to your business to keep customers coming in after the competition, and promote your contest with a blend of traditional and new media—and don’t forget to post the name and picture of your winner(s)!

  1. Dress Up Your Website

It’s advisable to update your company website on a regular basis to keep it fresh and to showcase your newest products and services. Some summer graphics and seasonal content are simple adds that keep your site relevant to your customers.

Make this summer a memorable one for your business and your customers, and have a little fun while you’re at it!

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