Topic of the Week - Flat Tax

A flat tax (short for flat rate tax) taxes all household income, and possibly corporate profits as well, at the same marginal rate. A flat tax usually refers to the taxation of incomes but can be applied to consumption.

Flat taxes are uncommon in advanced economies, whose nationwide taxes typically include a graduated tax on household incomes and corporate profits, such that the marginal tax rate rises as the income or profit of the taxed entity rises. Flat taxes, implemented as well as proposed, usually exempt from taxation household income below a statutorily determined level that is a function of the type and size of the household. As a result, such a flat marginal rate is consistent with a progressive average tax rate. Otherwise, all income or consumption is taxed at the same marginal rate.

The flat tax has been adopted in Estonia, Lithuania, Latvia, Russia, Serbia, Ukraine, Slovakia, Georgia, Romania, Macedonia, and the Czech Republic (only for companies).[1] Proponents believe the simplicity and efficiency of the flat tax is a key reason behind Eastern Europe's dramatic growth. Others believe it is more readily explained by a low starting base and large inward investment. Other countries employing flat taxes include Iceland, Kyrgyzstan, Mongolia, Hong Kong, Saudi Arabia, The United Arab Emirates, Bahrain, Somalia, Nigeria, Rwanda, Uruguay, Guyana, The Bahamas and Tonga.

Topic of the Week - Dutch Auction

Starting today we'll start putting up an explanation for any randomly selected financial term on this blog, every week. Readers can request for explanation to any specific term / topic of their choice. This week's term is Dutch Auction.

Dutch auction is a type of auction where the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneer's price, or a predetermined reserve price (the seller's minimum acceptable price) is reached. The winning participant pays the last announced price.

This type of auction is convenient when it is important to auction goods quickly, since a sale never requires more than one bid. Theoretically, the bidding strategy and results of this auction are equivalent to those in a Sealed first-price auction; however, experiment indicates that a Dutch auction typically results in lower sale prices.

"Dutch auction" is also sometimes used to describe online auctions where several identical goods are sold simultaneously to an equal number of high bidders. Economists call the latter auction a multi-unit English ascending auction.

The Google IPO followed the Dutch Auction Route

Destination Finance Jobs...for MBA

At the very outset lemme clarify that I'm neither a recruitment consultant / headhunter nor do I work for a big corporate which needs to hire MBAs in large numbers for its finance roles. But then the question why this blog?

I always wanted a single reference point where people - like me - could come and check out for different careers options in finance ; seek and get advice and help in their professional finance careers ; discuss and share their ideas about emerging international issues in corporate finance - and all this in a manner in which they would interact with their closest friends.

This blog aims to capture this spirit and much more. Given the fact that my intention is to model this blog a a collaborative forum, I'd love to have readers' comments and suggestion on the blog...on things that you like or you don't....on things that you'd like to be included. You can also share your concerns or problems...if you want anonymously....and I'll try to get the best man available to comment on that.

Last but not the least...prospective employers are welcome to drop their job openings on the blog...and sure the audience would be just right for you.