The goal when I become a financial manager in theory is to maximize the shareholder wealth throughout the company.  First question to mind is- how a firm measures shareholder wealth so that we know if it’s increasing or not.  To understand what cause stocks to change in price, as well as how securities such as bonds and stocks are valued in financial markets, it is necessary to understand the concept of efficient markets.  “these are markets in which the values of all assets and securities at any instant in time fully reflect all available information (investorwords.com).

Letter of Credit is a document granted mostly by a financial institution, used primarily in trade finance, which usually provides an irrevocable payment undertaking. The LC can also be the source of payment for a transaction, meaning that redeeming the letter of credit will pay an exporter. Letters of credit are used primarily in international trade transactions of significant value, for deals between a supplier in one country and a customer in another.

Letter of Credit is payment method that's commonly used in international business. It's a document issued by financial institute, mostly banks, promises that it will honor the draft if the seller's conditions that written in the L/C are met. Through L/C the bank substitutes its own commitment to pay for its customer, or opener. Letter of credit provides great degree of safety for both importer and exporter.

Financing foreign trade is a problem that is persistent among all merchants and bankers alike. The main reason this has become a problem is because of the merchants and bankers inability to determine the credit standing of foreign buyers. Credit is an extremely important aspect that is considered before merchants and bankers begin to do business with a buyer who is overseas because they really have nothing else they can judge the buyers credibility on.

Financing foreign trade is a problem that is persistent among all merchants and bankers alike. The main reason this has become a problem is because of the merchants and bankers inability to determine the credit standing of foreign buyers. Credit is an extremely important aspect that is considered before merchants and bankers begin to do business with a buyer who is overseas because they really have nothing else they can judge the buyers credibility on.

In today`s financial environment export-import companies have to deal with a lot of risks such as shortfall in payment, cancelation of order or default in delivery. To mitigate and eliminate these risks both parties can agree to use a Letter of Credit. A Letter of credit is an abstract, conditional payment promise of the bank of the importer in which it obligates to make a payment to the exporter on presentation of L/C compliant documents.