Monday, December 26, 2016

Banking Awareness

>>IPO - Initial public offer is issue of stocks for the first time in the market.
>>Intangible assets – Assets which can’t be seen but have value for business. For example – Goodwill.
>>Indemnity – A legal contract under which one party promises to pay another for any losses incurred to them by their acts.
>>Interest rate risk – Risk that value of financial assets will deteriorate because of fall in interest rate. For example value of bonds decreases with decrease in interest rate.
>>Junk fund – A fund which invests investor’s money in junk investments means high risk investments which high returns.
>>Monopoly - A situation in market where there are many buyers but a single seller exist.
>>Money market - Market dealing in short term lending and borrowing of funds. Also known as Cash market.
>>Monetary policy - Set of actions by Central bank of a country ( RBI in case of India) to control the supply of money. These actions included increase in interest rate, open market purchases,changing commercial bank's reserve funds ratio (SLR) etc.
>>Marginal cost - Additional cost to produce an extra unit of product.

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