Showing posts with label ORIGIN AND DEVELOPMENT OF BANKING. Show all posts
Showing posts with label ORIGIN AND DEVELOPMENT OF BANKING. Show all posts

Friday, December 15, 2017

Key financial terms

ROI - Rate on investment is return divided by value of investment
Redemption - Maturity date of a security or a bond
Recession - An economic situation of negative growth
Repo rate - Rate at which Central bank (RBI in case of India) lends money to commercial banks
Reverse repo rate - Rate at which commercial banks lends to central bank
Right issue - Issue of shares in which existing shareholders gets right to buy shares in proportion of their existing holding
Risk free return - Rate of return, normally it is 90 days bills issued by a national government

S
Stagnation - An economic situation of slow economic growth, high rate unemployment and inflation.
Shorting - Selling securities which an investors don't have in expectation of price drop

Underwriters - In case of an IPO, new companies makes contracts with underwriter where underwriters promises to purchase unsubscribe shares.

W
Working capital - Money required by a business to run its day to day business.
Working capital = Current assets / Current liabilities
Warrants - A document which gives right to holder to get shares at stated price

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