This document provides definitions for various banking and financial terms:
1) It defines terms related to loans, interest, assets, liabilities, and other common banking activities and products in over 50 entries.
2) The entries cover a wide range including terms like accrued interest, actuary, advising bank, agricultural export zones, affidavit, agent bank, and more.
3) Many of the definitions relate to core banking functions such as lending, borrowing, accounts, payments, as well as financial concepts involving assets, liabilities, risk management, and more.
In today’s digital era, on average, people have the attention span of a goldfish: that’s why it’s important to get to the point, correctly and succinctly. Take a look at our financial glossary for a vocabulary boost.
In today’s digital era, on average, people have the attention span of a goldfish: that’s why it’s important to get to the point, correctly and succinctly. Take a look at our financial glossary for a vocabulary boost.
This presentation looks at the most corrupted countries in the world.
Many of these countries have many issues like poor government or drug lords/pirates control government land or famine or extreme poverty.
This presentation will look at aid to the most corrupted countries in the world.
Pakistan Armed Forces
Headquarters
Leadership
Chairman, Joint Chiefs of Staff Committee
General Khalid Shameem Wynne
Secretary of Defence
Nargis Sethi
Chief of Army Staff
Chief of Air Staff
Chief of Navy Staff
General Ashfaq Parvez Kayani
Air Chief Marshal Tahir Rafik Butt
Muhammad Asif Sandila
Manpower
Military age 16–49 years old[1]
Available for
military service 48,453,305 males, age 16–49 (2010 est.),
44,898,096 females, age 16–49 (2010 est.)
Fit for
military service 37,945,440 males, age 16–49 (2010 est.),
37,381,549 females, age 16–49 (2010 est.)
Expenditures
Budget $6.41 billion (2010–11) (ranked 35th)
Percent of GDP 2.6% (2008)
Foreign suppliers China
United States
France
Italy
Germany
Sweden
Turkey
Pakistan Armed Forces
The Pakistan Armed Forces, Musalah Afwaj-e-Pakistan) are the military forces of Pakistan. They are the seventh largest in the world in terms of active troops. The armed forces comprise three main branches:
the Pakistan Army, the Pakistan Navy (including the Pakistan Marines) and the Pakistan Air Force, together with a number of paramilitary forces.
Following 1962, Pakistan Armed Forces has had close military relations with the People's Republic of China, including development and research cooperation to enhance military system, such as on the JF-17 Thunder, K-8 Karakorum, and others as well. China is the leading supplier of military equipments to Pakistan.
The armed forces were formed in 1947 when Pakistan became independent from the British Empire.
Pakistan Armed Forces are the largest contributors to United Nations peacekeeping efforts, with more than 10,000 personnel deployed in 2007. Other foreign deployments have consisted of Pakistani military personnel as advisers in African and Arab countries.
History
Before 1947, most military officers of the newly formed Pakistan Armed Forces had served in the British Indian Army and fought in both World Wars and the numerous Anglo-Afghan Wars. Several experienced commanders who fought in the British military in World War II joined Pakistan Armed Forces giving it professionalism, experience and leadership. After independence, the military was supposed to have been divided between India and Pakistan with a ratio of 64% going to India and 36% for Pakistan; however, it is estimated that India refused to divide its share of equipment and some analyst suggest that Pakistan inherited a mere 15% of its allocated share.
The Pakistan Armed Forces have also taken over the Pakistani government several times since independence mainly on the pretext of lack of good civilian leadership, whom most Pakistanis regard as corrupt and inefficient. However, according to the political parties removed from power by the army, political instability, lawlessness and corruption are direct consequences of army rule.
TROOP STRENGTH
Pakistan’ Military is the seventh largest in th
This presentation looks at the most corrupted countries in the world.
Many of these countries have many issues like poor government or drug lords/pirates control government land or famine or extreme poverty.
This presentation will look at aid to the most corrupted countries in the world.
Pakistan Armed Forces
Headquarters
Leadership
Chairman, Joint Chiefs of Staff Committee
General Khalid Shameem Wynne
Secretary of Defence
Nargis Sethi
Chief of Army Staff
Chief of Air Staff
Chief of Navy Staff
General Ashfaq Parvez Kayani
Air Chief Marshal Tahir Rafik Butt
Muhammad Asif Sandila
Manpower
Military age 16–49 years old[1]
Available for
military service 48,453,305 males, age 16–49 (2010 est.),
44,898,096 females, age 16–49 (2010 est.)
Fit for
military service 37,945,440 males, age 16–49 (2010 est.),
37,381,549 females, age 16–49 (2010 est.)
Expenditures
Budget $6.41 billion (2010–11) (ranked 35th)
Percent of GDP 2.6% (2008)
Foreign suppliers China
United States
France
Italy
Germany
Sweden
Turkey
Pakistan Armed Forces
The Pakistan Armed Forces, Musalah Afwaj-e-Pakistan) are the military forces of Pakistan. They are the seventh largest in the world in terms of active troops. The armed forces comprise three main branches:
the Pakistan Army, the Pakistan Navy (including the Pakistan Marines) and the Pakistan Air Force, together with a number of paramilitary forces.
Following 1962, Pakistan Armed Forces has had close military relations with the People's Republic of China, including development and research cooperation to enhance military system, such as on the JF-17 Thunder, K-8 Karakorum, and others as well. China is the leading supplier of military equipments to Pakistan.
The armed forces were formed in 1947 when Pakistan became independent from the British Empire.
Pakistan Armed Forces are the largest contributors to United Nations peacekeeping efforts, with more than 10,000 personnel deployed in 2007. Other foreign deployments have consisted of Pakistani military personnel as advisers in African and Arab countries.
History
Before 1947, most military officers of the newly formed Pakistan Armed Forces had served in the British Indian Army and fought in both World Wars and the numerous Anglo-Afghan Wars. Several experienced commanders who fought in the British military in World War II joined Pakistan Armed Forces giving it professionalism, experience and leadership. After independence, the military was supposed to have been divided between India and Pakistan with a ratio of 64% going to India and 36% for Pakistan; however, it is estimated that India refused to divide its share of equipment and some analyst suggest that Pakistan inherited a mere 15% of its allocated share.
The Pakistan Armed Forces have also taken over the Pakistani government several times since independence mainly on the pretext of lack of good civilian leadership, whom most Pakistanis regard as corrupt and inefficient. However, according to the political parties removed from power by the army, political instability, lawlessness and corruption are direct consequences of army rule.
TROOP STRENGTH
Pakistan’ Military is the seventh largest in th
195 Accounting Principles Questions and Answers for Accounting Exams and Job ...Rahat Kazmi
These 195 Answers have been put together to most popular Interview Questions. These questions can also be useful for Exams but I would recommend further reading. Please note that the Answers are based on US GAAP, but I have seen these are very similar to UK GAAP. If you like my efforts, please follow me to receive more documents like this in the future.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdf
Banking terminology abbrevations
1. Page 1 of 1
GLOSSARY OF BANKING TERMS GENERALLY USED IN CDR
Accrued Interest
Interest earned but not yet received.
Acquisition
Purchase of controlling interest in a firm, generally through tender offer
for the target shares.
Insurance company official, responsible for estimating future claims and
Actuary
disbursement and for calculating necessary fund and premium levels.
ADS
Authorized Dealers
Advising Bank
A Bank usually located in the country of residence of an Exporter, used
by an Importer’s bank to authenticate a Letter of Credit before it is passed
on to the Exporter.
AEZs
Agricultural Export Zones
Affidavit
A written statement, sworn to be true by the person signing it, before
someone authorized by court of law.
A participating bank in a syndicated loan that handles all the operations
Agent Bank
and deals with the borrower on behalf of the members of the syndicate.
AIDB
All India Development Bank
AIFI
All India Financial Institution
ALCO
Asset-Liability Management Committee
ALM
Asset/ liability management involves a set of techniques to create value
and manage risks in a bank.
Asset Management Committee
AMC
American
Depository A certificate registered in the holder’s name or as a bearer security giving
Receipt (ADR)
title to a specified number of shares in a non-US-based company
deposited in a bank outside the USA. These certificates are traded on US
stock exchanges.
American option
An option that can be exercised on or any time before the date of expiry.
Amortization
Process of full payment of debt in installments of principal and earned
interest over a definite time.
Amount at risk
Balance of the sum payable not covered by reserves, potentially falling on
the net worth (net assets) of the company.
2. Page 2 of 2
Fixed amount of cash to be received every year for a specified period of
Annuity
time.
Agricultural and Processed Food Products Exports Development
APEDA
Authority.
Simultaneous purchase and sale of identical or equivalent financial
Arbitrage
instruments or commodity futures so as to benefit from difference in their
price relationship.
ARF
Automatic Refinance Facility
ASB
Accounting Standards Board
Asset/Liability Risk:
A risk that current obligations/ liabilities cannot be met with current
assets. A fundamental risk in all organizations, which should manage the
risk and maintain liquidity or become insolvent.
Assets
Things that one owns which have value in financial terms.
Assignment
Receipt of an exercise notice by an option writer (seller) that obligates
him to sell (in the case of a call) or purchase (in the case of a put) the
underlying security at the specified strike price.
The risk of giving an incorrect audit opinion.
Audit Risk
Automated
Banking Terminals that allow bank customers to perform many everyday banking
Machines (ABMs)
tasks, e.g., deposits, withdrawals, bill payments and transfers between
accounts.
Automated
Machines (ATMs)
Teller A computerized machine used for banking transactions, e.g. depositing or
withdrawing money, making balance/ transaction inquiries and transfers;
operated through magnetic plastic cards with the held of personal
identification numbers (PINs).
Available Balance
The portion of a customer’s account balance having no restrictions from
the bank and available for immediate withdrawals.
Average life
Weighted average of the maturities of various loans or bonds after taking
into account agreed amortization’s.
Back-end value
Amount paid to the remaining shareholders in the second stage of a twotier or partial tender offer.
3. Page 3 of 3
Balance of Payment
Statement showing the country’s trade and financial transactions (all
economic transactions), in terms of net outstanding receivable or payable
from other countries, with the rest of the world for a period of time.
Balance Sheet
Statement of assets and liabilities of a company at any particular time.
The assets on a balance sheet will always equal the liabilities plus the
owner’s equity.
Balloon Payment
A large payment that may be charged at the end of a loan or lease.
Bank Credit
Includes Term Loans, Cash Credit, Overdrafts, Bills purchased &
discounted, Bank Guarantees, Letters of Guarantee, Letters of credit.
Bank Debits
The sum of the value of all cheques and other instruments charged against
the deposited funds of a bank’s customer.
Bank Rate
Interest rate paid by major banks if they borrow from RBI, the Central
Bank of the country. The Bank Rate influences the rates of interest major
banks/ financial institutions charge and pay their customers.
Bank Statement
A periodic record of a customer’s account that is issued at regular
intervals, showing all transactions recorded for the period in question.
Banker’s Acceptance
Negotiable time drafts, or bills of exchange, that have been accepted by a
bank which, by accepting, assumes the obligation to pay the holder of the
draft the face value of the instrument on the specified maturity date.
Bankers’ Acceptances are generally used to finance export, import,
shipment, or storage of goods.
Bankruptcy
A condition in which a firm (or individual) is unable to meet its (his)
obligations and, hence, its (his) assets are surrendered to a court for
administration.
Basis Point
One-hundredth of one percentage point (i.e. 0.01%), normally used for
indicating spreads or cost of finance.
Bid/Bond Guarantee
A guarantee issued by a bank on behalf of a seller to a buyer to support
the sellers’ bid or tender for a contract. If the sellers’ bid is accepted, the
buyer can claim compensation under the guarantee.
BIFR
Board for Industrial and Financial Reconstruction.
4. Page 4 of 4
Bill Discounting
Receiving payment on a bill of exchange prior to the bill’s maturity by
surrendering the bill for the face value less applicable interest for the time
remaining up to maturity.
Bill of Exchange
An order written by the seller of goods instructing the purchaser to pay
the seller (or bearer of the bill) a specified amount on a specified future
date.
Bill of Lading
A document which represents ownership of goods in transit.
Blue Chips
Shares in leading quoted companies that can be easily bought and sold
without influencing their price (liquidity) and are regarded as low-risk
investments.
Bond
A negotiable instrument evidencing debt, under which the issuer promises
to pay the holder its face value plus interest as agreed.
Book Value
The cost price of an asset less accumulated depreciation.
Bought financing
Short-term financing arranged by a bank for offering continuing source of
funds pending receipt of loan/bond issue proceeds.
BR Act
Banking Regulation Act.
Brand name capital
A firm’s reputation; the result of non-salvageable investment which
provides customers with an implicit guarantee of product quality for
which they are willing to pay a premium.
Break-even point
Refers to the price at which a transaction produces neither a gain nor a
loss.
Bridge Loan
Temporary finance provided to a project until long-term arrangements are
made.
BSE
Bombay Stock Exchange
Bull
One who expects prices to rise.
Bull Market
A market in which prices keep rising.
Bullet redemption
Repayment of a debt in one lump sum at the end of the maturity period.
A common practice in Euro markets in respect of bond issues.
Bundling
Provision of more than one product or service to a customer at an
inclusive price e.g. ‘free’ life insurance with a loan.
5. Page 5 of 5
Bust-up takeover
An acquisition followed by divestment of some or all of the operating
units of the acquired firm which are presumably worth more in pieces
than as a going concern.
Buy-back
A public company, which buys its own shares, by tender offer, in open
market, or in a negotiated buy-back from a large block holder.
CIF
Cost, Insurance and Freight
Call Date
Date on which a bond may be redeemed before maturity at an option of
the issuer.
Call Money
Loaned funds that are repayable upon the request of either party.
Call Option
An option that gives its holder the right to buy an asset at a fixed price
during a certain period
Call Provision
A feature of a bond that entitles the issuer to retire the bond before
maturity
Cap
A ceiling on the interest rate on a floating-rate note.
Capital
Funds invested in a firm by the owners for use in conducting the business.
Capital Adequacy Ratio A ratio of total capital divided by risk-weighted assets and risk-weighted
(CAR)
off-balance sheet items. A bank is expected to meet a minimum capital
ratio specifically prescribed by the Regulator.
Capital budget
The list of planned capital expenditures prepared usually annually
Capital Gain and Loss
The difference between the price that is originally paid for a security and
cash proceeds at the time of maturity (face value of bond) or at the time of
sale (selling price of a bond or stock). When the difference is positive, it
is a gain, but when it is negative, it is a loss.
Capital investments
Money used to purchase permanent fixed assets for a business, such as
machinery, land or buildings as opposed to day-to-day operating
expenses.
Capital Market
Market in which financial instruments are bought and sold.
Capital Structure
The composition of a firm’s long-term financing consisting of equity,
preference shares, and long-term debt.
Cash cows
Business segments, having a high market share in low growth product
6. Page 6 of 6
markets, which generate more cash flow than needed for reinvestment.
An arrangement whereby the bank gives a short-term loan against the
Cash Credit (CC)
self-liquidating security.
Cash Discount
A discount given to buyers for cash rather than credit purchase.
Cash flow forecast
An estimate of when and how much money will be received and paid out
of a business. It usually records cash flow on a month-by-month basis.
Certificate of Deposit A negotiable instrument issued by a bank evidencing time deposit
(CD)
A written order on a bank instrument for payment of a certain amount of
Cheque
money.
CIBIL
Credit Information Bureau of India Ltd.
CLB
Company Law Board
Clean-up merger
Also called Take-out merger. The consolidation of the acquired firm into
the acquiring firm after the acquirer has obtained control.
CMS
Cash Management Services.
Collateral
Property (real, personal or otherwise) pledged as security for a loan.
Also, any supplementary promise of payment, such as a guarantee.
A secret agreement between two or more persons to defraud another
Collusion
person of his or her right in order to achieve an unlawful objective.
Commercial
Credit The risk of loss from providing credit to corporate counter-parties.
Risk
Extension of credit can take the form of direct loans and contingencies/
guarantees.
Commercial Paper (CP) Issue of short-term notes, without any underwriting, representing a
promise to repay the amount at a specified future date.
Commitment fee
A fee charged by a bank in respect of an unused balance of a line of credit
or sanction of loan designed to offset the bank’s cost of keeping the funds
available.
Compound Interest
Interest payable (receivable) on interest.
Conglomerate
A combination of unrelated firms; any combination that is not vertical or
horizontal
7. Page 7 of 7
Consumer Price Index An index that measure movements in the average price of products and
(CPI)
services.
Convertible Bond
A bond that is convertible into common stock.
Convertible Security
Bond or preferred stock which is convertible into equity shares generally
at the option of the holder
Corporate Banking
Banking services for large firms.
Corporate Governance
A system by which organizations are directed and controlled. Board of
directors are responsible for the governance of their organizations.
Corporate Tax
A tax on the profits of firms, as distinct from taxation of the incomes of
their owners.
Coupon Rate
The stated interest rate on a bond.
Covenant
A definite provision in a loan contract.
CRAR
Capital to Risk-Weighted Assets Ratio.
CRAs
Credit Rating Agencies.
Credit Crunch
Refers to a situation where supply of credit falls even though there is
sufficient demand for it.
Credit History
A record of how a person or company has borrowed and repaid debts.
Credit Risk
The risk of loss from failure of the counterparty to perform as agreed
(contracted).
Credit Scoring System
A statistical system used to determine whether or not to grant credit by
assigning numerical scores to various characteristics relating to
creditworthiness.
Creditworthiness
A creditor’s measure of a consumer’s or company’s past and future ability
and willingness to repay debts.
CRISIL
Credit Rating and Investment Services of India Limited
Cross default
Two loan agreements connected by a clause that allows one lender to
recall the loan if the borrower defaults with another, and vice versa.
Cumulative Dividends
A feature of preferred stock that requires all past dividends on preferred
stock to be paid before any equity dividends are paid.
Currency basket
Arrangements whereby two or more currencies are clubbed together with
8. Page 8 of 8
defined weights, and whose exchange rate/ interest rate is determined by
computing weighted average market rates.
Currency Market Risk
The risk of loss from having positions in any of the currency markets.
The risk can be from outright positions. It can also reside in the balance
sheet or in the income flows of a company.
Current assets
Short-term assets, constantly changing in value, such as stocks, debtors
and bank balances.
Current liabilities
Short-term liabilities, due to be paid in less than one year, such as bank
overdrafts, money owed to suppliers and employees.
Current Yield
The yield on a security resulting from dividing the interest payment or
dividend on it by its current market price.
D/A (documents against Refer to shipping documents presented to a bank on a collection basis to
acceptance)
be passed to the buyer when he or she accepts a bill of exchange. The
bank holds the bill of exchange until it ends (maturity) when they ask the
buyer to pay the seller.
D/P (documents against Refer to shipping documents presented to a bank on a collection basis to
payment)
be passed to the buyer (drawee) when payment is made.
DCF
Discounted Cash Flow.
Debenture
An instrument for raising long-term debt.
Debentures in India are
typically secured by tangible assets.
Debt/equity ratio
A comparative ratio of debt and equity used to measure the gearing/
health of a business.
Default
Generally, failure to satisfy an obligation when due, or the occurrence of
one of the defined events of default agreed to by the parties under a
contract.
Default Risk
The risk that a borrower may not repay principal and/or interest as
originally agreed.
Default Risk Premium
The component of a required interest rate that is based on the lenders’
perceived risk of default.
Depreciation
An annual deduction of a part of the cost of an asset. In general, it means
9. Page 9 of 9
a decline in market value.
DFI
Development Financial Institution.
Direct Financing
Provision of funds for investment to the ultimate user of funds.
Direct taxes
Taxes which affect the consumer directly, such as income tax, corporate
tax, capital gains tax etc.
Discount
The amount by which a bond or preferred stock sells below its par or face
value. In foreign exchange market, it is the amount by which forward
price is less than the spot price.
In general, it means an extent of
reduction in the price / value of the asset/ product which is given when it
is sold.
Dividends
Company earnings that may be paid out to shareholders according to the
number of shares or stocks they hold. Dividends can be earned on stocks
as also units of mutual funds.
Documentary Credit
Written undertaking by a bank on behalf of an importer authorizing an
exporter to draw drafts on the bank up to a specified amount under
specific terms and conditions. They are used to facilitate international
trade. Also called Letter of Credit (LC).
DRT
Debt Recovery Tribunal.
Due diligence
While finalizing documentation, the lead manager and the legal counsel
conduct a thorough review of the borrowing entity with reference to the
financials, legality, and all such matters relevant in a public offering of
securities.
Earning Yield
The ratio of earning per share to market price of the share.
ECBs
External Commercial Borrowings.
ECGC
Export Credit Guarantee Corporation.
Effective rate of interest The percentage rate of return on an annual basis, reflecting the effect of
intra-year compounding.
Entrepreneur
A person who conceives, starts and manages a business.
EOUs
Export-Oriented Units.
Equitable mortgage
A type of mortgage under which one still owns the property which is
10. Page 10 of 10
security for the mortgage. The owner can occupy or live in the property.
Equity
The value of a business after all debts and other claims are settled. Also,
the amount of cash a business owner invests in a business and/ or the
difference between the price for which a property could be sold and the
total debts registered against it.
Escrow Account
An account for which a bank acts as an uninterested third party (custodian
/ depository) to ensure compliance with the terms of the deal between two
parties only upon the fulfillment of some stated conditions. The account
becomes operative on the occurrence of the stated event. Banks hold such
accounts in which funds accumulate to pay taxes, insurance on mortgage
property, etc.
Exchange Rate
The rate at which one currency may be exchanged for another.
Exchange Rate Risk
The risk that changes in currency exchange rates may have an
unfavourable impact on costs or revenues of economic units.
Excise duties
Duties levied on items manufactured within the country and paid by the
manufacturer.
Exports
Products and services sold to other countries.
Face Value
The stated principal amount of a financial instrument.
Factoring
Sale of receivables to a financial institution usually on a ‘non-recourse’
basis.
Fixed assets
Assets such as land, buildings, machinery or property used in operating a
business that will not be consumed or converted into cash during the
current accounting period.
Fixed Rate
A predetermined rate of interest applied to the principal of a loan or credit
agreement.
Foreign Exchange
Various instruments used to settle payments for transactions between
individuals or organizations using different currencies (e.g. notes,
cheques, etc.)
Foreign Exchange Rate
The value of a nation’s currency in terms of another nation’s currency.
Foreign Trade
The exchange of goods between two nations.
11. Page 11 of 11
A form of export finance in which the forfaiter accepts, at a discount from
Forfaiting
the exporter, a bill of exchange or promissory note (note) from the
exporter’s customer; the forfaiter in due course collects payment of the
debt.
Such notes are normally guaranteed by the customer’s bank.
Maturities are normally up to three years.
Forward Contract
A contract in which one party agrees to buy, and the other to sell, a
specified product at a specified price on a specified date in the future.
Forward Cover
Forward purchase or sale of foreign currency to offset an anticipated
future cash flow.
FRNs
Floating Rate Notes.
Funded debt
Generally, a short-term debt that has been converted into long-term debt
funding.
Contracts to buy something in the future at a price agreed upon in
Futures
advance. First developed in the agriculture commodity markets but often
involve foreign exchange, and Government bonds.
Going-concern value
The value of the firm as a whole over and above the sum of the values of
each of its parts; the value of an organization’s learning and reputation.
The excess of the purchase price paid for a firm over the book value
Goodwill
received. Recorded on the acquirers’ balance sheet.
Gross
Domestic The total of market value of the finished goods and services produced in a
Product (GDP)
country in a given year.
Comprising three sectors viz. Agriculture,
Industry & Services.
Gross National Product The total market value of finished goods and services produced in the
(GNP)
country in a given year, plus the income of domestic residents from
investments made abroad, minus the income earned by foreigners abroad
from the domestic market.
Gross Profit margin
The difference between the sales a business generates and the costs it pays
out for goods.
Guaranty
The undertaking of responsibility by one party for another party’s debt or
obligation to perform some specific act or duty. Although the original
12. Page 12 of 12
debtor is responsible for the debt, the guarantor becomes liable in the
event of a default.
Haircut
The difference between the market value of a security and its value when
used as collateral. The haircut is intended to protect a collateral taker
from losses due to declines in collateral values.
Hedge
One investment purchased against another investment in order to counter
any loss made by either.
Holding company
A company which controls another company, usually by owing more than
half of its shares.
ICD
Inter-Corporate Deposit.
Imports
Goods and services that a country buys from other countries.
Indemnity
If someone promises to compensate someone else for loss or damage, it is
called an indemnity.
Indirect financing
The process by which deficit spending units obtain funds from financial
intermediaries who, in turn, them from ultimate surplus spending units.
Indirect taxes
Taxes, which are charged on goods produced, imported or exported:
Excise and Customs duties.
Industry life cycle
A conceptual model of the different stages of an industry’s development.
1. Development stage: New product, high investment needs, losses;
2. Growth
stage:
Consumer
acceptance,
expanding
sales,
high
profitability, ease of entry;
3. Maturity stage: Sales growth slows, excess capacity, prices and profits
decline – key period for merger strategy;
4. Decline stage: Substitute products emerge, sales growth declines,
pressure for mergers to survive.
Inflation
A percentage rate of change in the price level.
Inflation Premium
A premium for anticipated inflation that investors require in addition to
the pure rate of interest.
Initial Public Offering The first offering to the public of common stock, e.g. of a former privately
(IPO)
held firm, or a portion of the common stock of a hitherto wholly-owned
13. Page 13 of 13
subsidiary.
Insolvent
The condition when one is unable to pay one’s debt obligations when due.
Insufficient Funds
When an account balance is inadequate to cover a cheque that has been
written and presented for payment.
Insurance
A contract whereby one party agrees to pay a sum to another party for a
fee (premium) in the event that the latter suffers a particular loss. The
person or firm that undertakes the risk is the insurer. The party desiring to
be protected from loss is the insured party.
Intangible assets
Assets that cannot be touched. Examples are goodwill and patent rights.
Internal Rate of Return The rate of discount at which the net present value of an investment is
(IRR)
zero.
Lease
A contractual arrangement whereby one party (the lessor) grants the other
party (the lessee) the right to use an asset in return for periodic rental
payments.
Lessee
One who takes property on lease.
Lessor
A person, Corporation, or other legal entity that leases property to a
lessee.
Letter of Credit (LC)
A formal document issued by a bank on behalf of a customer, stating the
conditions under which the bank will honour the commitments of the
customer.
Lien
A lender’s claim on assets offered as security for a loan.
Line of Credit
A pre-approved credit facility (usually for one year) enabling a bank
customer to borrow up to the specified maximum amount at any time
during the relevant period of time.
Liquidation
Divestment of all the assets of a firm so that the firm ceases to exist.
Liquidity
The extent to which or the ease with which an asset may quickly be
converted into cash with the least administrative and other costs.
Loan Document
A business contract by which a borrower and lender enter into an
agreement.
Loans are classified according to the lender or borrower
involved, whether or not collateral is required, the time of maturity,
14. Page 14 of 14
conditions of repayment, and other variables.
Loan Risk
This is the risk of loss from loaning money and having the borrower fail
to repay, either due to genuine reasons or willfully.
Long-term Liabilities
Money that one owes over a period longer than 12 months, such as
mortgages, bank loans and other obligations.
Margin
A part of the value of security, which is not given as a loan by the bank or
financial institution.
Market Capitalization
The total value, at market prices, of the securities at issue for a company
or a stock market or sector of the stock market. Calculated by multiplying
the number of shares issued by the market price per shares.
NBFC
Non-Banking Finance Companies.
NCD
Non-Convertible Debenture.
Net Present Value
Capital budgeting criterion, which compares the present value of cash
inflows of a project discounted at the risk-adjusted cost of capital to the
present value of investment outlays discounted at the risk-adjusted cost of
capital.
Net Worth
Book value of a company’s common stock, surplus, and retained earnings.
Non Performing Assets When due payments in credit facilities remain overdue above a specified
(NPA)
period, then such credit facilities are classified as NPA.
Non-Recourse
Purchase from the seller of accepted term Bills of Exchange at a discount
Discounting
to allow for funding of the advance from the discount date until the
maturity date of the bills. When the discount is provided on a nonrecourse basis the financing bank has no recourse to the seller in the event
of non-payment by the buyer or the buyers’ bank.
NSE
National Stock exchange of India Limited.
Obligation
The responsibility to perform some act or pay a sum of money when due.
OD
Overdraft
Off-Balance Sheet
Includes all banking transactions that do not appear on the balance sheet
of a bank as an asset or as a debt. Includes all commitments for which a
cash flow arises conditional on a specific event. For instance, a loan
15. Page 15 of 15
guarantee will create an obligation only if there is a default. Derivatives
are a form of off-balance sheet transactions.
On-Line
A computer system where input data are processed as received and output
data are transmitted as soon as they become available to the point where
they are required.
Open-End Credit
Commonly referred to as a Line of Credit. May be used repeatedly up to a
certain limit; also called a Charge Account or Revolving Credit.
Open-End Lease
Often, referred to as a finance lease. A lease that may involve a balloon
payment based on the value of the property when it is returned.
Operating Cycle
The length of time taken by a firm to produce its final product, sell it to
customers, and collect proceeds of the sale in cash.
Operating Lease
Short-term, cancelable lease.
Operating synergy
Combining two or more entities results in gains in revenues or cost
reductions because of complementarities or economies of scale or scope.
Operational Risk
Includes all risks not included in market risks and credit risks, such as
losses arising from fraud, failure in computer systems and data entry
errors.
Opportunity Cost
The rate of return that can be earned on the best alternative investment. In
general, the gain or return on the next best investment opportunity or the
next best use of resources, which is forgone by putting the resources to a
given use.
Option
A formal contract which grants the holder of the option the right to buy or
sell a certain quantity of an underlying interest or asset at a stipulated
price within a specific period of time.
Option Contract
A contract that gives the buyer the right, but not the obligation, to buy or
sell an underlying asset by (or on) a specific date for a specific price. For
this right the purchaser pays a premium.
Overdraft System
The system in which the borrower is allowed to overdraw on his current
account with the banker upto a certain specified limit during a given
period.
16. Page 16 of 16
The value of a security when it is issued. For bonds and preferred stock,
Par Value
par value is equivalent to face value.
Partial Shipment
A load sent in more than one consignment. In a Letter of Credit, the
buyer can say whether this is allowed or not allowed.
Shared ownership among two or more individuals, some of whom may,
Partnerships
but do not necessarily, have limited liability with respect to obligations of
the group. There is a written agreement among partners detailing the
terms and conditions of participation in a business ownership
arrangement.
Through Debt instruments backed by a portfolio of assets.
Pass
Certificates
Length of time required for an asset to generate cash flows just enough to
Payback period
cover the initial outlay.
Vanilla The most common and generally the simplest types of derivatives
Plain
Transactions
transaction. Transactions that have unusual or less common features are
often called exotic or structured.
If someone pledges goods, they let a second person take possession of the
Pledge
goods, but the person pledging the goods still owns them. It is often done
as security for money owed or to make sure that something is done as
promised.
Power of Attorney
A power of attorney is a document, which gives power to the person
appointed by it to act for the person who signed the document.
Prepayment
Payment of the principal amount of a loan ahead of the scheduled date.
Present Value
The discounted value of a payment or stream of payments to be received
in future, taking into consideration a specific interest or discount rate.
Present Value represents a series of future cash flows expressed in today’s
value.
Prime
Lending
Rate The rate of interest charged on loans by banks to their most creditworthy
(PLR)
customers.
Principal
Amount of debt that must be repaid. Also means a person who deals in
17. Page 17 of 17
securities on his own account and not as a broker.
Product Differentiation
Development of a variety of product configurations to appeal to a variety
of consumer tastes.
Product Life Cycle
A conceptual model of the stages through which products or lines of
businesses pass. Includes development, growth, maturity, and decline.
Each stage presents its own threats and opportunities.
Product Mix
The composite of products offered for sale by an organization.
Productivity
The amount of physical output for each unit of productive unit.
Promissory Note
A signed undertaking from one party containing a promise to pay a stated
sum to a specified person or a company at a specified future date.
PSB
Public Sector Bank
PSE
Public Sector Enterprise
PSU
Public Sector Undertaking
Purchasing
Power The concept that homogeneous goods cannot have more than one price
measured in any one currency. If the price increases domestically, the
Parity
domestic currency will depreciate so that the price denominated in foreign
currency remains the same.
Pure
Conglomerate A combination of firms in non-related business activities that is neither a
Merger
product-extension nor a geographic-extension merger.
Rating
Refers to the credit quality of a counterparty. External ratings are given
by rating agencies (ranging from AAA very safe asset to C). Internal
ratings are granted by the bank itself.
Ratio
Comparison of two figures used to evaluate business performances, such
as debt/equity ratio return on investment, etc.
Reconciliation
Checking all bank account papers to make sure that the bank’s records
and customer’s records are in sync.
Recourse
In the context of a sale of a loan by a bank to investors, they have the right
to call the guarantee from the bank should the borrower be unable to meet
its obligations
Redemption
Redemption means paying off all the money borrowed under an
18. Page 18 of 18
agreement.
A formal document expressing the intention of a board of directors of a
Resolution
corporation.
Revolving
Letter
Credit
of A Letter of Credit in which the value of the Letter of Credit is
automatically reinstated upon utilization. A Letter of Credit may revolve
by value, time or both.
Rights Issue
Issue of securities offered to existing shareholders/ bond holders on a preemptive or priority basis.
Risk Assessment
A process used to identify and evaluate risks and their potential effect.
Sale
Transfer of ownership of some type of property from one person to
another, for some consideration.
Salvage
The attempt to get repayment of some portion of a loan obligation which
has already been written off the bank’s books.
Scale Economies
The reduction in per-unit costs achievable by spreading fixed costs over a
higher level of production.
SEBI
Securities and Exchange Board of India.
SEBs
State Electricity Boards.
Securitization
The process of transformation of a bank loan into tradable securities. It
often involves the creation of a separate corporate entity, the Special
Purpose Vehicle (SPV), which buys the loans financing itself with
securities that are sold to investors.
Selective Credit Control Control of credit flow to borrowers dealing in some essential commodities
(SCC)
to discourage hoarding and black-marketing.
Senior Debt
Debt which, in the event of bankruptcy, must be repaid before
subordinated debt receives any payment.
Serial Bonds
Bonds that mature at specified intervals.
Series Bond
Bond which may be issued in several series under the same indenture.
Service Charge
A fee paid for using a service.
Service Provider
The organization which provides the outsourced service.
SEZ
Specific Economic Zone.
19. Page 19 of 19
SFC
State Financial Corporation.
Short-term Loan
Loan to a business for less than one year, usually for operating needs.
SICA
Sick Industrial Companies (Special Provisions) Act.
Sinking Fund
A fund to which a firm makes a periodic contribution to facilitate
retirement of debt.
Special Purpose Vehicle
A legal corporate entity created to buy loans from banks. It finances itself
with securities issued to investors.
Any individual or group who has an interest in a firm; in addition to
Stakeholder
shareholders and bondholders, includes labour, consumers, suppliers, the
local community, and so on.
Standby
Letter
Credit
of A guarantee issued by a bank, on behalf of a buyer that protects the seller
against non-payment for goods shipped to the buyer. The buyer pays the
seller directly for the goods and only if the buyer fails to pay does the
seller claim under the Standby Letter of Credit.
Statement
All transactions in a bank account for a period of time. Statements are
usually given once a month.
Statutory Audit
By law, certain companies need to have their accounts audited by suitably
qualified accountants. This is called a statutory audit.
Stocks
Traded on a stock exchange, these are shares in a company. Essentially,
one purchases shares in an exchange for owning a part of a company.
Swap
An agreement for an exchange of payments between two counterparties at
some point(s) in the future and according to a specified formula.
SWOT
Acronym for Strengths, Weakness, Opportunities and Threats; an
approach to formulating firm strategy via assessment of a firm’s
capabilities in relation to the business environment.
Syndicate
Group of banks and financial institutions, which together contribute the
necessary financing for a transaction.
Syndicated Loans
Loans to a company backed by a group of banks in order to share the risk
in a large transaction among several financial institutions.
usually a lead bank and several participating banks.
There is
20. Page 20 of 20
Synergy
The “2 + 2 = 5” effect. The output of a combination of two entities is
greater than the sum of their individual outputs.
Systematic Risk
The risk that the failure of one participant in a payment or settlement
system, or in financial markets generally, to meet its required obligations
when due will cause other participants or financial institutions to be
unable to meet their obligations (including settlement obligations in a
payment and settlement system) when due.
Take-out Merger
The second-step transaction which merges the acquired firm into the
acquirer and thus takes out the remaining target shares which were not
purchased in the initial (partial) tender offer.
Tangible Assets
Physical assets such as plant, machinery, factories, and offices.
Tax Avoidance
Lawful agreement or re-arrangement of the affairs of an individual or
company intended to avoid liability to tax.
Tax Evasion
Fraudulent or illegal arrangements made with the intention of evading tax,
e.g. by failure to make full disclosure to the revenue authorities.
Tax Haven
An international banking and financial centre providing privacy and tax
benefits.
Tax Incentives
Tax benefits. Most tax incentive measures fall into one or more of the
following categories: tax exemption (tax holiday); deduction from the
taxable base; reduction in the rate of tax; tax deferment, etc.
Term Loan
A loan intended for medium-term or long-term financing to supply cash to
purchase fixed assets such as machinery, land or buildings or to renovate
business premises.
Tier 1 Capital
Refers to core capital consisting of Capital, Statutory Reserves, Revenue
and other reserves, Capital Reserves (excluding Revaluation Reserves)
and unallocated surplus/ profit but excluding accumulated losses,
investments in subsidiaries and other intangible assets
Tier 2 Capital
Comprises Property Revaluation Reserves, Undisclosed Reserves, Hybrid
Capital, Subordinated Term Debt and General Provisions.
Supplementary Capital.
This is
21. Page 21 of 21
Title Deeds
Documents which prove who owns a property and under what terms.
Trade Creditors
Organisations, which are owed money for goods and services supplied.
Trade Debtors
Organisations, which owe money for goods and services supplied.
Trade Deficit
The amount by which merchandise imports exceed merchandise exports.
Transaction
Action in a bank account. Could be a deposit, withdrawal, debit card
payment, service charge or interest payment.
An entity created for the purpose of protecting and conserving assets for
Trust
the benefit of a third party, the beneficiary- A contract affecting three
parties, the settlor, the trustee and the beneficiary.
Trust Deed (Settlement Document that lays down the foundations of how the trustees are to
Deed,
Declaration
Trust
or
of administer and manage the trust assets and how they are to distribute and
Trust dispose of trust assets during the lifetime of the trust.
Instrument)
Trustee
Trustees have a fiduciary duty to act in accordance with a trust deed and
for the benefit of the beneficiary (ies).
UCPDC
‘Uniform Customs and Practice for Documentary Credit’ developed by
the International Chamber of Commerce as the rules that govern the
operation of Letter of Credit transactions worldwide. ICC publication
No.500 contains details of the rules currently in use.
Undervaluation
When a firm’s securities sell for less than their intrinsic, or potential, or
long-run value for one or more reasons.
Underwriting
The arrangement in which investment bankers undertake to ensure the full
success of the issue of securities.
Universal Bank
A bank or a financial institution that has the legal authority to offer all
financial services and may, thus, be engaged in securities dealing,
insurance, underwriting, and the full range of more traditional banking
services.
Value Creation
The difference between the value of an investment and the amount of
money invested by shareholders.
Variable Expenses
Costs of doing business that vary with the volume of business, such as
22. Page 22 of 22
advertising costs, manufacturing costs and bad debts.
Variable Rate
A variable rate loan or credit agreement, calls for an interest rate that may
fluctuate over the life of the loan. The rate is often tied to an index that
reflects changes in market rates of interest. A fluctuation in the rate
causes changes in either the payments or the length of the term.
VCF
Venture Capital Fund.
Venture Capital
Commonly refers to funds that are invested by a third party in a business
either as equity or as a form of secondary debt.
Vertical Merger
A combination of firms, which operate at different levels or stages of the
same industry manufacturer mergers with a type company (backward
integration).
VRS
Voluntary Retirement Scheme
Winding up
Winding up of a company is done by paying the company’s creditors, and
then distributing monies left (if any) among the members.
Yield
(1) A measure of the income generated by a bond. The amount of
interest paid on a bond divided by the price. (2) The rate of discount
which makes the present value of the stream of future returns plus the
terminal value of the asset equal to the current market price of the asset.
Zero Coupon Bond
A bond issued at a discount (i.e. below par value), earning no interest but
redeemable at its par value, thus providing a guaranteed capital gain.