Non-banking financial company

Finance may be defined as the art and service of managing money. The two major areas of finance are. 1) Financial management managerial finance corporate finance. II) Finance services. Financial management is concerned with duties of the financial manager in the business firm who perform such varied tasks as budgeting financial forecasting,cash management credit administration… Continue reading Non-banking financial company

Cost of debt

A company may raise debt in a variety of ways. It may borrow funds from financial institutions or public either in the form of public deposit or debentures (bonds) for a specified period of time at a certain rate of interest. A debenture or bond may be issued at par or at a discount or… Continue reading Cost of debt

Capital market

Capital markets are place where investor buy and sell company and government securities with their trading decision reflecting information on company performance insight provided by financial analyst, dividend announcement by companies expectation on the future levels of interest rate and inflation the investment decision of financial managers and so on. At both levels, companies and… Continue reading Capital market

Monetary policy

The monetary policy stance of the reserve bank continued to be the provision of adequate liquidity to meet credit growth. Support investment demand in the economy while continuing a vigil on movement in the price level. Liquidity management in India is a subject that is not widely discountedĀ  but is the bread and butter of… Continue reading Monetary policy

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Categorised as Economics

Swap

Swap are similar to future and forward contracts in providing hedge against financial risk. A swap is an agreement between two parties called counter parties to trade cash flows cash flows over a period of time. Swaps arrangements are quite flexible and are useful in many financial situation. Two most popular swap and interest rate… Continue reading Swap

Foreign exchange market

The foreign exchange market where the currency of one country is exchanged for the currency of another country. Most currency transactions are channelled through the world wide. Interbank market is the whole sale market in which major banks trade with each other. Forex market is a world wide market of an informed network of telephone,… Continue reading Foreign exchange market

Underwriting

Underwriting entails an agreement whereby a person or organisation agrees to take a specified number of share or debenture. Specified amount of stocks offered to the public in the event of the public not subscribing to it. In underwriters to issues of capital who agree to take up. Securities which are not fully subscribed either… Continue reading Underwriting

Capital structure

The mixed of debt and equity is known as the firm’s capital structure. The financial manager must strive to obtain the best financing mix or the option of capital structure. The firm’sĀ  is considered optimum when the market value of share is maximised. The assets of a Company can be financed either by increasing the… Continue reading Capital structure

Systematic risk

Systematic risk arises an account of the economy-wide uncertainties and the tendency of individual securities to move together with changes in the market. Also known as market risk.This is the risk can not be reduced through diversification. Investor are exposed to market risk. Even when they hold well-diversified portfolio of securities systematic risk of the… Continue reading Systematic risk