Terms used in capital market authority, Finance Basics

Terms used in Capital Market Authority

1. ACCOUNTS fourteen (14) days durations into that the stock exchange trading calendar is divided.

2. ACCOUNTS DAY - Sixth or seventh day given the expiry of an accounts period on that settlement on all time deals should be completed.

3. BACKWARDATION - Whereas stock cannot be delivered on settlement date even though it has been paid for, a third party is found who will lend and owns similar stock.  Like a security measure, this stock is paid for in complete.  While the original stock which could not be delivered on time is finally available, and the lender will be specified back his stock and will refund monies paid to him less backwardation that is a commission for the loan.

4. BONUS SHARES - Additional shares issued to shareholders on no additional cost to themselves as a form of further dividend. Identified as scrip issue also.

5. CALL-OVER - Bargaining and closing deals in a stock exchange with no a formal floor and position dealings, whereas the secretary reads, calls out each security to be dealt, individual at a time.

6. CARRY-OVER - When a deal has been efficient, for some valid reason, however either the Jobber may not be able to deliver stock on time or the buyer cannot pay on time.  In this case, a third party can be interacted to solve the problem.

7. CONTANGO - Is interest charged a client through his broker to cover the costs of borrowing money from a third party so like to pay for stock bought on his behalf? These occur when a client has commissioned his broker to purchase securities although for various reason, cannot pay on time.

 8. FLOOR loose term referring to the trading region of a stock exchange. Hence this encompasses all the places dealings or "markets" of the exchange.

9. GILT-EDGED SECURITIES - These are loan securities that are issued via Governments and since they are backed via the Governments "continuity", they are considered perfectly safe, providing usual periodic interest payments, and guaranteed capital redemption, a fixed rate of interest at the expiry of the loan term or Treasury bonds.

P.S.

Same type of securities issued via public corporations is identified bonds, whether they are issued via public companies they are identified debentures.

Posted Date: 2/1/2013 1:46:41 AM | Location : United States







Related Discussions:- Terms used in capital market authority, Assignment Help, Ask Question on Terms used in capital market authority, Get Answer, Expert's Help, Terms used in capital market authority Discussions

Write discussion on Terms used in capital market authority
Your posts are moderated
Related Questions
Charleston Industrial revised its dividend policy and decided that it wants to maintain a retained earnings account of $1 million. The company''s retained earnings account at the e

Market Segmentation Theory This theory states as the main investors lenders and borrowers are confined to a particular segment of the market and will not change even whether t

The Beta of several industry sectors is shown below. Industry                                                                                            Beta (β) Banks

EOQ Assumptions The basic EOQ model creates the following supposition as: i) The demand is identified and constant over the year ii) The ordering cost is con

Two friends, Alan & Tim just graduated from the college. They plan to start their own business, of selling health foods for office workers. They have identified a commercial comple

Matching Approach - Financing Current Assets This approach is further referred to as the hedging approach. Beneath this approach, the firm adopts a financial plan that involve

Explain about the New Issue Market OR Primary Market New issue market is the segment in which new issues are made. In new issue market, new issues may be made in 3 ways name

At the end of the fiscal year ending June 30, 2003, Microsoft reported common equity of $64.9 billion on its balance sheet, with $49.0 billion invested in financial assets (in the

A+/A1 It is one of the top ratings that a ratings agency allots to an issuer or insurer. This rating indicates that the security or carrier has steady financial backing and ple

If Metropolis Healthcare Systems have 1,150,000 in cash. How long will it take them to accumulate 2,000,000 in cash? Assume an interest rate of 5%..