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Most of the time, an investor buys a bond between coupon payments. In such transaction, the buyer must compensate the seller of the bond for the
Preferred Stock This is a category of capital stock that will gives its holders preference over common stockholders in the distribution of earnings or rights to the assets o
a) Definitions of EST and LFT needed in order to explain the differentiation between the terms. The EST of each activity will depend on the LFT of all preceding activities. b) S
Depository institutions Depository institutions: intermediaries with a important proportion of their funds derived from customer deposits - include commercial banks - savings i
Present V alue This is the current value of a future payment or stream of payments. The present value is calculated by applying a discount (capitalization) rate to the
Call-Put Parity P + S = C + E * [1/(1+i)] ^n where: P = the market price of the put S = the market price of the stock C = the market price of the call
FINANCIAL MANAGEMENT
Short sales : Short sales of a security means borrowing of an underlying security by an investor from other investors who are holding it (in Demat account) and selling it with
Advantages to the Investors: The warrant acts as a sweetener and ensures a better subscription to the NCDs, especially for companies with good track record. NCDs with warran
The difference between the cost of attending a particular school and the expected family contribution, minus any other financial aid.
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