Terms used in capital market authority, Finance Basics

Assignment Help:

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.


Related Discussions:- Terms used in capital market authority

Market is in equilibrium, You are taking an investment in the common stock ...

You are taking an investment in the common stock of Crisp's Cookware. The stock is expected to pay a dividend of $2.00 a share at the end of the year (D1=2.00). The stock has a bet

Basic economic order quantity model , Basic economic order quantity (EOQ) m...

Basic economic order quantity (EOQ) model  This model is one of the oldest and most commonly used in inventory control. It is based on a number of assumptions:  The dem

Effective reach and effective frequency-insurance , Before purchasing insur...

Before purchasing insurance we have to go through different factors. Among different important factors there are two most crucial aspects we should consider before buying insurance

Public expenditure, what is the importance of public expenditure

what is the importance of public expenditure

Agency theory, Agency Theory An agency relationship arises whether on...

Agency Theory An agency relationship arises whether one or more parties identified the principal contracts or hires another identified an agent to perform on his behalf some

What are the financial fluctuations, What are the financial fluctuations? ...

What are the financial fluctuations? Financial Fluctuations: a. Financial market fluctuations can be a basis of macroeconomic instability. b. Are markets irrational? c

Determine inventories of a firm, A firm's current ratio is 1.5, and its qui...

A firm's current ratio is 1.5, and its quick ratio is 1.0. If its current liabilities are $10,000, what are its inventories?   a Current Ratio

Similarities between equity finance and preference, Similarities between Eq...

Similarities between Equity Finance and Preference Similarities among Equity Finance and Preference are as follows: a) Both may be permanent whether preference share capita

Bills of exchange, Bills of Exchange Bills of Exchange are a source of...

Bills of Exchange Bills of Exchange are a source of finance in specifically in the export trade. A bill of swapping is an unconditional arrange in writing addressed via one pe

Restrictive bond or debt covenant, Restrictive Bond or Debt Covenant I...

Restrictive Bond or Debt Covenant In this case the debenture holders will impose strict conditions and terms on the borrower. These restrictions may comprise: a) No disposal

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd