Friday, January 19, 2018

Financial Instruments
  • Money markets are those markets where borrowing and lending of short term funds ( maturity 1 day to 1 yea ...

    Money markets are those markets where borrowing and lending of short term funds ( maturity 1 day to 1 year) takes place. Due to short maturity, the instruments of money market are liquid and can be co ...

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  • Certificate of Deposit (CD) refers to a money market instrument, which is negotiable and equivalent to a ...

    Certificate of Deposit (CD) refers to a money market instrument, which is negotiable and equivalent to a promissory note. It is either issued in demat form or in the form of a usance promissory note. ...

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  • Commercial Paper (CP) is a money market instrument in India, which was first introduced in 1990 to enable ...

    Commercial Paper (CP) is a money market instrument in India, which was first introduced in 1990 to enable the highly rated corporates to diversify their resources for short term fund requirements. The ...

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  • Treasury Bills are short term (up to one year) borrowing instruments of the Government of India which ena ...

    Treasury Bills are short term (up to one year) borrowing instruments of the Government of India which enable investors to park their short term surplus funds while reducing their market risk. Treasury ...

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  • Securities market is a component of the wider financial market where securities can be.bought and sold be ...

    Securities market is a component of the wider financial market where securities can be.bought and sold between subjects of the economy, on the basis of demand and supply. Securities markets can be spl ...

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  • A mutual fund is a pool of money from numerous investors who wish to save or make money just like you. In ...

    A mutual fund is a pool of money from numerous investors who wish to save or make money just like you. Investing in a mutual fund can be a lot easier than buying and selling individual stocks and bond ...

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  • The gilt-edged market refers to the market for government amd semi- government securities, backed by RBI. ...

    The gilt-edged market refers to the market for government amd semi- government securities, backed by RBI. The term 'gilt-edged' means 'of the best quality'. This is because the government securities d ...

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  • A global depository receipt ( GDR ), also known as international depository receipt (IDR) is a bank certi ...

    A global depository receipt ( GDR ), also known as international depository receipt (IDR) is a bank certificate issued in more than one country for shares in a foreign company. The shares are held by ...

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  • A zero- coupon bond is a bond that makes no periodic interest payments and is sold at a deep discount fro ...

    A zero- coupon bond is a bond that makes no periodic interest payments and is sold at a deep discount from face value. The buyer of the bond receives a return by the gradual appreciation of the securi ...

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  • Warrant is A derivative security that gives the holder the right to purchase securities (usually equity) ...

    Warrant is A derivative security that gives the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are frequently attach ...

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  • A derivative is a contract between two parties which derives its value/price from an underlying asset. Th ...

    A derivative is a contract between two parties which derives its value/price from an underlying asset. The most common types of derivatives are futures, options, forwards and swaps. Derivatives can be ...

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  • Futures' is a financial contract obligating the buyer to purchase an asset (or the seller to sell an asse ...

    Futures' is a financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and ...

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  • An option is a contract which gives the buyer (the owner or holder) the right to buy or sell an underlyin ...

    An option is a contract which gives the buyer (the owner or holder) the right to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date, depending on t ...

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  • A Forwards Contract is a bilateral agreement between two parties to buy or sell an asset or a commodity o ...

    A Forwards Contract is a bilateral agreement between two parties to buy or sell an asset or a commodity of specified quantity and quality at a future date on a mutually agreed delivery price. ...

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  • Swap refers to an exchange of one financial instrument for another between the parties concerned. This ex ...

    Swap refers to an exchange of one financial instrument for another between the parties concerned. This exchange takes place at a predetermined time. Swaps can be used to hedge certain risks such as in ...

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  • Securities and Exchange Board of India ( SEBI ) was established by The Government of India on 12th April ...

    Securities and Exchange Board of India ( SEBI ) was established by The Government of India on 12th April 1988 and given statutory powers in 1992 with SEBI Act 1992. SEBI has its headquarters at the bu ...

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  • The Bombay Stock Exchange ( BSE) is an Indian stock exchange located in Mumbai, Maharashtra , India . Est ...

    The Bombay Stock Exchange ( BSE) is an Indian stock exchange located in Mumbai, Maharashtra , India . Established in 1875 the BSE is Asia’s first and Worlds Fastest Stock Exchange with a speed of 6 mi ...

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  • The SENSEX (Sensitve Index) was introduced by the Bombay stock exchange on January 1 1986. It is one of t ...

    The SENSEX (Sensitve Index) was introduced by the Bombay stock exchange on January 1 1986. It is one of the prominent stock market indexes in India. The Sensex is designed to reflect the overall marke ...

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  • The National Stock Exchange ( NSE ) is the leading stock exchange of India. It is located in Mumbai. NSE ...

    The National Stock Exchange ( NSE ) is the leading stock exchange of India. It is located in Mumbai. NSE was established in 1992. It was recognized under the Securities Contracts (Regulation) Act, 195 ...

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  • Metropolitan Stock Exchange of India Limited (MSEI), formerly known as MCX Stock Exchange Limited (MCX-SX ...

    Metropolitan Stock Exchange of India Limited (MSEI), formerly known as MCX Stock Exchange Limited (MCX-SX), is India’s youngest and one of the three stock exchanges recognized by country’s securities ...

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