“Finance” is a very broad term that encompasses a whole gamut of micro and macro domain specific definitions, usage and applications. As a subject, it is very critical from the societal perspective as it influences our everyday existence and has far reaching implications on the lives and times of the great, the ordinary, the poor and the rich. The endeavor here is to bring certain terminologies that freely float around on the internet, business articles, business news and financial analysis' out into the public domain, strip them of their esoteric existence and make them as real as hamburger or sausage. Finance, after all, is a topic that deals with what we all work for—hard money. So, we have a right to know what lies behind the veils of all these financial jargons.
[...] A Depository Bank term often associated with the US financial sector), is a bank located in the US that provides all kinds of services in terms of stock transfer and allied services pertaining to a depository receipt program. ADR (American Depository Receipt) ADR (American Depository Receipt) is a certificate that signifies the ownership of shares of a company based outside the US but listed on the US stock exchanges. A lot of non-US based companies' trade in the US financial market through American Depository Receipts. [...]
[...] Debentures A Debenture, also known as a note if they are unsecured borrowing instruments, is a certificate issued by a corporation in recognition of the money that has been borrowed and the interest that is being paid for the same. Debentures are long term debt instruments that are used by large corporations to raise funds. There is an advantage for the companies in issuing debentures as opposed to issuing secured corporate bonds because the company is not liable to allocate a certain amount of income or assets that would act as guarantees in case the company defaults on payment of the principal at maturity. [...]
[...] Only a qualified institutional buyer (QIB) can participate in the process and a QIB is selected on the basis of a company's or a person's track record, financial acumen and financial capability in handling capital markets with élan. GDR (Global Depository Receipt) GDR (Global Depository Receipt) is a certificate that is issued by a depository bank, which has invested in shares of companies located in foreign lands and deposits them in accounts. GDR in essence signifies the ownership of a certain number of underlying shares. [...]
[...] Money Market In financial terms, Money Market broadly comprises of borrowers and lenders, who are in the financial market for short term monetary transactions. The global financial system, comprising of regulators and institutions such as IMF, Finance Ministries, Banks performing on the global platform and Central Banks, get the much needed liquidity from the money markets. Short term instruments such as banker's acceptances, commercial paper and treasury bills are bought and sold in the money market. Participants in the money market typically borrow and lend money for short terms of up to thirteen months. [...]
[...] Stock Derivatives Any financial instrument whose value is determined by the price of the relevant stock is known as stock derivative. Also known as equity derivatives, the value of such instruments are at least partially dependent on the value of the underlying stock. The Future and Options are examples of equity derivatives. A standardized contract by virtue of which a predetermined amount of standardized value of a certain commodity can be traded (bought or sold) on or after a certain pre-decided date in the future is called Futures Contract. [...]
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