Secondary Market

Definition: Secondary market, colloquially known as the stock market is the market which provides a platform to the investors to trade in initially issued securities. This means that the securities, such as shares, bonds, debentures, futures, options, etc. are originally issued by the Corporates, Central and State government, and public bodies, in the primary market…

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Primary Market

Definition: Primary Market is a form of the capital market wherein new securities are sold by the companies for the very first time to the investors, to raise funds and that is why it is also acknowledged as New Issues Market (NIM). The process of selling the new securities, in the primary market is called…

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Tax

Definition: Tax refers to a mandatory financial contribution to the country’s revenue, imposed by the government on the income of people, business profits, activities or included in the cost of goods, services or transactions. The taxes are the primary source of government revenue, which is used to finance government expenditure on the provision of education,…

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Capital Structure

Definition: Capital structure, as its name itself signifies, is the composition of the capital employed by the firm from various sources of finance. It comprises of both owners capital (i.e. equity capital and preferred capital) and debt capital. The capital structure of the firm represents its investment and financing strategy. While deciding the ideal capital…

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Treasury Management

Definition: Treasury Management can be understood as the planning, organizing and controlling holding, funds and working capital of the enterprise in order to make the best possible use of the funds, maintain firm’s liquidity, reduce the overall cost of funds, and mitigate operational and financial risk. It covers working capital management, currency management, corporate finance…

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Types of Issue of Shares

Definition: A share is that smallest part, into which the overall capital of the company is divided. Issue of shares is a process through which the company allocates fresh shares to the new or existing shareholders. The issue of shares is made to both individuals, institutions or body corporates. Types of Issue of Shares There…

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Shares

Definition: Shares can be described as the financial instrument issued by the company to raise funds from the general public. A share represents fractional ownership in a body corporate. Thus, a share is the smallest unit of the company’s overall net worth. In a joint stock company, the capital is divided into very small units,…

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Private Equity

Definition: Private Equity firms are described as the investment fund companies that invest in the capital of the enterprise so as to acquire a strategic stake in it, once it is set up as a successful unit. The capital injected by private equity firms in a company which forms a part of their equity capital…

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Lease

Definition: Lease is a financial arrangement, wherein one party (lessor) allows another party (lessee) to use the capital asset or equipment for a definite period, in return for an adequate consideration, i.e. lease rental charges. In this contract, the lessee need not buy or own the asset in order to use it, because it is…

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Insurance

Definition: Insurance refers to a contractual arrangement in which one party, i.e. insurance company or the insurer, agrees to compensate the loss or damage sustained to another party, i.e. the insured, by paying a definite amount, in exchange for an adequate consideration called as premium. It is often represented by an insurance policy, wherein the…

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