Finance

Definition: Commodity Market implies the place where products, either produced or grown are being traded between investors. It brings together all the participants to determine the price, at which the commodity can be traded across the market. To determine the price of the commodity in a commodity market auction mechanism is used wherein sellers ask for a certain price, … [Read more...] about Commodity Market

Definition: Depository Receipt refers to a negotiable instrument, denominated in a foreign currency and is traded in the foreign stock exchanges, representing a fixed number of issuer company's publicly traded domestic currency equity shares. In finer terms, Depositary Receipt implies a negotiable certificate, which the Depository Bank issues to the foreign investors, … [Read more...] about Depository Receipt (DR)

Definition: Bill of Lading is an important document, required to ship goods from one point to another. The carrier generates and issues a bill of lading to the shipper of the goods, acknowledging the receipt of goods for shipment in acceptable condition. In simple words, the bill of lading is written evidence of a contract between shipper and carrier for the carriage and … [Read more...] about Bill of Lading

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 to the … [Read more...] about Secondary 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 underwriting, which is performed by a group called as underwriters or … [Read more...] about Primary Market

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, health care, … [Read more...] about Tax

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 structure for … [Read more...] about Capital Structure

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 … [Read more...] about Treasury Management

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 are a number of ways in which the shares of a … [Read more...] about Types of Issue of 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, say the capital is Rs 5,00,000 and it is … [Read more...] about Shares