Finance

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 is termed as Private Equity. Private Equity implies a technique to … [Read more...] about Private Equity

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 a form of renting assets. Parties to Lease … [Read more...] about Lease

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 insured gets financial … [Read more...] about Insurance

Definition: As the name itself gives a brief description, financial management is the management of firm's financial resources, in relation to its acquisition and application. It is that branch of management, which deals with the procuring, financing and managing business assets, to achieve the objectives of the concern. Aspects of Financial Management The two aspects that … [Read more...] about Financial Management

Definition: Portfolio Management, implies tactfully managing an investment portfolio, by selecting the best investment mix in the right proportion and continuously shifting them in the portfolio, to increase the return on investment and maximize the wealth of the investor. Here, portfolio refers to a range of financial products, i.e. stocks, bonds, mutual funds, and so forth, … [Read more...] about Portfolio Management

Definition: As it is evident from the name, cost of capital refers to the weighted average cost of various capital components, i.e. sources of finance, employed by the firm such as equity, preference or debt. In finer terms, it is the rate of return, that must be received by the firm on its investment projects, to attract investors for investing capital in the firm and to … [Read more...] about Cost of Capital

Definition: Working capital can be understood as the capital needed by the firm to finance current assets. It represents the funds available to the enterprise to finance regular operations, i.e. day to day business activities, effectively. It is helpful in gauging the operating liquidity of the company, i.e. how efficiently the company is able to cover the short-term debt with … [Read more...] about Working Capital

Definition: Money Market can be understood as the market for short term funds, wherein lending and borrowing of funds varies from overnight to a year. It is an important part of the financial system that helps in fulfilling the short term and very short term requirements of the companies, banks, financial institution, government agencies and so forth. Salient Features of Money … [Read more...] about Money Market

Definition: Venture Capital can be defined as the financing for startup companies and small enterprises, that involves a considerable amount of risk but are supposed to have long-term growth potential, i.e. the project can earn a high rate of return. A budding company, which is not yet ready to raise funds from the financial market through public offering may seek venture … [Read more...] about Venture Capital

Definition: Bonds can be defined as the negotiable instrument, issued in relation to borrowing arrangement, that indicates indebtedness. It is an unsecured debt instrument, in which the bond investor extends credit to the issuer, which in turn commits to repay the loan amount on the specified maturity date, along with interest throughout the life of the bond. The issuer can be … [Read more...] about Bonds