Definition: Right Shares or Right Issue implies an invitation to the company's existing shareholders to buy additional new shares through a Letter of Offer. These shares are introduced, at a discounted price, i.e. the price at which the company's existing shareholders will buy the shares is lower in comparison to the market price of the shares. In general, the company brings … [Read more...] about Right Shares
Bonus Shares
Definition: Bonus Shares imply the free additional shares given to the existing shareholders, depending on the number of shares held by them. Bonus shares are the accumulated earnings of the company which are not given as dividends, rather they are transformed into free shares. It occurs when the company does not distribute profits, in the form of dividends, rather than it … [Read more...] about Bonus Shares
Core Banking
Definition: Core Banking is an umbrella term that refers to the services rendered by a range of networked bank branches. It is a back-end system through which banking transactions related to deposit, loans, and credit can be processed daily across different bank branches, and updates are recorded and reflected immediately. Core banking is a business carried out by the bank with … [Read more...] about Core Banking
Sinking Fund
Definition: Sinking fund refers to a specific reserve fund, in which money is earmarked and accumulated over time, for the purpose of redemption of debt, bond, and also for the replacement of a wasting asset. It is obligatory to invest these funds outside the business because when the maturity of the underlying debt becomes due, funds can be availed easily by selling the … [Read more...] about Sinking Fund
Forfeiture of Shares
Definition: Forfeiture of Shares or Share forfeiture is a process in which the company's directors annul (cancel) the rights of a shareholder, who has not paid the call money due on time when the company demands and, even after receiving the notice for such non-payment. Conditions for Forfeiture of Shares There are certain conditions that are to be met before the forfeiture … [Read more...] about Forfeiture of Shares
Sweat Equity Shares
Definition: Sweat Equity Shares refers to the equity-linked instrument which a company issues to its employees or directors for providing their knowledge and expertise or making available the intellectual property rights or value addition to the business. Such shares are issued at a discount or for consideration other than cash. It is like compensation to the top management … [Read more...] about Sweat Equity Shares
Bancassurance
Definition: Bancassurance is a convergence of two words, banc + assurance, which was coined in France in the year 1980, to refer to an arrangement between the bank and insurance company wherein the insurance company markets or sells its products and services to bank's customers. In bancassurance, the bank act as a corporate agent to sell life insurance and general insurance … [Read more...] about Bancassurance
Business Finance
Definition: Business Finance refers to that area of finance which deals with money and credit used in the business and how the money is raised. It is all about estimation, arrangement, and application of funds so that the business has sufficient cash to carry out operations effectively and efficiently, without any interruption. It involves activities like planning, raising, … [Read more...] about Business Finance
Career Planning
Definition: Career Planning refers to the organized process wherein the candidate establishes goals for his career ascertains various means to reach these goals like undergoing work education, training, and developmental exercises to get proper direction, timing, and sequence. In simple terms, career planning refers to the way an individual plan's their life's work, by … [Read more...] about Career Planning
Retail Banking
Definition: Retail Banking is a form of commercial banking wherein service is provided to the retail (individual) customers for non-entrepreneurial purposes. In banking, the term 'retail' signifies, that the consumer avails banking products for personal use, wherein the consumer is the customer of the bank and the products are the services that a bank offers to its customers. … [Read more...] about Retail Banking