Definition: The Jury Method also called as an Executive Opinion Method is a sales forecasting method, wherein the executives from different departments come together and forecast sales for the given period, on the basis of their experience and specialization. The jury method is based on the judgments, the top executives of Marketing, HR, Finance, Production department come … [Read more...] about Jury Method
Sales Forecasting
Definition: Sales Forecasting is the projection of customer demand for the goods and services over a period of time. In other words, it is the process that involves the estimation of sales in a physical unit that a company expects within a plan period. There are a variety of methods available to the firm for forecasting sales or demand of a company; these are listed … [Read more...] about Sales Forecasting
Kiosk Banking
Definition: The Kiosk Banking is the initiative taken by the RBI for those living in villages or other remote areas who are deprived of banking services due to the non-availability of a bank branch in their locality. In such arrangement, the person is not required to go the bank to avail the banking services. Instead, the bank comes to the village where the person can make the … [Read more...] about Kiosk Banking
Blue Chip Stock
Definition: The Blue Chip Stock refers to the high valued shares of the well-established companies which are financially very sound and capable of successfully weathering any economic condition. Simply, the stock of nationally reputed companies which are known for their abilities to generate revenues in good or bad times and giving the dividends every time to its shareholders … [Read more...] about Blue Chip Stock
Traveler’s Cheque
Definition: The Traveler's cheque is an exchange medium that can be used as a substitute for the hard currency. As the name suggests, these cheques are issued to the individuals who travel on vacations to overseas. The Traveler's cheque provides a lot of convenience to those who travel to foreign countries, as they are not required to carry excess cash along with them and … [Read more...] about Traveler’s Cheque
Risk Hedging with Options
Definition: An Option is an agreement wherein the seller grants the right to the buyer, not the obligation to buy or sell the security at a predetermined price for a specified period of time. Simply, An option is right and does not constitute the obligation on the part of both the sellers and buyers to buy or sell the underlying security at a predefined price during a specified … [Read more...] about Risk Hedging with Options
Risk Hedging with Insurance
Definition: Many companies buy insurance to hedge against the different kinds of risks, such as the risk of property damage, risk of fire, risk of plant destruction, the risk of liabilities, etc. When a company buys the insurance, it pays a premium to shift the risks to the insurance company. Which insurance company the firm prefers over the others depends on the advantages … [Read more...] about Risk Hedging with Insurance
Risk Hedging with Swaps
Definition: A Swap is a financial agreement wherein the parties agree to trade cash flows over a period of time. It is the portfolio of a forward contract that involves multiple exchanges over a period of time while the forward contract involves a single transaction at a specific future date. The swaps are the highly liquid financial derivatives and have the following … [Read more...] about Risk Hedging with Swaps
Difference Between Forward Contracts and Future Contracts
Definition: The Future Contracts are the standardized Forward Contracts wherein two parties mutually decide to sell or buy the underlying asset at a predefined future date and at a price locked today. These are considered as a less risky alternative of hedging against the currency market fluctuations. If the future contracts are the forward contracts, then why it is … [Read more...] about Difference Between Forward Contracts and Future Contracts
Risk Hedging with Future Contracts
Definition: The Future Contract is a standardized forward contract between two parties wherein they agree to buy or sell the underlying asset at a predefined date in the future and at a price specified today. The future contracts are a relatively less risky alternative of hedging against the fluctuations in the currency market. The parties to the currency future contracts … [Read more...] about Risk Hedging with Future Contracts