.ACTIONABLE CLAIM: It means a claim to
any debt other than a debt secured by mortgage of immovable property or by
hypothecation or pledge of movable property, or to any beneficial interest in
movable property not in the possession, either actual or constructive, of the
claimant, which the civil courts recognize as affording grounds for relief,
whether such debt or beneficial interest be existent, accruing, conditional or
contingent.
02. ACTUARY: An employee of an
insurance company or similar institution who is qualified and deals with life
expectancy, and the average proportion of losses by time and other accidents.
03. ADVERSE SELECTION: It refers to
situations, typically in credit market, in which higher rates of interest, the
relatively safer borrowers drop out of the credit market and borrowers with
higher risks undertake investment activity leading to deterioration of the
quality of the bank’s portfolios.
04. ADJUSTABLE PEG: An exchange rate
system where a country’s exchange rate is “pegged” in relation to another
currency. The official rate may be changed from time to time.
05. AMERICAN OPTION: An option which may
be exercised at any valid business date through out the life of the option.
06. ANTE DATE: The placing of the
date on a document prior to that on which it is signed. A bill of
exchange/cheque is not invalid by reason of it being ante dated.
07. ANNUITY: A payment made by
an Insurance company to a person who has paid in a lump sum or has in some
other way purchased an annuity so that he/she may receive at regular intervals
a sum of money.
08. APPROPRIATION
BILL:
It is presented to Parliament for approval, so that the government can withdraw
from the Consolidated Fund the amounts required for meeting the expenditure
charged on the Consolidated Fund. No amount can be withdrawn from the
Consolidated Fund till the appropriation bill is voted and enacted.
09. ARBITRAGE: A risk-free type of
trading where the same instrument is bought and sold simultaneously in two
different markets in order to cash in on the difference in these markets.
10. ASK PRICE: It is the lowest
price acceptable to the buyer
11. AT BEST: An instruction
given to a dealer to buy or sell at the best rate that is currently available
in the market
12. AT CALL: This describes a
deposit by a bank or financial institution with the money market (discount
house) on condition that the funds are repayable on demand.
13. AT PAR FORWARD
SPREAD:
When the forward price is equivalent to the spot price
14. AT THE PRICE
STOP-LOSS ORDER:
A stop loss order that must be executed at the requested level regardless of
market conditions
15. AVERAGE RATE
OPTION:
A contract where the exercise price is based on the difference between the
strike price and the average spot rate over the contract period. Sometimes
called an “Asian Option”
16. BACK END LOAD: A fee charged by a
Mutual Fund from the unitholders at the time of redemption of units
17. BALANCE OF
PAYMENTS:
The balance of all financial exchanges between one country and the rest of the
world, made up of visible and invisible trade (the current account) and capital
movements (capital account)
18. BALANCE OF TRADE: The balance of
trade is the difference between the value of a nation’s exports (goods sold)
and the value of its imports (goods purchased). It is an important component of
the balance of payment.
19. BANKEX: An index comprising
of key banking stocks on Bombay Stock Exchange – BSE
20. BARTER: The exchange of
goods for goods; to give (anything but money) in exchange for some other
commodity. It is a characteristic of a primitive community, but today barter is
accepted on an international scale to facilitate trading with countries of
Eastern block and others which are short of hard, convertible currencies.
21. BEAR: A person who
believes that prices will decline
22. BEAR MARKET: A market in which
prices decline sharply against a background of widespread pessimism (opposite
to bull market)
23. BANK GIRO: It is merely a name
given for the transfer of credits between banks. It covers the transfers of
such items as Hire Purchase Debts, rent payments, etc. Such items are passed
through the credit clearing system and balance are settled between banks in the
usual way.
24. BENEFICIAL OWNER: A person entitled
to the benefits of any property of which the legal title rests with a trustee
25. BID PRICE: Bid is the highest
price that the seller is offering for the particular currency at the moment;
the difference between the ask and the bid price is the spread. Together, the
two prices constitute a quotation; the difference between the two is the
spread. The bid-ask spread is stated as a percentage cost of transacting in the
foreign currency.
26. BLUE CHIP: Originally “blue
chip” was a gambling term, chips with the highest value being coloured blue.
Over the years, however, the term has been acceptedas denoting the ordinary
shares of the highest class of company.
27. BREAKEVEN
ANALYSIS:
The presentation of information either by a chart or statement of figures
showing the management at what point the amount or volume of sales need to be
in order to equal the sum of fixed and variable costs. That is the point where
neither a loss nor a profit is made on trading.
28. BTQ: It is the maximum
entitlement in cash and travellers’cheques that is allowed to be taken to a
foreign country
29. BULL: A speculator on the
Stock Exchange who anticipates a rise in the value of a certain security and
therefore buys such stocks, not intending to pay for the purchase, but hoping
to sell them later, at a profit, before the settlement date.
30. CALL: It is an option
that gives the holder the right to buy the underlying instrument at a specified
price during a fixed period.
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