Category: Terminologies

Zero Coupon Bond Definition with Example Zero Coupon Bond Definition – “A bond sold at discount rate and repurchase at face value. There is no interest payments” Unlike other types of bonds that comes with an attached interest...

What are Index Options? Index options are the call or put options on the stock market indices. Sometimes people confuse them with index fund. But let me tell you both are completely different. Well, in India, index options are...

What are Bad Debts? Bad Debts are the unrealized amounts from the customers that they never going to pay back to the business. The main source of the revenue in any business is the sale of goods or services to customers on...

Valuation Definition Valuation Definition – “An estimate of a company’s value for the purposes of purchases, sale or investment”. In simple words, it refers to the process of estimating the current worth of a company or an...

Wealth Maximization Definition with Implication Wealth Maximization Definition – It refers to maximizing the wealth of shareholders. Financial theory asserts that the wealth maximization is the single substitute for a stake...

Volatility Definition and Example Volatility Definition – The degree at which the price of a security rises or decreases for a specific set of returns. In simple words it shows the rate at which the price of security fluctuates,...

What are Marketable Securities? These are short term securities that are easily convertible into cash within short period, mostly less than 1 year. If an entity has temporary excess of cash, rather than or in addition to...

What is Budget? A budget is a plan expressed in quantitative terms covering a specific period of time, usually one year. Here quantitative means ‘in monetary terms’. Mostly all the companies whether small, medium or large,...

Shareholders Equity Meaning and Example Shareholders Equity Meaning – It refers to the extent of net assets belongs to the owners of the company, In simple words, it is total assets minus total liabilities. Analyst use it to...

Shares Meaning and Types of Shares Shares Meaning –  “A fraction part of the capital of the company which forms the basis of ownership and interest of a subscriber in the company”. A share is a small part of the total capital....

SWOT Analysis Definition with Example SWOT Analysis Definition – “An analysis of a company’s strengths, weaknesses, opportunities, and threats”. In simple words it is a process of identifying the strength and weakness of the...