What is Secondary Market ? It is a market set-up which is very much organised and caters the buying and selling of the securities. It refers to a market where the activities of buying and e selling of the securities is carried-out in a systematic and simplified way as per the directions of the SEBI. … Read more
What is Primary Market ? This denotes the New Issue Market i.e. where the shares are issued for the very first time. In other words, the same were never issued before in the market. Under this, the existing companies and the new entrants can bring the new issues. The basic objective is to procure funds … Read more
What is Banking ? Banking institutions are a group of financial intermediaries which are engaged in the business of carrying out the banking activities after getting necessary approval from the Central Bank of the country, viz. Reserve Bank of India under the provisions of Banking Regulation Act, 1949. The word ‘bank’ has derived from German … Read more
What is Securitization ? Securitization refers to the process of converting existing or future cash inflows into trad-able securities. Such securities may then be sold in the market. Cash inflows are generated from several financial assets such as automobile loans, mortgage loans, trade receivables and credit card receivables. These inflows may be used as collateral for … Read more
What is Post Office ? The Post Office is present from more than 150 years playing a major role in communications and small deposits. It has overcome the barrier of communication all through the nation which has helped in the socio economic development of the country. Meaning of Post Office Saving Banks The government has made … Read more
What is Derivatives Market ? The derivatives market is a financial marketplace where participants trade financial instruments known as derivatives. These instruments derive their value from the price movements of an underlying asset, such as stocks, bonds, commodities, currencies, or market indices. Unlike traditional financial instruments like stocks and bonds, derivatives do not represent ownership … Read more
What is Loan Syndication ? Meaning and Definition of Loan/Credit Syndication The loan syndication is the leading and conventional way of cross border lending. If there is requirement of large amount of loan then the different banks combines themselves to grant loan. It is also known as credit syndication. It was evolved in U.S. by the … Read more
What is Merchant Banking ? A merchant bank may be defined as a financial institution, which extends financial support to business organisations in the form of share ownership, in lieu of loans. It also offers advisory services to such organisations on corporate matters, in which it has an expertise. There is another class of banks … Read more
What is Forward Markets Commission (FMC) ? The provisions of the Forward Contracts (Regulation) Act, 1952 manages the Commodity Futures Market. The provisions of the Forward Contracts (Regulation) Act, 1952 framed Forward Markets Commission (FMC) in 1953 which is supervising the authority made for checking the working of the Commodity Futures Market. The Ministry of … Read more
What is Dematerialisation (DEMAT) ? Dematerialisation also known as “DEMAT”. It is the method by which the physical share certificates are converted into equal number of securities in an electronic form. This method is same like change paper money to an electronic bank account and is also very helpful for the investors. The process of changing … Read more