What is Insurance Regulatory and Development Authority (IRDA) ? The government of India decided to open up the insurance sector to provide better coverage to the citizens. It was also important for boosting the flow of long-term funds. For this purpose, the government instituted the IRDA Act. It was enacted in 1999 for the purpose … Read more
What is Financial Market ? Finance is considered to be one of the most important ingredients of the contemporary business. Financial markets comprise of the entire institutional set-up in place, which primarily deals with various financial instruments, including credits extended in the form of cash, cheques, bank deposits, bills, etc. A financial market offers a … Read more
What is Financial Services ? Financial services are the services which are offered by the financial companies. The financial companies comprise of both Asset Management Companies and Liability Management Companies. In Asset Management Companies, there leasing are companies, mutual funds, merchant bankers and issue/portfolio managers while Liability Management Companies has the bill discounting and acceptance … Read more
What is Forfeiting ? Forfeiting has been abstracted from the French word “Forfeit” which means “to surrender something or give up one’s right”. In mid 1960, the theory of forfeiting was first introduced in Switzerland. Its importance has grown after the end of Second World War for assisting finance to the West German export to … Read more
What is Venture Capital ? The term venture capital consists of two words ‘venture’ and ‘capital’. Venture implies a course of action with uncertain outcomes including the risk of loss. Capital denotes resources to move and run the projects. Thus, the term can be defined in two different ways i.e., in the narrower sense and … Read more
What is Factoring ? The word ‘Factoring’ is derived from Latin word ‘Factor’ which denotes ‘doer’. The definition of the word factor is “One that lends money to producers and dealers on the security of accounts receivables”. Factoring means a financial transaction which involves a firm selling its invoices of accounts receivables to a third … Read more
What is Money Market ? The money market is an important segment of the financial market, wherein funds are either lend or borrowed for a short-term tenure, usually for a period not exceeding one year. It is done through the financial instruments of rather a short-term maturity. It is an institutional set up, which offers … Read more
What is Capital Market ? Capital market means a common place where the borrowers and lenders meet to finance the requirement of long-term funding. In a broader aspect, it involves all those channels from where the savings are mobilized and the same are used in funding the industrial and government expenditure. It comprises of savings that … Read more
What is Mutual Funds ? A mutual fund is a pool of money representing the savings made by a number of investors. The funds so collected are managed by professionals by investing in equity as well as debt instruments like stocks, debentures, bonds, money market and other financial instruments. The job of the fund manager … Read more
What is Financial System ? For economic transformation of a country, the financial system is the key for the institutional and functional vehicle. Finance assists in reducing the gap between the present and the future, and covers every aspect like channelization and effective usage of savings and making an efficient investment. It formulates the base, the … Read more