What do you understand by Bank?
Investorline Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers’ current accounts. Banks…
Settlement of securities and its nature and types
Settlement of securities is a business process whereby securities or interests in securities are delivered, usually against (in simultaneous exchange for) payment of money, to fulfill contractual obligations, such as…
Types of Pension and Retirement plans and benefits
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused…
What is Insurance
Insurance is a risk management technique primarily used to hedge against the risk of a contingent, uncertain loss that may be suffered by those individuals or entities who have an…
What do you understand by Don’t fight the tape
Don’t fight the tape is a term used in finance. It means do not bet or trade against the trend in the financial markets, e.g. if the broad market is…
What do you understand by Financial Bootstrapping?
Financial bootstrapping is a term used to cover different methods for avoiding using the financial resources of external investors. Bootstrapping can be defined as “a collection of methods used to…
What do you understand by Startup company?
A startup company or startup is a company with a limited operating history. These companies, generally newly created, are in a phase of development and research for markets. The term…
What do you mean by Fixed capital
Fixed capital This is money which is used to purchase assets that will remain permanently in the business and help it to make a profit. Factors determining fixed capital requirements…
What is the difference between shares and debentures?
Differences between shares and debentures Shareholders are effectively owners; debenture-holders are creditors. Shareholders may vote at AGMs and be elected as directors; debenture-holders may not vote at AGMs or be…
Factors determining working capital requirements
Factors determining working capital requirements Size of business Stage of development Time of production Rate of stock turnover ratio Buying and selling terms Seasonal consumption Seasonal product profit level growth…