|Read Financial Articles on Day Trading, Investment, Stock Market, NIFTY, BSE, NSE, Mutual Fund, Commodities and ETF|
Glossary - F
The nominal value of a security.
Legally binding agreements to buy or sell financial instruments at a future date (for example, bonds stocks, treasury bonds, foreign currency).
Capital provided to an entrepreneur who has a proven product, to start commercial production and marketing, not covering market expansion, de-risking, and acquisition costs.
Any Consecutive 12-month period of financial accountability for a corporation or government. For example, in many English speaking countries, because of the Christmas rush many department stores find it easier to wind up their yearly accounting on January 31 instead of December 31.Fiscal year is often abbreviated FY with a date. For example, FY May 31 means that the company's fiscal year covers the period June 1 to May 31 of the following year. In India , the Fiscal Year of the Government is 1 st April to the 31 st March of the next year. There's really no reason why the Indian fiscal cannot be January 1 to December 31 to correspond with the calendar year. This is a British legacy. British Babus didn't want to work through the Christmas and New Year holidays, Indian babus, most of the time, don't want to work at all period.
Percentage representation of the amount of annual interest on the total loan amount.
The number of shares outstanding minus what is owned by insiders and what the company is holding back (treasury stock.)
The interest rate varies with the change of interest rates over the loan period. Remember, if you opt for a floating bank rate it could be either good or bad for you. When your interest rate increases with a rise in the bank rate, it is also reduced when the interest rates falls (yes, this has been known to happen in the banking system).
Foreign currency exchange markets.
Operating cash flow minus amounts spent on plant and equipment and minus dividends
Sales charge paid when purchasing a mutual fund.
A method of stock analysis based on the management of the company, past and projected financial and profitability. Do you know how to read a balance sheet? You will be surprised how many people who play the market cannot analyze a balance sheet or cannot draw valid conclusions from it. If you are among them, find a good analyst and leave it to him. But do take some time to understand a balance sheet and profit and loss account. While there is nothing wrong in depending on an analyst, it will add immensely to your confidence if you are in a position to check out his conclusions.
An agreement between parties for specified asses for performance on a fixed day in future. A futures contract is a legally binding agreement to buy or sell commodities to buy or sell commodities or financial securities at fixed time in the future at a price agreed upon today. The delivery period, quantity and quality of a futures contract is standardized and specified while the price is set at the time a contract is opened and is negotiated between buyers and sellers. Futures are traded either electronically or via open outcry on a traded either electronically or via open outcry on a trading floor on the Exchange offering the particular contract.