Introduction to finance_terminology

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American depository receipt

This is a way through with NRI and FORIEGAN investor invests their fund in India. Like

a permission to attract fund in our country also we can say that it is one of the mode

through which we can get the FDI in our country

Annuity

An equal sum of amount when we invest in a certain period of time its called annuity

Appreciate

Like increment in the value of the good with passage of time like the land their value is

increase day by day

Arbitrage

It is the process of getting benefit from two different markets due to change in the price

of the same object

Assets allocation

It’s something like proper investment of the assets mean acquiring the goods and put

them for the maximum utilization

Disinvestment, sometimes referred to as divestment, refers to the use of a concerted

economic boycott, with specific emphasis on liquidating stock, to pressure a government,

industry, or company towards a change in policy, or in the case of govennments, even regime

change.

Market type

For settlement normal releted to rolling settlement and account period releted to weekly

settlement

Balance of payments

From Wikipedia, the free encyclopedia

In economics, the balance of payments, (or BOP) measures the payments that flow between

any individual country and all other countries. It is used to summarize all

internationaleconomic transactions for that country during a specific time period, usually a year.

The BOP is determined by the country's exports and imports of goods, services, and financial

capital, as well as financial transfers. It reflects all payments and liabilities to foreigners (debits)

and all payments and obligations received from foreigners (credits). Balance of payments is one

of the major indicators of a country's status in international trade, with net capital outflow.

[citation

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Term of the Day - financial health

A description of the state of a person or company's finances. Someone with

good financial health usually dealswell with their finances, makes their payments on

time, and knows how to manage their money. Someone in poor financial health

usually owes a lot of money and isn't making their payments on time.

Twinternship

What Does it Mean?

An internship in which the intern is charged with using social media such as Twitter and

Facebook to drive attention to a company and its products. A twinternship is usually an unpaid

(although paid positions are not uncommon), temporary position in which a "twintern" will use

popular social media outlets to publicize products and promotions for a business.

World currency

There is no such thing as a world currency. However, since World War II, the dominant

or reserve currency of the world has been the U.S. dollar. At one time, all currencies were

backed by gold, meaning that every country had to hold in reserve enough gold for all of the

currency in circulation. In other words, gold was the standard by which all currencies were

measured. After World War II, the United States became the world's largest and most dominant

economy. Due to the global expansion that took place after the war, bank reserves did not hold

enough gold reserves to back the growth of the currency, which was needed to finance the global

expansion further. Consequently, the U.S. disconnected from the gold standard and began to

print more paper money to finance the world's growth requirements. Because the U.S. was such

a powerful economy, other countries agreed to accept the dollar as legitimate tender

and followed suit to waiver the gold standard. Thus, the dollar became the most dominant

currency and almost all commodities came to be quoted internationally in U.S. dollars.

As time went by and other economies developed, so did the value of their currencies. Today, the

other two major currencies are the euro (the common currency of many European member

states) and the Japanese yen. While the U.S. dollar remains the reserve currency of the

world, it has depreciated in value in recent years and, consequently, the euro has

increased in importance. In fact, the world can be divided into three main currency blocks, with

the

Americas dealing mostly in dollars,

Europe dealing in euros, and the

Asian countries becoming more connected to the yen. It is no coincidence that the three

largest economies - the U.S., Europe and Japan - also represent the three most

dominant currencies.

In the case of less dominant currencies, countries like Australia once had to do business

with Japan by first doing business with the U.S. - converting its currency into U.S. dollars

and then from U.S. dollars into Japanese yen. Today, there are many cross

currencies, or instances when a currency pair is not associated with the U.S. dollar,

allowing Australia to transact directly with Japan using AUD/JPY.

What Does Daily Cut-Off Mean?

In the forex market, a particular point in time specified by a forex dealer to stand as the end of

the current trading day and the beginning of a new trading day. This is done for primarily

administrative and logistical reasons, because although the forex market trades 24 hours a day,

the market and its intermediaries require a specified beginning and end to each trading day in

order to record trade dates and define settlement periods.

For example, let's say a forex dealer specified that the daily cut-off was 5pm every day, and a

trader placed two forex trades on the evening of January 1 - one at 4:50pm and another at

5:15pm. Since the daily cut-off is 5pm, the first trade would be booked as taking place on January

1, while the second would be recorded as a January 2 trade, since it took place after the daily cut-

off

What Does Forex - FX Mean?

The market in which currencies are traded. The forex market is the largest, most liquid market in

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American depository receipt This is a way through with NRI and FORIEGAN investor invests their fund in India. Like a permission to attract fund in our country also we can say that it is one of the mode through which we can get the FDI in our country Annuity An equal sum of amount when we invest in a certain period of time its called annuity Appreciate Like increment in the value of the good with passage of time like the land their value is increase day by day Arbitrage It is the process of getting benefit from two different markets due to change in the price of the same object Assets allocation It's something like proper investment of the assets mean acquiring the goods and put them for the maximum utilization Disinvestment, sometimes referred to as?divestment, refers to the use of a concerted economic?boycott, with specific emphasis on liquidating stock, to pressure a government, industry, or company towards a change in policy, or in the case of govennments, even regime change.? Market type For settlement normal releted to rolling settlement and account period releted to weekly settlement Balance of payments From Wikipedia, the free encyclopedia In?economics, the?balance of payments, (or?BOP) measures the?payments?that flow between any individual?country?and all other countries. It is used to summarize all internationaleconomic?transactions for that country during a specific time period, usually a year. The BOP is determined by the country's?exports?and?imports?of ...
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