Financial Terms

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Financial Terminology is very important for MBA aspirants.As future managers you are expected to know the meanings of terms related to finance, accounts, economics, etc. irrespective of the stream of education you belong to. These definitions could really help you in your interviews.

|WORD |MEANING | |A group shares |Stocks having very high liquidity. | |Company having large equity base and large public | | |holding. | | |Company having consistantly good performance over the | | |years | | |Alpha factor |Concept which measures the inherent volatility of| | |share.A share with alpha factor of 1.5 is slated | | |to rise in prise by 50% in a year on its inherent| | |strength,such as growth in eps,regardless of the | | |behavior of the market. | |Asset management Account |An account which has both broking and banking | | |facilities. It allows debit or credit card, | | |automatic transfer of excess funds into a money | | |management account and margin loans also called | | |central assets account. | |B1 GROUP SHARES |Shares having high liquidity | |Company having an equity above Rs.30million | | |Company having fundamentals and financial parameters in | | |line with the industry. | | |B2 GROUP SHARES |Shares having low trading volume at the EXCHANGES| | |indicating low investor intrest | |Shares trading below par value(face value) | | |Company having an equity below Rs.30million | | |Company’s shares being not widely held | | |Company having surveillance measure initiated against it| | |by the EXCHANGES for suspected price manipulations. | | |Barren money |Money that is not currently earning interest. | |BLACK KNIGHT |An unwelcome takeover bidder | |Bull Spread |An option strategy designed to profit from a rise| | |in security’s price by buying a near month | | |futures contract and selling a deferred month | | |futures contract. | |CIRCUIT BREAKER |a system to curb excesive speculation in the | |...
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