ASSET MANAGEMENT COMPANY

A company that invests its clients' pooled fund into securities that match its declared financial objectives. Asset management companies provide investors with more diversification and investing options than they would have by themselves. Company that actively manages an investors’ asset and/or equity in order to achieve the his financial objective. There are around 42 best brands in India such as: Axis Asset Management Co. Ltd. Reliance Capital Asset Management Company SBI Funds Management Private Ltd HDFC Asset Management Co. Ltd. ICICI Prudential Asset Management Co. Ltd. Birla Sun Life Asset Management Co. Ltd.

The process of determining the price at which an initial public offering will be offered. Cap Price Floor Price

When a broker pledges hypothecated client owned securities in a margin account to secure a bank loan This is also known as a margin loan.

A bond which is sold at a price below its face value and returns its face value at maturity. also called discounted bond.bondpriceface value returnsvaluematuritydiscounted bond

An entity or person who agrees to back the credit obligations of another party in order to allow that party to obtain credit for which they would not otherwise qualify. It is the equivalent of a payment guarantee. Accommodation endorsers typically have some relationship with the borrowing person. Typical examples would include a parent company endorsing a subsidiary or a parent endorsing a child with no credit rating. The advantage of having an accommodation endorser may not only include obtaining credit, but may result in a reduced rate of interest as well.

A short-term investment vehicle with a maturity that is typically between 90 and 180 days. The security itself is typically issued by a bank or other financial institution. The notes are backed by physical assets such as trade receivables, and are generally used for short-term financing need. A company or group of companies looking to enhance liquidity may sell receivables to a bank or other conduit, which, in turn, will issue them to its investors as commercial paper. The commercial paper is backed by the expected cash inflows from the receivables. As the receivables are collected, the originators are expected to pass the funds to the bank or conduit, which then passes these funds on to the note holders. Individuals, non-resident Indians, banks, companies and foreign institutional investors (FII) can invest in CPs. They are available either in physical or dematerialized form.

The time period between when a deposit is made and when the funds become available in an account, specifically relating to check deposits. The availability float exists because banks have to process physical checks before releasing funds, meaning that the depositor has to wait before funds appears in a bank account. Companies can reduce an availability float by moving to an electronic payment system, as this reduces the reliance on a bank's processing speed on physical checks.

The contractual transfer of possession of assets or property for a specific objective. In bailment, the deliverer of the asset is the bailor, and the receiver is the bailee. In a bailment transaction, ownership is never transferred, and the bailor is generally not entitled to use the property while it's in possession of the bailee. In these ways, bailment differs from gifting and leasing. For example, when a bank holds a borrower's asset as collateral for a secured loan, this is a form of bailment. In this case, the bank is the bailee and the borrower is the bailor.

A short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short-term (up to one year) with relatively high interest rates and are backed by some form of collateral such as real estate or inventory. For example, let's say that a company is doing a round of equity financing that is expecting to close in six months. A bridge loan could be used to secure working capital until the round of funding goes through.

A measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit exposures. CAR = T1 capital + T2 capital Risk Weighted Assets Also known as "Capital to Risk Weighted Assets Ratio (CRAR)."