Average Accounting Return
The Avg earnings of the project after deducting the tax and deprecation / book value of the investing amount in its life.
The Avg earnings of the project after deducting the tax and deprecation / book value of the investing amount in its life.
Private Equity:
The Equity shares not listed in the public stock exchange .these equity's are strictly controlled by stock exchange. Private equity may be in 3 kinds that is, merger or sale, recapitalization, and initial public offering
Current Ratio:
This ratio shows the measure of assets and liabilities . It can be calculated as current assets / current liabilities
This ratio shows the measure of assets and liabilities . It can be calculated as current assets / current liabilities
Hedging
Buying securities in one market and selling the securities in another market is called Hedging. Perfect hedgers are very rare in stock market
Buying securities in one market and selling the securities in another market is called Hedging. Perfect hedgers are very rare in stock market
Commercial Paper
Commercial paper is issued by the corporations and large banks for a fixed maturity period of time. Usually the period lies between 1 to 270 days period of the tenure.
Commercial paper is issued by the corporations and large banks for a fixed maturity period of time. Usually the period lies between 1 to 270 days period of the tenure.
Zero-Bound Interest Rate:
The central bank may set the percentage of principal to owned. Zero-Bound Interest Rate Mean that there are no interest rates is reduced in order to promote the economic growth. in earlier of 1990's interest rates given by the Japanese central bank. This is normally done in order to reduce the inflation in the economy.
The central bank may set the percentage of principal to owned. Zero-Bound Interest Rate Mean that there are no interest rates is reduced in order to promote the economic growth. in earlier of 1990's interest rates given by the Japanese central bank. This is normally done in order to reduce the inflation in the economy.
Hedge let:
The investors may speculate on various economic events like commodity prices, housing prices, currencies and interest rates in orders to earn the profit gains.
The investors may speculate on various economic events like commodity prices, housing prices, currencies and interest rates in orders to earn the profit gains.
Example:
If Crude oil price contract is $50 .The investor may bid for certain price saying yes for $5 that the price of crude oil will goes up more than $50. If the price goes up he may earn up to $25, if not he will lose the $5 of amount.
Closed End FundsIf Crude oil price contract is $50 .The investor may bid for certain price saying yes for $5 that the price of crude oil will goes up more than $50. If the price goes up he may earn up to $25, if not he will lose the $5 of amount.
these types of mutual funds are closed to a particular tenure. Investors may not buy the new once but the existing holders may sell the mutual funds in this period. Usually this mutual funds tenure is 5 to 7 years.
Capital Asset Pricing Model-(CAPM):
it is a model explains between the risk and return that are used in order to price the securities.
