Game of Intellect

Page no : 10

Rushikesh (Chartered Accountant - Manager Finance)   (2375 Points)
Replied 12 September 2008

Hey Sanjay, we got it together...

anyways here's the term

Yield spread

The difference between yields on different types of bonds reflecting factors such as creditworthiness and supply and demand.


CA Annie (Chartered Accountant ) (747 Points)
Replied 12 September 2008

Hedge clause

Disclaimer seen in market letters, security research reports, or other printed matter having to do with evaluating investments, which purports to absolve the writer from responsibility for the accuracy of information obtained from usually reliable sources.


Bhavadharani (Final student) (168 Points)
Replied 17 September 2008

E&OE

It is a British acronym that stands for "Errors and Omissions Excepted". E&OE is a legal disclaimer that notifies the reader that, without prejudice, that the content and/or validity of the subject data may change without notice



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I.P.O

Initial Public Offer



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Ageing Schedule

The total debtor figure is broken down to show how long invoices have been outstanding (remained unpaid).

A list of accounts receivables that is broken down into groups such as 0–30 days, 31–60 days, 61–90 days, and over 90 days from date of sale. A company uses an aging schedule to show how effectively it is collecting on its accounts receivables.


Bhavadharani (Final student) (168 Points)
Replied 02 June 2009

High low method:

Cost accounting technique that uses the highest and the lowest total cost as a basis fro estimating fixed and a variable cost in a mixed cost



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Individual retirement account (IRA). Individual retirement accounts are one of two types of individual retirement arrangements (IRAs) that provide tax advantages as you save for retirement. The other is an individual retirement annuity.

Both have the same annual contribution limits, catch-up provisions if you're 50 or older, and withdrawal requirements. In addition, both are available in three varieties: traditional deductible, traditional nondeductible, and Roth.

The primary difference between the two is in the investments you make with your contributions.

You open an individual retirement account with a financial services firm, such as a bank, brokerage firm, or investment company, as custodian. The accounts are self-directed, which means you can choose among the investments available through your custodian.

In common practice, however, perhaps because more people have individual retirement accounts, the acronym IRA tends to be used to refer to an account rather than annuity or arrangement



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Individual Retirement Arrangement (IRA)
An individual retirement arrangement is a trust set up to receive retirement contributions of individuals. The arrangement may be in the form of an individual retirement account or individual retirement annuity. The amount that may be contributed is limited. Amounts earned in the IRA are not taxed until they are withdrawn.

CA Madhumita Binani (Executive Accounts (SERVICE))   (389 Points)
Replied 02 June 2009

Intercorporate Deposit :

A short-term deposit made by one company with another. The period usually does not exceed six months, and it could be as short as one or a few days. These deposits are essentially '‘brokered Deposits'’ given the extensive involvement of brokers. The interest rate is influenced by market forces and is, generally, significantly higher than the banks’ lending rate of WORKING CAPITAL.



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Hedge fund
An investment vehicle that somewhat resembles a mutual fund, but with a number of important differences. If the fund is "off-shore", the fund does not have to adhere to any SEC regulations (and can only sell to non-U.S. investors or investment vehicles). These funds employ a number of different strategies that are not usually found in mutual funds. The term "hedge" can actually be misleading. The traditional hedge fund is actually hedged. For example, a fund employing a long-short strategy would try to select the best securities for purchase and the worst for short sale. The combination of longs and short provides a natural hedge to market-wide shocks. However, much more common are funds that are not hedged. There are funds that are long-biased and short-biased. There are funds that undertake high frequency futures strategies, sometimes called managed futures. There are funds that take long-term macroeconomic bets, sometimes called global macro. There are funds that try to capitalize on merger and acquisitions. Another distinguishing feature of hedge funds is the way that managers are rewarded. There are two fees: fixed and variable. The fixed fee is a percentage of asset under management. The variable or performance fee is a percentage of the profit of the fund. There are also funds of funds which invest in a portfolio of hedge funds. Another important difference with hedge funds is that the minimum required investment is usually quite large and, as a result, minimizes the participation of retail investors.




Bhavadharani (Final student) (168 Points)
Replied 02 June 2009

Head Hunter:

Executive recruitment agency that tracks qualified and well equiped personnel for a specific job requirement, usually at the top management level.



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heir

A person who by will or statutory law receives or is scheduled to receive a portion or all of the assets of an estate.




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Intellectual property rights
Patents, copyrights, and proprietary technologies and processes that may be the basis of a company's competitive advantage.

CA Madhumita Binani (Executive Accounts (SERVICE))   (389 Points)
Replied 02 June 2009

Hot Money:

This refers to large amount of short-term funds held internationally by banks, institutions and wealthy individuals which quickly move out of or into a country, usually, in anticipation of exchange rate movements or interest rate changes. Hot Money is, therefore, an unstable source of funds.



Bhavadharani (Final student) (168 Points)
Replied 02 June 2009

Interest rate parity theory:

As per this concept the interest rate disparity in two countries is offset by the change in the exchange rate of the two currencies



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