What is Bed-and- Breakfast deal?-What is Big Bang?
What is Bed-and- Breakfast deal?
A. This term used in investment planning. Under this deal shares are sold on one business day and then bought back the following day in order to establish a capital gain or less for tax declaration.
What is Big Bang?
A. The term applied to the liberalization in 1986 of the London Stock Exchange in which trading was automated with the use of computers.
What is Big Board ?
A. A nick name for the New York Stock Exchange. Founded in 1792, the NYSE is the oldest exchange in the United States. It is located on Wall Street in New York City.
What is Black Monday?
A. The 19th October, 1987 was Monday when world stock markets crashed due to the collapse of the US financial economic and political situation.
What is Boilerplate?
A. Standard terms and conditions.
What is Bill of Sight?
A. A temporary authority issued by the custom house at the port of destination authorizing landing of goods for examination when the importer is not certain as to the exact description of goods consigned to him/them.
What is Bona Vacantia?
A. Unclaimed goods and properties. When a person dies leaving no relatives available in the category entitles to inherit, the estate takes over by the Government.
What is Bridge Finance?
A. Purely short term credit/advance extended to a person on a concern pending the receipt of fund from another sources. It is nothing but stop-gap arrangement to avail a temporary credit line by a customer from his banker. It is also called “ Swing loan” made in anticipation of long-term financing.
What is Boondoggle?
A. A project where ultimate economic benefits are highly uncertain except to create jobs for unemployed persons.
What is Cable?
A. Exchange rate between British pound sterling and the US Dollar.
What is Capital Flight?
A. The transfer of capital abroad in response to fears of political and war risk.
What is Captive Market?
A. Market where one supplier has absolute monopoly on his products or goods and the buyer has no other choice but to purchase that product.
What is Commercial risk?
A. The risk of that a foreign debtor will be unable to pay its debts because of business events such as bankruptcy.
What is Contingent Liability?
A. Potential liability arising from a past transaction or a subsequent event. A liability may happen in due course, but not certain.
What is Consumer Price Index?
A. It measures the prices of consumer goods and services and is a measure of the pace of inflation of any country.
What is Correspondent Bank?
A. A bank in one country which acts as agent for a bank of another country by signing/establishing agency agreement/arrangement. By establishing correspondent relationship both banks exchanged their control documents, namely Test Key, Authorized Signature Booklet, Tariff conditions etc. for authenticating their banking transaction to be routed as per arrangement.
What is Deferred Taxes?
A. A non-cash expense that provides a source of free cash flow. Amount allocated during the period to cover tax liabilities that have not yet been paid.
What is Dumping?
A. Selling of goods in overseas market at cheaper rate than is at the home market.
What is Dun & Bradstreet(D&B)?
A. US based organization which supplies reports on the financial rating of renowned companies on demand against fees.
What is Dead Money?
A. Costly money which can only be borrowed at a high rate of interest
What is Deferred Taxes?
A. Amount allocated during a period to cover tax liabilities that have not yet been paid. A non-cash expense that provides a source of free cash flow.
What is Derivatives?
A. Financial instruments whose value varies with the value of underlying assets( such as stock, Bond, commodity or currency) or index such as interest.
What is Dirty Bill of Lading?
A. A Bill of Lading marked or clause stating that the goods were received in a damaged condition. Shipping documents along with Dirty Bill of Lading is not at all acceptable to the bank for negotiation/purchase.
What is Economic Exposure?
A. The extent to which the value of the firm will change because of an exchange rate change.
What is Economic Risk?
A. In project financing, the risk that the project’s output will not be salable at a price that will cover the project’s operating and maintenance costs and its debt service requirements.
What is Evergreen Credit?
A. Revolving credit without maturity.
What is Fiscal Policy?
A. The use of government spending and taxing for the specific purpose of stabilizing economy such as archiving full employment and non-inflationary economy.
What is Fiduciary Loan?
A. Loan sanctioned or allowed without security because of the confidence of the lender upon the borrower for his past performance or social status.
What is Galloping Inflation?
A. Extremely high rate of inflation usually double digit inflation e.g. inflation above 10% per year is termed galloping inflation.
What is Green Clause?
A. A clause appearing in the irrevocable documentary credit which not only authorizes the advising bank to grant pre-shipment advances but also storage costs for storing the goods prior to shipment.
What is Hard Currency?
A. A freely convertible currency that is not expected to depreciate in value in the foreseeable future.
What is Haircut?
A. The margin or difference between the actual market value of a security and the value assessed by the lending side of a transaction.
What is Hedging?
A. Strategy used to offset business or investment risk. A normal transaction in commodities and foreign exchange trading to safeguard against possible loss to price fluctuation by entering into an offsetting futures or forward contract.
What is Hurdle Rate?
A. The required return in capital budgeting.
What is Incoterms?
A. The interpretation of various shipping terms/commercial terms published by International chamber of commerce and adopted/accepted/used by all trading nations in the world.
What is Indenture?
A. Agreement between lender and borrower with details specific terms of the bond issuance. It specifies legal obligations of bond issuer and rights of bond holders.
What is Bed-and- Breakfast deal?
This term used in investment planning. Under this deal shares are sold on one business day and then bought back the following day in order to establish a capital gain or less for tax declaration.
What is Black Monday?
The 19th October, 1987 was Monday when world stock markets crashed due to the collapse of the US financial economic and political situation.
What is Boondoggle?
A project where ultimate economic benefits are highly uncertain except to create jobs for unemployed persons.
What is Captive Market?
Market where one supplier has absolute monopoly on his products or goods and the buyer has no other choice but to purchase that product.