Saturday, 28 November 2015

List of Banking Terms for RBI Assistant Exam IBPS Po IBPS Clerk And RBI Exams SBI PO : Set-1

  1.  Money Market: Market in which short-term securities are bought and sold.
  2.  Mutual Fund: A company that invests in and professionally manages a diversified portfolio of securities and sells shares of the portfolio to investors.
  3.  Net Asset Value: The underlying value of a share of stock in a particular mutual fund; also used with preferred stock.
  4.  Offer for Sale: An offer to the public by, or on behalf of, the holders of securities already in issue.
  5.  Offer for Subscription: The offer of new securities to the public by the issuer or by someone on behalf of the issuer.
  6.  Open-end (Mutual) Fund: There is no limit to the number of shares the fund can issue. The fund issues new shares of stock and fills the purchase order with those new shares. Investors buy their shares from, and sell them back to, the mutual fund itself. The share prices are determined by their net asset value.
  7.  Open Offer: An offer to current holders of securities to subscribe for securities whether or not in proportion to their existing holdings.
  8.  Option: A security that gives the holder the right to buy or sell a certain amount of an underlying financial asset at a specified price for a specified period of time.
  9.  Oversubscribed: When an Initial Public Offering has more applications than actual shares available. Investors will often apply for more shares than required in anticipation of only receiving a fraction of the requested number. Investors and underwriters will often look to see if an IPO is oversubscribed as an indication of the public’s perception of the business potential of the IPO company.
  10.  Par Bond: A bond selling at par (i.e. at its face value).
  11.  Par Value: The face value of a security.
  12.  Perpetual Bonds: Bonds which have no maturity date.
  13.  Placing: Obtaining subscriptions for, or the sale of, primary market, where the new securities of issuing companies are initially sold.
  14. Portfolio: A collection of investment vehicles assembled to meet one or more investment goals.
  15.  Preference Shares: A corporate security that pays a fixed dividend each period. It is senior to ordinary shares but junior to bonds in its claims on corporate income and assets in case of bankruptcy.
  16.  Premium (Warrants): The difference of the market price of a warrant over its intrinsic value.
  17.  Premium Bond: Bond selling above par.
  18.  Present Value: The amount to which a future deposit will discount back to present when it is depreciated in an account paying compound interest.
  19.  Present Value of an Annuity: The amount to which a stream of equal cash flows that occur in equal intervals will discount back to present when it is depreciated in an account paying compound interest.
  20.  Price/Earnings Ratio (P/E): The measure to determine how the market is pricing the company’s common stock. The price/earnings (P/E) ratio relates the company’s earnings per share (EPS) to the market price of its stock.
  21.  Privatization: The sale of government-owned equity in nationalized industry or other commercial enterprises to private investors.
  22.  Prospectus: A detailed report published by the Initial Public Offering company, which includes all terms and conditions, application procedures, IPO prices etc, for the IPO
  23.  Put Option: The right to sell the underlying securities at a specified exercise price on of before a specified expiration date.
  24.  Rate of Return: A percentage showing the amount of investment gain or loss against the initial investment.
  25.  Real Interest Rate: The net interest rate over the inflation rate. The growth rate of purchasing power derived from an investment.

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