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MONDAY,20FEBRUARY2012

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IBPSCLERK2015

IBPSClerkNotification

BANKINGTERMS
ThebasicbankingtermsarefrequentlyaskedinalltheBankInterviews.
Thesetermsareusefulnotonlyforyourinterviewbutalsoforyourgeneral
knowledge.KnowledgeandUnderstandingofImportantBankingtermsplaya
verycrucialroleinthefinalselection.Alsothesebankingtermsareusefulfor
BankingAspirants,Economics&Commercestudents,MBAaspirantsand
studentspreparingforothersimilarlevelExams.
Knowingbasicbankingtermsnotonlygivesyouanedgeoverother
candidatesbutalsoshowsyourinterestlevelforthejob.

AccountAgreement:Thecontractgoverningyouropenendcreditaccount,
itprovidesinformationonchangesthatmayoccurtotheaccount.
AccountHistory:Thepaymenthistoryofanaccountoveraspecificperiod
oftime,includingthenumberoftimestheaccountwaspastdueoroverlimit.
AccountHolder:Anyandallpersonsdesignatedandauthorizedtotransact
businessonbehalfofanaccount.Eachaccountholder'ssignatureneedsto
beonfilewiththebank.Thesignatureauthorizesthatpersontoconduct
businessonbehalfoftheaccount.

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Howtowritean
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DetailedViewofSBI
PO2015Expected
Pattern
Areyouthat1in
1100?Mychancesof
beinganSBIPO
SBIPO20152016
RecruitmentAnalysis
inDetail
FAQsSBIPO2015
Notification

IBPSRRB2015

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IMPORTANTPOSTSON
IBPSRESULTS

SalaryStructureof
BankPO&Clerk
IBPSSelected
Candidates:Know
yourcolleagues
joiningthesamebank
asyou
AllottedaBankin
IBPS.Whatnext?
WaitingList(Reserve
List)forIBPSPOIII
andIBPSClerkIII
IBPSPOIII:Final
ResultOut
IBPSClerkIII:Final
Result
IBPSClerkII:Fourth
RoundofAllocations
IBPSPOIIFourth
RoundofAllocations
SBIPOPREEXAM
ANALYSIS

AcquiringBank:Inamerger,thebankthatabsorbsthebankacquired.
Accruedinterest:Interestduefromissuedateorfromthelastcoupon
paymentdatetothesettlementdate.Accruedinterestonbondsmustbe
addedtotheirpurchaseprice.
AdjustableRateMortgages(ARMS):Alsoknownasvariablerate
mortgages.Theinitialinterestrateisusuallybelowthatofconventionalfixed
rateloans.Theinterestratemaychangeoverthelifeoftheloanasmarket
conditionschange.Thereistypicallyamaximum(orceiling)andaminimum
(orfloor)definedintheloanagreement.Ifinterestratesrise,sodoestheloan
payment.Ifinterestratesfall,theloanpaymentmayaswell.
Arbitrage:Buyingafinancialinstrumentinonemarketinordertosellthe
sameinstrumentatahigherpriceinanothermarket.
AdverseAction:UndertheEqualCreditOpportunityAct,acreditor'srefusal
tograntcreditonthetermsrequested,terminationofanexistingaccount,or
anunfavorablechangeinanexistingaccount.
AdverseActionNotice:ThenoticerequiredbytheEqualCreditOpportunity
Actadvisingacreditapplicantorexistingdebtorofthedenialoftheirrequest
forcreditoradvisingofachangeintermsconsideredunfavorabletothe
accountholder.
AER:Annualearningsrateonaninvestment.
Affidavit:Aswornstatementinwritingbeforeaproperofficial,suchasa
notarypublic.
Alteration:Anychangeinvolvinganerasureorrewritinginthedate,amount,
orpayeeofacheckorothernegotiableinstrument.
Amortization:Theprocessofreducingdebtthroughregularinstallment
paymentsofprincipalandinterestthatwillresultinthepayoffofaloanatits
maturity.
AnytimeBanking:WithintroductionofATMs,TeleBankingandinternet
banking,customerscanconducttheirbusinessanytimeofthedayandnight.
The'BankingHours'isnotaconstraintfortransactingbankingbusiness.
AnywhereBanking:ReferstobankingnotonlybyATMs,TeleBankingand
internetbanking,butalsotocorebankingsolutionsbroughtinbybanks
wherecustomercandeposithismoney,chequesandalsowithdrawmoney
fromanybranchconnectedwiththesystem.AllmajorbanksinIndiahave
broughtincorebankingintheiroperationstomakebankingtrulyanywhere
banking.
AnnualPercentageRate(APR):Thecostofcreditonayearlybasis,
expressedasapercentage.
AnnualPercentageYield(APY):Apercentageratereflectingthetotal
amountofinterestpaidonadepositaccountbasedontheinterestrateand
thefrequencyofcompoundingfora365dayyear.
Annuity:Alifeinsuranceproductwhichpaysincomeoverthecourseofa
setperiod.Deferredannuitiesallowassetstogrowbeforetheincomeis
receivedandimmediateannuities(usuallytakenfromayearafterpurchase)
allowpaymentstostartfromaboutayearafterpurchase.
APR:Theannualpercentagerateofinterest,usuallyonaloanormortgage,
usuallydisplayedinbracketsandrepresentingthetruecostoftheloanor
mortgageasitshowsanyadditionalpaymentsbeyondtheinterestrate.
Application:UndertheEqualCreditOpportunityAct(ECOA),anoralor
writtenrequestforanextensionofcreditthatismadeinaccordancewiththe
proceduresestablishedbyacreditorforthetypeofcreditrequested.
Appraisal:Theactofevaluatingandsettingthevalueofaspecificpieceof
personalorrealproperty.
AskPrice:Thelowestpriceatwhichadealeriswillingtosellagiven
security.
AssetBackedSecurities(ABS):Atypeofsecuritythatisbackedbyapool
ofbankloans,leases,andotherassets.MostABSarebackedbyautoloans
andcreditcardstheseissuesareverysimilartomortgagebacked
securities.
Atthemoney:Theexercisepriceofaderivativethatisclosesttothe
marketpriceoftheunderlyinginstrument.
ATM:ATMsareAutomaticTellerMachines,whichdothejobofatellerina

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IBPSBANKEXAMS
IMPORTANTINFO

EconomicSurvey
2015
RailBudget2015
UnionBudget2015
CategoryCertificate
Formats
CharacterCertificate
Format
PromotionsinPSU
Banks
SabbaticalLeave
PolicyforWomen
BondEnforcementin
PSUBanks
ImportantMarketing
TermsSBIClerk
ImportantBanking
Terms

OURAFFILIATES

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bankthroughComputerNetwork.ATMsarelocatedonthebranchpremises
oroffbranchpremises.ATMsareusefultodispensecash,receivecash,
acceptcheques,givebalancesintheaccountsandalsogivemini
statementstothecustomers.
Authorization:Theissuanceofapproval,byacreditcardissuer,merchant,
orotheraffiliate,tocompleteacreditcardtransaction.
AutomatedClearingHouse(ACH):Acomputerizedfacilityusedby
memberdepositoryinstitutionstoelectronicallycombine,sort,anddistribute
interbankcreditsanddebits.ACHsprocesselectronictransfersof
governmentsecuritiesandprovidedcustomerservices,suchasdirect
depositofcustomers'salariesandgovernmentbenefitpayments(i.e.,social
security,welfare,andveterans'entitlements),andpreauthorizedtransfers.
AutomatedTellerMachine(ATM):Amachine,activatedbyamagnetically
encodedcardorothermediumthatcanprocessavarietyofbanking
transactions.Theseincludeacceptingdepositsandloanpayments,providing
withdrawals,andtransferringfundsbetweenaccounts.
AutomaticBillPayment:Achecklesssystemforpayingrecurringbillswith
oneauthorizationstatementtoafinancialinstitution.Forexample,the
customerwouldonlyhavetoprovideoneauthorizationform/letter/document
topaythecablebilleachmonth.Thenecessarydebitsandcreditsaremade
throughanAutomatedClearingHouse(ACH).
AvailabilityDate:Bank'spolicyastowhenfundsdepositedintoanaccount
willbeavailableforwithdrawal.
AvailabilityPolicy:Bank'spolicyastowhenfundsdepositedintoan
accountwillbeavailableforwithdrawal.
AvailableBalance:Thebalanceofanaccountlessanyhold,uncollected
funds,andrestrictionsagainsttheaccount.
AvailableCredit:Thedifferencebetweenthecreditlimitassignedtoa
cardholderaccountandthepresentbalanceoftheaccount.
Banking:Acceptingforthepurposeoflendingorinvestmentofdepositsof
moneyfromPublic,Repayableondemandorotherwiseandwithdrawableby
cheques,drafts,order,etc.
BankOmbudsman:BankOmbudsmanistheauthoritytolookinto
complaintsagainstBanksinthemainareasofcollectionofcheque/bills,
issueofdemanddrafts,nonadherencetoprescribedhoursofworking,failure
tohonourguarantee/letterofcreditcommitments,operationsindeposit
accountsandalsointheareasofloansandadvanceswherebanksflout
directions/instructionsofRBI.ThisSchemewasannouncedin1995andis
functioningwithnewguidelinesfrom2007.Thisschemecoversallscheduled
banks,theRRBsandcooperativebanks.
Bancassurance:Bancassurancereferstothedistributionofinsurance
productsandtheinsurancepoliciesofinsurancecompanieswhichmaybe
lifepoliciesornonlifepolicieslikehomeinsurancecarinsurance,medi
policiesandothers,bybanksascorporateagentsthroughtheirbranches
locatedindifferentpartsofthecountrybychargingafee.
Banker'sLien:Bankerslienisaspecialrightoflienexercisedbythe
bankers,whocanretaingoodsbailedtothemasasecurityforgeneral
balanceofaccount.Bankerscanhavethisrightintheabsenceofacontract
tothecontrary.
BaselII:TheCommitteeonBankingRegulationsandSupervisoryPractices,
popularityknownasBaselCommittee,submitteditsrevisedversionof
normsinJune,2004.Undertherevisedaccordthecapitalrequirementisto
becalculatedforcredit,marketandoperationalrisks.Theminimum
requirementcontinuestobe8%ofcapitalfund(TierI&IICapital)TierII
shallcontinuetobenotmorethan100%ofTierICapital.
Brick&MortarBanking:BrickandMortarBankingreferstotraditional
systemofbankingdoneonlyinafixedbranchpremisesmadeofbrickand
mortar.NowtherearebankingchannelslikeATM,InternetBanking,tele
bankingetc.
BusinessofBanking:Acceptingdeposits,borrowingmoney,lending
money,investing,dealinginbills,dealinginForeignExchange,Hiring
Lockers,OpeningSafeCustodyAccounts,IssuingLettersofCredit,
TravelersCheques,doingMutualFundbusiness,InsuranceBusiness,acting
asTrusteeordoinganyotherbusinesswhichCentralGovernmentmaynotify
intheofficialGazette.
Bouncingofacheque:Whereanaccountdoesnothavesufficientbalance
tohonourthechequeissuedbythecustomer,thechequeisreturnedbythe
bankwiththereason"fundsinsufficient"or"Exceedsarrangement.Thisis
knownas'Bouncingofacheque.
BasisPoint:Onehundredthof1%.Ameasurenormallyusedinthe
statementofinterestratee.g.,achangefrom5.75%to5.81%isachangeof
6basispoints.BearMarkets:Unfavorablemarketsassociatedwithfalling
pricesandinvestorpessimism.
BidaskSpread:Thedifferencebetweenadealerssbidandaskprice.
BidPrice:Thehighestpriceofferedbyadealertopurchaseagivensecurity.
BlueChips:Bluechipsareunsurpassedinqualityandhavealongand
stablerecordofearningsanddividends.Theyareissuedbylargeandwell
establishedfirmsthathaveimpeccablefinancialcredentials.
Bond:Publiclytradedlongtermdebtsecurities,issuedbycorporationsand
governments,wherebytheissueragreestopayafixedamountofinterest
overaspecifiedperiodoftimeandtorepayafixedamountofprincipalat
maturity.
BookValue:Theamountofstockholdersequityinafirmequalstheamount
ofthefirmsassetsminusthefirmsliabilitiesandpreferredstock.
Broker:Individualslicensedbystockexchangestoenableinvestorstobuy
andsellsecurities.
BrokerageFee:Thecommissionchargedbyabroker.
BullMarkets:Favorablemarketsassociatedwithrisingpricesandinvestor
optimism.
CallOption:Therighttobuytheunderlyingsecuritiesataspecifiedexercise

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priceonorbeforeaspecifiedexpirationdate.
CallableBonds:Bondsthatgivetheissuertherighttoredeemthebonds
beforetheirstatedmaturity.
CapitalGain:Theamountbywhichtheproceedsfromthesaleofacapital
assetexceeditsoriginalpurchaseprice.
CapitalMarkets:Themarketinwhichlongtermsecuritiessuchasstocks
andbondsareboughtandsold.
CertificateofDeposits(CDs):Savingsinstrumentinwhichfundsmust
remainondepositforaspecifiedperiodandprematurewithdrawalsincur
interestpenalties.
CertificateofDeposit:.CertificateofDepositsarenegotiablereceiptsin
bearerformwhichcanbefreelytradedamonginvestors.Thisisalsoa
moneymarketinstrument,issuedforaperiodrangingfrom7daystofone
year.TheminimumdepositamountisRs.1lakhandtheyaretransferableby
endorsementanddelivery.
Cheque:Chequeisabillofexchangedrawnonaspecifiedbankerordering
thebankertopayacertainsumofmoneytothedrawerofchequeoranother
person.Moneyisgenerallywithdrawnbyclientsbycheques.Chequeis
alwayspayableondemand.
ChequeTruncation:Chequetruncationtruncatesorstopstheflowof
chequesthroughthebankingsystem.Generallytruncationtakesplaceatthe
collectingbranch,whichsendstheelectronicimageofthechequestothe
payingbranchthroughtheclearinghouseandstoresthepaperchequeswith
it.
Closedend(Mutual)Fund:Afundwithafixednumberofsharesissued,
andalltradingisdonebetweeninvestorsintheopenmarket.Theshare
pricesaredeterminedbymarketpricesinsteadoftheirnetassetvalue.
Collateral:Aspecificassetpledgedagainstpossibledefaultonabond.
Mortgagebondsarebackedbyclaimsonproperty.Collateraltrustsbonds
arebackedbyclaimsonothersecurities.Equipmentobligationbondsare
backedbyclaimsonequipment.
CommercialPaper:Shorttermandunsecuredpromissorynotesissuedby
corporationswithveryhighcreditstandings.
CommonStock:Equityinvestmentrepresentingownershipinacorporation
eachsharerepresentsafractionalownershipinterestinthefirm.
CompoundInterest:Interestpaidnotonlyontheinitialdepositbutalsoon
anyinterestaccumulatedfromoneperiodtothenext.
ContractNote:Anotewhichmustaccompanyeverysecuritytransaction
whichcontainsinformationsuchasthedealersname(whetherheisacting
asprincipaloragent)andthedateofcontract.
ControllingShareholder:Anypersonwhois,orgroupofpersonswho
togetherare,entitledtoexerciseorcontroltheexerciseofacertainamount
ofsharesinacompanyatalevel(whichdiffersbyjurisdiction)thattriggersa
mandatorygeneraloffer,ormoreofthevotingpoweratgeneralmeetingsof
theissuer,orwhoisorareinapositiontocontrolthecompositionofa
majorityoftheboardofdirectorsoftheissuer.
ConvertibleBond:Abondwithanoption,allowingthebondholderto
exchangethebondforaspecifiednumberofsharesofcommonstockinthe
firm.Aconversionpriceisthespecifiedvalueofthesharesforwhichthe
bondmaybeexchanged.Theconversionpremiumistheexcessofthe
bondsvalueovertheconversionprice.
CorporateBond:Longtermdebtissuedbyprivatecorporations.
Coupon:Thefeatureonabondthatdefinestheamountofannualinterest
income.
CouponFrequency:Thenumberofcouponpaymentsperyear.
CouponRate:Theannualrateofinterestonthebondsfacevaluethata
bondsissuerpromisestopaythebondholder.Itisthebondsinterest
paymentperdollarofparvalue.
CoveredWarrants:Derivativecallwarrantsonshareswhichhavebeen
separatelydepositedbytheissuersothattheyareavailablefordeliveryupon
exercise.
CreditRating:Anassessmentofthelikelihoodofanindividualorbusiness
beingabletomeetitsfinancialobligations.Creditratingsareprovidedby
creditagenciesorratingagenciestoverifythefinancialstrengthoftheissuer
forinvestors.
CollectingBanker:Alsocalledreceivingbanker,whocollectson
instrumentslikeacheque,draftorbillofexchange,lodgedwithhimselffor
thecreditofhiscustomer'saccount.
ConsumerProtectionAct:Itisimplementedfrom1987toenforce
consumerrightsthroughasimplelegalprocedure.Banksalsoarecovered
undertheAct.Aconsumercanfilecomplaintfordeficiencyofservicewith
ConsumerDistrictForumforamountsuptoRs.20LacsinDistrictCourt,and
foramountsaboveRs.20LacstoRs.1CroreinStateCommissionandfor
amountsaboveRs.1CroreinNationalCommission.
CooperativeBank:Anassociationofpersonswhocollectivelyownand
operateabankforthebenefitofconsumers/customers,likeSaraswatCo
operativeBankorAbhyudayaCooperativeBankandothersuchbanks.
CooperativeSociety:Whenanassociationofpersonscollectivelyownand
operateaunitforthebenefitofthoseusingitsserviceslikeApnaBazarCo
operativeSocietyorSahakarBhandaroraCooperativeHousingSociety.
CoreBankingSolutions(CBS):CoreBankingSolutionsisabuzzwordin
Indianbankingatpresent,wherebranchesofthebankareconnectedtoa
centralhostandthecustomersofconnectedbranchescandobankingatany
breachwithcorebankingfacility.
Creditworthiness:Itisthecapacityofaborrowertorepaytheloan/
advanceintimealongwithinterestasperagreedterms.
CrossingofCheques:Crossingreferstodrawingtwoparallellinesacross
thefaceofthecheque.Acrossedchequecannotbepaidincashacrossthe

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counter,andistobepaidthroughabankeitherbytransfer,collectionor
clearing.Ageneralcrossingmeansthatchequecanbepaidthroughany
bankandaspecialcrossing,wherethenameofabankisindicatedonthe
cheque,canbepaidonlythroughthenamedbank.

Customer:Apersonwhomaintainsanytypeofaccountwithabankisa
bankcustomer.ConsumerProtectionActhasawiderdefinitionforconsumer
astheonewhopurchasesanyserviceforafeelikepurchasingademand
draftorapayorder.ThetermcustomerisdefineddifferentlybyLaws,
softwaresandcountries.
CurrentAccount:Currentaccountwithabankcanbeopenedgenerallyfor
businesspurpose.Therearenorestrictionsonwithdrawalsinthistypeof
account.Nointerestispaidinthistypeofaccount.
CurrencyBoard:Amonetarysysteminwhichthemonetarybaseisfully
backedbyforeignreserves.Anychangesinthesizeofthemonetarybase
havetobefullymatchedbycorrespondingchangesintheforeignreserves.
CurrentYield:Areturnmeasurethatindicatestheamountofcurrentincome
abondprovidesrelativetoitsmarketprice.Itisshownas:CouponRate
dividedbyPricemultipliedby100%.
CustodyofSecurities:Registrationofsecuritiesinthenameoftheperson
towhomabankisaccountable,orinthenameofthebanksnomineeplus
depositionofsecuritiesinadesignatedaccountwiththebanksbankersor
withanyotherinstitutionprovidingcustodialservices.
DebitCard:Aplasticcardissuedbybankstocustomerstowithdrawmoney
electronicallyfromtheiraccounts.Whenyoupurchasethingsonthebasisof
DebitCardtheamountdueisdebitedimmediatelytotheaccount.Many
banksissueDebitCumATMCards.
Debtor:Apersonwhotakessomemoneyonloanfromanotherperson.
DemandDeposits:Depositswhicharewithdrawnondemandbycustomers.
E.g.savingsbankandcurrentaccountdeposits.
DematAccount:DematAccountconcepthasrevolutionizedthecapital
marketofIndia.Whenadepositorycompanytakespapersharesfroman
investorandconvertstheminelectronicformthroughtheconcerned
company,itiscalledDematerializationofShares.TheseconvertedShare
CertificatesinElectronicformarekeptinaDematAccountbythe
DepositoryCompany,likeabankkeepsmoneyinadepositaccount.
Investorcanwithdrawthesharesorpurchasemoresharesthroughthis
dematAccount.
DerivativeCall(Put)Warrants:Warrantsissuedbyathirdpartywhichgrant
theholdertherighttobuy(sell)thesharesofalistedcompanyataspecified
price.
DerivativeInstrument:Financialinstrumentwhosevaluedependsonthe
valueofanotherasset.
DiscountBond:Abondsellingbelowpar,asinterestinlieutothe
bondholders.
DishonourofCheque:Nonpaymentofachequebythepayingbankerwith
areturnmemogivingreasonsforthenonpayment.DefaultRisk:The
possibilitythatabondissuerwilldefaultie,failtorepayprincipalandinterest
inatimelymanner.
Diversification:Theinclusionofanumberofdifferentinvestmentvehiclesin
aportfolioinordertoincreasereturnsorbeexposedtolessrisk.
Duration:Ameasureofbondpricevolatility,itcapturesbothpriceand
reinvestmentriskstoindicatehowabondwillreacttodifferentinterestrate
environments.
Earnings:Thetotalprofitsofacompanyaftertaxationandinterest.
EarningsperShare(EPS):Theamountofannualearningsavailableto
commonstockholdersasstatedonapersharebasis.
EarningsYield:Theratioofearningstoprice(E/P).Thereciprocalisprice
earningsratio(P/E).
EBanking:EBankingorelectronicbankingisaformofbankingwhere
fundsaretransferredthroughexchangeofelectronicsignalsbetweenbanks
andfinancialinstitutionandcustomersATMs,CreditCards,DebitCards,
InternationalCards,InternetBankingandnewfundtransferdeviceslike
SWIFT,RTGSbelongtothiscategory.
EFT(ElectronicFundTransfer):EFTisadevicetofacilitateautomatic
transmissionandprocessingofmessagesaswellasfundsfromonebank
branchtoanotherbankbranchandevenfromonebranchofabanktoa
branchofanotherbank.EFTallowstransferoffundselectronicallywithdebit
andcredittorelativeaccounts.
EitherorSurvivor:Referstooperationoftheaccountopenedintwonames
withabank.Itmeansthatanyoneoftheaccountholdershavepowersto
withdrawmoneyfromtheaccount,issuecheques,givestoppayment
instructionsetc.Intheeventofdeathofoneoftheaccountholder,the
survivingaccountholdergetsallthepowersofoperation.
ElectronicCommerce(ECommerce):ECommerceisthepaperless
commercewheretheexchangeofbusinesstakesplacebyElectronic
means.
Endorsement:WhenaNegotiableInstrumentcontains,onthebackofthe
instrumentanendorsement,signedbytheholderorpayeeofanorder
instrument,transferringthetitletotheotherperson,itiscalledendorsement.
Bouncingofacheque:Wherethenameoftheendorseeortransfereeisnot
mentionedontheinstrument.
EndorsementinFull:Wherethenameoftheendorseeortransferee
appearsontheinstrumentwhilemakingendorsement.
Equity:Ownershipofthecompanyintheformofsharesofcommonstock.
EquityCallWarrants:Warrantsissuedbyacompanywhichgivetheholder
therighttoacquirenewsharesinthatcompanyataspecifiedpriceandfora
specifiedperiodoftime.
Exdividend(XD):Asecuritywhichnolongercarriestherighttothemost
recentlydeclareddividendortheperiodoftimebetweentheannouncementof
thedividendandthepayment(usuallytwodaysbeforetherecorddate).For
transactionsduringtheexdividendperiod,thesellerwillreceivethedividend,
notthebuyer.Exdividendstatusisusuallyindicatedinnewspaperswithan
(x)nexttothestocksorunittrustsname.
ExecutionofDocuments:Executionofdocumentsisdonebyputting

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signatureoftheperson,oraffixinghisthumbimpressionorputtingsignature
withstamporaffixingcommonsealofthecompanyonthedocumentswith
orwithoutsignaturesofdirectorsasperarticlesofassociationofthe
company.
FaceValue/NominalValue:Thevalueofafinancialinstrumentasstated
ontheinstrument.Interestiscalculatedonface/nominalvalue.
FixedincomeSecurities:Investmentvehiclesthatofferafixedperiodic
return.
FixedRateBonds:Bondsbearingfixedinterestpaymentsuntilmaturity
date.
FloatingRateBonds:Bondsbearinginterestpaymentsthataretiedto
currentinterestrates.
Factoring:Businessofbuyingtradedebtsatadiscountandmakingaprofit
whendebtisrealizedandalsotakingovercollectionoftradedebtsatagreed
prices.
ForeignBanks:BanksincorporatedoutsideIndiabutoperatinginIndiaand
regulatedbytheReserveBankofIndia(RBI),.e..g.,BarclaysBank,HSBC,
Citibank,StandardCharteredBank,etc.
Forfeiting:InInternationalTradewhenanexporterfindsitdifficulttorealize
moneyfromtheimporter,hesellstherighttoreceivemoneyatadiscountto
aforfaiter,whoundertakesinherentpoliticalandcommercialriskstofinance
theexporter,ofcoursewithassumptionofaprofitintheventure.
Forgery:whenamaterialalterationismadeonadocumentoraNegotiable
Instrumentlikeacheque,tochangethemandateofthedrawer,withintention
todefraud.
FundamentalAnalysis:Researchtopredictstockvaluethatfocuseson
suchdeterminantsasearningsanddividendsprospects,expectationsfor
futureinterestratesandriskevaluationofthefirm.
FutureValue:Theamounttowhichacurrentdepositwillgrowoveraperiod
oftimewhenitisplacedinanaccountpayingcompoundinterest.
FutureValueofanAnnuity:Theamounttowhichastreamofequalcash
flowsthatoccurinequalintervalswillgrowoveraperiodoftimewhenitis
placedinanaccountpayingcompoundinterest.
FuturesContract:Acommitmenttodeliveracertainamountofsome
specifieditematsomespecifieddateinthefuture.
GarnisheeOrder:WhenaCourtdirectsabanktoattachthefundstothe
creditofcustomer'saccountunderprovisionsofSection60oftheCodeof
CivilProcedure,1908.
GeneralLien:Arightofthecreditorstoretainpossessionofallgoodsgiven
insecuritytohimbythedebtorforanyoutstandingdebt.
Guarantee:Acontractbetweenguarantorandbeneficiarytoensure
performanceofapromiseordischargetheliabilityofathirdperson.If
promiseisbrokenornotperformed,theguarantorpayscontractedamountto
thebeneficiary.
Hedge:Acombinationoftwoormoresecuritiesintoasingleinvestment
positionforthepurposeofreducingoreliminatingrisk.
Holder:Holdermeansanypersonentitledinhisownnametothe
possessionofthecheque,billofexchangeorpromissorynoteandwhois
entitledtoreceiveorrecovertheamountdueonitfromtheparties.For
example,ifIgiveachequetomyfriendtowithdrawmoneyfrommybank,he
becomesholderofthatcheque.Evenifhelosesthecheque,hecontinuesto
beholder.Findercannotbecometheholder.
Holderinduecourse:ApersonwhoreceivesaNegotiableInstrumentfor
value,beforeitwasdueandingoodfaith,withoutnoticeofanydefectinit,
heiscalledholderinduecourseasperNegotiableInstrumentAct.Inthe
earlierexampleifmyfriendlendssomemoneytomeonthebasisofthe
cheque,whichIhavegiventohimforencashment,hebecomesholderindue
course.
Hypothecation:Chargeagainstpropertyforanamountofdebtwhereneither
ownershipnorpossessionispassedtothecreditor.Inpledge,possessionof
propertyispassedontothelenderbutinhypothecation,thepropertyremains
withtheborrowerintrustforthelender.
Identification:Whenapersonprovidesadocumenttoabankorisbeing
identifiedbyaperson,whoisknowntothebank,itiscalledidentification.
Banksaskforidentificationbeforepayinganorderchequeorademanddraft
acrossthecounter.
Indemnifier:Whenapersonindemnifiesorguaranteestomakegoodany
losscausedtothelenderfromhisactionsorothers'actions.
Indemnity:Indemnityisabondwheretheindemnifierundertakesto
reimbursethebeneficiaryfromanylossarisingduetohisactionsorthird
partyactions.
Income:Theamountofmoneyanindividualreceivesinaparticulartime
period.
IndexFund:Amutualfundthatholdssharesinproportiontotheir
representationinamarketindex,suchastheS&P500.
InitialPublicOffering(IPO):Aneventwhereacompanysellsitssharesto
thepublicforthefirsttime.ThecompanycanbereferredtoasanIPOfora
periodoftimeaftertheevent.
InsideInformation:Nonpublicknowledgeaboutacompanypossessedby
itsofficers,majorowners,orotherindividualswithprivilegedaccessto
information.
InsiderTrading:Theillegaluseofnonpublicinformationaboutacompany
tomakeprofitablesecuritiestransactions
Insolvent:Insolventisapersonwhoisunabletopayhisdebtsasthey
mature,ashisliabilitiesaremorethantheassets.CivilCourtsdeclaresuch
personsinsolvent.Banksdonotopenaccountsofinsolventpersonsasthey
cannotenterintocontractasperlaw.
InterestWarrant:Whenchequeisgivenbyacompanyoranorganizationin

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paymentofinterestondeposit,itiscalledinterestwarrant.Interestwarrant
hasallthecharacteristicsofacheque.
InternationalBanking:involvesmorethantwonationsorcountries.Ifan
IndianBankhasbranchesindifferentcountrieslikeStateBankofIndia,itis
saidtodoInternationalBanking.
Introduction:Banksarecarefulinopeninganyaccountforacustomeras
theprospectivecustomerhastobeintroducedbyanexistingaccountholder
orastaffmemberorbyanyotherpersonknowntothebankforopeningof
account.Ifbankdoesnottakeintroduction,itwillamounttonegligenceand
willnotgetprotectionunderlaw.
IntrinsicValue:Thedifferenceoftheexercisepriceoverthemarketpriceof
theunderlyingasset.
Investment:Avehicleforfundsexpectedtoincreaseitsvalueand/or
generatepositivereturns.
InvestmentAdviser:Apersonwhocarriesonabusinesswhichprovides
investmentadvicewithrespecttosecuritiesandisregisteredwiththe
relevantregulatorasaninvestmentadviser.
IPOprice:Thepriceofsharesetbeforebeingtradedonthestockexchange.
OncethecompanyhasgoneInitialPublicOffering,thestockpriceis
determinedbysupplyanddemand.
JHFAccount:JointHinduFamilyAccountisaccountofafirmwhose
businessiscarriedoutbyKartaoftheJointfamily,actingforallthefamily
members..Thefamilymembershavecommonancestorandgenerally
maintainacommonresidenceandaresubjecttocommonsocial,economic
andreligiousregulations.
JointAccount:Whentwoormoreindividualsjointlyopenanaccountwitha
bank.
JunkBond:Highrisksecuritiesthathavereceivedlowratings(i.e.Standard
&PoorsBBBratingorbeloworMoodysBBBratingorbelow)andassuch,
producehighyields,solongastheydonotgointodefault.
Karta:ManagerofaHinduUndividedFamily(HUF)whohandlesthefamily
business.Heisusuallytheeldestmalememberoftheundividedfamily.
KioskBanking:Doingbankingfromacubiclefromwhichfood,newspapers,
ticketsetc.arealsosold.
KYCNorms:KnowyourcustomernormsareimposedbyR.B.I.onbanks
andotherfinancialinstitutionstoensurethattheyknowtheircustomersand
toensurethatcustomersdealonlyinlegitimatebankingoperationsandnotin
moneylaunderingorfrauds.
LawofLimitation:LimitationActof1963fixesthelimitationperiodofdebts
andobligationsincludingbanksloansandadvances.Iftheperiodfixedfor
particulardebtorloanexpires,onecannotfileasuitforisrecovery,butthe
factofthedebtorloanisnotdenied.Itissaidthatlawoflimitationbarsthe
remedybutdoesnotextinguishtheright.
LeaseFinancing:Financingforthebusinessofrentinghousesorlandsfora
specifiedperiodoftimeandalsohiringoutofanassetforthedurationofits
economiclife.Leasingofacarorheavymachineryforaspecificperiodat
specificpriceisanexample.
LetterofCredit:Adocumentissuedbyimportersbanktoitsbranchoragent
abroadauthorizingthepaymentofaspecifiedsumtoapersonnamedin
LetterofCredit(usuallyexporterfromabroad).LettersofCreditarecovered
byrulesframedunderUniformCustomsandPracticesofDocumentary
CreditsframedbyInternationalChamberofCommerceinParis.
LimitedCompaniesAccounts:Accountsofcompaniesincorporatedunder
theCompaniesAct,1956.Acompanymaybeprivateorpublic.Liabilityof
theshareholdersofacompanyisgenerallylimitedtothefacevalueofshares
heldbythem.
LeverageRatio:Financialratiosthatmeasuretheamountofdebtbeingused
tosupportoperationsandtheabilityofthefirmtoserviceitsdebt.
Libor:TheLondonInterbankOfferedRate(orLIBOR)isadailyreference
ratebasedontheinterestratesatwhichbanksoffertolendunsecuredfunds
tootherbanksintheLondonwholesalemoneymarket(orinterbankmarket).
TheLIBORrateispublisheddailybytheBritishBankersAssociationand
willbeslightlyhigherthantheLondonInterbankBidRate(LIBID),therateat
whichbanksarepreparedtoacceptdeposits.
LimitOrder:Anordertobuy(sell)securitieswhichspecifiesthehighest
(lowest)priceatwhichtheorderistobetransacted.
LimitedCompany:Thepassiveinvestorsinapartnership,whosupplymost
ofthecapitalandhaveliabilitylimitedtotheamountoftheircapital
contributions.
Liquidity:Theabilitytoconvertaninvestmentintocashquicklyandwith
littleornolossinvalue.
Listing:QuotationoftheInitialPublicOfferingcompanyssharesonthe
stockexchangeforpublictrading.
ListingDate:ThedateonwhichInitialPublicOfferingstocksarefirsttraded
onthestockexchangebythepublic
MarginCall:Anoticetoaclientthatitmustprovidemoneytosatisfya
minimummarginrequirementsetbyanExchangeorbyabank/brokingfirm.
MarketCapitalization:Theproductofthenumberofthecompanys
outstandingordinarysharesandthemarketpriceofeachshare.
MarketMaker:Adealerwhomaintainsaninventoryinoneormorestocks
andundertakestomakecontinuoustwosidedquotes.
MarketOrder:Anordertobuyoranordertosellsecuritieswhichistobe
executedattheprevailingmarketprice.
MoneyMarket:Marketinwhichshorttermsecuritiesareboughtandsold.
MarginalStandingFacilityRate:MSFschemehasbecomeeffectivefrom
09thMay,2011launchedbytheRBI.Underthisscheme,Bankswillbeable
toborrowupto1%oftheirrespectiveNetDemandandTimeLiabilities.The
rateofinterestontheamountaccessedfromthisfacilitywillbe100basis

points(i.e.1%)abovethereporate.Thisschemeislikelytoreducevolatility
intheovernightratesandimprovemonetarytransmission.
Mandate:Writtenauthorityissuedbyacustomertoanotherpersontoacton
hisbehalf,tosignchequesortooperateabankaccount.
MaterialAlteration:Alterationinaninstrumentsoastoalterthecharacterof
aninstrumentforexamplewhendate,amount,nameofthepayeearealtered
ormakingachequepayabletobearerfromanorderoneoropeningthe
crossingonacheque.
MerchantBanking:Whenabankprovidestoacustomervarioustypesof
financialserviceslikeacceptingbillsarisingoutoftrade,arrangingand
providingunderwriting,newissues,providingadvice,informationor
assistanceonstartingnewbusiness,acquisitions,mergersandforeign
exchange.
MicroFinance:MicroFinanceaimsatalleviationofpovertyand
empowermentofweakersectionsinIndia.Inmicrofinance,verysmall
amountsaregivenascredittopoorinrural,semiurbanandurbanareasto
enablethemtoraisetheirincomelevelsandimprovelivingstandards.
MinorAccounts:Aminorisapersonwhohasnotattainedlegalageof18
years.AsperContractActaminorcannotenterintoacontractbutasper
NegotiableInstrumentAct,aminorcandraw,negotiate,endorse,receive
paymentonaNegotiableInstrumentsoastobindallthepersons,except
himself.Inordertoboosttheirdepositsmanybanksopenminoraccounts
withsomerestrictions.
MobileBanking:WiththehelpofMBankingormobilebankingcustomer
cancheckhisbankbalance,orderademanddraft,stoppaymentofa
cheque,requestforachequebookandhaveinformationaboutlatestinterest
rates.
MoneyLaundering:Whenacustomerusesbankingchannelstocoverup
hissuspiciousandunlawfulfinancialactivities,itiscalledmoneylaundering.
MoneyMarket:MoneymarketisnotanorganizedmarketlikeBombayStock
Exchangebutisaninformalnetworkofbanks,financialinstitutionswhodeal
inmoneymarketinstrumentsofshorttermlikeCP,CDandTreasurybillsof
Government.
Moratorium:R.B.I.imposesmoratoriumonoperationsofabankifthe
affairsofthebankarenotconductedasperbankingnorms.Aftermoratorium
R.B.I.andGovernmentexploretheoptionsofsafeguardingtheinterestsof
depositorsbywayofchangeinmanagement,amalgamationortakeoveror
byothermeans.
Mortgage:Transferofaninterestinspecificimmovablepropertyforthe
purposeofofferingasecurityfortakingaloanoradvancefromanother.It
maybeexistingorfuturedebtorperformanceofanagreementwhichmay
createmonetaryobligationforthetransferor(mortgagor).
MutualFund:Acompanythatinvestsinandprofessionallymanagesa
diversifiedportfolioofsecuritiesandsellssharesoftheportfoliotoinvestors.
NABARD:NationalBankforAgriculture&RuralDevelopmentwassetupin
1982undertheActof1981.NABARDfinancesandregulatesruralfinancing
andalsoisresponsiblefordevelopmentagricultureandruralindustries.
Negotiation:Inthecontextofbanking,negotiationmeansanactof
transferringorassigningamoneyinstrumentfromonepersontoanother
personinthecourseofbusiness.
NetAssetValue:Theunderlyingvalueofashareofstockinaparticular
mutualfundalsousedwithpreferredstock.
NonFundBasedLimits:NonFundBasedLimitsarethosetypeoflimits
wherebankerdoesnotpartwiththefundsbutmayhavetopartwithfundsin
caseofdefaultbytheborrowers,likeguarantees,letterofcreditand
acceptancefacility.
NonResident:ApersonwhoisnotaresidentofIndiaisanonresident.
NonResidentAccounts:AccountsofnonresidentIndiancitizensopened
andmaintainedasperR.B.I.Rules.
NotaryPublic:ALawyerwhoisauthorizedbyGovernmenttocertifycopies
ofdocuments.
NPAAccount:Ifinterestandinstalmentsandotherbankduesarenotpaid
inanyloanaccountwithinaspecifiedtimelimit,itisbeingtreatedasnon
performingassetsofabank.
OffBalanceSheetItems:Thoseitemswhichaffectthefinancialpositionof
abusinessconcern,butdonotappearintheBalanceSheetE,gguarantees,
lettersofcredit.Themention"offBalanceSheetitems"isoftenfoundin
AuditorsReportsorDirectorsReports.
OfferforSale:Anoffertothepublicby,oronbehalfof,theholdersof
securitiesalreadyinissue.
OfferforSubscription:Theofferofnewsecuritiestothepublicbythe
issuerorbysomeoneonbehalfoftheissuer.
OnlineBanking:Bankingthroughinternetsiteofthebankwhichismade
interactive.
Openend(Mutual)Fund:Thereisnolimittothenumberofsharesthefund
canissue.Thefundissuesnewsharesofstockandfillsthepurchaseorder
withthosenewshares.Investorsbuytheirsharesfrom,andsellthemback
to,themutualfunditself.Thesharepricesaredeterminedbytheirnetasset
value.
OpenOffer:Anoffertocurrentholdersofsecuritiestosubscribefor
securitieswhetherornotinproportiontotheirexistingholdings.
Option:Asecuritythatgivestheholdertherighttobuyorsellacertain
amountofanunderlyingfinancialassetataspecifiedpriceforaspecified
periodoftime.
Oversubscribed:WhenanInitialPublicOfferinghasmoreapplicationsthan
actualsharesavailable.Investorswilloftenapplyformoresharesthan
requiredinanticipationofonlyreceivingafractionoftherequestednumber.
InvestorsandunderwriterswilloftenlooktoseeifanIPOisoversubscribed
asanindicationofthepublicsperceptionofthebusinesspotentialoftheIPO
company.

PassBook:Arecordofalldebitandcreditentriesinacustomer'saccount.
GenerallyallbanksissuepassbookstoSavingsBank/CurrentAccount
Holders.
ParBond:Abondsellingatpar(i.e.atitsfacevalue).
ParValue:Thefacevalueofasecurity.
PerpetualBonds:Bondswhichhavenomaturitydate.
Placing:Obtainingsubscriptionsfor,orthesaleof,primarymarket,where
thenewsecuritiesofissuingcompaniesareinitiallysold.
PersonalIdentificationNumber(PIN):PersonalIdentificationNumberisa
numberwhichanATMcardholderhastokeyinbeforeheisauthorizedtodo
anybankingtransactioninaATM.
PlasticMoney:CreditCards,DebitCards,ATMCardsandInternational
Cardsareconsideredplasticmoneyaslikemoneytheycanenableustoget
goodsandservices.
Pledge:Abailmentofgoodsassecurityforpaymentofadebtor
performanceofapromise,e.gpledgeofstockbyaborrowertoabankerfora
creditlimit.Pledgecanbemadeinmovablegoodsonly.
PostDatedCheque:AChequewhichbearsthedatewhichissubsequent
tothedatewhenitisdrawn.Forexample,achequedrawnon8thof
February,2007bearsthedateof12thFebruary,2007.
PowerofAttorney:ItisadocumentexecutedbyonepersonDonoror
Principal,infavourofanotherperson,DoneeorAgenttoactonbehalfof
theformer,strictlyasperauthoritygiveninthedocument.
Portfolio:Acollectionofinvestmentvehiclesassembledtomeetoneor
moreinvestmentgoals.
PreferenceShares:Acorporatesecuritythatpaysafixeddividendeach
period.Itisseniortoordinarysharesbutjuniortobondsinitsclaimson
corporateincomeandassetsincaseofbankruptcy.
Premium(Warrants):Thedifferenceofthemarketpriceofawarrantoverits
intrinsicvalue.
PremiumBond:Bondsellingabovepar.
PresentValue:Theamounttowhichafuturedepositwilldiscountbackto
presentwhenitisdepreciatedinanaccountpayingcompoundinterest.
PresentValueofanAnnuity:Theamounttowhichastreamofequalcash
flowsthatoccurinequalintervalswilldiscountbacktopresentwhenitis
depreciatedinanaccountpayingcompoundinterest.
Price/EarningsRatio(P/E):Themeasuretodeterminehowthemarketis
pricingthecompanyscommonstock.Theprice/earnings(P/E)ratiorelates
thecompanysearningspershare(EPS)tothemarketpriceofitsstock.
Privatization:Thesaleofgovernmentownedequityinnationalizedindustry
orothercommercialenterprisestoprivateinvestors.
Prospectus:AdetailedreportpublishedbytheInitialPublicOffering
company,whichincludesalltermsandconditions,applicationprocedures,
IPOpricesetc,fortheIPO
PutOption:Therighttoselltheunderlyingsecuritiesataspecifiedexercise
priceonofbeforeaspecifiedexpirationdate.
PrematureWithdrawals:TermdepositslikeFixedDeposits,CallDeposits,
ShortDepositsandRecurringDepositshavetomatureonaparticularday.
Whenthesedepositsaresoughttobewithdrawnbeforematurity,itis
prematurewithdrawal.
PrimeLendingRate(PLR):Therateatwhichbankslendtotheirbest
(prime)customers.
PrioritySectorAdvances:consistofloansandadvancestoAgriculture,
SmallScaleIndustry,SmallRoadandWaterTransportOperators,Retail
Trade,SmallBusinesswithlimitsoninvestmentinequipments,professional
andselfemployedpersons,statesponsoredorganisationsforlendingto
SC/ST,EducationalLoans,HousingFinanceuptocertainlimits,selfhelp
groupsandconsumptionloans.
PromissoryNote:PromissoryNoteisapromise/undertakinggivenbyone
personinwritingtoanotherperson,topaytothatperson,acertainsumof
moneyondemandoronafutureday.
Provisioning:Provisioningismadeforthelikelylossintheprofitandloss
accountwhilefinalizingaccountsofbanks.Allbanksaresupposedtomake
assetsclassificationandmakeappropriateprovisionsforlikelylossesintheir
balancesheets.
PublicSectorBank:AbankfullyorpartlyownedbytheGovernment.
RateofReturn:Apercentageshowingtheamountofinvestmentgainorloss
againsttheinitialinvestment.
RealInterestRate:Thenetinterestrateovertheinflationrate.Thegrowth
rateofpurchasingpowerderivedfromaninvestment.
RedemptionValue:Thevalueofabondwhenredeemed.
ReinvestmentValue:Therateatwhichaninvestorassumesinterest
paymentsmadeonabondwhichcanbereinvestedoverthelifeofthat
security.
RelativeStrengthIndex(RSI):Astockspricethatchangesoveraperiodof
timerelativetothatofamarketindexsuchastheStandard&Poors500,
usuallymeasuredonascalefrom1to100,1beingtheworstand100being
thebest.
RepurchaseAgreement:Anarrangementinwhichasecurityissoldand
laterboughtbackatanagreedpriceandtime.
ResistanceLevel:Apriceatwhichsellersconsistentlyoutnumberbuyers,
preventingfurtherpricerises.
Return:Amountofinvestmentgainorloss.
ReschedulingofPayment:Rearrangingtherepaymentofadebtovera
longerperiodthanoriginallyagreeduponduetofinancialdifficultiesofthe
borrower.
RestrictiveEndorsement:Whereendorserdesiresthatinstrumentistobe
paidtoparticularpersononly,herestrictsfurthernegotiationortransferby
suchwordsas"PaytoAshokonly".NowAshokcannotnegotiatethe
instrumentfurther.

RightofAppropriation:AsperSection59oftheIndianContractAct,1972
whilemakingthepayment,adebtorhastherighttodirecthiscreditorto
appropriatesuchamountagainstdischargeofsomeparticulardebt.Ifthe
debtordoesnotdoso,thebankercanappropriatethepaymenttoanydebtof
hiscustomer.
RightofSetOff:Whenabankercombinestwoaccountsinthenameofthe
samecustomerandadjuststhedebitbalanceinoneaccountwiththecredit
balanceinotheraccount,itiscalledrightofsetoff.Forexample,debit
balanceofRs.50,000/inoverdraftaccountcanbesetoffagainstcredit
balanceofRs.75,000/intheSavingsBankAccountofthesamecustomer,
leavingabalanceofRs.25,000/creditinthesavingsaccount.
RightsIssue:Anofferbywayofrightstocurrentholdersofsecuritiesthat
allowsthemtosubscribeforsecuritiesinproportiontotheirexistingholdings.
RiskAverse,RiskNeutral,RiskTaking:
Riskaversedescribesaninvestorwhorequiresgreaterreturninexchangefor
greaterrisk.
Riskneutraldescribesaninvestorwhodoesnotrequiregreaterreturnin
exchangeforgreaterrisk.
Risktakingdescribesaninvestorwhowillacceptalowerreturninexchange
forgreaterrisk.
SafeCustody:Whenarticlesofvaluelikejewellery,boxes,shares,
debentures,Governmentbonds,Willsorotherdocumentsorarticlesare
giventoabankforsafekeepinginitssafevault,itiscalledsafecustody..
Bankchargesafeefromitsclientsforsuchsafecustody.
SavingsBankAccount:AllbanksinIndiaarehavingthefacilityofopening
savingsbankaccountwithanominalbalance.Thisaccountisusedfor
personalpurposesandnotforbusinesspurposeandtherearecertain
restrictionsonwithdrawalsfromthistypeofaccount.Accountholdergets
nominalinterestinthisaccount.
SeniorBond:Abondthathaspriorityoverotherbondsinclaimingassets
anddividends.
Settlement:Conclusionofasecuritiestransactionwhenacustomerpaysa
broker/dealerforsecuritiespurchasedordelivered,securitiessold,and
receivefromthebrokertheproceedsofasale.
ShortHedge:Atransactionthatprotectsthevalueofanassetheldby
takingashortpositioninafuturescontract.
ShortPosition:Investorssellsecuritiesinthehopethattheywilldecrease
invalueandcanbeboughtatalaterdateforprofit.
ShortSelling:Thesaleofborrowedsecurities,theireventualrepurchaseby
theshortselleratalowerpriceandtheirreturntothelender.
Speculation:Theprocessofbuyinginvestmentvehiclesinwhichthefuture
valueandlevelofexpectedearningsarehighlyuncertain.
StockSplits:Wholesalechangesinthenumberofshares.Forexample,a
twoforonesplitdoublesthenumberofsharesbutdoesnotchangetheshare
capital.
SubordinatedBond:Anissuethatranksaftersecureddebt,debenture,and
otherbonds,andaftersomegeneralcreditorsinitsclaimonassetsand
earnings.Ownersofthiskindofbondstandlastinlineamongcreditors,but
beforeequityholders,whenanissuerfailsfinancially.
SubstantialShareholder:Apersonacquiresaninterestinrelevantshare
capitalequalto,orexceeding,10%ofthesharecapital.
SupportLevel:Apriceatwhichbuyersconsistentlyoutnumbersellers,
preventingfurtherpricefalls.
Teller:Tellerisastaffmemberofabankwhoacceptsdeposits,cashes
chequesandperformsotherbankingservicesforthepublic.
TechnicalAnalysis:Amethodofevaluatingsecuritiesbyrelyingonthe
assumptionthatmarketdata,suchaschartsofprice,volume,andopen
interest,canhelppredictfuture(usuallyshortterm)markettrends.
Contrastedwithfundamentalanalysiswhichinvolvesthestudyoffinancial
accountsandotherinformationaboutthecompany.(Itisanattemptto
predictmovementsinsecuritypricesfromtheirtradingvolumehistory.)
TimeHorizon:Thedurationoftimeaninvestmentisintendedfor.
TradingRules:Stipulationofparametersforopeningandintraday
quotations,permissiblespreadsaccordingtothepricesofsecuritiesavailable
fortradingandboardlotsizesforeachsecurity.
TrustDeed:Aformaldocumentthatcreatesatrust.Itstatesthepurpose
andtermsofthenameofthetrusteesandbeneficiaries.
Underwriting:isanagreementbytheunderwritertobuyonafixeddateand
atafixedrate,theunsubscribedportionofsharesordebenturesorother
issues.Underwritergetscommissionforthisagreement.
UnderlyingSecurity:Thesecuritysubjecttobeingpurchasedorsoldupon
exerciseoftheoptioncontract.
UniversalBanking:WhenBanksandFinancialInstitutionsareallowedto
undertakealltypesofactivitiesrelatedtobankinglikeacceptanceof
deposits,grantingofadvances,investment,issueofcreditcards,project
finance,venturecapitalfinance,foreignexchangebusiness,insuranceetc.it
iscalledUniversalBanking.
Valuation:Processbywhichaninvestordeterminestheworthofasecurity
usingriskandreturnconcept.
VirtualBanking:Virtualbankingisalsocalledinternetbanking,through
whichfinancialandbankingservicesareaccessedviainternet'sWorldWide
Web.Itiscalledvirtualbankingbecauseaninternetbankhasnoboundaries
ofbrickandmortaranditexistsonlyontheinternet.

Warrant:Anoptionforalongerperiodoftimegivingthebuyertherighttobuy
anumberofsharesofcommonstockincompanyataspecifiedpricefora
specifiedperiodoftime.
WholesaleBanking:WholesalebankingisdifferentfromRetailBankingas

itsfocusisonprovidingforfinancialneedsofindustryandinstitutional
clients.
WindowDressing:Financialadjustmentsmadesolelyforthepurposeof
accountingpresentation,normallyatthetimeofauditingofcompany
accounts.
Yield(InternalrateofReturn):Thecompoundannualrateofreturnearned
byaninvestment
YieldtoMaturity:Therateofreturnyieldbyabondheldtomaturitywhen
bothcompoundinterestpaymentsandtheinvestorscapitalgainorlosson
thesecurityaretakenintoaccount.
ZeroCouponBond:Abondwithnocouponthatissoldatadeepdiscount
fromparvalue.
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Jointhediscussion
AK:))GoOdBoY<3 amonthago

ThecompanyratesborrowersonascalefromAAAtoD.
Intermediate
ratingsareofferedateachlevelbetweenAAandCCC(e.g.,
BBB+,BBB
andBBB).Forsomeborrowers,thecompanymayalso
offerguidance
(termeda"creditwatch")astowhetheritislikelytobe
upgraded
(positive),downgraded(negative)oruncertain(neutral).
InvestmentGrade
AAA:Anobligorrated'AAA'hasextremelystrongcapacity
to
meetitsfinancialcommitments.'AAA'isthehighestissuer
credit
ratingassignedbyStandard&Poor's.
AA:Anobligorrated'AA'hasverystrongcapacitytomeet
seemore

12

Reply Share

eLsAfroSt>AK:))GoOdBoY<3 amonthago

Descendingorderofrating:
AAA>AA>A>BBB>BB>B>CCC>CC>C
InshortP
2

Reply Share

D.>AK:))GoOdBoY<3
amonthago

Readingcomprehensionhaikya?:D
1

Reply Share

$$KUNMUN$$>AK:))GoOdBoY<3
amonthago

tks:Pwohh:)

Reply Share

aadesh>AK:))GoOdBoY<3 amonthago

niaclkoAhaibybest

Reply Share

"Ankush"dnextWinneR>AK:))GoOdBoY<3
amonthago

Skipppp....:P

Reply Share

eLsAfroSt>AK:))GoOdBoY<3 amonthago

O_O

Reply Share

sur(**)>AK:))GoOdBoY<3 amonthago

:o

Reply Share

AK:))GoOdBoY<3 amonthago

Callmoneyovernightor1day
Noticemoney2to14days
Termmoney15daysto1year:)
11

Reply Share

ShahzadiRichu>AK:))GoOdBoY<3
amonthago

thnxx

Reply Share

shreya>AK:))GoOdBoY<3 amonthago

>>

Reply Share

JulianAssange>shreya amonthago

>>>
1

Reply Share

shreya>JulianAssange
amonthago

>>>>

Reply Share

>>>>StrugGleR>>>>>shreya
amonthago

>>>>>>>>>>>>>>>>>>>
1

Reply Share

shreya>>>>>StrugGleR>>>>
amonthago

_?\_
1

Reply Share

Pradosh.. amonthago

DatedGovernmentsecuritiesarelongtermsecurities
andcarryafixedorfloatingcoupon(interestrate)
whichispaidonthefacevalue,payableatfixedtime
periods(usuallyhalfyearly).Thetenorofdated
securitiescanbeupto30years.
9

Reply Share

simple>Pradosh.. amonthago

Thnks

Reply Share

shreya>Pradosh.. amonthago

<<<>>>>

Reply Share

AK:))GoOdBoY<3 amonthago

Quizoverletsmovetomainpage:)
kalphirmilengenewtopicsksath...
cibil,camelratings,indianratings
monetaryaggregatesm1m2m3m4
narrowandbroadmoney
moneylaunderingpmla
9

Reply Share

AK:))GoOdBoY<3>AK:))GoOdBoY<3
amonthago

Samelink
time7:30:)
1

Reply Share

RitiArya>AK:))GoOdBoY<3
amonthago

THANKS!!

Reply Share

Sushmitasrivastava>AK:))GoOdBoY
<3 amonthago

maitoquizoverhonep....

Reply Share

sur(**)>AK:))GoOdBoY<3
amonthago

okie:)

Reply Share

AK:))GoOdBoY<3>sur(**)
amonthago

am:)
Citymatemainlinkpaao

Reply Share

sur(**)>AK:))GoOdBoY<3
amonthago

jii:)

Reply Share

AK:))GoOdBoY<3>sur(**)
amonthago

kahangayabhogyi?sbikaisahuaU
ka?
http://www.bankersadda.com/201...
yahanaao

Reply Share

eLsAfroSt>AK:))GoOdBoY<3 amonthago

ByethnxnwoexplainplzP

Reply Share

"Ankush"dnextWinneR>AK:))GoOdBoY<3
amonthago

thanxyaara..:)

Reply Share

Vedita:))))))))>AK:))GoOdBoY<3 amonthago

isilinkper?

Reply Share

smartguy>AK:))GoOdBoY<3 amonthago

okkk

Reply Share

D.>AK:))GoOdBoY<3
amonthago

MaiNamechangekartahu:P

Reply Share

AK:))GoOdBoY<3>D
. amonthago

bilkul:P
1

Reply Share

D.>AK:))
GoOdBoY<3 amonthago

Hmm:D
1

Reply Share

smartguy>D.
amonthago

:):)

Reply Share

smartguy>AK:))GoOdBoY<3
amonthago

broaapsepdfmilsktahaikyamere
ko

Reply Share

AK:))GoOdBoY<3>smartguy
amonthago

kahanpduemailidnahihapkimere
paas
1

Reply Share

smartguy>AK:))GoOdBoY<3
amonthago

ndthankyouinadvancebro...very

helpingnature

Reply Share

smartguy>AK:))GoOdBoY<3
amonthago

toyelobrorpdphs@gmail.com

Reply Share

richa>AK:))GoOdBoY<3 amonthago

thanksbtkalkonsetimepestarthogi?

Reply Share

>AK:))GoOdBoY<3

aggy
amonthago

thanxbuddy...

Reply Share

Sushmitasrivastava>AK:))GoOdBoY<3
amonthago

helloAK,quiztimng???

Reply Share

$$KUNMUN$$>AK:))GoOdBoY<3
amonthago

wohhthanksaton:P

Reply Share

Glenfiddichdisco()>AK:))GoOdBoY<3
amonthago

kkbro

Reply Share

RitiArya>AK:))GoOdBoY<3 amonthago

time????AAJBLATEAAYI

Reply Share

AK:))GoOdBoY<3>RitiArya
amonthago

sisterkitrainthisubah5bjekiisliyelateho
gyaaaksogyatha:)

Reply Share

RitiArya>AK:))GoOdBoY<3
amonthago

AREYMEINLATEAAYIINUR
QUIZ...!!!KALUKITNEBJE
AAHOGE

Reply Share

AK:))GoOdBoY<3>RitiArya
amonthago

7:30
1

Reply Share

>AK:))GoOdBoY<3 amonthago

ThanxxAK:)

Reply Share

Rebel*>AK:))GoOdBoY<3 amonthago

ty:)

Reply Share

p!n!<....:))>Rebel* amonthago

wc:P
1

Reply Share

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