1 book building The process of determining the price at which an Initial Public Offering will be offered.

The book is filled with the prices that investors indicate they are willing to pay per share, and when the book is closed, the issue price is determined by an underwriter by analyzing these values. 2 Buy back of shares 1. The purchase of a long position to offset a short position. 2. A corporation's repurchase of stock or bonds it has issued. In the case of stocks, this reduces the number of shares outstanding, giving each remaining shareholder a larger percentage ownership of the company. This is usually considered a sign that the company's management is optimistic about the future and believes that the current share price is undervalued. Reasons for buybacks include putting unused cash to use, raising earnings per share, increasing internal control of the company, and obtaining stock for employee stock option plans or pension plans. When a company's shareholders vote to authorize a buyback, they aren't obliged to actually undertake the buyback. also called corporate repurchase. 3 examples for Financial service: Foreign exchange services Investment services Banking services 4 surplus units An economic unit with income that is greater than or equal to expenditures on consumption or real investment over the course of a period. A surplus spending unit will use its additional income to buy goods, invest, lend money to deficit spending units or pay off its own deficit from an earlier period. 5 rematerialisation Search in text book 6 Dematerialisation Dematerialisation is a process by which the paper certificates of an investor are taken back by the company/registrar and subsequently destroyed. Thereafter an equivalent number of securities are credited in electronic holdings of that investor. The depository works as an aid to dematerialise securities and eliminate paper from the market. This helps in faster online derivative trading Carry forward and settlement transactions become a lot easier, the net result being an increase in the volume of trade being carried out in the market.

7 What Does Bridge Loan Mean? A short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short-term (up to one year) with relatively high interest rates and are backed by some form of collateral such as real estate or inventory.Also known as "interim financing", "gap financing" or a "swing loan". 8 short note on a) money market: A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year. Money market securities consist of negotiable certificates of deposit (CDs), bankers acceptances, U.S. Treasury bills, commercial paper, municipal notes, federal funds and repurchase agreements (repos). b) IBDI:

initial public offering An initial public offering (IPO) or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises. Many companies that undertake an IPO also request the assistance of an Investment Banking firm acting in the capacity of an underwriter to help them correctly assess the value of their shares, that is, the share price (IPO Initial Public Offerings, 2011).

The Definition of Insider Trading

Insider trading occurs when someone makes an investment decision based on information that is not available to the general public. In some cases, the information allows them to profit, in others, avoid a loss. (In the Martha Stewart - ImClone scandal, the latter happened to be the case.)

Insider trading was not considered illegal at the beginning of the twentieth century; in fact, a Supreme Court ruling once called it a perk of being an executive. After the excesses of the 1920s, the subsequent decade of depression, and the resulting shift in public opinion, it was banned, with serious penalties being imposed on those who engaged in the practice. rights issue New stock (share) issue offered to existing stockholders (shareholders) in proportion to their current stock/shareholding, for a specified period and at a specified (usually discounted) price. Its

objective is to afford them the opportunity to maintain their percentage of ownership of the firm. See also scrip issue. Also called rights offering. Off market trading:
An off-market deal involves buying or selling shares, but not on an official stockmarket.