Finance Dictionary ( daily finance terms and concepts will be added and discussed)

Quick Ratio
Also known as the Acid-Test Ratio. A liquidity measure calculated by subtracting inventories from current assets, then dividing by current liabilities. The Quick Ratio is an indicator of a company’s financial strength. A ratio of 1 to 1 or higher is usually satisfactory.
 
manishjain1008 said:
dude i want all this word at the same place so it is easy for me to refer
Click to expand...



my brother i dont have the word file with me ,

i am collecting all this words from the internet ya but i am saving all this words in the word file and once i accumulate all this words definitely i will post this on this thread and if you also find any word do post in this thread for other people.
 
Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances that it extends to commercial banks and other financial intermediaries. Changes in the bank rate are often used by central banks to control the money supply.

Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive.


A reverse repo rate is the interest rate earned by a bank for lending money to the RBI in exchange for Government securities.

The RBI uses repo and reverse repo as instruments for liquidity adjustment in the system.


i hope dis clears ur doubt
 
but by this explanation it seems that repo rate and bank rate is same because in both the cases RBI lends to commercial banks and charges interest rate. so please make it clear too.
thanks and regards
sujata
 
ankitgokani said:
Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances that it extends to commercial banks and other financial intermediaries. Changes in the bank rate are often used by central banks to control the money supply.

Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive.


A reverse repo rate is the interest rate earned by a bank for lending money to the RBI in exchange for Government securities.

The RBI uses repo and reverse repo as instruments for liquidity adjustment in the system.


i hope dis clears ur doubt
Click to expand...

Sujata_22aug said:
what is bank rate, repo rate and reverse repo rate?
Click to expand...

Sujata_22aug said:
but by this explanation it seems that repo rate and bank rate is same because in both the cases RBI lends to commercial banks and charges interest rate. so please make it clear too.
thanks and regards
sujata
Click to expand...

Sujata, here's a simpler version :

Repo rate is the interest rate at which the reserve bank of
India lends mney to other banks.

Reverse repo rate is return banks earn on excess funds
parked with the central bank against Government securities.
 
Sujata_22aug said:
what is bank rate, repo rate and reverse repo rate?
Click to expand...

hi sujata i hope mr ankitgokani and mr kartik have explained you well. keep it up we all are there to dicsuss and help each other to help understand financial concepts well which will form are base in our finance career ahead. great going keep it up
 
R2 (R-squared)
Also known as Coefficient of Correlation. The result from calculating growth using the Least Squares Method, which indicates variability of data to an ideal growth curve. A value of one would indicate a perfect fit and therefore no variability from the ideal. Values vary between zero and one
 
Random Walk Theory
A market analysis theory that argues that the past movement or direction of the price of a stock or market cannot be used to predict its future movement or direction.
 
Range
Also known as the Opening Range. A security’s low price and high price for a particular trading period, such as the close of a day’s trading; the opening of a day’s trading; or a day, month, or year.
 
Rating
An evaluation of a corporate or municipal bond’s relative safety, according to the issuer’s ability to repay principal and make interest payments. Bonds are rated by various organizations such as Standard & Poor’s and Moody’s. Ratings range from AAA or Aaa (the highest) to C or D, which represents a company in default.
 
Rating Service
A company, such as Moody’s or Standard & Poor’s, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. The issuing company or municipality pays a fee for the rating.
 
Real Estate Investment Trust
Abbreviated REIT. REITs sell like stocks on the major exchanges, and invest in real estate either directly through properties or mortgages. REITs receive special tax considerations, and typically offer investors high yields as well as a highly liquid method of investing in real estate.
 
Real Estate Limited Partnership
A direct participation program formed to build new structures, generate income from existing property, or profit from the capital appreciation of undeveloped land. Growth potential, income distributions, and tax shelter are the most important benefits of such a program.
 
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