Thursday, September 24, 2015

Indian Economy – Important Terminology Part 6th

Investment Bank :- A financial institution  that deals primarily with raising capital, corporate mergers and acquisitions, and securities  trades. It aids companies in acquiring funds.

Commercial Bank :- Commercial Bank is an institution which accepts deposits, makes business loans, and offers related services.

Globalization :- Globalization is a process of interaction and integration among the people, companies and governments of different nations.

Privatization  :- Privatization can also be called denationalization or disinvestment. Privatization refers to the transfer of ownership from the government (public sector) to the private business sector either partially or totally.
Liberalization :- The process of reducing or removing restrictions or interactions on international trade. This may include the reduction or removal of tariffs, abolition or enlargement of import quotas, abolition of multiple exchange rates, and removal of requirements for administrative permits for imports or allocations.

Stock Market/ Share Market :- A market where securities are bought and sold. Its basic function is to enable public limited companies, government and local authorities to raise capital by selling securities to investors.

Equity :- Ownership interest in a corporation in the form of stock.

Stock :- The capital raised by a corporation through the issue of shares entitling holders to an ownership interest (equity).

Balance of Payments :- A balance of payments is a strategy used to analyze the relationship between money that is flowing into a country and money that is going out of that same country. The BOP is divided into three main categories:-
(i)                 The Current Account.
(ii)               The Capital Account.
(iii)             The financial Account.

Balance of Trade :- The difference between a country’s imports and its exports.

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