Answer:
1.
Finance
Finance
is the science that describes the management, creation and study of money,
banking, credit, investments, assets and liabilities.
2.
Financial
Markets
A financial market is a market in which people tradefinancial securities,
commodities, and other fungible items of value at low transaction costs and at
prices that reflect supply and demand. Securities include stocks and bonds, and
commodities include precious metals or agricultural products.
3.
Agency
Problem
In
corporate finance, the agency
problem usually refers to a conflict of interest between a
company's management and the company's stockholders. The manager, acting as
the agent for the
shareholders, or principals, is supposed to make decisions that will maximize
shareholder wealth.
4.
Double
taxation
Double taxation is a taxation principle referring to
incometaxes that are paid
twice on the same source of earned income. Double taxation occurs because corporations are considered
separate legal entities from their shareholders.
5.
Liquidity
Liquidity
describes the degree to which an asset or security can be quickly bought or
sold in the market without affecting the asset's price. Market liquidity refers
to the extent to which a market, such as a country's stock market or a city's
real estate market, allows assets to be bought and sold at stable prices.
6.
Liquidity
Ratios
Liquidity ratios are a class of
financial metrics used to determine a company's ability to pay off its
short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety
that the company possesses to cover short-term debts.
7.
Debt
Ratios
The debt ratio is defined as the ratio of total – long-term and short-term
– debt to total
assets, expressed as a decimal or percentage. It can be interpreted as the
proportion of a company's assets that are financed by debt.
8.
Coverage
Ratios
The coverage ratio is a measure of a
company's ability to meet its financial obligations.
9.
Activities
Ratios
Activity ratios are
accounting ratios that
measure a firm's ability to convert different accounts within its balance
sheets into cash or sales. Activity
ratios are used to measure the relative efficiency of a firm based
on its use of its assets, leverage or other such balance sheet items.
10. Profitability
Ratios
Profitability ratios are a class
of financial metrics that are used to assess a business's ability to generate
earnings as compared to its expenses and other relevant costs incurred during a
specific period of time.
11. Operating Cycle Vs
Cash Cycle
The
total of inventory holding period and a
receivable collection period of a firm is the operating cycle time of that firm. Operating cycle and cash operating cycle are
used interchangeably but it's a misconception. They are different by a small
margin but that makes a big difference.
12. Time value of
money
The time value of money (TVM) is the
idea thatmoney available at
the present time is
worth more than the same amount in the future due to its potential earning
capacity.
13. Compound interest
Compound interest is interest calculated on the
initial principal and also on the accumulated interest of previous periods of a deposit or loan.
14. Annuity and its
types
An annuity is a contractual
financial product sold by financial institutions that is designed to accept and
grow funds from an individual and then, upon annuitization, pay out a stream of
payments to the individual at a later point in time.
1) Deferred annuity (Fixed, Variable)
2) Income Annuity (Fixed, Variable)
15. Perpetuity
A perpetuity is an annuity in which
the periodic payments begin on a fixed date and continue indefinitely. It is
sometimes referred to as a perpetual annuity. Fixed coupon payments on
permanently invested (irredeemable) sums of money are prime examples of perpetuities.
16. Amortization
Schedule
A complete table of periodic blended loan
payments, showing the amount of principal and the amount of interest that
comprises each payment so that the loan will be paid off at the end of its
term.
17. Bond
A
bond is a debt investment in which an investor loans money to an entity
(typically corporate or governmental) which borrows the funds for a defined
period of time at a variable or fixed interest rate.
18. Zero Coupon Bond
A zero-coupon bond, also known as an "accrual bond," is a debt security that
doesn't pay interest (acoupon)
but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full-face
value.
19. Coupon Rate
The
stated rate of interest on a bond; the annual interest payment divided by the
bond’s face value.
20. Console
It is a bond that never matures; a perpetuity
in the form of a bond.
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