Finance

In simple terms, debt is the sum acquired from the outside or external sources along with the liability of some specific amount of interest at the time of repayment of borrowed funds and the equity is the owner’s capital; however, both debt and equity funds are raised to increase the share capital of the company. Debts are the credits for the company and hence return on … [Read more...] about Debt Vs Equity

Definition: Bonus Shares are the supplementary or extra shares distributed to the current stakeholders of the company without taking any extra amount from them, and these shares are issued out of free reserves created from the profits earned by the company. They do not make any impact on the stakeholder’s equity as they are allotted to relocate the retained earnings to the … [Read more...] about Bonus Shares

Definition: Hedging means limiting something by certain conditions in general terms; however, in financial terminology, hedging is a process of protecting oneself against any loss in investment, i.e., it is a method of using market instrument tactically to compensate any unfavourable movements of prices, or we can say the investor hedge one investment by hedging … [Read more...] about Hedging

Definition: Municipal Bond are the bonds which are issued by the local government or agencies to complete their minor projects or to complete the public welfare work for which finance is required, a government issues a certificate consisting of its worth and also provides interest on such certificates to the holders of Municipal Bonds. A general example for which the local … [Read more...] about Municipal Bond

Definition: Money Market acts as an essential part of economic development. It is concerned with that portion of the financial system where trading of the short-term fund is done for a period of less than 1 year. Money Market is a product of the capital market, which is treated as a channel of short-term debt capital. Although it is undoubtedly distant from the capital … [Read more...] about Money Market

Definition: Shares implies stake in the company’s capital, which also comprises of stock excluding where a difference among stock and share is disclosed or hidden. Shares are the smallest unit of the company's capital, and the holder of such stocks are known as shareholders (the owners of the company). Content: Shares Kinds of shares Features of shares Difference … [Read more...] about Shares

Definition: A lease is a legal contract among a lessor(owner) and a lessee (occupant) to grant a temporary possession or right to use property, i.e. land and building for a certain period and monetary compensation decided at the time of the agreement. Lease comes under the accounting standard-19. Content: Lease Parties Involved in lease Types of lease Advantages … [Read more...] about Lease

Definition: When capital is required by the company for expansion and development, but they don’t want to uplift their share capital in that position company can collect money from the public by issuing some certificates, those certificates are termed as Debentures. They are also considered as creditorship securities. Debentures are the feasible alternative of term loans for … [Read more...] about Debentures