Financial Intermediaries – Meaning, Functions And Importance
A financial intermediary is an entity that facilitates a financial transaction between two parties. Such an intermediary or a middleman could be a firm or an institution. Some examples …
Plain Vanilla Bonds
Bonds are capital market instruments used to raise debt capital from the open market. There are many types of bonds; the most basic ones of the lot are Plain …
Advantages and Disadvantages of CAPM
What is CAPM? As the name itself suggest the Capital Asset Pricing Model (CAPM) is used for pricing the security with a given risk. This model describes the relationship …
Advantages & Disadvantages of Hypothecation
Hypothecation Meaning Hypothecation means pledging of the asset as collateral to the lender in exchange of loan. It is a very secure loan from lender’s perspective as the lender …
Factoring Accounting
What is Factoring Accounting? Factoring Accounting means how the factoring transaction will be recorded in the books of accounts of the company. Before we understand what is factoring accounting …
Coupon Rate
In order to understand the coupon rate, it is important to understand fixed income securities first. Every now and again government institutions and public companies are in need of …
Variance Analysis Report
What is Variance Analysis Report? Variance Analysis Report is useful to identify gap between the planned outcome (The Budgeted) and the actual outcome (The Actual). The gap between Budget …
What Is CAGR And How It’s Useful?
CAGR is one term that almost all of us come across when we consider making any investment. But many don’t have a clear idea what is CAGR or how …
Floating Interest Rate – What It is And When You Should Choose It?
A floating interest rate is a rate that changes with the rest of the market. It is also called a variable interest rate, and it moves up or down …
Lender of Last Resort
Banks are financial institutions that have been lending funds to individuals and corporate bodies down the years. On occasions when an individual needs funds/face a liquidity crunch, he may …