Exotic Options

An exotic option is an over the counter (OTC) option which is more complex than commonly traded plain vanilla options in terms of the option behaviour with respect to …

Strategic Alliance

What is Strategic Alliance (Definition): Strategic Alliance (SA) is an agreement between two entities to pool their resources for achieving a common business goal. They are generally entered when …

Joint Venture

What is a Joint Venture Joint Venture (JV) is an agreement between two or more parties to combine their resources (generally: capital, know-how, execution capability, local network) in achieving …

Asset Backed Securities

Asset backed securities (ABS) are debt instruments collateralised by a variety of loans and obligations. These obligations usually include student loans, credit card receivables, auto loans, home equity loans …

Convertible Bonds

A convertible bond is a type of debt instrument which also has equity-like features. It can be converted into the shares of the issuing company at a later date …

Callable Bonds

A normal bond can be issued with embedded options. One such bond is a callable bond. A callable bond is like a normal bond but with an embedded call …

Bonus Share

Bonus shares are the additional shares given to the current shareholders of the company free of cost, in proportion to their existing shareholding. Such an event is called a …

Options

An option is a derivative¬†instrument which derives its value from another underlying asset. An option holder or buyer has a right to buy or sell the underlying asset from …

Warrants

A warrant is a derivative¬†instrument which gives the warrant holder a right to buy the underlying stock at a pre-determined strike price. A warrant holder can exercise the warrant …