Macro Hedge Vs Micro Hedge

Macro Hedge is an investment method designed to reduce or eliminate economic risk of an entire entity or portfolio. It involves making investment in a such a way that will offset the risk of an asset, or a group of assets, in a portfolio. Macro investors are investors that have investment interest in international markets. They can use a macro …

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What Are Zero Coupon Bonds?

Zero coupon bond are issued at lower price than its face value and the principal value is repaid to the holders on the time maturity of bonds. Zero coupon bonds are also known as discount bonds or accrual bond as these are purchased at a large discount on the face value. It does not make periodic interest(coupon) payments to the …

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What Are Input Tax And Output Tax

What is Input Tax? Input Tax is an Indirect tax such as VAT(Value added tax) levied on capital goods used directly in the process of manufacturing such as raw materials, spare parts, services etc., which a business consumes in its operations. Input tax is the tax paid on purchase of goods or services by a registered dealer(with HMRC) in course …

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Define IPO And Explain How It Works

IPO(Initial Public Offering) new shares offered to the public in the Primary market. When a company decides to raise capital, they often by selling shares of stock to public and the initial sale of a company’s stock is known as Initial Public Offering in the stock market. Companies offering IPO are not necessarily new company’s, sometimes companies which have been …

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What Is Gearing In Finance?

GEARING is the proportion of the capital employed in a company that is financed by lenders rather than shareholders. In simple terms, explains how a company finances its operations either through lenders or through shareholders. Gearing is basically defined as the ratio between a company’s borrowing (debt) and owner’s equity (i.e. shareholder’s fund). It is synonym to the word financial …

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Series 24 Exam – General Securities Principal License

Several licenses are required to work in the financial-planning and financial services industry. The Series 24 exam is given to those seeking license in a managerial position.  The Series 24 license is formally known as the General Securities Principal license and is a securities license required by the FINRA (Financial Industry Regulation Authority) or a finance professional to be qualified …

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Telegraphic Transfer (TT) – A Mean To Transfer Funds Via Wire/Cable

Telegraphic Transfer or Telex Transfer a banking term commonly called “T/T, is an electronic method of fund transfer in which funds are transferred via telegraph or cable. Although these days the telegraph is not used for the transfer. Still the practice of transferring money is known by the same name. It has been a means of communication between financial institutions …

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HNI/HNWI – Define High Net Worth Individual Or Investors

High net worth individual (HNWI or HNI) are generally rich or wealthy people with more money and assets, traditionally these people were called as millionaires or billionaires but these days the term high net-worth individuals is used by the financial services to denote an individual with high net worth. High net worth ,means your Credit worthiness ,as Banks or other …

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Arbitrage – Strategy To Make Fast Money

Arbitrage is a financial transaction that makes an immediate profit without any risk. Arbitragers take advantage of different rates, prices or conditions between different markets. Arbitragers make profit by exploiting price differences of identical or similar financial instruments. Trading foreign exchange is a kind of arbitrage where no risk involve where arbitragers buy at lower price and sell it at …

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A Brief Overview Of Foreign Institutional Investors (FII)

What Is A Foreign Institutional Investor (FII)? Foreign Institutional Investor (FII), refers to the non local investors when invest in the financial market of a country. In other words, the term is most commonly used in India when a foreign entity i.e. an entity which is established or registered outside India proposes to make investment in the financial market of …

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What is R in Finance?

R is a language and environment for statistical computing and graphics. It is a very vibrant platform for data analysis, visualization and programming with data. It is highly extensible and provides a wide variety of statistical and graphical techniques. R is available as Free Software. It compiles and runs on a wide variety of UNIX platforms and similar systems like …

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How Can You Make Money With Currency (FOREX) Trading?

What Is Foreign Exchange (Forex)? Forex stands for foreign exchange. It is a decentralized international market for free trade of currencies. In other words, it is the market where you can buy or sell international currencies for different reasons. It is called as decentralized because unlike other financial markets, Forex market has no physical location and no central exchange. Which …

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Welcome @FinGyan – Learn Finance, Banking & Insurance Fundamentals

Hello readers, welcome to Fingyan.com. This is my welcome post on FinGyan-Your Guide To Finance, Banking and Insurance Fundamentals. At FinGyan we will walk you through important finance terms and fundamentals. We will try to make fingyan a space were all your finance queries will be catered in the way you want. Your suggestion and comments are always welcome. We …

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