Difference Between Call Option And Put Options

You must have heard about people making money from stocks. To make money with a stock, there are two basic options: buy it (call option) or sell it (put option). Call and put are called options as there is no obligation on your part to carry out the transaction and they are merely an option for you. But at the …

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What Is Sovereign Debt?

The term “Sovereign Debt” refers to the debt issued by national Government in the international or foreign currency. Sovereign debt are also known as Sovereign bonds, these bonds are issued in the international currently and can be sold to other countries and foreign investors. It is very common that when a country needs huge capital to support the spending, it …

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What Is A Bank SWIFT Code?

SWIFT code stands for ‘Society for Worldwide Interbank Financial Telecommunication’ code. A SWIFT code is a universal way of identifying banks throughout the world. The SWIFT code is an 8 or 11 alphanumeric characters code that uniquely identifies financial institution. The first four characters of a SWIFT code are letters and refer to the bank specifically. The next two characters …

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Difference Between NRE, NRO and FCNR Bank Accounts

There are many types of NRI banks accounts available. But, here I will be explaining only the most widely used and offered by the leading banks in India. The following are the three types of NRI bank accounts offered by most of the bank across India: NRE (Non Resident (External) Rupee) Account:NRE is a term assigned to bank accounts available …

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What Is Sensex? What Is Nifty?

The Sensex and Nifty are “indexes”, index is basically an indicator which captures the price movement of shares. The full form of Sensex is Sensitive Index and of NIFTY National Fifty. It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down. BSE (Bombay Stock Exchange) Index Or …

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What Are Treasury Bills (T-Bills)?

Treasury Bills, or more commonly knows as T-Bills, are the bonds issued by Government. It is a short term (less than one year) government zero coupon bond. It represent short-term borrowings of the Government, as T-bills are a way for Government to raise money from the public. They are exempt from local and state taxes. These are discounted securities and …

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What Is ELSS Scheme?

ELSS ( Equity Linked Saving Scheme ) is another tax saving instrument along with your regular LIC, PPF etc. It is a type of mutual fund which is qualified for tax exemption under section 80 C, this comes under the overall exemption limit of Rupees One Lakh. It is just like a diversified equity fund where fund managers invest in …

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What Is Speed Clearing?

Speed Clearing refers to collection of outstation cheques through local clearing. In simple words, speed clearing means processing of outstation cheques electronically and without movement of cheques from the presentation centre (city where the cheque is presented) to drawee centre (city where the cheque is payable). This facility enables customers to place there checks payable anywhere in the country to …

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What Is A Foreign Currency Convertible Bond (FCCB)?

Foreign Currency Convertible Bonds (FCCB) is a type of convertible bond that are issued in a currency different than the issuer’s domestic currency. It means bonds issued under FCCB are subscribed by a non-resident in Foreign currency. For example, If you buying an Indian FCCB in UK then it means you can invest using your pounds and they will be …

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What Are Special Drawing Rights (SDRs)?

Special Drawing Right (SDR), is an international financing instrument created by the International Mutual Fund (IMF), and acts as a supplemental reserve for national banking systems. It is created in response to concerns about the limitation of Gold and US Dollar as the principal currency of the word trade and financial development. In decades past, when gold was used as …

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What Is Bancassurance?

Bancassurance is used to describe the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank sales channel in order to sell insurance products. Bancassurance simply means selling of insurance products by banks. In this arrangement, insurance companies and banks undergo a tie-up, thereby allowing banks to sell the insurance products to its …

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What Is Open Market Operations(OMO)?

Open market operation is the means of implementing monetary policy by which a central bank, such as Reserve Bank Of India (RBI) in India, controls the term interest rate and the supply of base money within the economy. Generally speaking, Open market operation is buying and selling of government securities by a central bank in the open market in order …

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Abbreviations Of Finance, Banking & Insurance Terms

ACH – Automated Clearing House AIBD – Association of International Bond Dealers APR – Annual Percentage Rate AYP – Annual Percentage Yield BPLR – Benchmark Prime Lending Rate CBS – Core Banking Solution CD – Certificate Of Deposit CDS – Credit Default Swap CFD – Contract For Difference CIBIL – Credit Information Bureau (India) Limited

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What Are Money Market Mutual Funds?

Money market mutual funds is a mutual funds that invest solely in money market instruments. Money market instruments are form of debts that mature in less than one year and are very liquid. So, mutual funds which invest in debt instruments of short term with the sole objective of earning interest for their shareholders are called as money market mutual …

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Tax Benefits On Self Employment In India

India has a well developed tax structure, wherein the authority is clearly segregated the Central and State Governments and Local bodies. Central government has the authority to levy taxes on income. Self employment tax (SET) is the tax primarily levied upon individuals who work for themselves – self-employed people i.e., the people engaged in business or commercial activity of some …

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