I would like to dedicate today’s post to Rahul Dravid but the time is constraint will write for him soon :- I just don’t like that he is retiring, and people are talking about Sachin tendulkar! The Tragedy of his Life. Few more thing for him If Sachin Tendulkar was the Best thing to happen to Indian Cricket :Rahul Dravid was the Best thing to happen to Sachin tendulkar. ( I think that describes all for him)
The post is for my juniors, who wanted to have few jargon’s simplifications here you go :-
LEASE -BACK : Its an arrangement under which a company, in order to raise cash, sells a piece of equipment, ‘ land, or building on condition. that the buyer will lease it back to the seller for an agreed rental for a fixed term.
LEVERAGED BUYOUT : Taking over a company, using borrowed funds.
LEVERAGED COMPANY : If a company with borrowed funds in its capital structure. if the debt component is more than a third of the capitalization it’s called a highly leveraged company.
Load : Additional charge to cover expenses, usually administrative. this is usually deducted from the ‘ NAV of a mutual fund unit at the time of repurchase by the fund .
Margin ACCOUNT : An account with a brokerage firm which will allow the client to buy shares with) money borrowed from the broker. Margin requirements can be met with a deposit in cash or shares
MARKET CAPITALIZATION : The total market value at the current stock exchange list price of the total number of equity shares issued by a company.
PAYOUT RATIO :This is dividend per share divided by earnings per share and the sum multiplied by 100.
QUICK ASSETS : These are liquid near-liquid assets such as cash money in bank good etc.
RATE OF TURNOVER : Total annual sales divided by the average inventory shows the speed with which stock has been turned over.
Rights Issue :Issue of shares at par or at a premium by an existing company to its share holding in a certain proportion to their holdings, as a matter of their right to receive preferential treatment
SHARE OPTION :A reward sometimes offered to the employees of a company to buy shares at a favorable price or on a preferential basis.