Compendium admissions 2023-25
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- Credit Rating
- Coupon Rate
- Forex
- Fundamental Analysis
| Contingent Claim A derivative whose future payoff depends on the value of another underlying asset, or more generally, that is dependent on the realization of some uncertain future event 15. Covenant: A commitment in a bond or other formal debt agreement that certain activities will or will not be undertaken. Provisions in a bond indenture that protect the lenders by requiring the borrower to perform some actions (affirmative covenants) or avoid some actions (negative covenants) 16. Credit Rating Credit rating determines the credit risk of a debtor and helps in predicting their ability to payback the debt. A credit rating can be the deciding factor on whether a borrower does or does not receive a loan. 17. Economic Profit Economic profit is determined by the difference between the total revenue generated less the expenses incurred and the opportunity costs. 18. Face Value: It is the Nominal value of a security. For stocks it is the original cost of the stock, as listed on the certificate 19. Coupon Rate: The annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. 10 20. Financial Leverage The process of getting more funds to buy assets. By using the funds, the firm tends to increase the returns. Higher the leverage taken, higher the risk to repay it back if sufficient returns are not generated 21. Forex: Foreign Exchange Market is a global decentralized market for trading currencies. It determines the foreign exchange rates for every currency. 22. Technical Analysis: It is a methodology to analysis the securities based on Chart pattern, trends, volumes, and technical indicators for trading purposes in general. 23. Fundamental Analysis: It is a methodology to analyse the securities in a broader perspective in studying its business and practises for investing purpose in general. 24. Download 4.08 Mb. Share with your friends:
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