ACCOUNTING:

In simple words we can say that

accounting is an art....... of recording, classifying and summarizing......... in terms of money...... transactions and events of financial nature and interpreting the results thereof.

Definition of Finance:
The science that describes the management, creation and study of money, banking, credit, investments, assets and liabilities. _____________________________________________________________________________________

Definition of Accounting Principles: The rules and guidelines that companies must follow when reporting financial data.
rules and guidelines of accounting.

income & expenditure a/c does not contain debit & credit whereas p/L a/c contain debit & credit sides income & expenditure a/cs are prepared in NTO (non trading organisation or npo (non profit organisation) for eg trust, institutions, societies etc. p/L a/c are prepared in all trading firms which work for profits

Definition of 'Shares'
A unit of ownership interest in a corporation or financial asset.

Definition of 'Equity '

1. A stock or any other security representing an ownership interest.

Preference share: Preference shares are those shares which are given preference as regards
to payment of dividend and repayment of capital. Preference shareholders are given preference over equity shareholders as in the case of winding up of the company, their capital is paid back first and then the equity shareholders are paid. Preference shareholders cannot exercise their voting rights on all the matters. They can vote only on the matters affecting their own interest.

Definition of 'Debenture'
A type of debt instrument that is not secured by physical asset or collateral. _____________________________________________________________________________
A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, (Sullivan, arthur; Steven M. Sheffrin (2003). _____________________________________________________________________________________ In finance, a bond is a negotiable certificate that acknowledges the indebtedness of the bond issuer to the holder. _____________________________________________________________________________________ SEBI1992 protects the interests of investors in securities and promotes the development of the securities market through appropriate regulation. ------------------------------------------------------------------------------------------------------------------------------------------

Definition of 'Derivative'
A security whose price is dependent upon or derived from one or more underlying assets. ______________________________________________________________________________

Definition of 'Hedge'
Making an investment to reduce the risk of adverse price movements in an asset. ______________________________________________________________________________ Primary market is the market where shares are offered to investors by the issuer company to raise their capital. Secondary market is the market where stocks are traded after they are initially offered to the investor in primary market (IPO's etc.) and get listed to stock exchange. Secondary market comprises of equity markets and the debt markets. Secondary market is a platform to trade listed equities, while Primary market is the way for companies to enter in to secondary market.
GDP generally is defined as the market value of the goods and services produced by a country. GDP = private consumption + gross investment + government spending + (exports imports) which is abbreviated: GDP = C + I + G + (X-M)

Online Trading is the process of trading through Internet. Inflation is a general rise in prices of goods and services. Inflation results in loss of value of money.

A significant decline in activity across the economy, lasting longer than a few months. A recession generally lasts from six to 18 months, and interest rates usually fall in during these months to stimulate the economy by offering cheap rates at which to borrow money.
A stock market is a place where buyers and sellers trade company stock for a set price.

Definition of 'Corporate Action'

Any event that brings material change to a company and affects its stakeholders. Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks.

Definition of 'Investment Banking '

A specific division of banking related to the creation of capital for other companies. Definition of 'Initial Public Offering - IPO'

The first sale of stock by a private company to the public. The underlying asset is the financial instrument (e.g., stock, futures, commodity, currency, index) on which a derivative's price is based. Merger The case when two companies (often of same size) decide to move forward as a single new company instead of operating business separately. The stocks of both the companies are surrendered, while new stocks are issued afresh. For example, Glaxo Wellcome and SmithKline Beehcam ceased to exist and merged to become a new company, known as Glaxo SmithKline. Acquisition The case when one company takes over another and establishes itself as the new owner of the business. The buyer company swallows the business of the target company, which ceases to exist. Dr. Reddy's Labs acquired Betapharm through an agreement amounting $597 million.

BSE is an acronym for BOMBAY STOCK EXCHANGE NSE is an acronym for NATIONAL STOCK EXCHANGE

Difference between NSE and BSE

NSE Stands for National Stock Exchange. It has more than 2000 stocks from different sectors listed with it. It is fully automated electronic order processing exchange. Nifty is major index of NSE and it comprise of 50 scripts from different sectors. NSE official site: http://www.nseindia.com BSE Stand for Bombay Stock Exchange. It is India's Oldest Stock Exchange with listing of over 4000 scripts with it. This not fully automated yet but progress towards full automation is underway. SENSEX is major index of BSE and it comprise of 30 scripts from different sectors. BSE official Site: http://www.bseindia.com __________________________________________________________________________
A journal entry, in accounting, is a logging of transactions into accounting journal items.

Portfolio management is the process of investing in a number of securities instead of a single security in order to obtain maximum return at minimum risk. A portfolio is a group of securities held together as investment. A derivative is a financial contract or an instrument whose returns and values are derived from the value and the performance of some underlying asset. Types of derivative: options, futures, swaps, forwards. Option: an option is the right but not the obligation to buy or sell something on a specified date at a specified price. Swaps: a swap is a contract or an agreement b/w two parties to exchange future cash flows. Forward contract: is an agreement to buy and sell something which has an economic value in the future. Futures: the futures contract is a standardized contract to purchase or sell on the future exchanges .the price for the asset is decided on the present day of futures contract. The futures contracts are traded in futures market. The risk in futures contract is reduced by the intervention of clearing House Corporation. DEMAT a/c: dematerialization of shares. Converting physical certificates into electronic form. Google: The company was co-founded by Larry Page and Sergey Brin. Facebook: Facebook was founded by Mark Zuckerberg

WTO Director-General: Pascal Lamy Subprime is the cause of USA Economy slow down. The "Subprime crises" deals mainly with the problems of Mortgages in USA. Over the past few years,many reputed Banks,including CITIBANK freely lended cash for people in USA to buy houses,but the prices of the Homes crashed and those property got devalued causing enormous loss to the Banks. This situation became to be known as "Subprime Crises" where US Banks lost Billions of Dollars. Sub prime lending, the lending of money to people with very low or bad credit, has backfired. These people are unable to pay off their bills, thus the banks that lent them the money suffer. The crisis is when many banks have lost substantial amounts of money in this.

What is EU crisis? EU crisis is the deflationary and fiscal deficit situation which is currently taking placing at European Zone which is identified as a side effect of the global financial crisis 2008/2009. The real asset prices of EU zone is decreasing drastically and the fiscal deficit (deficit in the public budget) in many countries has increased leading to increase in public borrowing level of the EU countries.
World Bank President Jim Yong Kim

Basic Types of Investment Securities 1) Investment Bonds 2) Investment Equities 3) Commodity Investments 4) Derivative Investments

Definition of 'Dividend'
1. A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Prepaid expenses are payments that a company makes to a vendor before a bill is due.

working capital
1. The cash available for day-to-day operations of an organization. Current assets minus current liabilities.

Definition of 'Depreciation'
1. A method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets for both tax and accounting purposes. 2. A decrease in an assets value caused by unfavorable market conditions.

Types Of Financial Statements

Balance Sheet Income statement Statement of retained earnings Statement of cash flow or Cash flow statement

Definition of 'Gross Profit'

A company's revenue minus its cost of goods sold.

Net Profit
Total Revenue -Total Expenses = Net Profit

Definition of 'Liquidity'
The ability to convert an asset to cash quickly. Also known as "marketability".

Petty cash is a cash book used to record all petty or small expenses incurred. like cost of xerox copy, postage, stationery etc. it will be maintained by a separate cashier called Petty cashier.

Definition of 'Risk'
The chance that an investment's actual return will be different than expected. Food and Agriculture Organization

Director-General - Jos Graziano da Silva, Brazil (2012present)

World Health Organization (WHO)

Director-General - Margaret Chan, China (acting) (2007present)

United Nations Educational, Scientific and Cultural Organization (UNESCO)

Director-General - Irina Bokova, Bulgaria (2009present)

United Nations Children's Fund (UNICEF)

Executive Director - Anthony Lake, United States (2010present)

United Nations

Secretary-General - Ban Ki Moon, South Korea (2007present)

International Labour Organization

Director-General - Guy Ryder, UK (MAY 2012-present)

Pratip Chaudhuri assumes charge as SBI chairman RM Malla, chairman and MD of IDBI Bank

Definition of 'Investment'
An asset or item that is purchased with the hope that it will generate income or appreciate in the future.

Definition of 'Marketing'
The activities of a company associated with buying and selling a product or service. It includes advertising, selling and delivering products to people. Contingent Liability is the liability which may occur or which may not occur in future.And it is shown in the foot note of the Balance Sheet.

The time interval required to complete a task or function is called the cycle time. A cycle starts with the beginning of the first step in a process and it lasts until the completion of the final step.

a contingent Liability is a liability which may or may not arise in the future depending on the happening or non happening of an event.

Meaning of Financial Management:

Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.

Definition of 'Fixed Cost'

A cost that does not change with an increase or decrease in the amount of goods or services produced. Variable costs are costs that vary with output.

Definition of 'Underwriting'
1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt).