What Does Bank Reconciliation Statement Mean?

A form that allows individuals to compare their personal bank account records to the bank's records of the individual's account balance in order to uncover any possible discrepancies
What Does Bank Statement Mean? A record, usually sent to the account holder once per month, summarizing all transactions in an account during the time from the previous statement to the current statement. The opening balance from the prior month combined with the net of all transactions during the period should result in the closing balance for the current statement. What Does Bank Mean? A commercial institution licensed as a receiver of deposits. Banks are mainly concerned with making and receiving payments as well as supplying short-term loans to individuals What Does Balance Sheet Mean? A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders. The balance sheet must follow the following formula: Assets = Liabilities + Shareholders' Equity What Does Net Asset Value - NAV Mean? A mutual fund's price per share or exchange-traded fund's (ETF) per-share value. In both cases, the per-share dollar amount of the fund is calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of fund shares outstanding. What Does Financial Accounting Mean? Reporting of the financial position and performance of a firm through financial statements issued to external users on a periodic basis. What Does Financial Market Mean? Broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. Financial markets are typically defined by having transparent pricing, basic regulations on trading, costs and fees and market forces determining the prices of securities that trade. Some financial markets only allow participants that meet certain criteria, which can be based on factors like the amount of money held, the investors geographical location, knowledge of the markets or the profession of the participant
Mutual Funds Definition refers to the meaning of Mutual Fund , which is a fund, managed by an investment company with the financial objective of generating high Rate of Returns. These asset management or investment management companies collects money from the investors and invests those money in different Stocks , Bonds and other financial securities in a diversified manner. Before investing they carry out thorough research and detailed analysis on the market conditions and market trends of stock and bond prices. These things help the fund mangers to speculate properly in the right direction. The investors who invest their money

in the Mutual fund of any Investment Management Company, receive an Equity Position in that particular mutual fund. When after certain period of time, whether long term or short term, the investors sell the Shares of the Mutual Fund, they receive the return according to the market conditions. The investment companies receive profit by allocating people's money in different stocks and bonds according to their Speculation about the Market Trend. Other than some specific mutual funds which carry certain Maturity Term, Investors can generally sell the shares of their mutual funds at any time they want. But, the return will vary according to market value of the stocks and bonds in which that particular mutual fund made investment. But, generally the share holders of mutual fund sell their share when the prices are up and Capital Gain is sure to happen. Scope of Mutual Funds has grown enormously over the years. In the first age of mutual funds,when the investment management companies started to offer mutual funds, choices were few. Even though people invested their money in mutual funds as these funds offered them diversified investment option for the first time. By investing in these funds they were able to diversify their investment in common stocks, preferred stocks, bonds and other financial securities. At the same time they also enjoyed the advantage of liquidity. With Mutual Funds, they got the scope of easy access to their invested funds on requirement. But, in todays world, Scope of Mutual Funds has become so wide, that people sometimes take long time to decide the mutual fund type, they are going to invest in. Several Investment Management Companies have emerged over the years who offer various types of Mutual Funds, each type carrying unique characteristics and different beneficial features. To understand the broad scope of Mutual Funds we need to discuss the main types of Mutual Funds that are normally offered by the Mutual Companies. The wide choices in Mutual Funds go as the following: Equity Funds or Stock Funds These types of Mutual Funds generally invest in stocks which are publicly traded. Amount of risk, involved with these funds vary according to different types of Equity Funds. Types of Equity Funds are; 1. Growth Funds-These funds invest in the stocks, which are under valued compared to their worth. As these stock prices tends to rise in future and carry good growth potential, Growth Funds go for these kind of stocks. 2. Value Funds-These funds go for long term investment and aims at increase of value over the years. 3. 4. 5. 6. International Equity Funds-These funds invest in the stocks of foreign companies. Global Equity Funds-These funds invest in stocks of both the domestic market and the foreign markets. Sector Funds or Specialty Funds-These funds invest in specific sectors like Health care and in specific commodities like Gold. Index Funds-These funds reflect the performance of stock market indexes. Bond Funds These funds invest in government bonds and corporate bonds. These Bond Funds offer a steady source of income and in many times these incomes get the advantage of Tax Exemption. Money Market Funds These funds invest in the money market. These funds involve low level of risk and promises comparatively low rate of return. Balanced Fund These funds invest both in Stocks and Bonds and thus offer a well diversified investment portfolio.

Everyday, stocks are exchanged and traded in numerous international stock exchanges around the world. The liquidity they bring are a vital component of economic growth. Stock exchanges are open markets that trade financial assets. Whether associated with a

company or acting as an individual, a stock exchange is the place where stocks are bought and sold. There are a number of major stock exchanges around the world and each of these plays a part in determining the overall financial and economic condition of any economy. Stock exchanges deal with a number of financial instruments such as stocks, bonds and equities. Both corporate and government bonds are traded in stock exchanges. Equities include popular investment options, rights issues, bonus issues, and all other forms of shares and stocks. The actual trading of stocks takes place through mediators such as financial advisors, brokerage houses, and stockbrokers. Functions of International Stock Exchanges: An Overview The main function of a stock exchange is to facilitate the transactions associated with both the buying and selling of securities. Buyers and sellers of shares and stocks can track the price changes of securities from the stock markets in which they operate. The ups and downs of stock indexes help the investors to speculate on the return on investment (ROI) of various investment options. Stock exchanges also serve as a source of capital formation for listed companies. Business entities that are listed in a particular stock exchange can issue shares to the public and sell those shares in that market. To take part in these transactions, listed companies need to abide by the rules and requirements of that market. The stock exchanges protect the interests of both buyers and sellers by assuring a timely transfer of money. The participants of a stock market are required to operate within the specified transaction limits fixed by the regulatory authority of that stock market. Speed and transparency are vital for all stock market transactions. The companies listed in a stock exchange need to provide proper guidance regarding business performance and prospects, mergers and acquisitions, stock prices , dividends and other information at all times. Investors make their investment decisions based on the information obtained from these companies, and the comments of analysts who track those companies. How Stock Exchanges Operate With the help of stockbrokers, the buyers and sellers participating in a stock market carry out their transactions. The brokers representing selling parties take their orders to the stock exchange floor and then find brokers representing parties willing to invest in similar stocks. If both parties agree to trade at the fixed price, the transaction takes place. One may browse through the following links to have a detailed picture of the different stock exchanges of the world:

What is Insurance? The Meaning Of Insurance (Insurance Definition)

The meaning of insurance: Insurance is a policy from a large financial institution that offers a person, company, or other entity reimbursement or financial protection against possible future losses or damages.

The meaning of insurance is important to understand for anybody that is considering buying an insurance policy or simply understanding the basics of finance. Insurance is a hedging instrument used as a precautionary measure against future contingent losses. This instrument is used for managing the possible risks of the future.

Insurance is bought in order to hedge the possible risks of the future which may or may not take place. This is a mode of financially insuring that if such a incident happens then the loss does not affect the present well-being of the person or the property insured. Thus, through insurance, a person buys security and protection. A simple example will make the meaning of insurance easy to understand. A biker is always subjected to the risk of head injury. But it is not certain that the accident causing him the head injury would definitely occur. Still, people riding bikes cover their heads with helmets. This helmet in such cases acts as insurance by protecting him/her from any possible danger. The price paid was the possible inconvenience or act of wearing the helmet; this ie equivalent to the insurance premiums paid. Though loss of life or injuries incurred cannot be measured in financial terms, insurance attempts to quantify such losses financially. Insurance can be defined as the process of reimbursing or protecting a person from contingent risk of losses through financial means, in return for relatively small, regular payments to the insuring body or insurance company . Insurance can range from life to medical to general (residential,commercial property, natural incidents, burglary, etc). Life Insurance It insures the life of the person buying the Life Insurance Certificate. Once a Life Insurance is sold by a company then the company remains legally entitled to make payment to the beneficiary after the death of the policy holder. Medical Insurance This is also known as mediclaim. Here, the policy holder is entitled to receive the amount spent for his health purposes from the insurance company.

General Insurance This insurance type involves insuring the risks associated with the general life such as automobiles, business related, natural incidents, commercial and residential properties, etc

capital market
The market for long-term funds where securities such as common stock, preferred stock, and bonds are traded. Both the primary market for new issues and the secondary market for existing securities are part of the capital market

Capital Market
Any market in which securities are traded. Capital markets include the stock and bond markets. Companies and governments use capital markets to raise funds for their operations; for example, a company may issue an IPO while a government may issue a bond in order to conduct new or expand ongoing activities. Investors purchase securities in the capital markets in order to extract a return and earn profit on the securities. Capital markets include primary markets, such as IPOs that are placed with investors through underwriters, and secondary markets, in which all subsequent trading takes place. Government agencies in different countries regulate local capital markets, though some, especially exchanges, play some role in regulating themselves

U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on the trading of domestic securities not listed on the regular stock exchanges. It publishes two composite price indexes daily as well as bank, insurance, transportation, utilities, and industrial indexes. By the 1990s it had surpassed the American Stock Exchange (AMEX) to become the second largest U.S. securities market, in terms of market capitalization, after the New York Stock Exchange. Members register with the Securities and Exchange Commission and meet requirements for assets, capital, public shares, and shareholders. In 1999 it merged with AMEX to form the Nasdaq-Amex Market Group, and in 2000 NASD sold nearly half its interest in NASDAQ to private investors. See also over-the-counter market.

primary market
Definition
The market for new securities issues. In the primary market the security is purchased directly from the issuer. This differs from the secondary market.

secondary market
Definition
A market in which an investor purchases a security from another investor rather than the issuer, subsequent to the original issuance in the primary market. also called aftermarket.

IPO
Definition

Initial Public Offering. The first sale of stock by a company to the public. Companies offering an IPO are sometimes new, young companies, or sometimes companies which have been around for many years but are finally deciding to go public. IPOs are often risky investments, but often have the potential for significant gains. IPOs are often used as a way for a young company to gain necessary market capital.

NSC
The National Stock Exchange of India Limited (Hindi: ) is a Mumbaibased stock exchange. It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading.[1]. NSE has a market capitalization of around Rs 47,01,923 crore (7 August 2009) and is expected to become the biggest stock exchange in India in terms of market capitalization by 2009 end.[2]Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the Nifty, an index of fifty major stocks weighted by market capitalisation. NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities[3]. There are at least 2 foreign investors NYSE Euronext and Goldman Sachs who have taken a stake in the NSE.[4] As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India [5]. In October 2007, the equity market capitalization of the companies listed on the NSE was US$ 1.46 trillion, making it the second largest stock exchange in South Asia. NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities.[6]It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%.[7]

An abbreviation of the Bombay Exchange Sensitive Index (Sensex) - the benchmark index of the Bombay Stock Exchange (BSE). It is composed of 30 of the largest and most actively-traded stocks on the BSE. Initially compiled in 1986, the Sensex is the oldest stock index in India.

SEBI
Securities and Exchange Board of India (SEBI) is a board (corporate body) appointed by the Government of India in 1992 with its head office at Mumbai.

Objectives of SEBI:

As an important entity in the market it works with following objectives:

1. It tries to develop the securities market.

2. Promotes Investors Interest. 3. Makes rules and regulations for the securities market.
Types of shares : Shares in the company may be similar i.e they may carry the same rights and liabilities and confer on their holders the same rights, liabilities and duties. There are two types of shares under Indian Company Law :1.Equity shares means that part of the share capital of the company which are not preference shares. 2.Preference Shares means shares which fulfill the following 2 conditions. Therefore, a share which is does not fulfill both these conditions is an equity share.

a. It carries Preferential rights in respect of Dividend at fixed amount or at fixed rate

i.e. dividend payable is payable on fixed figure or percent and this dividend must paid before the holders of the equity shares can be paid dividend. b. It also carries preferential right in regard to payment of capital on winding up or otherwise. It means the amount paid on preference share must be paid back to preference shareholders before anything in paid to the equity shareholders. In other words, preference share capital has priority both in repayment of dividend as well as capital

c. A derivative is an agreement or contract that is not based on a real, or true, exchange, i.e.: There is nothing tangible like money, or a product, that is being exchanged. For example, a person goes to the grocery store, exchanges a currency (money) for a commodity (say, an apple). The exchange is complete, both parties have something tangible. If the purchaser had called the store and asked for the apple to be held for one hour while the purchaser drives to the store, and the seller agrees, then a derivative has been created. The agreement (derivative) is derived from a proposed exchange (trade money for apple in one hour, not now). d. In financial terms, a derivative is a financial instrument - or more simply, an agreement between two people or two parties - that has a value determined by the price of something else (called the underlying).[1] It is a financial contract with a value linked to the expected future price movements of the asset it is linked to - such as a share or a currency. There are many kinds of derivatives, with the most notable being swaps, futures, and options. However, since a derivative can be placed on any sort of security, the scope of all derivatives possible is near endless. Thus, the real definition of a derivative is an agreement between two parties that is contingent on a future outcome of the underlying.
Re: What are accounting Principles? Answ Accounting Principles are: er Nominal Accounting: Debit all Expenses # 5 and Losses and
Credit all Gains and Incomes Personal Accounting:Debit the Receiver and Credit the Giver,

Real Accounting:Debit what Comes In and Credit what Goes Out.

Re: What are accounting Principles? Answe r #4

Accounting Principal are those set of standard that is use by the accountant worldwide while recording accounting transaction. Principals divide into two parts. 1- Accounting Concept 2-acounting convension

Re: What are accounting Principles? Answe accounting is treated by some expert as science.science is r based on certain laws n principles. so # 3 accounting
principles are some rules or norms of accounting, on which whole accounting is based. ex. of accounting principles are business entity concept, money measurement concept, cost concept, double entry concept etc

Re: What are accounting Principles? Answ er #2

there are 3 types of accounting principals 1. personnel accoumt:- debit the receiver and credit the giver, 2. real account:- debit what comes in and credit what goes out. 3. nominal account:- debit all expenses and losses and credit all gains and incomes

Re: What are accounting Principles? Answ er #1

Maintaining the Basic Accounting Books, ex. Daybook, bank book, purchase sales account and vouchers. regular invertory process