Thursday, 2 February 2012

Capital Adequacy

The ability of a bank to meet the needs of its depositors and other creditors

Cap and collar morgage

A mortgage in which the variable interest rate paid by the borrower cannot rise above or fall below specified levels, such a morgage may be granted for the first few years of a loan

Call provision

A clause in the agreement between the issuer and the holders of bond that entitles the issuer to redeem the bond before maturity

Call money

Money put into the money market that can be called at short notice

A grace period

A period in which the borrower is unable to call the bond

Callable Bonds

Fixed rate bonds usually convertable in which the issuer has the right, but not the obligation to redeem(call) the bond during the life of the bond

Accounting software

Is application software record and processes accounting transactions within functional models such as account payable, account receivable,payroll and trial balance

Buying in

Buying of securitie, commodities and foreigh exchange by a broker because the original seller has failed to deliver

Buying forward

Buying commodities, securities, and foreigh exchange for delivery at a date in the future in order to establish a bull position

Buy earnings

To invest in a company that has loww yield but whose earnings are increasing so that substantial gain can be made