The terms used in banking business such as Law of Limitation,Laissez Faire,KYC Norms,Legal Opinion,Legend,Joint Sector etc
This post explains about terms used in banking such as Investment Banking,Investment management,Investment Securities,Individual Retirement Account,joint account,Joint Hindu Family Account,Karta,Joint Demand,Law of Limitation,Laissez Faire,KYC Norms,Legal Opinion,Legend,Joint Sector etc.These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.
The terms used in banking business
Investment Banking: A term used to describe the financing of the capital requirements of an enterprise, as opposed to the working capital of a business. Investment bankers buy and sell securities, such as stocks, bonds, and mortgages. They act as the intermediaries between the investor and the corporation or government that needs to finance its operations. An investment bank charges a fee for services relating to securities, such as advisory, negotiation, and distribution services. See Syndicate;Underwriter.
Investment management: the buying and selling of securities (see securities) and assets (see asset) within a portfolio to achieve investment objectives.
Investment Portfolio: A collection of securities held by a bank, individual, institution, or government agency for investment purposes.
Investment Securities: Securities purchased for an investment portfolio, as opposed to those purchased for resale to customers.
Investment trust: similar to unit trusts – collective investment but with a different structure. Investment trusts’ value fluctuates with demand for shares on the stockmarket. The price of an investment trust does not necessarily equal the price of its underlying assets.
Investment: A vehicle for funds expected to increase its value and/or generate positive returns.
Investor: A person who purchases securities with the intention of holding them to make a profit.
IP Address - a unique number given to an individual machine, account or user for the purpose of identifying them on a TCP/IP network.
IPO price: The price of share set before being traded on the stock exchange. Once the company has gone Initial Public Offering, the stock price is determined by supply and demand.
IRA:An Individual Retirement Account (IRA) is an account that provides either a tax-deferred or tax-free way for you to save for retirement. There are many different types of IRAs but Roth, Traditional and Rollover IRAs are the most common. Within an IRA, some people invest in mutual funds or stocks, while others may choose bank products such as CDs and money market savings accounts. Each IRA has certain eligibility requirements and unique features.
Issue Price: The price at which a new group of identical securities (new issue) is put on the market.
Issue: A group of identical securities, or the marketing and selling of such securities.
Issuer: Any corporation or governmental unit that borrows money through the sale of securities.Investment Vocabulary
JHF Account : Joint Hindu Family Account is account of a firm whose business is carried out by Karta of the Joint family, acting for all the family members.. The family members have common ancestor and generally maintain a common residence and are subject to common social, economic and religious regulations.
joint account -- A savings or checking account established in the names of more than one person (e.g., parent/child, wife/husband).
Joint Account: A bank account with two or more account holders. For instance, a husband and wife may have a joint account.
Joint Account: When two or more individuals jointly open an account with a bank.
Joint account:An account owned by two or more people.
Joint and Several Obligation: A guarantee to the holder of a security in which the liability for a bond or note issue may be enforced against all parties jointly or any one of them individually. One party, several, or all may be held responsible for payment.
Joint Demand: Joint demand appears in case of complementary goods. When two commodities are complementary to one another and cannot be used separately, they have joint demand. Bread and butter, sugar and tea, pen and ink are a few examples of joint demand. In joint demand a change in demand of one commodity bring about the proportionate change in demand for the other.
Joint Sector: When a sector is jointly owned, managed and run by both public and private sector, it is called joint sector. This sector indicates the partnership between the two i.e., public and private sector.
Junk Bond: High-risk securities that have received low ratings (i.e. Standard & Poor’s BBB rating or below; or Moody’s BBB rating or below) and as such, produce high yields, so long as they do not go into default.
Karta: Manager of a Hindu Undivided Family (HUF) who handles the family business. He is usually the eldest male member of the undivided family.
Keylogger program - a virus which can record the keys pressed on your keyboard while your computer is being used.
KFS: The Kuali Financial System is the internal bookkeeping system for Indiana University. The system facilitates transfers amongst all University Ledger accounts as well as incoming and outgoing wire and ACH transfers.
Kiosk Banking: Doing banking from a cubicle from which food, newspapers, tickets etc. are also sold.
KYC Norms: Know your customer norms are imposed by R.B.I. on banks and other financial institutions to ensure that they know their customers and to ensure that customers deal only in legitimate banking operations and not in money laundering or frauds.
Labour Union: Labour union represents that organisation of workers which works for improving working condition of labours and also for raising their wage by adopting ‘collective bargaining’ measures with the management of the industry in particular.
Laffer Curve: This curve is given by American economist Prof. Arthur Laffer. It represents relationship between total tax revenue and corresponding tax rates.
Laissez Faire: It is a French word meaning ‘non-interference’. This doctrine was popularised by classical economists who gave the view that government should interfere as little as possible in the economic activities of the individuals.
late payment fee -- A fee charged to a consumer if his or her monthly payment is made after the due date stated on the billing statement.
Law of Limitation: Limitation Act of 1963 fixes the limitation period of debts and obligations including banks loans and advances. If the period fixed for particular debt or loan expires, one cannot file a suit for is recovery, but the fact of the debt or loan is not denied. It is said that law of limitation bars the remedy but does not extinguish the right.
Lease Financing: Financing for the business of renting houses or lands for a specified period of time and also hiring out of an asset for the duration of its economic life. Leasing of a car or heavy machinery for a specific period at specific price is an example.
Lease: A contractual arrangement whereby one party (the lessor) grants the other party (the lessee) the right to use an asset in return for periodic rental payments.
Legal List, or Legal Investment: A list of securities in which certain institutions and fiduciaries, such as insurance companies and banks, may invest. For the protection of depositors or liability holders, legal lists are restricted by regulatory agencies to high-quality securities that meet certain specifications. Also known as legals.
Legal Opinion: An opinion concerning the validity of a municipal issue with respect to statutory authority, constitutionality, procedural conformity, and usually the exemption of interest from federal income taxes. The legal opinion is usually rendered by a law firm recognized as specializing in public borrowings, often referred to as "bond counsel."
Legend: A substitute check must bear the following legend to be the legal equivalent to the original check: “This is a legal copy of your check. You can use it the same way you would use the original check.”
Lessee: One who takes property on lease.
Lessor: A person, Corporation, or other legal entity that leases property to a lessee.
The above details describes about terms called in banking such as Investment Banking,Investment management,Investment Securities,Individual Retirement Account,joint account,Joint Hindu Family Account,Karta,Joint Demand,Law of Limitation,Laissez Faire,KYC Norms,Legal Opinion,Legend,Joint Sector etc. These phrases may help importers and exporters on their day to day business activities. The readers can also add more information about terms used in overseas trade below this post.Terms used in banking business such as Interest Warrant,introductory rate,Investment bank,Internal Rate of Return etc
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