Game of Intellect

VALUE AT RISK

Value at risk models, widely used for Risk Management by Banks and other financial institutions, use complex computer algorithms to calculate the maximum that the institution could lose in a single day’s trading. These models seem to work well in normal conditions but not, alas, during financial crises, which is arguably when it is most necessary to know how much value is at Risk.

N.B. I hope u get that next term should start from 'D'

Coz, my name is VINOD.

Derivatives are financial instruments whose value changes in response to the changes in underlying variables. The main types of derivatives are futures, forwards, options, and swaps.

The main use of derivatives is to reduce risk for one party. The diverse range of potential underlying assets and pay-off alternatives leads to a huge range of derivatives contracts available to be traded in the market. Derivatives can be based on different types of assets such as commodities, equities (stocks), bonds, interest rates, exchange rates, or indexes (such as a stock market index, consumer price index (CPI) — see inflation derivatives — or even an index of weather conditions, or other derivatives). Their performance can determine both the amount and the timing of the pay-offs.

ratio is the relationship between two variables.

The Yield to maturity (YTM) or redemption yield is the yield promised by the bondholder on the assumption that the bond or other fixed-interest security such as gilts will be held to maturity, that all coupon and principal payments will be made and coupon payments are reinvested at the bond's promised yield at the same rate as invested. It is a measure of the return of the bond. This technique in theory allows investors to calculate the fair value of different financial instruments. The YTM is almost always given in terms of annual effective rate.

The calculation of YTM is identical to the calculation of internal rate of return.

• If a bond's current yield is less than its YTM, then the bond is selling at a discount.
• If a bond's current yield is more than its YTM, then the bond is selling at a premium.
• If a bond's current yield is equal to its YTM, then the bond is selling at par.

Retained Earnings is that part of profit which a co. set aside for meeting future contingencies.Such a part of profit is not available for distribution to shareholders as dividend.it is a costless source of finance,It is also known as Ploughing back of profits.

Rupesh

Income:

Money or its equivalent received in exchange for labor, for services, from the sale of goods or property, or as earnings on investments.
 

Investment

Investment or investing is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. An asset is usually purchased, or equivalently a deposit is made in a bank, in hopes of getting a future return or interest from it. ...

• investing: the act of investing; laying out money or capital in an enterprise with the expectation of profit
• money that is invested with an expectation of profit
  
  An asset or item that is purchased with the hope it will generate income or appreciate in the future.
  

Acquisition:

The purchase of one corporation by another, through either the purchase of its shares, or the purchase of its assets.

I.P.O

Initial Public Offer

joint cost

total cost of the joint products produced during one manufacturing process.

E.P.S

Earnings Per Share - a term meaning Profit per Unit share after Interest tax n dividend payout for preference holding

Accounting is a language of business which records,classifys and summarises the day to day economic transations of business in monetory terms.

Hedging:-

Securing against Forex Risk Exposure by the use of Forward Covers, swaps and other money market instruments.