Internal audit:-
An ongoing appraisal of the financial health of a company's operations by its ownemployees. Employees who carry out this function are called internal auditors. During an internal audit, internal auditors will evaluate and monitor a company's risk management, reporting, and controlpractices and make suggestions for improvement. Internal auditing covers not only an organization's finance function, but all the operations and systems in a firm. While internal auditors are typically accountants, this activity can also be carried out by other professionals who are well-versed with a company's functions and the relevantregulatory requirements

The earnings yield is achieved by dividing earnings per share by the share price and multiplying by 100 over 1. It shows the relationship of earnings per share to the current share price and is the inverse of price-earnings ratio.

income from other sources:

Income of every kind, which is not chargeable to income tax under the heads 1) salary 2) income from house property, 3) profits and gains of business and profession, and capital gains can be taxed under the head "income from other sources". However such income should also not fall under income not forming part of total income under the IT Act.

The following income shall be chargeable to income tax under the head "Income from other sources", namely: -

1. Dividend;

2. Any annuity due or commuted value of any annuity paid under section 280D.

3. Any winning from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever.

4. Any sum, received by the assessee from his employees as contributions to any provident fund or Superannuation fund or any fund set up under the provisions of the Employees State Insurance Act, 1948 (34 of 1948), or any officer fund for the welfare of such employees, if such income is not chargeable to income-tax under the head "Profits and gains of business or profession";

5. Income from machinery, plant or furniture belonging to the assessee and let on hire, if the income is not chargeable to income -- tax under the head "Profits and gains of business or profession";

6. Where an assessee lets on hire machinery, plant or furniture belonging to him and also buildings, and the letting of the buildings is inseparable from the letting of the said machinery, plant or furniture, the income from such letting, if it is not chargeable to income tax under the head "Profits and gains of business or profession."

7. Any sum received under a Keyman insurance policy, including the sum allocated by way of bonus on such policy, if such income is not chargeable to income tax under the heads "Profits and gains of business and profession" or under the head "Salaries". (Keyman insurance policy means a life insurance policy taken by a person on the life of another person who is/ was the employee of the 1st mentioned person or who is/was connected in any manner whatsoever with the business of the 1st mentioned person.)

So, basically "income from other sources" is the residuary head of income, which takes within its ambit any income, which does not specifically fall under any other head of income.
 

Exchange traded funds

Exchange traded funds known as ETFs are as good as mutual fund. But the main difference between them is mutual fund are not listed, intra day trading is not possible in mutual funds. ETFs are cumulative of a group of stocks just like mutual funds, but they are listed and intra day trading is possible.

International Accounting Standards Board

• the IASC Foundation is an independent organisation having two main bodies, the Trustees and the IASB, as well as a Standards Advisory Council and the International Financial Reporting Interpretations Committee.
• The IASC Foundation Trustees appoint the IASB members, exercise oversight and raise the funds needed, but the IASB has sole responsibility for setting accounting standards.

Securitisation: Securitisation of asset means, a business concern or financial institution can transform its assets into more liquid and marketable instruments.Securitisation is an additional source of funds for the originator as it converts an otherwise illiquid asset into ready liquidity, reducing dependence on capital. Further, it reduces funding costs, compared both to capital as also fund raising instruments like bonds, debentures and CPs. This also fulfils a very fundamental objective of the regulatory authorities from the viewpoint of capital utilisation, " preventing the build-up of capital where it is not needed". ICICI was the first to securitise some of their assetes.

Asset allocation is a term used to refer to how an investor distributes his or her investments among various classes of investment vehicles (e.g., stocks and bonds).

A large part of financial planning is finding an asset allocation that is appropriate for a given person in terms of their appetite for and ability to shoulder risk. This can depend on various factors; see investor profile.

Inherent in asset allocation is the idea that the best-performing asset varies from year to year and is not easily predictable. Therefore having a mixture of asset classes is more likely to meet your goals. A more fundamental justification for asset allocation is the notion that different asset classes offer non-correlated returns, hence portfoliodiversification reduces the overall financial risk in terms of the variability of returns for a given level of expected return. In this respect diversification has been described as "the only free lunch you will find in the investment game." Academic research has painstakingly explained the importance of asset allocation, and the problems of active management (see academics section, below). This explains the steadily rising popularity of passive investment styles using index funds.

Holding company:

It is a company that holds majority of shares of its subsidieries.

Interest rate parity theory:

According to the Interest Rate Parity principle, the difference in similar nominal or market rates of interest should be equal to the forward premium of the nation with the lower inflation rate.

Extrinsic Value :

In the context of options trading, the difference between an option premium and the intrinsic value of an option (the amount by which the option is in the money). It is affected by implied market volatility as well as the time remaining before the option expires.