Game of Intellect

ALTERNATIVE MANAGEMENT

Alternative management is based on market declines,volatility of volatility, liquidity, time value and abnormal valuations, rather than on rising prices. An example of alternative management is the hedge fund.

Real rate of return:

The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects. This method expresses the nominal rate of return in real terms, which keeps the purchasing power of a given level of capital constant over time.

economic exposure
any type of risk arising from movements in real exchange rates

horizontal spread

A spread that is made by buying and selling two options that differ only on their exercise date.

Human resource management:

HRM is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business

Hidden reserve:

It is the understatement of owners' equity or net worth.This understatement can arise either from the undervaluation of assets or from a complimentary overaccrual of liabilities.

Employer : A person who hires on some remuneration to other persons (as his employees) to provide their services for his business/profession.

Events Occuring after tha Balance Sheet Date:

Post balance sheet events are those that occur between the balance sheet date and the date on which the financial statements are approved. These fall under two broad categories:

i.> Events that necessitate adjustment of assets & liabilities, and

ii.> Other events, financial impact of which requires a disclosure.

LIBOR
The LIBOR is the rate offered by London banks for deposits by other banks in the eurocurrency markets (1-12 months). It is calculated by the British Bankers Association and is announced daily at 11 o'clock in London.