A negotiable instrument that is issued by a bank to act like shares in a foreign public company and allows investors to trade in the global markets is known as a depositary receipt. It is a type of physical certificate through which investors can hold shares in the equity of other countries. The American depositary …
What are the Depository Receipts? Types, Advantages, And Limitations Read More »
Introduction In accounting & finance, we often hear about the term “present value,” which refers to the value of the expected income stream calculated as the valuation date. The alternative name of the present value is the present discounted value. The annuity table is a process that helps in better understanding the annuity worth. Ordinary …
Present Value of an Ordinary Annuity Table (Explained) Read More »
Introduction We all know finance plays an integral role in any business and non-business project. Some people take short-term capital and some belief in making long-term financial plans. To analyze the thorough life-cycle of heavy industrial work, project finance is introduced by financial experts. What is Project Finance? The funding or financing that is being …
What is Project Finance? Member, Advantages, and Limitations Read More »
Introduction The primary ways to fund the purchase of an investment or assets are lease and financing. The object is the same to provide the hirer the right and procession to an asset. Both financing and leasing facility allows the owners to source valuable assets. Do you know what reasons make lease different from finance? …
Definition: Hypothecation is a term used to describe a borrower offering an asset as a security to a lender in exchange for a loan. The lender becomes the new owner of the secured asset while the borrower still has physical possession of it. The lender can only exercise their right over the asset in case …
What does rehypothecation really mean? Definition And More Read More »
A lease is a contract between two parties that allows one party, the lessee, to use the assets of the other party, the lessor, in exchange for periodic payments. Usually, leases last for a prespecified amount of time. A lease agreement can mutually beneficial for both parties, the lessor and the lessee. Legally, there is …
What Is Capital Lease Obligation? Example and How to Calculate it? Read More »
A bond is a debt instrument issued to an investor, or holder of the bond, by a borrower. It makes the investor eligible to receive a fixed income after a fixed amount of time. The fixed income comes as a result of the fixed price and interest on bonds. A bond is the most basic …
What is the duration of a bond? and How to Calculate It? Read More »
Bonds are debt instruments that investors get in exchange for lending money to a company or even the government. Bonds are valid for a predetermined period and also come with regular interest payments. These interest payments are fixed based on a predetermined interest rate. On maturity, the company or government issuing the bond returns the …
What Is Conversion Price? Characteristics And Importance Read More »
Introduction to capital lease To qualify as capital lease, one of the following criteria should be met: Ownership criteria: At the end of lease tenure, the ownership rights shift from the lessor to the lessee. The option of Bargain buys: Under a capital lease, the lessee can buy the asset from the lessor at the …
Introduction We all know life situations are uncertain. Sometimes people get short with money due to unexpected personal problems, urgencies, and fulfilling an emergency financial obligation. The banks understand the financial need of their clients. To help the customer banks introduced this credit facility known as a temporary overdraft. The lending institute grants finance to …
What is a Temporary Overdraft? (Explanation, Types, Usages, and Limitations) Read More »
