Finance

Investment Bank
A bank dealing mainly with the financing of businesses and, sometimes, the government, rather than the general public.
Investment Management Regulatory Organization
Definition and meaning of the Investment Management Regulatory Organization (IMRO), a UK-based self-regulating entity.
Investment Pools - Definition and Meaning
Organized financial arrangements that combine funds from multiple investors to acquire financial assets.
Irredeemable Security
A security with no redemption date, where interest is payable indefinitely but the principal is never repaid.
Issue
The amount of shares or stock available, or the amount of banknotes in circulation.
Joint-Stock Bank
A comprehensive overview of Joint-Stock Banks, their historical context, operational frameworks, and impacts within the economic landscape.
Junk Bonds
A comprehensive look at junk bonds, including their definitions, historical context, and significance within various economic frameworks.
Leveraging
Leveraging refers to using borrowed funds to finance an investment.
Liability
Liability - The legal obligation to make some payment, encompassing various forms of monetary compensation depending on circumstances.
Life Insurance
A comprehensive look at life insurance, its definition, historical context, various economic frameworks, and its applications.
Liquid Assets
A discussion on liquid assets, their characteristics, relevant economic theories, and practical implications.
Liquidity Constraint
An arbitrary limit on the amount that an individual or a firm can borrow.
Liquidity Ratio
The proportion between a bank or other financial institution’s holdings of liquid assets and its total liabilities.
Loan
Understanding loans, their types, and implications in economics
Loan Portfolio
The collection of loans held as assets by a financial institution, designed to spread risk and maintain profitability.
Loan-Loss Reserve
A reserve fund held by a financial institution to cover potential bad debts from loans.
Loans-to-Deposit Ratio
A measure that represents the total value of a bank’s loans as a percentage of the total value of its deposits, often used as an indicator of liquidity.
Long Position
A situation where market participants hold a positive quantity of a commodity or asset, anticipating a rise in their prices.
Long Rate
An in-depth look at the long rate, focusing on its definition, meaning, historical context, and major analytical frameworks.
Long-Dated Security
A thorough examination of long-dated security, its definitions, implications, and importance in economics.
Long-Term Interest Rate
The rate of interest paid on government securities with a period to maturity of ten years or above.
Loss - Definition and Meaning
The result of a business operation where expenditures exceed receipts, leading to a reduction in a business's capital.
Margin
Understand the concept of margin, its applications in trading, and its significance in economic transactions.
Margin Requirement
Exploring the fundamentals and implications of margin requirements in financial transactions.
Margin Trading
An analysis of margin trading in financial markets, highlighting borrowing practices, risks, and required collateral.
Mark-to-Market
The evaluation of a financial trading position using current market data.
Market Risk
The risk faced by traders due to price changes in financial markets, for holders of both long and short positions.
Marketable Security
An overview and in-depth analysis of marketable securities in economics.
Maturity
Understanding Maturity - The redemption of securities.
Mean Reversion
Understanding the principle of mean reversion in economics and its applications.
Mean-Variance Preferences
Understanding mean-variance preferences in investment portfolio choice.
Medium-Dated Security
A security with a maturity period of between 5 and 15 years when first issued
Merchant Bank
Merchant Bank deals mainly with the financing of international activities of firms.
Moving Average
A class of data-smoothing techniques used in the analysis of economic and financial time series
Naked Short-Selling
The practice of short-selling a stock without borrowing or ensuring the shares can be borrowed, often resulting in 'fail to deliver'.
National Savings
An overview of National Savings Bonds, a financial product backed by the UK government.
National Stock Exchange of India
An overview of the National Stock Exchange of India, its history, and its significance in global finance.
Net Yield
Definition and meaning of net yield, with context and comparative analysis within different economic frameworks.
New Issues - Definition and Meaning
Comprehensive overview and analysis of the term 'New Issues' within the context of economics.
Non-performing Debt
Exploring the concept and implications of non-performing debt in the economic landscape
Non-Systematic Risk
A comprehensive overview of non-systematic risk, also known as idiosyncratic risk.
Non-Voting Share
A share that provides the holder with dividend rights but no voting rights at company meetings.
Off-Balance-Sheet Finance
A financial practice where businesses use lease agreements to control assets without incorporating them into the balance sheet.
Open Position
A detailed exploration of what constitutes an 'Open Position' in trading and its implications.
Open-Ended Fund
A form of mutual fund with no restriction on the number of shares issued based on investor demand.
Ordinary Share
The UK term for a share in the equity of a company, equivalent to common stock in the US.
Outside Money
An asset in the economy that is not a liability for anyone else, commonly applied to gold coinage rather than bank balances.
Overdraft
A negative balance in a bank account, often allowed by prior arrangement but incurs interest and extra service charges.
Overnight Money
A financial term referring to funds loaned for a short duration, typically from one business day to the next.
Paid-Up Capital
The part of a company's authorized capital that has actually been paid by shareholders.
Pension Scheme
Definition and meaning of a pension scheme, a retirement plan managed by individual companies, different schemes, and funding mechanisms.
Permanent Interest Bearing Shares (PIBS)
An explanation of Permanent Interest Bearing Shares, their purposes, characteristics, and significance in financial management, especially for mutual institutions like building societies.
Perpetual Bond
An irredeemable bond that pays interest indefinitely.
Personal Loan
A loan typically provided to individuals without the need for specific collateral, used for financing substantial personal expenses.
Plough-back
The system of financing investment in firms by retaining profits
Ponzi scheme - Definition and Meaning
An extensive analysis of Ponzi schemes, including historical context, definitions, major analytical frameworks, and case studies.
Portfolio Selection
The choice of proportions in different assets to maximize expected benefit from a given stock of wealth.
Position
Understanding the various types of positions in financial markets, including long, open, and short positions
Post Office Savings
A financial saving system provided by post offices, offering secure saving options for the public.
Pre-tax profits
The profits of a company or unincorporated business before deduction of relevant income or corporation taxes.
Preference Share
A company share which carries no vote, but ranks before ordinary shares for dividends.
Premium
The price paid for an insurance policy, which may be monthly, annual, or a lump-sum payment.
Premium Bond
A UK government security with a unique structure involving a lottery-based reward system.
Present Discounted Value
Definition and explanation of present discounted value (PDV), a core concept in economics used to determine the current value of future payments or cash flows.
price-sensitive information
Information about a company that, if publicly known, could affect its share price.
Price–Earnings Ratio
An in-depth exploration of the price–earnings ratio, its significance, and its application in evaluating company stocks.
Profit - Definition and Meaning
An excess of the receipts over the spending of a business during any period, including various financial transactions and asset valuations.
Profit-and-Loss Account
An account of an organization’s receipts and spending over a period, providing insights into profits and losses.
Property Lending
Lending to finance purchases of property, often using the property as collateral.
Prospectus
An informative document provided by a company during the issuance of new shares or debentures to the public.
Public Company
Definition and analysis of a public company with historical context and major analytical frameworks.
Put Bond
A put bond, also known as a retractable bond, allows the bondholder to force the issuer to repurchase the bond at specified dates before maturity.
Put Option
A contractual agreement giving the right, but not the obligation, to sell an asset at a predetermined price on a specified future date.
Quoted Company
A company whose shares are accepted for trading on a stock exchange, facilitating easier capital raising due to increased share marketability.
Rate of Interest - Definition and Meaning
The charge made for the loan of financial capital, expressed as a proportion of the loan, considering diverse premiums.
Real Option Theory
An approach to the analysis of investment opportunities using option valuation techniques.
Rebate
Refund of a part of the amount already paid or a deduction from the amount to be paid.
Recourse Loan
Detailed entry on the concept of recourse loans in economics, including their definitions, analytical frameworks, and case studies.
Redemption Date
The date on which a security is due to be redeemed by the borrower. This may be a single date, or a range of dates within which the borrower has discretion to choose when repayment will take place.
Redemption Value
An in-depth look at the concept of redemption value in economics and finance.
Redemption Yield
The interest rate that equates the present value of interest receipts and principal repayments with the market price of a security when held to maturity.
Rediscount
Definition and analysis of rediscount in the context of economics and finance.
Reducing Balance Depreciation
The method of depreciating fixed assets by applying a constant percentage to their remaining value each year.
Relief
An economic term that involves various forms of financial assistance or support, often in the context of debt relief or mortgage interest relief.
Required Rate of Return
Definition and analysis of required rate of return as a critical concept in investment finance.
Reschedule Debt
Definition and analysis of the concept of debt rescheduling and its implications in economics.
Reserve Tranche
A key element in the International Monetary Fund's (IMF) lending mechanism representing the first quarter of a member's quota available under specific conditions.
Retractable Bond
A comprehensive overview of retractable bonds, their function, importance, and implications in the context of various economic frameworks.
Revaluation - Definition and Meaning
A comprehensive overview of revaluation in economics, detailing its definition, historical development, and relevance within various economic frameworks.
Revolving Loan
Understanding the concept and mechanisms of revolving loans in economics.