Crowding out refers to the times
when "increased public sector spending replaces, or drives down, private
sector spending." ... Crowding in, on the other hand, is defined as when
governmental deficits' spur investment in private sector.
Alpha
Testing'
Definition: Alpha testing is a type of testing that is done on an
application towards the end of a development process when the product is almost
in a usable state.
Description: This type of testing does not involve functional testing on the application. Instead, it is a user testing on the application in order to understand the user behavior and experience on the application. Normally this test is performed by test engineers, employees and sometimes friends / family members with the aim of trying to emulate around 80% of the customers. While these users test and give their feedback, the development team observes the behavior to check for design issues in the application. Alpha testing is mainly conducted to unveil bugs that might arise due to abrupt errors created by the users, validate the quality state of the software in minimal time and finally propound a build that procures the specifications required. Once this test is executed properly, the software is ready for the next stage, i.e., the beta test. Alpha testing has two phases. The first phase consists of testing by the developers. The software used is either hardware-assisted debuggers or debugger software. The basic motive is to detect bugs quickly. The second phase of testing is done by the quality assurance team, which ensures that the build works perfectly on the environment similar to user end.
Definition
of 'Bailout'
Definition: Bailout is a general term for extending financial support to
a company or a country facing a potential bankruptcy threat. It can take the
form of loans, cash, bonds, or stock purchases. A bailout may or may not
require reimbursement and is often accompanied by greater government oversee
and regulations.
The reason for bailout is to support an industry that may be affecting millions of people internationally and could be on the verge of bankruptcy due to prolonged financial crises.
Description: Bailout policies come in various forms, the most common being direct loans or guarantees of third-party (private) loans to the rescued entity. These direct loans are often on terms favouring the entity being rescued. Sometimes even direct subsidies are provided to the parties concerned. Stock purchases are also not uncommon.
The government or the financing body places strict requirements such as restructuring of organisation, no dividend payment to shareholders, change of management and in some cases a cap on salaries of executives till a stipulated time period or the repayment of dues. This may also be followed by a temporary relaxation of rules that may impact the accounts of the rescued entity.
Bailouts have several advantages. First, they ensure continued survival of the entity being rescued under difficult economic circumstances. Secondly, a complete collapse of the financial system can be avoided, when industries too big to fail start to crumble. The government in these cases steps in to avoid the insolvency of institutions that are needed for the smooth functioning of the overall markets.
Bailouts also have their disadvantages. Anticipated bailouts encourage a moral hazard by allowing not only promoters but also other stakeholders (customers, lenders, suppliers) to take higher-than-recommended risks in financial transactions. This happens because they start counting on a bailout when things go wrong.
The reason for bailout is to support an industry that may be affecting millions of people internationally and could be on the verge of bankruptcy due to prolonged financial crises.
Description: Bailout policies come in various forms, the most common being direct loans or guarantees of third-party (private) loans to the rescued entity. These direct loans are often on terms favouring the entity being rescued. Sometimes even direct subsidies are provided to the parties concerned. Stock purchases are also not uncommon.
The government or the financing body places strict requirements such as restructuring of organisation, no dividend payment to shareholders, change of management and in some cases a cap on salaries of executives till a stipulated time period or the repayment of dues. This may also be followed by a temporary relaxation of rules that may impact the accounts of the rescued entity.
Bailouts have several advantages. First, they ensure continued survival of the entity being rescued under difficult economic circumstances. Secondly, a complete collapse of the financial system can be avoided, when industries too big to fail start to crumble. The government in these cases steps in to avoid the insolvency of institutions that are needed for the smooth functioning of the overall markets.
Bailouts also have their disadvantages. Anticipated bailouts encourage a moral hazard by allowing not only promoters but also other stakeholders (customers, lenders, suppliers) to take higher-than-recommended risks in financial transactions. This happens because they start counting on a bailout when things go wrong.
Definition
of 'Balloon Mortgage'
Definition: A balloon mortgage is a financing mechanism where the
payments are not fully amortized over the term of the loan. Sometimes the
borrower needs to pay only the interest on the loan. As the loan is not fully
amortized, the borrower needs to pay a large sum of money at maturity, in some
cases the full principal, in order to close the loan. As the closure amount is
often large, this is called balloon payment.
Description: In a balloon mortgage, the loan is not amortized over its life. As a result, the borrower has to make a substantial amount, called balloon payment, in order to close the loan. A balloon mortgage is similar to a normal mortgage loan. The only difference between the two is that in a balloon mortgage a substantial sum of money, called the balloon payment, needs to be repaid to the lender after a certain stipulated period of time, say 5 or 7 years, in order to close the loan. This mechanism is popular in the domain of commercial real estate. In some cases, the borrower refinances the balloon mortgage with a normal mortgage when the balloon payment is very high.
Description: In a balloon mortgage, the loan is not amortized over its life. As a result, the borrower has to make a substantial amount, called balloon payment, in order to close the loan. A balloon mortgage is similar to a normal mortgage loan. The only difference between the two is that in a balloon mortgage a substantial sum of money, called the balloon payment, needs to be repaid to the lender after a certain stipulated period of time, say 5 or 7 years, in order to close the loan. This mechanism is popular in the domain of commercial real estate. In some cases, the borrower refinances the balloon mortgage with a normal mortgage when the balloon payment is very high.
Definition
of 'Bars'
Definition: Behaviourally anchored rating scale or BARS has now become a
commonly used methodology by companies to compare the performance of its
employees against specific or predefined set of behaviour traits which are
linked to specific numeric value or rating from a scale of 1-5.
Description: Behaviourally anchored rating scale combines both qualitative as well as quantitative aspects of assessing employees’ performance. Let’s understand how it works. Suppose you got your car serviced from the company’s authorised dealer.
Within 24 hours of the servicing you will get a call from an independent office seeking your feedback. They ask you varied types of questions such as were you comfortable with the time slot give to you, seating area of customers, was your supervisor helpful, etc.
Next, they will ask you specific questions related to the supervisor and his/her basic etiquette which you have to answer on a scale of 1-5 or 1-10, with 10 or five being the highest.
BARS is now commonly used across businesses which deal with the public such as customer care units of telecom operators, banks, car rental service companies, etc.
A BARS approach usually breaks down any task into behaviour which is more cautious. This is done to have a unified technique of attending a call. Let’s take an example, suppose you work with a national telecom operator as a customer care executive. They would have a quality team which would listen to your calls to gauge how you interact with the customers. Is it according to the standard operating procedures (SOPs) or not? This would help them (company) in assessing every employee’s performance towards the end of the year.
Description: Behaviourally anchored rating scale combines both qualitative as well as quantitative aspects of assessing employees’ performance. Let’s understand how it works. Suppose you got your car serviced from the company’s authorised dealer.
Within 24 hours of the servicing you will get a call from an independent office seeking your feedback. They ask you varied types of questions such as were you comfortable with the time slot give to you, seating area of customers, was your supervisor helpful, etc.
Next, they will ask you specific questions related to the supervisor and his/her basic etiquette which you have to answer on a scale of 1-5 or 1-10, with 10 or five being the highest.
BARS is now commonly used across businesses which deal with the public such as customer care units of telecom operators, banks, car rental service companies, etc.
A BARS approach usually breaks down any task into behaviour which is more cautious. This is done to have a unified technique of attending a call. Let’s take an example, suppose you work with a national telecom operator as a customer care executive. They would have a quality team which would listen to your calls to gauge how you interact with the customers. Is it according to the standard operating procedures (SOPs) or not? This would help them (company) in assessing every employee’s performance towards the end of the year.
Definition:
Beta
is a numeric value that measures the fluctuations of a stock to changes in the
overall stock market.
Description: Beta measures the responsiveness of a stock's price to changes in the overall stock market. On comparison of the benchmark index for e.g. NSE Nifty to a particular stock returns, a pattern develops that shows the stock's openness to the market risk. This helps the investor to decide whether he wants to go for the riskier stock that is highly correlated with the market (beta above 1), or with a less volatile one (beta below 1).
For example, if a stock's beta value is 1.3, it means, theoretically this stock is 30% more volatile than the market. Beta calculation is done by regression analysis which shows security's response with that of the market.
By multiplying the beta value of a stock with the expected movement of an index, the expected change in the value of the stock can be determined. For example, if beta is 1.3 and the market is expected to move up by 10%, then the stock should move up by 13% (1.3 x 10).
Beta is the key factor used in the Capital Asset Price Model (CAPM) which is a model that measures the return of a stock. The volatility of the stock and systematic risk can be judged by calculating beta. A positive beta value indicates that stocks generally move in the same direction with that of the market and the vice versa.
Description: Beta measures the responsiveness of a stock's price to changes in the overall stock market. On comparison of the benchmark index for e.g. NSE Nifty to a particular stock returns, a pattern develops that shows the stock's openness to the market risk. This helps the investor to decide whether he wants to go for the riskier stock that is highly correlated with the market (beta above 1), or with a less volatile one (beta below 1).
For example, if a stock's beta value is 1.3, it means, theoretically this stock is 30% more volatile than the market. Beta calculation is done by regression analysis which shows security's response with that of the market.
By multiplying the beta value of a stock with the expected movement of an index, the expected change in the value of the stock can be determined. For example, if beta is 1.3 and the market is expected to move up by 10%, then the stock should move up by 13% (1.3 x 10).
Beta is the key factor used in the Capital Asset Price Model (CAPM) which is a model that measures the return of a stock. The volatility of the stock and systematic risk can be judged by calculating beta. A positive beta value indicates that stocks generally move in the same direction with that of the market and the vice versa.
Definition
of Blue Ocean Strategy
Definition: 'Blue Ocean Strategy is referred to a market for a product
where there is no competition or very less competition. This strategy revolves
around searching for a business in which very few firms operate and where there
is no pricing pressure.
Definition
of 'Brexit'
Definition: It is an abbreviation for the term “British exit”, similar
to “Grexit” that was used for many years to refer to the possibility of Greece
leaving the Eurozone. Brexit refers to the possibility of Britain withdrawing
from the European Union (EU).
Definition
of 'Baseline Testing'
Definition: Baseline testing refers to the validation of the documents
and specifications on which test cases are designed. Baseline, in general,
refers to a benchmark that forms the base of any new creation. In software
testing, this refers to benchmarking the performance of the application. Many
problems are discovered and solved during baseline testing.
Definition
of 'Bridge Loan'
Definition: Bridge loan is a type of gap financing arrangement wherein
the borrower can get access to short-term loans for meeting short-term
liquidity requirements.
Description: Bridge loans help in bridging the gap between short-term cash requirements and long-term loans. These loans are normally extended for a period of 12 months. These loans are provided at exorbitant rate of interest and are normally backed by an asset collateral like equity, debentures etc.
Description: Bridge loans help in bridging the gap between short-term cash requirements and long-term loans. These loans are normally extended for a period of 12 months. These loans are provided at exorbitant rate of interest and are normally backed by an asset collateral like equity, debentures etc.
Definition
of 'Bid-ask Spread'
Definition: Bid-Ask Spread is typically the difference between ask
(offer/sell) price and bid (purchase/buy) price of a security. Ask price is the
value point at which the seller is ready to sell and bid price is the point at
which a buyer is ready to buy. When the two value points match in a
marketplace, i.e. when a buyer and a seller agree to the prices being offered
by each other, a trade takes place. These prices are determined by two market
forces -- demand and supply, and the gap between these two forces defines the
spread between buy-sell prices. The larger the gap, the greater the spread!
Bid-Ask Spread can be expressed in absolute as well as percentage terms. When
the market is highly liquid, spread values can be very small, but when the
market is illiquid or less liquid, they can be large
Definition
of 'Ceteris Paribus'
Definition: This commonly-used phrase stands for 'all other things
being unchanged or constant'. It is used in economics to rule out the
possibility of 'other' factors changing, i.e. the specific causal relation
between two variables is focused.
Definition
of 'Carpet Area'
This refers to the actual area that
can be used. Literally speaking, it means the area on which 'a carpet' can be
put.
Built-up area, on the other hand, includes the carpet area and the area of walls and ducts.
Built-up area, on the other hand, includes the carpet area and the area of walls and ducts.
Definition
of 'Chattel Mortgage'
Definition: Chattel mortgage is a loan extended to an individual or a
company on a movable property. Here, the ‘chattel’ or the movable personal
property which could be a car or a mobile home can be used as a security to
extend the loan.
Definition
of 'Cost Push Inflation'
Definition: Cost push inflation is inflation caused by an increase in
prices of inputs like labour, raw material, etc. The increased price of the
factors of production leads to a decreased supply of these goods. While the
demand remains constant, the prices of commodities increase causing a rise in
the overall price level. This is in essence cost push inflation.
Description: In this case, the overall price level increases due to higher costs of production which reflects in terms of increased prices of goods and commodities which majorly use these inputs. This is inflation triggered from supply side i.e. because of less supply. The opposite effect of this is called demand pull inflation where higher demand triggers inflation.
Apart from rise in prices of inputs, there could be other factors leading to supply side inflation such as natural disasters or depletion of natural resources, monopoly, government regulation or taxation, change in exchange rates, etc. Generally, cost push inflation may occur in case of an inelastic demand curve where the demand cannot be easily adjusted according to rising prices.
Description: In this case, the overall price level increases due to higher costs of production which reflects in terms of increased prices of goods and commodities which majorly use these inputs. This is inflation triggered from supply side i.e. because of less supply. The opposite effect of this is called demand pull inflation where higher demand triggers inflation.
Apart from rise in prices of inputs, there could be other factors leading to supply side inflation such as natural disasters or depletion of natural resources, monopoly, government regulation or taxation, change in exchange rates, etc. Generally, cost push inflation may occur in case of an inelastic demand curve where the demand cannot be easily adjusted according to rising prices.
Definition
of 'Crowding Out Effect'
Definition: A situation when increased interest rates lead to a
reduction in private investment spending such that it dampens the initial
increase of total investment spending is called crowding out effect.
Description: Sometimes, government adopts an expansionary fiscal policy stance and increases its spending to boost the economic activity. This leads to an increase in interest rates. Increased interest rates affect private investment decisions. A high magnitude of the crowding out effect may even lead to lesser income in the economy.
Description: Sometimes, government adopts an expansionary fiscal policy stance and increases its spending to boost the economic activity. This leads to an increase in interest rates. Increased interest rates affect private investment decisions. A high magnitude of the crowding out effect may even lead to lesser income in the economy.
Definition
of 'Cross Elasticity Of Demand'
Definition: The measure of responsiveness of the demand for a good
towards the change in the price of a related good is called cross price
elasticity of demand. It is always measured in percentage terms.
Description: With the consumption behavior being related, the change in the price of a related good leads to a change in the demand of another good. Related goods are of two kinds, i.e. substitutes and complementary goods. In case the two goods are not related, the Coefficient of Cross Elasticity is zero.
In case the two goods are substitutes for each other like tea and coffee, the cross price elasticity will be positive, i.e. if the price of coffee increases, the demand for tea increases. On the other hand, in case the goods are complementary in nature like pen and ink, then the cross elasticity will be negative, i.e. demand for ink will decrease if prices of pen increase or vice-versa.
Description: With the consumption behavior being related, the change in the price of a related good leads to a change in the demand of another good. Related goods are of two kinds, i.e. substitutes and complementary goods. In case the two goods are not related, the Coefficient of Cross Elasticity is zero.
In case the two goods are substitutes for each other like tea and coffee, the cross price elasticity will be positive, i.e. if the price of coffee increases, the demand for tea increases. On the other hand, in case the goods are complementary in nature like pen and ink, then the cross elasticity will be negative, i.e. demand for ink will decrease if prices of pen increase or vice-versa.
Definition
of 'Deadweight Loss'
Definition: It is the loss of economic efficiency in terms of utility
for consumers/producers such that the optimal or allocative efficiency is not
achieved.
Description: Deadweight loss can be stated as the loss of total welfare or the social surplus due to reasons like taxes or subsidies, price ceilings or floors, externalities and monopoly pricing. It is the excess burden created due to loss of benefit to the participants in trade which are individuals as consumers, producers or the government.
Description: Deadweight loss can be stated as the loss of total welfare or the social surplus due to reasons like taxes or subsidies, price ceilings or floors, externalities and monopoly pricing. It is the excess burden created due to loss of benefit to the participants in trade which are individuals as consumers, producers or the government.
Definition
of 'Debt Finance'
Definition: When a company borrows money to be paid back at a future
date with interest it is known as debt financing. It could be in the form of a
secured as well as an unsecured loan. A firm takes up a loan to either finance
a working capital or an acquisition.
Description: Debt means the amount of money which needs to be repaid back and financing means providing funds to be used in business activities. An important feature in debt financing is the fact that you are not losing ownership in the company.
Description: Debt means the amount of money which needs to be repaid back and financing means providing funds to be used in business activities. An important feature in debt financing is the fact that you are not losing ownership in the company.
Definition
of 'Decision Tree Model'
Definition: Decision tree analysis involves making a tree-shaped diagram
to chart out a course of action or a statistical probability analysis. It is
used to break down complex problems or branches. Each branch of the decision
tree could be a possible outcome.
Description: The tree structure in the decision model helps in drawing a conclusion for any problem which is more complex in nature. The model is used not just in corporate finance, but in philosophy, economic forecasting as well
Description: The tree structure in the decision model helps in drawing a conclusion for any problem which is more complex in nature. The model is used not just in corporate finance, but in philosophy, economic forecasting as well
Definition
of 'Data Mining'
Definition: In simple words, data mining is defined as a process used
to extract usable data from a larger set of any raw data. It implies analysing
data patterns in large batches of data using one or more software. Data mining
has applications in multiple fields, like science and research. As an
application of data mining, businesses can learn more about their customers and
develop more effective strategies related to various business functions and in
turn leverage resources in a more optimal and insightful manner. This helps
businesses be closer to their objective and make better decisions. Data mining
involves effective data collection and warehousing as well as computer
processing. For segmenting the data and evaluating the probability of future
events, data mining uses sophisticated mathematical algorithms. Data mining is
also known as Knowledge Discovery in Data (KDD).
Definition
of 'Debt Equity Ratio'
Definition: The debt-equity ratio is a measure of the relative
contribution of the creditors and shareholders or owners in the capital
employed in business. Simply stated, ratio of the total long term debt and
equity capital in the business is called the debt-equity ratio.
It can be calculated using a simple formula:
It can be calculated using a simple formula:
Definition
of 'Debugging'
Definition: Debugging is the process of detecting and removing of
existing and potential errors (also called as ‘bugs’) in a software code that
can cause it to behave unexpectedly or crash. To prevent incorrect operation of
a software or system, debugging is used to find and resolve bugs or defects.
When various subsystems or modules are tightly coupled, debugging becomes
harder as any change in one module may cause more bugs to appear in another.
Sometimes it takes more time to debug a program than to code it.
Definition
of 'Dog'
.A 'dog' is a name given to a
business unit within a company which has a much smaller share in a mature
market. It does not generate a strong cash flow for the company and it does not
need a large amount of investment to keep the unit running. The term can also
be attributed to a stock which has been a marked underperformer compared to the
benchmark indices for a longer period of time. In most cases we have seen that
dog operates in a mature industry and if it is not bringing sustained cash
flows, the management can selling a business unit and use the cash to invest in
areas where returns are positive. If the company does not see a potential in
the business unit which is referred to as dog, it will not allocate more cash
to build the product to turn it into a Star or a Cash cow, both terms used in
BCG matrix for different business units.
Definition
of 'Emotional Intelligence'
Definition: Emotional intelligence refers to the capability of a person
to manage and control his or her emotions and possess the ability to control
the emotions of others as well. In other words, they can influence the emotions
of other people also.
Description: Emotional intelligence is a very important skill in leadership. It is said to have five main elements such as - self-awareness, self-regulation, motivation, empathy, and social skills.
Let’s understand each one of them in detail. What is self-awareness? If you are self-aware of what you are going through, you would be in a better position to understand others, and affect people around you. It also means you are aware of your strengths as well as weaknesses. When you experience anger, hold that moment and think what made you so angry. Keeping a journal always helps.
What is self-regulation? Self-regulation is the next step wherein you think before speaking. It is an important aspect where you can regulate yourself. This will impact others in a positive way rather than in negatively. Hold yourself accountable in case you make a mistake, and try to remain calm in every situation.
What is motivation? When you are motivated to do a series of tasks you will be in a better position to influence others. Work towards your goals consistently. Show your employees how the work is done and lead by example. Even if you are faced with a challenge try and find something good about the situation.
What is empathy? When you are able to put yourself in other’s shoe and think about a situation, it is known as empathy. Every successful leads should know how to empathise with others, if you want to earn their respect.
What are social skills? The last aspect is social skills and it is one of the important aspects. Social skills are all about communicating your point of view to. They are able to build a rapport with others which makes the relationship more comfortable.
Description: Emotional intelligence is a very important skill in leadership. It is said to have five main elements such as - self-awareness, self-regulation, motivation, empathy, and social skills.
Let’s understand each one of them in detail. What is self-awareness? If you are self-aware of what you are going through, you would be in a better position to understand others, and affect people around you. It also means you are aware of your strengths as well as weaknesses. When you experience anger, hold that moment and think what made you so angry. Keeping a journal always helps.
What is self-regulation? Self-regulation is the next step wherein you think before speaking. It is an important aspect where you can regulate yourself. This will impact others in a positive way rather than in negatively. Hold yourself accountable in case you make a mistake, and try to remain calm in every situation.
What is motivation? When you are motivated to do a series of tasks you will be in a better position to influence others. Work towards your goals consistently. Show your employees how the work is done and lead by example. Even if you are faced with a challenge try and find something good about the situation.
What is empathy? When you are able to put yourself in other’s shoe and think about a situation, it is known as empathy. Every successful leads should know how to empathise with others, if you want to earn their respect.
What are social skills? The last aspect is social skills and it is one of the important aspects. Social skills are all about communicating your point of view to. They are able to build a rapport with others which makes the relationship more comfortable.
Definition
of '360 Degree Feedback'
Definition: 360-degree feedback is a feedback process where not just
your superior but your peers and direct reports and sometimes even customers
evaluate you. You receive an analysis of how you perceive yourself and how
others perceive you.
Definition
of 'Ease Of Doing Business'
Definition: Ease of doing business is an index published by the World
Bank. It is an aggregate figure that includes different parameters which define
the ease of doing business in a country.
Definition
of 'European Options'
Definition: It is an option which gives buyer or seller a chance to
exercise the contract only at the maturity date.
Description: Unlike American options, there is no freedom of an early exercise of the European options. Financial instruments (bonds, stocks, derivative etc.) that are traded directly between the parties (over the counter) are mainly European options. In India, all options that are being introduced are European options
Description: Unlike American options, there is no freedom of an early exercise of the European options. Financial instruments (bonds, stocks, derivative etc.) that are traded directly between the parties (over the counter) are mainly European options. In India, all options that are being introduced are European options
Definition: A futures contract is a contract between two parties where
both parties agree to buy and sell a particular asset of specific quantity and
at a predetermined price, at a specified date in future.
Description: The payment and delivery of the asset is made on the future date termed as delivery date. The buyer in the futures contract is known as to hold a long position or simply long. The seller in the futures contracts is said to be having short position or simply short.
The underlying asset in a futures contract could be commodities, stocks, currencies, interest rates and bond. The futures contract is held at a recognized stock exchange. The exchange acts as mediator and facilitator between the parties. In the beginning both the parties are required by the exchange to put beforehand a nominal account as part of contract known as the margin.
Since the futures prices are bound to change every day, the differences in prices are settled on daily basis from the margin. If the margin is used up, the contractee has to replenish the margin back in the account. This process is called marking to market. Thus, on the day of delivery it is only the spot price that is used to decide the difference as all other differences had been previously settled.
Futures can be used to hedge against risk or speculate the prices.
Description: The payment and delivery of the asset is made on the future date termed as delivery date. The buyer in the futures contract is known as to hold a long position or simply long. The seller in the futures contracts is said to be having short position or simply short.
The underlying asset in a futures contract could be commodities, stocks, currencies, interest rates and bond. The futures contract is held at a recognized stock exchange. The exchange acts as mediator and facilitator between the parties. In the beginning both the parties are required by the exchange to put beforehand a nominal account as part of contract known as the margin.
Since the futures prices are bound to change every day, the differences in prices are settled on daily basis from the margin. If the margin is used up, the contractee has to replenish the margin back in the account. This process is called marking to market. Thus, on the day of delivery it is only the spot price that is used to decide the difference as all other differences had been previously settled.
Futures can be used to hedge against risk or speculate the prices.
Definition: The Hawthorne
effect refers to the inclination of some people to work harder and perform
better when they are being observed as part of an experiment.
Description: Under the Hawthorne effect, it was observed that individuals being observed would change their behaviour and become more productive not because there was any change in any variable such as working conditions or new machinery, but solely because of the attention they were getting.
Description: Under the Hawthorne effect, it was observed that individuals being observed would change their behaviour and become more productive not because there was any change in any variable such as working conditions or new machinery, but solely because of the attention they were getting.
Definition
of 'Human Development Index'
Definition: The Human Development Index (HDI) is a statistical tool used
to measure a country's overall achievement in its social and economic
dimensions. The social and economic dimensions of a country are based on the
health of people, their level of education attainment and their standard of
living.
Description: Pakistani economist Mahbub ul Haq created HDI in 1990 which was further used to measure the country's development by the United Nations Development Program (UNDP). Calculation of the index combines four major indicators: life expectancy for health, expected years of schooling, mean of years of schooling for education and Gross National Income per capita for standard of living.
Description: Pakistani economist Mahbub ul Haq created HDI in 1990 which was further used to measure the country's development by the United Nations Development Program (UNDP). Calculation of the index combines four major indicators: life expectancy for health, expected years of schooling, mean of years of schooling for education and Gross National Income per capita for standard of living.
Definition
of 'Indifference Curve'
Definition: An indifference curve is a graph showing combination of two
goods that give the consumer equal satisfaction and utility. Each point on an
indifference curve indicates that a consumer is indifferent between the two and
all points give him the same utility.
Description: Graphically, the indifference curve is drawn as a downward sloping convex to the origin. The graph shows a combination of two goods that the consumer consumes.
Description: Graphically, the indifference curve is drawn as a downward sloping convex to the origin. The graph shows a combination of two goods that the consumer consumes.
The above diagram shows the U
indifference curve showing bundles of goods A and B. To the consumer, bundle A
and B are the same as both of them give him the equal satisfaction. In other
words, point A gives as much utility as point B to the individual. The consumer
will be satisfied at any point along the curve assuming that other things are
constant.
Definition of 'Invisible Hand'
Definition: The
unobservable market force that helps the demand and supply of goods in a free
market to reach equilibrium automatically is the invisible hand.
Description: The phrase invisible hand was introduced by Adam Smith in his book 'The Wealth of Nations'. He assumed that an economy can work well in a free market scenario where everyone will work for his/her own interest.
He explained that an economy will comparatively work and function well if the government will leave people alone to buy and sell freely among themselves. He suggested that if people were allowed to trade freely, self interested traders present in the market would compete with each other, leading markets towards the positive output with the help of an invisible hand.
Description: The phrase invisible hand was introduced by Adam Smith in his book 'The Wealth of Nations'. He assumed that an economy can work well in a free market scenario where everyone will work for his/her own interest.
He explained that an economy will comparatively work and function well if the government will leave people alone to buy and sell freely among themselves. He suggested that if people were allowed to trade freely, self interested traders present in the market would compete with each other, leading markets towards the positive output with the help of an invisible hand.
Definition
of 'Invoice Finance'
Definition: Invoice financing is a form of short term borrowing which is
extended by the bank or a lender to its customers based on unpaid invoices.
Invoice financing is often carried out to meet short-term liquidity needs of
the company.
Description: Invoice financing allows the company or a firm to meet its short-term liquidity needs based on the invoices generated which are still unpaid by its customers. Unpaid invoices are accounts receivable, which means that the company will receive that amount but at a later date.
If the company faces a liquidity crunch in that period, it has the option to go for invoice financing to meet its liquidity requirement. The company can use the cash to pay employees or suppliers, or invest in getting new machinery, etc.
The benefit of invoice financing is that the company doesn't have to wait for accounts receivable to come and then start paying its employees, buy equipment, etc. They can do that as and when they get the money from the bank or lender.
One important feature to understand in invoice financing is that if the company fails to make payment to the bank/lender, it can use the invoice as collateral. Invoice financing can be done in two distinct ways - one is factoring and the other one is discounting.
Factoring is an arrangement in wherein a company approaches a financier or a bank to sell unpaid invoice. The lender may pay up to 75 per cent of what the invoices are worth up-front to the company. If the lender receives full payment from customers, it will repay the balance amount less interest or other charges back to the company.
Discounting is a method in which the company could get as much as 90 per cent of what the invoices are worth. The only difference between factoring and discounting is that the business collects the payment from customers and then pays it back to the lender. When client(s) makes the payment to the company, it then repays it back to the lender or the bank minus the fee or interest.
Description: Invoice financing allows the company or a firm to meet its short-term liquidity needs based on the invoices generated which are still unpaid by its customers. Unpaid invoices are accounts receivable, which means that the company will receive that amount but at a later date.
If the company faces a liquidity crunch in that period, it has the option to go for invoice financing to meet its liquidity requirement. The company can use the cash to pay employees or suppliers, or invest in getting new machinery, etc.
The benefit of invoice financing is that the company doesn't have to wait for accounts receivable to come and then start paying its employees, buy equipment, etc. They can do that as and when they get the money from the bank or lender.
One important feature to understand in invoice financing is that if the company fails to make payment to the bank/lender, it can use the invoice as collateral. Invoice financing can be done in two distinct ways - one is factoring and the other one is discounting.
Factoring is an arrangement in wherein a company approaches a financier or a bank to sell unpaid invoice. The lender may pay up to 75 per cent of what the invoices are worth up-front to the company. If the lender receives full payment from customers, it will repay the balance amount less interest or other charges back to the company.
Discounting is a method in which the company could get as much as 90 per cent of what the invoices are worth. The only difference between factoring and discounting is that the business collects the payment from customers and then pays it back to the lender. When client(s) makes the payment to the company, it then repays it back to the lender or the bank minus the fee or interest.
Definition
of 'Investment Banking'
Definition: Investment banking is a special segment of banking operation
that helps individuals or organisations raise capital and provide financial
consultancy services to them.
They act as intermediaries between security issuers and investors and help new firms to go public. They either buy all the available shares at a price estimated by their experts and resell them to public or sell shares on behalf of the issuer and take commission on each share.
They act as intermediaries between security issuers and investors and help new firms to go public. They either buy all the available shares at a price estimated by their experts and resell them to public or sell shares on behalf of the issuer and take commission on each share.
Definition
of 'Inferior Goods'
Definition: An inferior good is a type of good whose demand declines
when income rises. In other words, demand of inferior goods is inversely
related to the income of the consumer.
Definition
of 'Key Employee Or Keyman'
Definition: Key employee or keyman is a term used specifically for an
important employee or executive who is core to the operation of the business
and his death, disability or absence could prove to be disastrous for the
company or organization
Definition
of 'Macroeconomics'
Definition: Macroeconomics is the branch of economics that studies the
behavior and performance of an economy as a whole. It focuses on the aggregate
changes in the economy such as unemployment, growth rate, gross domestic
product and inflation.
Description: Macroeconomics analyzes all aggregate indicators and the microeconomic factors that influence the economy. Government and corporations use macroeconomic models to help in formulating of economic policies and strategies
Description: Macroeconomics analyzes all aggregate indicators and the microeconomic factors that influence the economy. Government and corporations use macroeconomic models to help in formulating of economic policies and strategies
In a financial market, there is a risk that the
borrower might engage in activities that are undesirable from the lender's
point of view because they make him less likely to pay back a loan.
It occurs when the borrower knows that someone else will pay for the mistake he makes. This in turn gives him the incentive to act in a riskier way. This economic concept is known as moral hazard.
It occurs when the borrower knows that someone else will pay for the mistake he makes. This in turn gives him the incentive to act in a riskier way. This economic concept is known as moral hazard.
Example: You have not insured your house from any future damages. It implies that a loss will be completely borne by you at the time of a mishappening like fire or burglary. Hence you will show extra care and attentiveness. You will install high tech burglar alarms and hire watchmen to avoid any unforeseen event.
But if your house is insured for its full value, then if anything happens you do not really lose anything. Therefore, you have less incentive to protect against any mishappening. In this case, the insurance firm bears the losses and the problem of moral hazard arises.
Definition of 'Marketing Mix'
Definition:
The marketing mix refers to the set of actions, or
tactics, that a company uses to promote its brand or product in the market. The
4Ps make up a typical marketing mix - Price, Product, Promotion and Place.
However, nowadays, the marketing mix increasingly includes several other Ps
like Packaging, Positioning, People and even Politics as vital mix elements.
What
is the importance of the marketing mix?
All the elements of the marketing mix influence each other. They make up the business plan for a company and handled right, can give it great success. But handled wrong and the business could take years to recover. The marketing mix needs a lot of understanding, market research and consultation with several people, from users to trade to manufacturing and several others.
All the elements of the marketing mix influence each other. They make up the business plan for a company and handled right, can give it great success. But handled wrong and the business could take years to recover. The marketing mix needs a lot of understanding, market research and consultation with several people, from users to trade to manufacturing and several others.
Definition
of 'Money Market'
Definition: Money market basically refers to a section of the financial
market where financial instruments with high liquidity and short-term
maturities are traded. Money market has become a component of the financial
market for buying and selling of securities of short-term maturities, of one
year or less, such as treasury bills and commercial papers.
Over-the-counter trading is done in the money market and it is a wholesale process. It is used by the participants as a way of borrowing and lending for the short term.
Over-the-counter trading is done in the money market and it is a wholesale process. It is used by the participants as a way of borrowing and lending for the short term.
Definition
of 'Market Capitalization'
Definition: Market capitalization is the aggregate valuation of the
company based on its current share price and the total number of outstanding
stocks. It is calculated by multiplying the current market price of the
company's share with the total outstanding shares of the company.
Definition
of 'Mark To Market'
Definition: Mark-to-market refers to the reasonable value of an account
that can vary over a period depending on assets and liabilities. Mark-to-market
provides a realistic estimate of a financial situation. It has been a part of
the generally accepted accounting principles in the United States since 1990
and it is regarded as gold standards in some areas.
Mark-to-market can also be defined as an accounting tool used to record the value of an asset with respect to its current market price. The mark-to-market principle was largely adopted during the 20th century
Mark-to-market can also be defined as an accounting tool used to record the value of an asset with respect to its current market price. The mark-to-market principle was largely adopted during the 20th century
Definition
of 'Matrix Organization'
Definition: A matrix organisation is a structure in which there is more
than one line of reporting managers. Effectively, it means that the employees
of the organisation have more than one boss!
Description: The matrix organisation structure is complex but helps in achieving the ultimate goal i.e. reaching higher productivity. It has various benefits. This type of structure is used in organisations which have diverse product lines and services.
Description: The matrix organisation structure is complex but helps in achieving the ultimate goal i.e. reaching higher productivity. It has various benefits. This type of structure is used in organisations which have diverse product lines and services.
Definition of 'Monetary Policy
Definition:
Monetary policy is the macroeconomic policy laid down by the central bank. It
involves management of money supply and interest rate and is the demand side
economic policy used by the government of a country to achieve macroeconomic
objectives like inflation, consumption, growth and liquidity.
Definition
of 'Net Asset Value'
Definition: Net asset value(NAV) is the value of a fund's asset less the
value of its liabilities per unit.
NAV = (Value of Assets-Value of Liabilities)/number of units outstanding
Description: NAV is often associated with mutual funds, and helps an investor determine if the fund is overvalued or undervalued. When we talk of open-end funds, NAV is crucial. NAV gives the fund's value that an investor will be entitled to at the time of withdrawal of investment. In case of a close-end fund, which is a mutual fund with fixed number of units, price per unit is determined by market and is either below or above the NAV.
NAV = (Value of Assets-Value of Liabilities)/number of units outstanding
Description: NAV is often associated with mutual funds, and helps an investor determine if the fund is overvalued or undervalued. When we talk of open-end funds, NAV is crucial. NAV gives the fund's value that an investor will be entitled to at the time of withdrawal of investment. In case of a close-end fund, which is a mutual fund with fixed number of units, price per unit is determined by market and is either below or above the NAV.
Definition
of 'Operating Lease'
Definition: Operating lease is a contract wherein the owner, called the
Lessor, permits the user, called the Lesse, to use of an asset for a particular
period which is shorter than the economic life of the asset without any
transfer of ownership rights. The Lessor gives the right to the Lesse in return
for regular payments for an agreed period of time.
Definition
of 'Paradox Of Thrift'
Definition: Paradox of thrift was popularized by the renowned economist
John Maynard Keynes.
It states that individuals try to save more during an economic recession, which essentially leads to a fall in aggregate demand and hence in economic growth. Such a situation is harmful for everybody as investments give lower returns than normal.
Description: Keynes further said that such a mass increase in savings eventually hurts the economy as a whole.
This theory was heavily criticized by non-Keynesian economists on the ground that an increase in savings allows banks to lend more. This will make interest rates go down and lead to an increase in lending and, therefore, spending.
It states that individuals try to save more during an economic recession, which essentially leads to a fall in aggregate demand and hence in economic growth. Such a situation is harmful for everybody as investments give lower returns than normal.
Description: Keynes further said that such a mass increase in savings eventually hurts the economy as a whole.
This theory was heavily criticized by non-Keynesian economists on the ground that an increase in savings allows banks to lend more. This will make interest rates go down and lead to an increase in lending and, therefore, spending.
Definition
of 'Percentage Point'
Definition: The difference between two percentages is termed as
percentage point. Percentage point is used to show the changes in an indicator
with respect to its previous standings.
Description: Percentage point is used extensively in macro-economic indicators like inflation. One percentage point is also equal to 100 basis points. For example, inflation in India in November 2012 was 7.24% and inflation in December 2012 was 7.18%. Thus, we can say that there was a change of 0.06 percentage points in inflation
Description: Percentage point is used extensively in macro-economic indicators like inflation. One percentage point is also equal to 100 basis points. For example, inflation in India in November 2012 was 7.24% and inflation in December 2012 was 7.18%. Thus, we can say that there was a change of 0.06 percentage points in inflation
Definition
of 'Purchasing Power Parity'
Definition: The theory aims to determine the adjustments needed to be
made in the exchange rates of two currencies to make them at par with the
purchasing power of each other. In other words, the expenditure on a similar
commodity must be same in both currencies when accounted for exchange rate. The
purchasing power of each currency is determined in the process.
Description: Purchasing power parity is used worldwide to compare the income levels in different countries. PPP thus makes it easy to understand and interpret the data of each country.
Example: Let's say that a pair of shoes costs Rs 2500 in India. Then it should cost $50 in America when the exchange rate is 50 between the dollar and the rupee.
Description: Purchasing power parity is used worldwide to compare the income levels in different countries. PPP thus makes it easy to understand and interpret the data of each country.
Example: Let's say that a pair of shoes costs Rs 2500 in India. Then it should cost $50 in America when the exchange rate is 50 between the dollar and the rupee.
Definition
of 'Paradox'
Definition: Paradox in economics is the situation where the variables
fail to follow the generally laid principles and assumptions of the theory and
behave in an opposite fashion.
Description: Paradoxes are very common in economics. A few of them are Giffen's Paradox, Leontief's Paradox and Paradox of Thrift.
For example: The demand curve of any commodity is generally downward sloping, but Giffen's Paradox suggests that under certain situations Giffen goods have an upward sloping demand curve.
Description: Paradoxes are very common in economics. A few of them are Giffen's Paradox, Leontief's Paradox and Paradox of Thrift.
For example: The demand curve of any commodity is generally downward sloping, but Giffen's Paradox suggests that under certain situations Giffen goods have an upward sloping demand curve.
Definition
of 'Product Life Cycle'
Definition: Product life
cycle (PLC) is the cycle through which every product goes through from
introduction to withdrawal or eventual demise.
Description: These stages are:
Introduction: When the product is brought into the market. In this stage, there's heavy marketing activity, product promotion and the product is put into limited outlets in a few channels for distribution. Sales take off slowly in this stage. The need is to create awareness, not profits.
The second stage is growth. In this stage, sales take off, the market knows of the product; other companies are attracted, profits begin to come in and market shares stabilize.
The third stage is maturity, where sales grow at slowing rates and finally stabilize. In this stage, products get differentiated, price wars and sales promotion become common and a few weaker players exit.
The fourth stage is decline. Here, sales drop, as consumers may have changed, the product is no longer relevant or useful. Price wars continue, several products are withdrawn and cost control becomes the way out for most products in this stage.
Significance of PLC: PLC analysis, if done properly, can alert a company as to the health of the product in relation to the market it serves. PLC also forces a continuous scan of the market and allows the company to take corrective action faster. But the process is rarely easy.
Description: These stages are:
Introduction: When the product is brought into the market. In this stage, there's heavy marketing activity, product promotion and the product is put into limited outlets in a few channels for distribution. Sales take off slowly in this stage. The need is to create awareness, not profits.
The second stage is growth. In this stage, sales take off, the market knows of the product; other companies are attracted, profits begin to come in and market shares stabilize.
The third stage is maturity, where sales grow at slowing rates and finally stabilize. In this stage, products get differentiated, price wars and sales promotion become common and a few weaker players exit.
The fourth stage is decline. Here, sales drop, as consumers may have changed, the product is no longer relevant or useful. Price wars continue, several products are withdrawn and cost control becomes the way out for most products in this stage.
Significance of PLC: PLC analysis, if done properly, can alert a company as to the health of the product in relation to the market it serves. PLC also forces a continuous scan of the market and allows the company to take corrective action faster. But the process is rarely easy.
Definition
of 'Price Floor'
Definition: Price floor is a situation when the price charged is more
than or less than the equilibrium price determined by market forces of demand
and supply. By observation, it has been found that lower price floors are
ineffective. Price floor has been found to be of great importance in the
labour-wage market.
Definition
of 'Perfect Competition'
Definition: Perfect competition describes a market structure where
competition is at its greatest possible level. To make it more clear, a market
which exhibits the following characteristics in its structure is said to show
perfect competition:
1. Large number of buyers and sellers
2. Homogenous product is produced by every firm
3. Free entry and exit of firms
4. Zero advertising cost
5. Consumers have perfect knowledge about the market and are well aware of any changes in the market. Consumers indulge in rational decision making.
6. All the factors of production, viz. labour, capital, etc, have perfect mobility in the market and are not hindered by any market factors or market forces.
7. No government intervention
8. No transportation costs
9. Each firm earns normal profits and no firms can earn super-normal profits.
10. Every firm is a price taker. It takes the price as decided by the forces of demand and supply. No firm can influence the price of the product.
Description: Ideally, perfect competition is a hypothetical situation which cannot possibly exist in a market. However, perfect competition is used as a base to compare with other forms of market structure. No industry exhibits perfect competition in India.
1. Large number of buyers and sellers
2. Homogenous product is produced by every firm
3. Free entry and exit of firms
4. Zero advertising cost
5. Consumers have perfect knowledge about the market and are well aware of any changes in the market. Consumers indulge in rational decision making.
6. All the factors of production, viz. labour, capital, etc, have perfect mobility in the market and are not hindered by any market factors or market forces.
7. No government intervention
8. No transportation costs
9. Each firm earns normal profits and no firms can earn super-normal profits.
10. Every firm is a price taker. It takes the price as decided by the forces of demand and supply. No firm can influence the price of the product.
Description: Ideally, perfect competition is a hypothetical situation which cannot possibly exist in a market. However, perfect competition is used as a base to compare with other forms of market structure. No industry exhibits perfect competition in India.
Definition
of 'Pareto's Efficiency'
Definition: Pareto's efficiency is defined as the economic situation
when the circumstances of one individual cannot be made better without making
the situation worse for another individual. Pareto's efficiency takes place
when the resources are most optimally used. Pareto's efficiency was theorized
by the Italian economist and engineer Vilfredo Pareto.
Definition
of 'Premium'
Definition: Premium is an amount paid periodically to the insurer by the
insured for covering his risk.
Description: In an insurance contract, the risk is transferred from the insured to the insurer. For taking this risk, the insurer charges an amount called the premium. The premium is a function of a number of variables like age, type of employment, medical conditions, etc. The actuaries are entrusted with the responsibility of ascertaining the correct premium of an insured. The premium paying frequency can be different. It can be paid in monthly, quarterly, semiannually, annually or in a single premium.
Description: In an insurance contract, the risk is transferred from the insured to the insurer. For taking this risk, the insurer charges an amount called the premium. The premium is a function of a number of variables like age, type of employment, medical conditions, etc. The actuaries are entrusted with the responsibility of ascertaining the correct premium of an insured. The premium paying frequency can be different. It can be paid in monthly, quarterly, semiannually, annually or in a single premium.
Definition
of 'Quantity Demanded'
Definition: Quantity demanded is the quantity of a commodity that people
are willing to buy at a particular price at a particular point of time.
Description: Different quantities can be demanded at different prices at a particular point of time. When all the prices, along with quantity demanded, are drawn on a graph, the demand curve is formed. Quantity demanded can change at the same price depending upon factors like recession, changes in the taste of the consumer, etc.
Description: Different quantities can be demanded at different prices at a particular point of time. When all the prices, along with quantity demanded, are drawn on a graph, the demand curve is formed. Quantity demanded can change at the same price depending upon factors like recession, changes in the taste of the consumer, etc.
Definition
of 'Repo Rate
Definition: Repo rate is the
rate at which the central bank of a country (Reserve Bank of India in case of
India) lends money to commercial banks in the event of any shortfall of funds.
Repo rate is used by monetary authorities to control inflation.
Description: In the event of inflation, central banks increase repo rate as this acts as a disincentive for banks to borrow from the central bank. This ultimately reduces the money supply in the economy and thus helps in arresting inflation.
The central bank takes the contrary position in the event of a fall in inflationary pressures. Repo and reverse repo rates form a part of the liquidity adjustment facility.
Description: In the event of inflation, central banks increase repo rate as this acts as a disincentive for banks to borrow from the central bank. This ultimately reduces the money supply in the economy and thus helps in arresting inflation.
The central bank takes the contrary position in the event of a fall in inflationary pressures. Repo and reverse repo rates form a part of the liquidity adjustment facility.
Definition
of 'Scalar Chain'
Definition: Communication is a crucial aspect of any organisation and
the principle of scalar chain revolves around the flow of communication from
management to the lowest rank in the company. Scalar chain is a chain of all
supervisors from the top management to the person working in the lowest rank.
Description: A clear line of communication is very important for any organisation to achieve its objectives. The communication has to flow in an order for it to be effective. Scale chain identifies that path. According to the principle, any information should follow a pre-defined path, which is from the supervisor to the one in lowest position, to avoid any ambiguity.
This chain pattern should be followed at every department of the organisation to be effective and the process should not be tinkered with for it to remain effective. Let's understand it with the help of an example. Suppose your company has 10 employees.
Now, if employee 4 has to communicate with employee 8, he/she has to follow the scalar chain, wherein the flow of information will take place from employee 4, 5, 6, 7, and then 8. The process is simple and avoids any ambiguity.
Description: A clear line of communication is very important for any organisation to achieve its objectives. The communication has to flow in an order for it to be effective. Scale chain identifies that path. According to the principle, any information should follow a pre-defined path, which is from the supervisor to the one in lowest position, to avoid any ambiguity.
This chain pattern should be followed at every department of the organisation to be effective and the process should not be tinkered with for it to remain effective. Let's understand it with the help of an example. Suppose your company has 10 employees.
Now, if employee 4 has to communicate with employee 8, he/she has to follow the scalar chain, wherein the flow of information will take place from employee 4, 5, 6, 7, and then 8. The process is simple and avoids any ambiguity.
Securitization
Structure of a Typical Securitization
Arrangement
(asset–backed loan)
- The customer sells its receivables to the SPC on a
true–sale basis along with necessary perfection.
- The SPC obtains loans from the bank in order to
purchase the receivables.
- The SPC makes the payment to the customer as the
proceeds for purchasing the receivables.
- The customer’s buyer makes the payment regarding the
receivables directly to the SPC on the due date. (The customer may be
required to collect the payment from the buyer and deliver it to the SPC.)
- The SPC applies such payment/collection from the
customer to repay the loan.
Notice
- The use of the above products or services is contingent
upon the credit assessment in accordance with Mizuho Bank’s prescribed
procedures. As part of this assessment, you may be required to submit
certain documents.
- Fees may be charged for using these products or
services.
- Please consult an attorney, accountant, or tax
accountant regarding any legal matters, accounting issues, or taxation
concerns
Definition
of 'Sovereign Bond'
Definition: A sovereign bond is a specific debt instrument issued by the
government. They can be denominated in both foreign and domestic currency. Just
like other bonds, these also promise to pay the buyer a certain amount of interest
for a stipulated number of years and repay the face value on maturity. They
also have a rating associated with them which essentially speaks of their
credit worthiness.
Description: To meet their expenditure, governments have 2 options: either to raise taxes or to issue bonds. Raising taxes is an unpopular move which has a lengthy legal process. So, Sovereign bonds are preferred as they are similar to taking loans from the market.
Description: To meet their expenditure, governments have 2 options: either to raise taxes or to issue bonds. Raising taxes is an unpopular move which has a lengthy legal process. So, Sovereign bonds are preferred as they are similar to taking loans from the market.
Definition
of 'Speculation'
Definition: Speculation involves trading a financial instrument
involving high risk, in expectation of significant returns. The motive is to
take maximum advantage from fluctuations in the market.
Description: Speculators are prevalent in the markets where price movements of securities are highly frequent and volatile.
Description: Speculators are prevalent in the markets where price movements of securities are highly frequent and volatile.
Definition
of 'Swot Analysis'
Definiton: SWOT stands for 'Strengths, Weaknesses, Opportunities and
Threats'. This is a method of analysis of the environment and the company's
standing in it.
Description:
SWOT is made of two parts: the strengths and weaknesses refer to the internals of a company while the opportunities and threats are external to the company
Description:
SWOT is made of two parts: the strengths and weaknesses refer to the internals of a company while the opportunities and threats are external to the company
Definition
of 'Sovereign Risk'
Definition: A nation is a sovereign entity. Any risk arising on chances
of a government failing to make debt repayments or not honouring a loan
agreement is a sovereign risk.
Description: Such practices can be resorted to by a government in times of economic or political uncertainty
Description: Such practices can be resorted to by a government in times of economic or political uncertainty
Definition
of 'Treasury Bills'
Definition: These are government bonds or debt securities with maturity
of less than a year.
Description: T- bills are issued to meet short-term mismatches in receipts and expenditure. Bonds of longer maturity are called dated securities.
Description: T- bills are issued to meet short-term mismatches in receipts and expenditure. Bonds of longer maturity are called dated securities.
Definition
of 'Theory X & Theory Y'
Definition: Theory X and theory Y are part of motivational theories.
Both the theories, which are very different from each other, are used by
managers to motivate their employees. Theory X gives importance to supervision,
while theory Y stresses on rewards and recognition.
Description: Theory X and theory Y follow different methodologies of keeping people motivated. Theory X follows an authoritarian approach to motivate people. One of the key assumption in this approach is that the average employee doesn't like work and will do anything to avoid it.
The other assumption under theory X is that the employees need to be threatened or forced to work towards the organizational goals. They will avoid responsibility and the managers have to supervise them at every step.
In an organisation where theory X is followed, the management too follows an authoritarian style. There is little delegation of authority from the management.
On the other hand, companies who follow theory Y have a more decentralized approach, which means that the authority is distributed among employees. This keeps them motivated.
There are some key assumptions under theory Y. One of them is that employees take responsibility of their actions and work towards achieving the goals of the organization without much supervision.
The workers are more participative and try to solve problems on their own without relying on supervisors for guidance. This type of management style is more common than theory X. In this type of management style, even a small employee can participate in the decision-making process.
Theory X works on the idea of punishing people to keep the work going, while under theory Y, promotions, rewards, and recognition play an important part. This keeps employees motivated to work hard towards achieving goals of the organisation.
Description: Theory X and theory Y follow different methodologies of keeping people motivated. Theory X follows an authoritarian approach to motivate people. One of the key assumption in this approach is that the average employee doesn't like work and will do anything to avoid it.
The other assumption under theory X is that the employees need to be threatened or forced to work towards the organizational goals. They will avoid responsibility and the managers have to supervise them at every step.
In an organisation where theory X is followed, the management too follows an authoritarian style. There is little delegation of authority from the management.
On the other hand, companies who follow theory Y have a more decentralized approach, which means that the authority is distributed among employees. This keeps them motivated.
There are some key assumptions under theory Y. One of them is that employees take responsibility of their actions and work towards achieving the goals of the organization without much supervision.
The workers are more participative and try to solve problems on their own without relying on supervisors for guidance. This type of management style is more common than theory X. In this type of management style, even a small employee can participate in the decision-making process.
Theory X works on the idea of punishing people to keep the work going, while under theory Y, promotions, rewards, and recognition play an important part. This keeps employees motivated to work hard towards achieving goals of the organisation.
A
Call Option & Put Option
A
Call Option gives the buyer the right, but not the obligation to buy the
underlying security at the exercise price, at or within a specified time. A Put
Option gives the buyer the right, but not the obligation to sell the underlying
security at the exercise price, at or within a specified time.
Definition
of 'Underlying Asset'
Definition: An underlying asset is the security on which a derivative
contract is based upon. The price of the derivative may be directly correlated
(e.g. call option) or inversely correlated (e.g. put option), to the price of
the underlying asset. An underlying asset can be a stock, commodity, index,
currency or even another derivative (E.g. volatility index, VIX) product.
Definition
of 'Underlying Asset'
Definition: An underlying asset is the security on which a derivative
contract is based upon. The price of the derivative may be directly correlated
(e.g. call option) or inversely correlated (e.g. put option), to the price of
the underlying asset. An underlying asset can be a stock, commodity, index,
currency or even another derivative (E.g. volatility index, VIX) product. Some
exotic derivatives, like weather derivatives, may even have a non-financial
entity as their underlying asset.
Description: Most of the times the underlying asset trades in a spot market (especially when the underlying is a financial asset), where there needs to be a full upfront payment to acquire the asset (or within a period of 1-2 days). Derivatives based on such assets usually do not require a 100 per cent upfront payment to take exposure to them, thereby incorporating an inherent element of leverage in them. Most of the listed stocks that trade on the stock exchanges are underlying asset of the various futures and options contracts based upon them. Consider a stock, say ITC, which trades on the Indian stock exchanges. Now, the ITC stock is the underlying asset traded on NSE or BSE and some of the derivatives that have this stock as underlying are:
A. Futures
a. 1-month futures contract (Near month)
b. 2-month futures contract
c. 3-month futures contract (Far month)
B. Options
a. 1-month Call options at various strike prices
b. 2-month Call options at various strike prices
c. 3-month Call options at various strike prices
Description: Most of the times the underlying asset trades in a spot market (especially when the underlying is a financial asset), where there needs to be a full upfront payment to acquire the asset (or within a period of 1-2 days). Derivatives based on such assets usually do not require a 100 per cent upfront payment to take exposure to them, thereby incorporating an inherent element of leverage in them. Most of the listed stocks that trade on the stock exchanges are underlying asset of the various futures and options contracts based upon them. Consider a stock, say ITC, which trades on the Indian stock exchanges. Now, the ITC stock is the underlying asset traded on NSE or BSE and some of the derivatives that have this stock as underlying are:
A. Futures
a. 1-month futures contract (Near month)
b. 2-month futures contract
c. 3-month futures contract (Far month)
B. Options
a. 1-month Call options at various strike prices
b. 2-month Call options at various strike prices
c. 3-month Call options at various strike prices
Definition
of 'Underwriting'
Definition: Underwriting is one of the most important functions in the
financial world wherein an individual or an institution undertakes the risk
associated with a venture, an investment, or a loan in lieu of a premium.
Underwriters are found in banking, insurance, and stock markets.
The nomenclature ‘underwriting’ came about from the practice of having risk takers to write their name below the total risk that s/he undertakes in return for a specified premium in the early stages of the industrial revolution.
Description: Today, underwriting is one of the key functions in the financial world and has become a discipline of sorts in itself.
The nomenclature ‘underwriting’ came about from the practice of having risk takers to write their name below the total risk that s/he undertakes in return for a specified premium in the early stages of the industrial revolution.
Description: Today, underwriting is one of the key functions in the financial world and has become a discipline of sorts in itself.
Definition
of 'Variance Analysis'
Definition: Variance analysis is the study of deviations of actual
behaviour versus forecasted or planned behaviour in budgeting or management
accounting. This is essentially concerned with how the difference of actual and
planned behaviours indicates how business performance is being impacted.
Variances
may be classified under the below mentioned heads:
1. Material Variances: - These arise from the difference between actual costs
of materials used in production and standard costs of materials specified for
the goods produced. This comes into play because of the difference in
quantities consumed and quantity initially allocated for production. This can
also happen due to the difference in price paid and price budgeted for
materials used.
2. Labour variances:- This denotes the actual wage paid to workers versus the
standard wage prevalent for the output specified. When the actual labour costs
are more than budgeted ones, the variance is unfavourable.
3. Overhead variances:- It may be defined as the sum total of indirect
material, labour and expense costs. Overhead variances may arise due to the
difference between standard overhead costs budgeted and the actual overheads
incurred.
Definition
of 'Venture Capital'
Definition: Start up companies with a potential to grow need a certain
amount of investment. Wealthy investors like to invest their capital in such
businesses with a long-term growth perspective. This capital is known as
venture capital and the investors are called venture capitalists.
Description: Such investments are risky as they are illiquid, but are capable of giving impressive returns if invested in the right venture. The returns to the venture capitalists depend upon the growth of the company. Venture capitalists have the power to influence major decisions of the companies they are investing in as it is their money at stake.
Description: Such investments are risky as they are illiquid, but are capable of giving impressive returns if invested in the right venture. The returns to the venture capitalists depend upon the growth of the company. Venture capitalists have the power to influence major decisions of the companies they are investing in as it is their money at stake.
Definition
of 'Whistleblower'
Definition: A whistleblower is a person, who could be an employee of a
company, or a government agency, disclosing information to the public or some
higher authority about any wrongdoing, which could be in the form of fraud,
corruption, etc.
Definition
of 'Windfall Gains'
Definition: Windfall gain (or windfall profit) is an unexpected gain in
income which could be due to winning a lottery, unforeseen inheritance or
shortage of supply. Windfall gains are transitory in nature.
Description: For instance, when real estate property prices rise dramatically, the owner can make a substantial amount of profit by selling property. This sudden and unexpected rise in income is called windfall profit. Many countries define proper laws to tax windfall profits
Description: For instance, when real estate property prices rise dramatically, the owner can make a substantial amount of profit by selling property. This sudden and unexpected rise in income is called windfall profit. Many countries define proper laws to tax windfall profits
Definition
of 'Walkthrough'
Definition: Walkthrough in software testing is used to review documents
with peers, managers, and fellow team members who are guided by the author of
the document to gather feedback and reach a consensus
Affidavit:
A sworn statement in writing before
a proper official, such as a notary public
Escrow:
A financial instrument held by a
third party on behalf of the other two parties in a transaction. The funds are
held by the escrow service until it receives the appropriate written or oral
instructions-or until obligations have been fulfilled. Securities, funds, and
other assets can be held in escrow.
Escrow
Funds:
Funds held in reserve by a mortgage
company to pay taxes, insurance, and other mortgage-related items when due
Fiduciary:
Undertaking to act as executor,
administrator, guardian, conservator, or trustee for a family trust, authorized
trust, or testamentary trust, or receiver or trustee in bankruptcy.
Foreclosure:
A legal process in which property
that is collateral or security for a loan may be sold to help repay the loan
when the loan is in default
Bottom Line
This is the total amount a business has earned or lost at the end of the
month. The bottom line is the last financial figure on a ledger. The term can
also be used in the context of a business’ earnings either increasing or
decreasing.
Accrual
Basis
This is the accounting method of recording income when it’s actually earned
and expenses when they actually occur. Accrual basis accounting is the most
common approach used by larger businesses to record and maintain financial
transactions
Balloon
Loan
A loan that is structured so that the small business owner makes regular
repayments on a predetermined schedule and one much larger payment, or balloon
payment, at the end. These can be attractive to new businesses because the
payments are smaller at the outset when the business is more likely to be
facing strict financial constraints. However, be sure that your business will
be capable of making that last balloon payment since it will be a large one.
Debt-Service
Coverage Ratio
The DSCR is the ratio of cash your small business has available for paying
or servicing its debt. Debt payments include making principal and interest
payments on the loan you are requesting. Generally speaking, if your DSCR ratio
is above 1, your business has enough income to meet its debt requirements.
Franchise Agreement
For a small business entrepreneur, entering into a franchise agreement with
a larger company can be a way to enter the marketplace. The agreement made
between you and the larger company gives you the right to operate as a
satellite of the larger company in a certain territory for a given period of
time. This lets you, the business owner, take advantage of a brand name that’s
already familiar in the marketplace and a process or operation that has already
been tested.
Annuity – A financial
product designed to grow an individual’s funds and then upon annuitization, pay
a fixed payment for the designated number of periods. Annuities are used
primarily as a way to secure cash flow during retirement years
Delinquency – When a borrower
fails to repay a debt obligation by the agreed term.
Prime Rate – Determined by
the federal funds rate (the overnight rate at which banks lend to one another)
the prime rate is the best rate available to a bank’s most credit-worthy
customer.
Recession – An economic
condition defined by a decline in GDP for two or more consecutive
quarters. During a recession, the stock market usually drops,
unemployment increases, and the housing market declines.
Annuity
Annuity means a stream or series of equal payments.
For example, you have made an investment that will generate an interest income
of $5,000 for you at the end of each year for five years. The income of $5,000
at the end of each year is an annuity.
Annuities may be in the form of regular deposits in one’s savings account, monthly insurance payments and monthly home mortgage payments. Payments can be weekly, monthly, yearly etc.
An annuity may be of the following types:
Annuity-due - Under it, payments are made at the beginning of each period. Some examples of annuity-due are deposits in savings, insurance payments, rent or lease payments etc.
Ordinary annuity (also annuity-immediate) - Payments are made by the end of each period.
An ordinary annuity is a series of equal payments, with all payments being made at the end of each successive period. An example of an ordinary annuity is a series of rent or lease payments.
Annuities may be in the form of regular deposits in one’s savings account, monthly insurance payments and monthly home mortgage payments. Payments can be weekly, monthly, yearly etc.
An annuity may be of the following types:
Annuity-due - Under it, payments are made at the beginning of each period. Some examples of annuity-due are deposits in savings, insurance payments, rent or lease payments etc.
Ordinary annuity (also annuity-immediate) - Payments are made by the end of each period.
An ordinary annuity is a series of equal payments, with all payments being made at the end of each successive period. An example of an ordinary annuity is a series of rent or lease payments.
Bonds and coupons
(B&C)
Bonds and coupons (B&C) definition: A bond is a form of
debt investment and is considered a fixed income security. An investor, whether an individual,
company, municipality or government, loans money to an entity with the promise
of receiving their money back plus interest. The “coupon” is the annual
interest rate paid on a bond.
Trade
discount
A trade discount is a percentage
discounted from the purchase price, and is based on the volume of goods ordered
at one point in time. Higher discounts may be applicable to larger orders, with
smaller discounts for lesser orders.
Absolute advantage
This is the simplest yardstick of economic performance. If one person, firm
or country can produce more of something with the same amount of effort and
resources, they have an absolute advantage over other producers. Being the best
at something does not mean that doing that thing is the best way to use your
scarce economic resources. The question of what to specialise in--and how to
maximise the benefits from international trade--is best decided according to comparative advantage.
Both absolute and comparative advantage may change significantly over time
Arbitrage
Buying an asset in one market and simultaneously
selling an identical asset in another market at a higher price.
Financial
Crisis Asia 1997
The East Asian crisis was
fundamentally a currency crisis. A lot of companies in East Asia, especially
financial institutions, had borrowed significant amounts of money from foreign
banks denominated in foreign currency. When Thailand's currency, the baht, was
devalued significantly, (Thailand's central bank had pegged the value of its
currency to the US dollar, and it did not have enough reserves to support its
value any longer) this precipitated a contagion where other currencies in the
area started dramatically falling in value. The decrease in the value of these
currencies made the loans borrowed by these financial institutions from foreign
banks unserviceable because these loans were denominated in foreign currency
and were thus much more expensive. This had a wide range of effects, perhaps
the most devastating one being the collapse of the equities market; the stock
markets in the East Asia region had lost as much as 2/3 of their value. The
economic implications of this are profound. I'd try to give a more
comprehensive search on the web, I'm not very familiar with this crisis
Debt Crisis – Asia 1997
Unlike the Debt
crisis in Latin America, the debt crisis in East Asia stemmed from
inappropriate borrowing by the private sector. Due to high rates of economic
growth and a booming economy, private firms and corporations looked to finance
speculative investment projects. However, firms overstretched themselves and a
combination of factors caused a depreciation in the exchange rate as they
struggled to meet the payments.
Autarky
The idea that a country should be
self-sufficient and not take part in international trade. The experience of
countries that have pursued this Utopian ideal by substituting domestic
production for imports is an unhappy one. No country has been able to produce
the full range of goods demanded by its population at competitive prices
Cartel
An agreement among two or more FIRMS in the same industry to
co-operate in fixing PRICES and/or carving up the market
and restricting the amount of OUTPUT they produce
Classical economics
The dominant theory of economics from the 18th century to the 20th century.
Classical economists, who included Adam SMITH, David RICARDO and John Stuart Mill,
believed that the pursuit of individual self-interest produced the greatest
possible economic benefits for society as a whole through the power of the INVISIBLE HAND. They also
believed that an economy is always in EQUILIBRIUM or moving towards
it. In the 1920s and 1930s, John Maynard KEYNES attacked some of the main beliefs of classical. In particular, he argued that the rate of interest was determined or influenced by the speculative actions of investors in BONDS and if demand for labour fell, the result would be higher UNEMPLOYMENT rather than cheaper workers.
Wall Street is the name used to describe the place in New York City where much of the United States' financial industry is concentrated. The name "Wall Street" is also used frequently used to describe the financial services industry, generally.
Adam Smith is one of the world’s most famous economists. Modern capitalism owes its roots to Adam Smith and his Wealth of Nations, which many consider the single most important economic work in history.
Beige Book
The Beige Book is the
informal name for the Federal Open Market Committee's (FOMC) ongoing reports titled Summary of
Commentary on Current Economic Decisions by Federal Reserve District.
How
it works (Example):
The purpose of the Beige Book is
to provide information to FOMC members about the economic changes and conditions
occurring in each of the 12 Federal Reserve districts. This information comes
from Federal
Reserve Bank directors, district branch
directors, business partners, analysts, and economists. More specifically, the Beige Book reports conditions in
the consumer spending, tourism and services, manufacturing, real estate and construction, agriculture, natural resources
industries, labor markets, wages and prices, and banking and finance categories
for each of the 12 districts.
The Federal Reserve publishes the Beige Book eight times per year. It is usually made public at 2:15 pm EST, two Wednesdays before the FOMC meeting. Each Federal Reserve bank takes a turn preparing the Beige Book.
The Federal Reserve publishes the Beige Book eight times per year. It is usually made public at 2:15 pm EST, two Wednesdays before the FOMC meeting. Each Federal Reserve bank takes a turn preparing the Beige Book.
A big box store is a large
company that is more efficient but less specialized than other firms in a
particular niche or industry.
How
it works (Example):
Wal-Mart is a classic example of a big
box store. By being cheaper, bigger, more convenient, and more well-known,
it has an advantage over smaller stores and specialty stores. A wide selection
of merchandise is a common characteristic of a big box store.
The Bretton Woods Agreement
also led to the creation of the International Bank for Reconstruction and
Development (what is now the World Bank) and the International Monetary Fund (IMF).
What
it is:
Under the Bretton Woods Agreement
of 1944, the world's allied industrial countries established a fixed currency exchange
rate based on the gold standard.
Demand elasticity is a measure of how sensitive the demand for a product or
service is to changes in the price of that product or service. The formula for
demand elasticity is:
Elasticity = % Change in Quantity/%
Change in Price
How
it works (Example):
Let's assume that when gas prices
increase by 50%, gas purchases fall by 25%. Using the formula above, we can
calculate that the demand elasticity of gasoline is:
Elasticity = -25%/50% = -0.50
Thus, we can say that for every
percentage point that gas prices increase, gas demand decreases by half a
percentage point.
Demand elasticity is not the same as
income elasticity, which is the percentage change in the amount purchased
divided by the change in income. When people purchase more of a product (say, Ferraris)
when they have higher incomes, that product is said to have positive
elasticity. When they purchase less of a good (say, cheap shoes) when they have
higher incomes, the good is said to have negative income elasticity.
A direct cost is any cost
related to the production method of a good or service. It is the opposite of an
indirect cost.
How
it works (Example):
Direct costs are variable
costs associated with the inputs and
labor required to produce a good or service. For instance, two direct costs
associated with producing a copper pipe are the cost of the raw copper and the
wages paid to the worker molding the copper into the shape of a pipe. Direct
costs should not be confused with indirect costs, which are fixed costs unrelated to inputs and labor.
A global recession occurs
when global gross domestic product growth is 3% or less.
How
it works (Example):
What
it is:
RUN:
A run occurs when a flood of
depositors withdraw their funds from a bank within a short time frame.
Uncle Sam
Uncle Sam is a fictional character who represents the United States
government. His predecessor was a character named Brother Jonathan.
How
it works (Example):
Uncle
Sam first appeared in the 1820s. Though many artists drew the character in a
variety of political cartoons during that time, the artist Thomas Nast is most
commonly credited for creating the image most familiar to us today. Nast's
first illustration of Uncle Sam was published in the November 20, 1869, edition of Harper's
Weekly. Artist James Montgomery Flagg also created a famous image of Uncle Sam
wearing a top hat and blue jacket and pointing a finger at the viewer in the
famous "I Want YOU for U.S. Army" poster.
The name "Uncle Sam" is
associated with Samuel Wilson, a meat packer from Troy, New York. Wilson
supplied beef to the U.S. Army during the War of 1812 and he stamped the
barrels with "U.S." Apparently, soliders began joking that initials
meant that the food was from "Uncle Sam." The media published this,
which helped the term become the
official nickname for the U.S. government.
Why
it Matters:
Uncle Sam is not just a symbol of
the U.S. government. He is also a patriotic symbol of the unity and strength of
the United States.
The World Trade Organization (WTO) establishes rules of trade among its member nations. To this end, the WTO also handles trade disputes, monitors trade policies, provides technical assistance for developing countries and cooperates with other international trade organizations.
The WTO was created on January 1, 1995, and is headquartered in Geneva, Switzerland. The WTO replaced the General Agreement on Tariffs and Trade (GATT), which was created in 1948. GATT primarily regulated the trade of goods; the WTO regulates the trade of services and intellectual property as well. GATT still exists as the WTO's umbrella treaty for trade in goods.
What
it is:
Globalization is the integration of national economies through trade, investment, capital flow, labor migration, and
technology.
How
it works (Example):
Globalization results from the removal of barriers between national
economies to encourage the flow of goods, services, capital, and labor. While the
lowering or removal of tariffs and quotas (see General Agreement on Trade and
Tariffs, or GATT) that restrict free and open trade among nations has helped
globalize the world economy,
transportation and communication technologies have had the strongest impact on
accelerating the pace of globalization.
A wide economic moat is a
significant competitive advantage that is extremely difficult to copy or
emulate, thereby creating a barrier to entry for competing firms.
How
it works (Example):
Castles were traditionally part city
and part defensive fortress. The moat was a key part of this defense -- by
surrounding the castle with water, the fortress was more difficult to
penetrate. The wider the moat, the more difficult it would be to attack a
castle's defenders.
Nominal GDP is economic output without
the inflation adjustment. Nominal GDP is usually higher than real GDP because
inflation is typically a positive number.
Gross
domestic product (GDP) ranking by country 2017 (in billion U.S. dollars)
1
|
USA
|
19,862
|
2
|
China
|
11,937
|
3
|
Japan
|
4,884
|
4
|
Germany
|
3,651
|
5
|
France
|
2,574
|
6
|
UK
|
2,565
|
7
|
India
|
2,439
|
8
|
Brazil
|
2080
|
9
|
Italy
|
1921
|
10
|
Canada
|
1640
|
11
|
Korea
|
1529
|
12
|
Russia
|
1469
|
13
|
Australia
|
1390
|
14
|
Spain
|
1307
|
15
|
Mexico
|
1142
|
16
|
Indonesia
|
1010
|
17
|
Turkey
|
841
|
18
|
Netherland
|
824
|
19
|
Switzerland
|
680
|
20
|
KSA
|
678
|
21
|
Bangladesh
|
274 (22lac 50thou crore BDT
|
22
|
Pakistan
|
283
|
23
|
Maldives
|
4.60
|
The
Richest Countries In South Asia
Rank
|
Country
|
GDP per capita (2017)
|
1
|
Maldives
|
$9,950
|
2
|
Sri Lanka
|
$3,930
|
3
|
Bhutan
|
$2,870
|
4
|
India
|
$1,850
|
5
|
Bangladesh
|
$1,751
|
6
|
Pakistan
|
$1,629
|
7
|
Nepal
|
$866
|
8
|
Afghanistan
|
$559
|
Gantt Chart
Gantt chart is a bar
chart that displays the scheduled information graphically. These are very
useful in planning and scheduling of the projects. It is also helpful in
managing the relationship between tasks. This chart can be used to keep the
project team and sponsors informed about the project progress. Using Gantt
chart, one will be able to see what is achieved by a certain date and, if the
project is behind the schedule then an action can be taken to bring it on
track.
Skimming
Skimming is a method used by
fraudsters to capture customer's personal or account information of credit
card. Customer's card is swiped through the skimmer and the information
contained in the magnetic strip on the card is then read into and stored on the
skimmer or an attached computer. Skimming is a tactic used predominantly
for credit-card fraud, but it is also a tactic that is gaining in popularity
among identity thieves.
Masala
Bonds
The bonds listed on the London Stock
Exchange (LSE) is termed as Masala Bonds. These bonds are offered and
settled in US dollar to hike Indian Rupee in International market .
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