A bond is a financial instrument that offers fixed and predictable returns. By issuing bonds, the bond issuers are borrowing money, and therefore, bondholders act as creditors to the issuer. There are various terms related to bonds that one needs to...

What is a Commercial Paper? Commercial paper (CP) is an unsecured money market instrument issued primarily by financial institutions and highly rated corporate borrowers and is issued at a discount in denominations of Rs. 5 lakh or multiples thereof. Institutional...

Ratios help measure the relationship between two or more variables in quantitative terms. There are various kinds of profitability ratios, solvency ratios, turnover ratios, liquidity ratios, etc. However, one liquidity ratio that compares most liquid assets and short-term liabilities is...

The term "sweat equity shares" refers to shares that a firm issues to its directors or workers in exchange for contributing intellectual property rights, know-how, or any other kind of value addition in exchange for non-cash consideration or at a...

Free Cash Flow (FCF) is the amount of money that a corporation generates after deducting cash outflows for operating expenses and capital asset maintenance. Depending on the audience and the data provided, there are different approaches to calculating FCF. Meaning...

What is a Bonus Issue? A bonus issue is a corporate action where a company offers extra shares to the existing shareholders without any extra cost. These extra shares are issued in proportion to the existing number of shares held...

What is EPF Form 10C? Under the EPF scheme, you (the employee) and your employer have to contribute to the Employee Provident Fund during your service period. When you leave the job, you might want to carry forward your EPF...

What is Capital Expenditure? Capital expenditure refers to the expenditure done by a business to acquire, upgrade, or maintain long-term assets to increase productivity or capacity. Long-term assets consist of tangible, immovable, non-consumable assets with a useful life of more...