Stakeholders

Market (or Primary) Stakeholders - usually internal stakeholders, are those that engage in economic transactions with the business. (For example stockholders, customers, suppliers, creditors, and employees) Non-Market (or Secondary) Stakeholders - usually external stakeholders, are those who - although they do not engage in direct economic exchange with the business - are affected by or can affect its actions. (For example the general public, communities, activist groups, business support groups, and the media)

A corporate promoter
A corporate promoter (also "projector") is a person who solicits people to invest money into a corporation, usually when it is being formed. An investment banker, an underwriter, or a stock promoter may, wholly or in part, perform the role of a promoter. Promoters general owe a duty of utmost good faith, so as to not mislead any potential investors, and disclose all material facts about the company's business.
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Promoter

The first step towards the formation of a company starts with efforts of its promoters. This nomenclature has its own significant importance. It occurs frequently in the Companies Act, 1956, but the irony is that this word has not been defined by the act. Section 62(6)(a) of the act describes the nature of the promoter as one who was a party to the preparation of the prospectus or of a portion thereof containing an untrue statement, but does not include any person by reason of his acting in a professional capacity in procuring the formation of a company. In the United States, Securities Exchange Commission Rule 405(a) defines a promoter as a person who, acting alone or in conjunction with another person, directly or indirectly takes the initiative in founding or organizing the business enterprise. Duties of promoters The Companies Act contains no provision which states the duties of the promoters, but cultural notions and legal trends have enumerated certain duties: Initiator The promoter originates the scheme for the formation of a company, he gets memoranda and articles prepared, executed and registered and he deals with merchant bankers, brokers and legal advisors. Fiduciary agent Promoters stand as a fiduciary agent of a company. As a fiduciary agent, the following duties are done in his name: (i) He should make all disclosures regarding accounts and formation so as to maintain transparency at the time of transfer of management to the director. (ii) He should not make any secret profit out of the promotion of the company. (iii) He should make all disclosures regarding transactions entered by him on behalf of the company as promoter. Liabilities of promoters Section 56 and Schedule II. These sections require that the promoter state all the contents of a prospectus, such as general information; capital structure of the company; terms and conditions of the present issue; company management and its projects; and financial information such as reports of editors, accountants, and the underwriting commission brokerage. The liability of the promoter arises only with respect to original allotments of shares and would not extend to any further allottees. Civil Liabilities (Section 62). Civil liability arises when any person applies for the shares and debentures on the faith of the prospectus, believing it to be true, and later finds untrue statements and records regarding the public issue of the company. Every such person may rescind the contract to take the shares and claim damages. Criminal liabilities (Section 63). Criminal liability arises like civil liability. Every promoter authorizing the issue is punishable by imprisonment for a term up to two years, a fine up to Rs50,000 (US$1,200) or both. Section 203. If any promoter is found to be involved in a activity which amounts to an offence regarding the promotion, management or formation of a company, the court can bar such a promoter from taking part in administration of the company for five years.

Section 478. The court can order a promoter liable to public examination when he is found to have been involved in fraudulent activity at the time of promotion of the company. Section 542. If, in the course of the winding up of a company, it appears that any business of the company has been carried on with the intent to defraud creditors, the court may declare that any persons who were knowingly parties to the carrying on of the business in the manner aforesaid shall be personally liable. Pre-incorporation contracts. If any promoter enters into any contract on behalf of the company before it was actually incorporated, then the promoter shall be personally liable for non-fulfillment of the contract unless it was rectified by the company after incorporation.

Amortization
Amortization is generally known as depreciation of intangible assets of a firm. Amortization (or amortisation) is the process of decreasing, or accounting for, an amount over a period. Loan amortization refers to spreading payments over a period of time.

ASSET In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset. Simply stated, assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset). [1] The balance sheet of a firm records the monetary[2] value of the assets owned by the firm. It is money and other valuables belonging to an individual or business.[1] Two major asset classes are tangible assets and intangible assets. Tangible assets contain various subclasses, including current assets and fixed assets.[3] Current assets include inventory, while fixed assets include such items as buildings and equipment.[4] Intangible assets are nonphysical resources and rights that have a value to the firm because they give the firm some kind of advantage in the market place. Examples of intangible assets are goodwill, copyrights, trademarks, patents and computer programs,[4] and financial assets, including such items as accounts receivable, bonds and stocks.

BOND

In finance, a bond is a negotiable certificate that acknowledges the indebtedness of the bond issuer to the holder. It is negotiable because the ownership of the certificate can be transferred in the secondary market.[1] It is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) to use and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals (semi annual, annual, sometimes monthly).[2] Thus a bond is like a loan or IOU: the holder of the bond is the lender (creditor), the issuer of the bond is the borrower (debtor), and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure. Certificates of deposit (CDs) or commercial paper are considered to be money market instruments and not bonds. Bonds and stocks are both securities, but the major difference between the two is that (capital) stockholders have an equity stake in the company (i.e., they are owners), whereas bondholders have a creditor stake in the company (i.e., they are lenders). Another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely. An exception is a consol bond, which is aperpetuity (i.e., bond with no maturity). A certificate of deposit (CD) is a time deposit, a financial product commonly offered to consumers in the United States by banks, thrift institutions, and credit unions.

CERTIICATE OF DEPOSITS CDs are similar to savings accounts in that they are insured and thus virtually riskfree; they are "money in the bank". CDs are insured by the Federal Deposit Insurance Corporation (FDIC) for banks and by the National Credit Union Administration (NCUA) for credit unions. They are different fromsavings accounts in that the CD has a specific, fixed term (often monthly, three months, six months, or one to five years), and, usually, a fixedinterest rate. It is intended that the CD be held until maturity, at which time the money may be withdrawn together with the accrued interest. In exchange for keeping the money on deposit for the agreed-on term, institutions usually grant higher interest rates than they do on accounts from which money may be withdrawn on demand, although this may not be the case in an inverted yield curve situation. Fixed rates are common, but some institutions offer CDs with various forms of variable rates. For example, in mid-2004, interest rates were expected to rise, many banks and credit unions began to offer CDs with a "bump-up" feature. These allow for a single readjustment of the interest rate, at a time of the consumer's choosing, during the term of the CD. Sometimes, CDs that are indexed to the stock market, the bond market, or other indices are introduced.

COMMERCIAL PAPER

In the global money market, commercial paper is an unsecured promissory note with a fixed maturity of 1 to 364 days. Commercial paper is a money-marketsecurity issued (sold) by large corporations to get money to meet short term debt obligations (for example, payroll), and is only backed by an issuing bank or corporation's promise to pay the face amount on the maturity date specified on the note. Since it is not backed by collateral, only firms with excellent credit ratingsfrom a recognized rating agency will be able to sell their commercial paper at a reasonable price. Commercial paper is usually sold at a discount from face value, and carries higher interest repayment rates than bonds. Typically, the longer the maturity on a note, the higher the interest rate the [1] issuing institution must pay. Interest rates fluctuate with market conditions, but are typically lower than banks' rates.

Definition of 'Underwriter'
A company or other entity that administers the public issuance and distribution of securities from a corporation or other issuing body. An underwriter works closely with the issuing body to determine the offering price of the securities, buys them from the issuer and sells them to investors via the underwriter's distribution network.

International financial reporting standards(ifrs)

Scrip
Scrip is a term for any substitute for currency which is not legal tender and is often a form of credit. Scrips were created as company payment of employees and also as a means of payment in times where regular money is unavailable, such as remote coal towns, military bases, ships on long voyages, or occupied countries in war time. Other forms of scrip include subway tokens, IOUs, arcade tokens and tickets, and "points" on some websites.