Different types of capital issues

There are certain types of capital issues like

1. public issue through prospectus.
2. offer for sale.
3. private placement.
4. offer through book building process
5. public offer through stock exchange online system

what is del credare commission

it is a payment made by principal to sales agent for guaranteeing the payment of goods sold
it is a payment made by principal to sales agent for
collecting the amount of goods sold by agent on credit basis.

define finance

finance is nothing but money and by the meaning of

financial management is to manage the financial matters

Finance is the life blood of the business as necessary as

the blood circulation is required for a human life.
Without finance, a business or a business organisation
can't run even stand for any purpose in no profit-no loss
situation.

a branch of economics concerned with resource allocations

well as resource management, acquisition and investment.

mobilisation of funds and invest them in profitable sectors with the expectation of positive rate
of return.

finance deals with procurement of funds and utilization of

such funds in a fruitful manner.

Finance is the provision of money at the time of requirement.

finance means facility of money which provided by any

financial institute and finance is a pool of money.
Finance is the science of funds management.[1] The general
areas of finance are business finance, personal finance,
and public finance.[2] Finance includes saving money and
often includes lending money. The field of finance deals
with the concepts of time, money, risk and how they are
interrelated. It also deals with how money is spent and
budgeted

What is mean by debit, credit 2) what is mean by purchase, sales

*Debt is under assets and Credit is under liabilities.

*when the receiver receives the asset or amount and when
expenses are paid and losses are held these types of
entries comes under debit a/c.
*when the giver gives assets or amount and when incomes are
received and profits are held these types of entries comes
under credit a/c.

How the IPO price is decided considering the face value of an equity share?

ipo price is decided by the process of book building in

india also known as French auction in other
countries.....here once the band of share is decided then the
investors are called upon for betting ....band fixing is
done by cumulative method

IPO can be issued at a fixed price as decided by the issuer

and the merchant banker or by a process known as ‘Book
Building’ in which a ‘floor price’ or ‘price band’ is fixed
and the price of the share is decided by the market forces
(demand and supply mechanism).

what is the difference between npv and irr method of capital budgeting and which one is
better?

NPV stands for net present value where as I.R.R stands for
internal rate of return. N.P.V is the difference between
present value of cash inflow and present value of cash outflow
or initial investment. I.R.R is the rate that equates present
value of cash inflow with cash outflow. N.P.V is better
because it takes into consideration the time value of money.

Above answer is correct but NPV meaning sum of total

present values of future cash inflows and total present
cash outflows

what is the working of GDR?

gdr is global depository receipt

is use full to raise the fund globally other than us company

what is wacc and how it is use?

As WACC standfor weighted Average cost of capital.As you
know capital structure of the company is mix of long term
debt and equity and company tries to maximize the
shareholders wealth by adopting the proper mix of debt and
equity.So WACC is calculates based on the cost of the
capital of eaach component multiplied by its weight.It is
the minimum cost of capital to the company which discounted
the future inflow againts the inital outflow to have
maximum value to company.

What is ROI
A performance measure used to evaluate the efficiency of an investment or to compare the
efficiency of a number of different investments. To calculate ROI, the benefit (return) of an
investment is divided by the cost of the investment; the result is expressed as a percentage or a
ratio.

The return on investment formula:

ROI= (gain from investment-cost of investment) / cost of investment

What is ROE

The amount of net income returned as a percentage of shareholders equity. Return on equity
measures a corporation's profitability by revealing how much profit a company generates with
the money shareholders have invested.

ROE is expressed as a percentage and calculated as:

Return on Equity = Net Income/Shareholder's Equity

What is Retained Earnings

When a company or corporation earns a profit or surplus, that money can be put to two uses it
can either be re-invested in the business called retained earnings or it can be paid to the
shareholders as a dividends.
 Profit Of A Company Is Distributed As Dividend To The Preference Shareholder And Common
Equity Holder, it Depends Upon The Discretion Of The Company. the Surplus After Dividend
Payment Is Retained By The Company. the Retained Earning Is Added To The Reserve And
Surplus Of The Balance Sheet. it Is Consider As The Liability In The Balance Sheet. this Fund
Is Used As Expansion Or Accumulated Fund Is Distributed As Bonus.

What is Interim Dividend

Interim Dividend Is Defined As The Declaration Of The Dividend By The Company Before The
Annual General Meeting.

What is meant by OTC

Otc Is Defined As Over The Counter Exchange.as Financial Instrument Is Traded In Secondary
Market To Increase The Liquidity Of The Instrument.secondary Market Can Be Regulated Bt
Exchange Or It Cold Be Otc.exchange Regulated Market Is Governed By Standard Units Of
Instrument And Delivery Of The Delivery Of The Instrument Is Gurented By Intermediary Body
,but In Otc Market ,there Is No Such Defined Market Place And It Is Regulated On Telephone
And Internet.there Is No Intermediary Body To Guarantee The Delivery Of The Instrument

What is meant by capital market

Capital market is the market for securities, where companies and governments can raise long-
term funds. It inculde both stock market and bond market.

What is Treasury Bills?

Treasury Bills are money market instruments to finance the short term requirements of the
Government of India. These are discounted securities and thus are issued at a discount to face
value.

What are Mutual Funds

Mutual funds are funds operated by an investment company which raises money from the public
and invests in a group of assets(shares, debentures etc.), in accordance with a stated set of
objectives

What is BRS

'BRS" means Bank Reconciliation Statement.

Who is a lame-duck
A person who has defaulted on his or her debts or has gone bankrupted due to the stock market.
The financial use of the term is most commonly used in Europe.

A trader or investor who makes poor trades and ends up with heavy losses over time would be
considered a lame duck. Often, if a trader goes bankrupt, it is not the result of one bad trade but a
long string of them - such a trader is called a lame duck because he or her is ineffective as a
trader. (The term lame duck also refers to a politician who has chosen not to seek re-election, is
ineligible to run for office again or has lost an election but is still in office until the election
winner takes control of the office. The politician is considered a lame duck as he or she is not
accountable to the constituency he or she represents.)