A custodian is a financial intermediary that safeguards the client’s assets such as cash, securities, MFs, gold, etc, provides research services and sometimes works as a dealer for the client. Example – SocGen custodian is a financial intermediary that safe guards the client assets such as cash, securities, MFs, gold, etc, provides research services and sometimesContinue reading “Custodian”
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Financial Action task force (FATF)
FATF is an international body created by G7 members in 1989 which gives recommendations to its member countries to combat money laundering, terror financing, corruption, funding for weapons of mass destruction, etc. FATF has 39 members and is headquartered in Paris, France, It keeps on regularly reviewing illegal activities and continuously strengths its recommendations to address recentContinue reading “Financial Action task force (FATF)”
Structure of Investment bank
Investment bank is a financial institution that acts as a financial intermediary for governments and businesses by helping them raise funds, trading related services, M&A, Research and many more such services. IB usually split into three sections Front office Middle office Back office Front office– It tries to onboard new clients and tries to extractContinue reading “Structure of Investment bank”
Inflation index bond & zero coupon bond
Inflation Indexed Bonds :- In inflation-indexed bonds, principal & coupon amounts are adjusted to compensate the investor for inflation. In other words, if the inflation increase in the market then the Inflation-indexed bonds holder coupon amt. as well as its principal amt. will also increase respective to the increase in inflation. Generally,Continue reading “Inflation index bond & zero coupon bond”
Mutual fund Crisis 2020
Mutual fund is an investment fund of a company where investors pool their money to get a good return on their capital, there are 3 types of mutual funds 1- Debt Funds, where the money is invested in fixed interest giving instruments like bonds and govt securities 2- Equity funds, Where the money is investedContinue reading “Mutual fund Crisis 2020”
Bullish market ,bearish market & range bound market
The commonly held belief about the origin of these terms suggests that the use of “bull” and “bear” to describe markets comes from the way the animals attack their opponents. A bull thrusts its horns up into the air, while a bear swipes its paws downward. These actions are metaphors for the movement of aContinue reading “Bullish market ,bearish market & range bound market”
Clean price & dirty price
To understand dirty price & clean price it’s important first to understand how bonds work. Like other fixed-income assets, bonds provide a coupon payment to the bondholder on a fixed schedule. Coupon payments can occur monthly, quarterly, or annually. However, most bonds make coupon payments on a semi-annual basis (every six months). A bond isContinue reading “Clean price & dirty price”
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