What does it mean? The prime rate is the interest rate at which banks lend to customers or businesses with the highest credit rating or simply the most creditworthy customers. Points to remember It is used on many short-term loan products which include adjustable mortgage rates, automobile loans, credit cards, and home equity loans. The …
Post Type Archives: Glossary
Profit and Loss Statements
What does it mean? Profit and Loss Statements are similar to income statements. They maintain a record of a business’s net income and costs for any given period of time as well as the ability of the company to generate profits in synchronization with other factors. Points to remember These statements are usually used …
Property Tax
If you are looking into purchasing a property, be it residential or commercial, you may be wondering what is property tax. It is the amount you need to pay the government for the property you own. The tax amount is based on the property’s value, the area, construction, and other factors. The local government or …
Prospectus
If you are a beginner at investing, you may be wondering, what is a prospectus? To answer the question, a prospectus is a formal document that a company issues while issuing investment securities to the public. It contains details about investments like stocks, bonds and mutual funds. It also includes information like performance, associated fees …
Quick Ratio
If you want to know what is quick ratio, remember that it refers to the liquidity of a business in the short term about servicing its liabilities at present without requiring a loan or selling off its inventory or stock. It is an important indicator of the financial health of a business. It only considers …
Rate of Return
Rate of return is a measure of the profitability or performance of an investment, expressed as a percentage of the original investment. It indicates the gain or loss made on an investment relative to the initial investment amount but not considering other factors, such as inflation. In India, rate of return is used to assess …
Redemption
Redemption means selling bonds, shares or other securities like certificates of deposit to get money. For instance, when you sell shares you own, you are making redemptions. Redemption has a direct bearing on whether you will pay a long-term or short-term capital gains tax based on the buying and selling timeline. The redemption value is …
Regression
Regression is a technique used to analyse the relationship between two or more variables in statistical studies to make predictions or estimations. It is commonly used for data analysis and forecasting purposes in fields such as economics, finance and market research.
Reimbursement
The reimbursement meaning is simple – it refers to the compensation offered by a company or organisation to cover out-of-pocket expenses incurred by an employee or extra payments made by customers or other parties. In short, reimbursement is the money that you get back for a previous transaction that you spent on your behalf or …
Stamp Duty
Stamp duty applies during property sale and purchase. It is usually used in context of home loans or home purchase, where you as a buyer pay a stamp duty to the state government, which may amount up to 8% of the property’s market value. The exact percentage differs from state to state, and you can …