Brokerage refers to the fees you pay as an investor or trader to a broker for a specific service. The amount varies based on your chosen platform or firm and the type of service you want, such as carrying out trades or research, information and advice. In the Indian share market, for instance, brokerage charges …
Post Type Archives: Glossary
Budget
What does it mean? A budget is a formal annual financial statement that lays out an estimate of the income and expenses in line with future objectives. In other words, it is a statement outlining the estimated revenues and expenses for an upcoming period. Points to remember A budget can be a corporate or a …
Cancelled Debt
The cancelled debt meaning is exactly what the term denotes. Cancellation of debt refers to the event when a creditor releases you from a debt obligation. You have options to negotiate directly with the creditors for debt forgiveness. You can also explore debt relief programs and file for bankruptcy to get your debt cancelled. All …
Capital Gain
Capital gain means any gain or profit you get by selling or transferring a capital asset. These include stocks, bonds, orreal estate. Capital gain only comes into play when you sell such an asset at a price that is higher than what you paid for it. Capital gain is considered in taxation under the head …
Cardholder
The term ‘cardholder’ is usually used in the context of credit cards but can be used to refer to any individual holding a specific card. If you are a cardholder, it means you are authorised to use a specific card that offers you a set of benefits or privileges. You are a primary cardholder if …
Cash Ratio
Cash ratio is usually discussed when a financial institution or investor is looking to offer a loan to a business. It refers to the liquidity of a business in terms of how easily it can service debt. You can understand the cash ratio definition better by seeing how it is calculated: Cash Ratio = Cash …
Cash Settlement
If you are new to investing in the stock market, you must be wondering what is cash settlement. A cash settlement is a method in futures and options trading to settle the contracts at expiry. In this method, the seller does not deliver the physical underlying asset to the buyer but instead transfers cash. This …
Chargeback
What does it mean? There are times when an individual may want to dispute a transaction they have made. If it is successful, then the amount that is reverted back to the payment account is called a chargeback. It is a refund processed to the cardholder from which the disputed transaction was made. Chargebacks can …
Co-signer
What does it mean? A co-signer is an individual who cooperatively signs the loan with the borrower and becomes the secondary repayment source. The co-signers facilitate the borrower in obtaining loans that they may not have been able to qualify for. Borrowers can negotiate for receiving a greater principal amount if they have individuals who …
Collateral
What does it mean? Collateral is an asset that you can pledge as security for a loan. If you fail to repay the loan, the lender has the right to sell the collateral to claim the dues. You can get a home loan, a gold loan, a business loan, a loan against FD and a …