A debenture is a loan or debt using which a company or the government raises funds. This capital is then used to purchase assets, build roads and more, based on the entity issuing debentures. Usually, debentures are unsecured, but you may also come across secured debentures. A common example of government-issued debentures is treasury bills …
Post Type Archives: Glossary
Depreciation
Depreciation refers to the decrease in the value of an asset due to use and over time as a result of wear and tear or being outdated. It is a commonly used term in accounting as well as insurance, where depreciation is considered when calculating the value of assets like machinery, vehicles and more in …
Direct Deposit
The best way to understand what is direct deposit is to think of how you receive your salary in your bank account. This electronic transfer of funds that gives you easy access to money without a paper cheque is the exact direct deposit meaning. A direct deposit helps your account get credited without requiring you …
Direct Tax
Direct tax is a type of tax in which the same entity who bears the burden of the tax also pays it to the government. There is no other party involved other than the taxpayer and the IT authority. You cannot transfer your direct tax obligations to another individual or entity. In India, tax authorities …
Direct Transfer
The government of India implemented the direct transfer scheme to enhance the transfer of government subsidies in the country. The main objective is to improve the delivery system and revamp the existing procedures in welfare schemes. In simple terms, direct transfer aims to directly transfer subsidy benefits from various Indian welfare schemes into the beneficiaries’ …
Disclosure
Wondering what is disclosure? This term refers to a statement that reveals relevant or useful information about a company or business. It is issued by a company for the public in general or specifically for its investors. The disclosure definition as per Cambridge Dictionary is ‘the act of making something known or the fact that …
Diversification
Diversification is a strategy that involves spreading investments across different assets, sectors, or categories to reduce the impact of potential losses. For example, you may diversify your portfolio by investing in stocks, bonds and real estate across different industries and geographies to mitigate risk. Moreover, you can diversify your investment in just mutual funds by …
Divestment
Divestment or divesting is the opposite of investment. It refers to the process of selling assets, divisions, or investments in a company to maximise the parent company’s value. Generally, a company proceeds with divestment when a division or asset of a subsidiary is not performing as expected. This process helps streamline the operations of a …
Dividend
If you are a new investor in the stock market, you must be wondering what is a dividend. Simply put, it is the portion of profits and earnings the company disburses to its shareholders. You get these earnings when a company generates a profit and decides to pay the shareholders rather than retain it. The …