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Altman's Z-Score model is a numerical measurement used to predict the probability of a business going bankrupt within the next two years. Developed by Edward Altman in 1968, it combines multiple financial ratios to assess financial stability. It's an effective...

While the balance sheet provides a snapshot of a company's assets, liabilities, and equity at a specific point in time, relying solely on it for assessing financial health is limiting. Analyzing financial position requires considering factors beyond the balanc...

The Indian Financial System is a critical component of the country's economic development. It facilitates the flow of funds from savers (households) to investors (businesses), benefiting both parties. This system is a vital topic for various government exams i...

A surge of companies are launching IPOs, each accompanied by comprehensive prospectuses detailing company valuation, industry analysis, and competitor assessment. Behind these complex operations are investment bankers. Investment banks form a specialized segme...

Merchant banks are specialized financial institutions that focus on providing sophisticated financial services to large, privately-owned companies and high-net-worth individuals (HNWIs). They differ significantly from traditional retail banks. 1. What Merchant...

Definition (SEBI Rules 1992) A merchant banker is any person involved in issue management by: Making arrangements for selling, buying, or subscribing to securities. Acting as a manager, consultant, or advisor. Rendering corporate advisory services related to ...

A Lead Manager is responsible for overseeing the progress and performance of an office or department. This involves a range of activities, including: Performance Monitoring: Creating progress reports and analyzing documentation. Resource Management: Managin...

Venture Capital (VC) is a type of private equity financing that focuses on funding early-stage, high-potential growth companies. It's a significant source of capital for startups and emerging businesses that lack access to traditional financing options like ba...

Insurance is a financial mechanism where individuals or entities pay regular premiums to an insurance company. This transfers the risk of potentially large, unforeseen financial losses to the insurer, who pools these premiums to create a fund. When a covered l...

Credit ratings are like grades for borrowers, helping investors assess the risk of lending money. They're crucial in financial markets, guiding investment decisions and impacting borrowing costs. Introduction to Credit Ratings What are they? A credit rating...

Securitization is a complex financial process that transforms illiquid assets into marketable securities. It's a key tool for financial institutions to manage risk, improve liquidity, and raise capital. Concept and Process of Securitization What is it? Securit...

Leasing Concepts Core Idea: Leasing is a contractual agreement granting the right to use an asset for a specified period in exchange for periodic payments (rentals). It's an alternative to outright purchase. Key Players: Lessor: The owner of the asset wh...

How a Lease Ends: A Explanation of Section 111 of the Transfer of Property Act Section 111 of the Transfer of Property Act outlines the different ways a lease agreement can be terminated, meaning the lessee (renter) must give the property back to the lessor (l...

Let's dive deeper into how a lessee (the renter) evaluates the lease vs. buy decision. We'll explore the methods, models, and practical considerations that help a lessee make the most informed choice. I. Core Concepts Revisited Lessee Focus: The lessee is co...

Lease Evaluation: The Lessor's Angle This topic concerns how a lessor (the entity owning the asset and renting it out) determines the profitability and feasibility of offering a lease. It's about pricing the lease correctly and managing risks to ensure a worth...

Hire purchase is a method of buying goods where you pay in installments, but you only own the item after you've made all the payments. Think of it as a long-term rental with the option to buy. What it is: It's a type of installment credit. You agree to "hir...

1. Hire Purchase (HP) Concept: Buying an asset over time with installments, where ownership transfers after all payments are made. The math involves calculating installments, interest, and rebates. Terms: Cash Price: The price if you bought the asset outri...

A. What is Housing Finance? Housing finance encompasses a comprehensive range of financial services and products aimed at facilitating the acquisition, construction, improvement, or renovation of residential properties. This can also be refered as Home Loans, ...

1. Public Issue: The Primary Method Definition: A Public Issue refers to a fundraising process where a company invites the general public to subscribe to its shares. It's the most common method of mobilizing capital for new ventures and expansion projects. ...

Let's explore these IPO components in greater detail, aiming for clarity and understanding. 1. Minimum Public Offer: Broadening Ownership Concept: When a company initiates an IPO, it's mandated to offer a specific percentage of its shares to the general pub...