Omitted Dividend Dividend that had to be declared at the board meeting but is not taken up by the directors for the time being. This may be because the company has run into financial losses and it thinks better to conserve the company’s resources than to pay out cash. Omitted dividend typically causes a fall in the company’s share prices, particularly if a dividend was … [Read more...]
Archives for 23/10/2009
negotiable instrument
Negotiable Instrument A negotiable instrument is a specialized type of "contract" for the payment of money that is unconditional and capable of transfer by negotiation. Common examples include cheques, banknotes (paper money), and commercial paper.An instrument (contractual document) which is readily transferable. Nervous Market Stock market which is reacting sharply to … [Read more...]
national depository system
Naked Option A CALL OPTION for which the seller does not own the supporting shares, and which he hopes to buy from the market, believing that the price will fall. If it does, he makes a profit on the difference; if it doesn’t, and rises, the seller is caught in a naked position, and must sustain a loss by buying at the higher price. See also SELLING SHORT. Naked Position One … [Read more...]
murphy’s law and startegies
Modern Portfolio Theory Modern portfolio theory (MPT) is a theory of investment which attempts to explain how investors can maximize return and minimize risk. Although MPT is widely used in practice in the financial industry and several of its creators won a Nobel prize for the theory, in recent years the basic assumptions of MPT have been widely challenged by fields such as … [Read more...]
memorandum of association and incorporation
Memorandum of Association The memorandum of association of a company, often simply called the memorandum is the document that governs the relationship between the company and the outside INDIA. A memorandum of association is required to state the name of the company, the type of company (such as public limited company or private company limited by shares), the objectives of … [Read more...]