Insider
Not just a person working in a particular company, but one who knows the crucial facts about the company, such as contracts won, takeover bids, current results, etc, which the public do not know yet. Insiders include owners, executives and consultants of a firm. It is illegal for an insider to indulge in speculative trading in the company’s shares, although the proverbial ‘circles close to the management’ who engage in buying or selling sprees before good or bad news is made public, act on insider information.
Insider Trading
An illegal activity in which persons in a company having confidential information, such as expansion plans, financial results, takeover bids, etc., take advantage of such information to make a personal profit on the stock exchange by buying or selling the shares.
Insolvency
insolvency means the inability to pay one’s debts as they fall due. Usually used in Business terms, insolvency refers to the inability for a company to pay off its debts.if a company is unable to pay its creditors because it doesn’t have liquid funds, it is technically insolvent. If a creditor can press the company for the payment and incase the company cannot pay within a short period, the creditor can sue the company and it may have to sell off some assets to meet the obligation. This is called technical insolvency.
Institutional Investor
Mutual funds, Unit Trust, Insurance Corporation of India , banks, and other large institutions which invest their members’ money in shares and bonds, are institutional investors. Since they trade in large volumes, they may play a supportive role when the share market is bearish. When ordinary investors, and even speculators to a certain extent, shy away from the share market, it is the institutional investor who often accounts for the bulk of the trade done on the stock exchange, over a sustained period. In view of their often substantial holdings they can play a major role in influencing company policy and in takeover bids as they hold larger no. of shares they are often represented on the board of directors. They have the facility of professional analysts and advisors, and can usually read stock market trends much better than individual investors.
Intangible Assets
ntangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured, which are created through time and/or effort and that are identifiable as a separate asset. Such assets are trademarks, copyright, goodwill, patents, capitalized advertisement costs, licenses, leases, franchise, permits, etc. It is often because of these that loss – making companies become attractive takeover targets.
Interbank Market
Exclusive financial market where banks borrow short-term funds from other banks having excess liquidity.That part of the money market in which banks lend to one another, for very short periods, with an aim to maintain their SLR. The trading is done through a selected number of brokers.