DEPRECIATION In simple words we can say that depreciation is the reduction in the value of an asset due to usage, passage of time, wear and tear, technological outdating or obsolescence, depletion, inadequacy, rot, rust, decay or other such factors. . In straight – line depreciation the asset’s notional life divides the asset value in equal parts, i.e., for a 10 – year life … [Read more...]
DELISTING – BASIC TERMS
DEFLATION deflation arises when supply is more than demand resulting in reduction in national income and output, accompanied by a general fall in prices. it can be brought about by reduced imports, higher taxation, and high interest rates, among other measures. During a deflationary period the stock market usually suffers from DEPRESSION. DELIVERY ORDER after a … [Read more...]
DEBENTURES AND STOCKS
DAILY MARGIN daily margin is an amount, that is to be decided by the stock exchange, and to be deposited by a member on a daily basis, for the purchase or sale of securities. The amount is to be deposited at the stock exchange. The margin is imposed to curb excessive speculation. DAWN RAID its a TAKEOVER attempt in which an individual or a company instructs its brokers … [Read more...]
STOCKS MARKET TERMS
CUM DIVIDEND When a buyer of a security is entitled to receive a dividend that has been declared, but not paid When a share is said to be 'cum dividend', it means that it is offered for sale with an entitlement to the next dividend payment attached. This dividend will already have been declared (but not paid) by the company, so the market knows how much it is worth and … [Read more...]
STOCK MARKET TERMS
CREEPING AQUISITIONS creeping aquisitions is a process in which the promoters of a company holds less than 50% of its shares, increase their stake by buying 2% of maximum permissible company;s equity ,they acquired a majority stake by two ways either by making an open offer to the share holders, or buying from the open market. CRISIL Credit Rating and Information … [Read more...]