Fixed-income securities: Meaning, Types, and risks involved
Fixed-income securities are investments where the cash flows are according to a predetermined amount of interest, paid on a fixed schedule. Fixed-income securities are investments where the cash flows are according to a predetermined amount of interest, paid on a fixed schedule. There are different types of fixed-income securities such as Government securities, Corporate bonds,…
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What is a STRIP in your financial assets?
STRIP is an acronym that is commonly used to denote ‘Separate Trading of Registered Interest and Principal of securities’. This is a complex-sounding term however, in reality, the meaning is quite simple. STRIPS are the securities created by way of separating the cash flows associated with a regular G-Sec i.e. each semi-annual coupon payment and…
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Know about FIMMDA and its functions
The Fixed Income Money Market and Derivatives Association of India (FIMMDA), is an association of Scheduled Commercial Banks, Public Financial Institutions, Primary Dealers, and Insurance Companies. It is a voluntary market body for the Fixed Income, Money, and Derivatives Markets, incorporated as a company under section 25 of the Companies Act 1956. Functions of FIMMDA:…
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Achievement of Market Integration in India
Market integration and price transmission, in the case of a large producing and consuming country like India; depend on the geographical dispersion or concentration of production. A shared online market platform for agriculture commodities: While consumers are spread throughout the country, the production and marketed surplus is less spread out, particularly for agricultural commodities. If…
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What is merchant banking?
Merchant bankers are called by different names across the world. In the USA they are called Investment bankers and in the UK they are called ‘accepting and issuing houses’. In India, National Grindlays Bank initiated merchant banking services in 1969. Then Citibank joined the financial service in 1970. The State Bank of India was the…
Different Levels of Market Integration: definition and examples
Market integration is defined as the unification of different markets into one, allowing for the free movement of goods and services. This process is facilitated by reducing barriers, such as tariffs or quotas, between countries. There are several types of market integration, including: Horizontal Integration: Horizontal integration happens when two or more companies having the…
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