Tag Archives: compound interest

What is the difference between the Primary Market and the Secondary Market?

  In the primary market, securities are offered to public for subscription for the purpose of raising capital or fund. Secondary  market is an equity trading venue in which already existing/pre-issued securities are traded among investors. Secondary  market could be either auction or dealer market. While stock exchange is the part of an auction market, Over-the-Counter (OTC)  is a part of the dealer market.

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What is NEAT?

  NSE is the first exchange in the world to use satellite communication  technology for trading. Its trading system, called National  Exchange for  Automated Trading (NEAT), is a state of-the-art client server based  application. At the server end all trading  information is stored in an in-memory database to achieve minimum response time and maximum system availability for users. It  has uptime record of 99.7%.

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What is a Contract Note?

Contract Note is a confirmation of trades done on a particular day on behalf of the client by a trading member. It imposes a  legally enforceable  relationship between the client and the trading member with respect to  purchase/sale  and settlement of trades. It also helps to settle  disputes/claims between the investor and the trading member. It is a  prerequisite  for filing a complaint or

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What is the maximum brokerage that a broker can charge?

The maximum brokerage that can be charged by a broker from his clients as commission cannot be more than  2.5% of the value  mentioned in the  respective purchase or sale note.     Get Live Intraday BTST Short Term Research Call on Mobile , Yahoo , Chat : visit: www.moneymantrastock.com   for Commodity Research call Visit : www.thecommodityline.com

How to know if the broker or sub broker is registered?

One can confirm it by verifying the registration certificate issued by SEBI.  A broker’s registration number begins with the  letters ‘INB’ and that of a sub broker with the letters ‘INS’.     Get Live Intraday BTST Short Term Research Call on Mobile , Yahoo , Chat : visit: www.moneymantrastock.com   for Commodity Research call Visit : www.thecommodityline.com  

What is meant by Interest?

When we borrow money, we are expected to pay for using it – this is known as Interest. Interest is an amount charged to the borrower for the privilege of using the lender’s money. Interest is usually calculated as a percentage of the principal balance (the amount of money borrowed). The percentage rate may be fixed for the life of the loan, or it may

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What factors determine interest rates?

When we talk of interest rates, there are different types of interest rates -rates that banks offer to their depositors, rates that they lend to their borrowers,the rate at whichtheGovernment borrows in the Bond/Government Securities market, rates offered to investors in small savings schemes like NSC, PPF, rates at which companies issue fixed  deposits etc. The factors which govern these interest rates are mostly economy related and are

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What are various Short-term financial options available for investment?

Broadly speaking, savings bank account, money market/liquid funds and fixed deposits with banks may be considered as short-term financial  investment options: Savings Bank Account is often the first banking product people use, which  offers low interest (4%-5% p.a.), making them only  marginally better than fixed deposits. Money Market or Liquid Fundsare a specialized form of mutual funds that invest in extremely short-term fixed income instruments and

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What is Compound Interest?

Compound interest means that, the interest will  include interest calculated on interest. The interest accrued on a principal amount is added back to the principal sum, and the whole amount is then treated as new principal, for the calculation of the interest for the next period. For example, if an amount of Rs. 5,000 is invested for two years and the sinterest rate is

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