Finance Numericals

Market Capitalisation : It refers to the total value of a company determine with the help of outstanding shares of a company and current market price of a share. It is also known as market cap. It is different from real value of a company. With the help of market capitalisation companies are divided into groups like small cap, large cap and medium cap company. In market capitalisation, it does not mean that if company having low market price of shares has small capitalisation. The small cap company has higher risk and less assets in comparison to mid cap or large cap company. The medium cap or mid cap company has less risk in comparison to small cap company. And the last group is large cap in which the company have large number of assets and low risk of default. The market capitalisation is use for public company. It helps to measure the size of a company. Market capitalisations of some companies are: Company name Market capitalisation in Rs. crore Tata Consultan

Today I will discuss what is Bank rate, Repo rate and Reserve repo rate and how they are different from each other. Bank rate is a rate at which central bank charge interest from commercial bank on loan offered by central bank. It is also known as Discount rate. Repo rate is a rate at which commercial bank sell securities to central bank. It is also known as repurchasing rate. Reserve repo rate is a rate at which commercial bank or other financial institutions give loan to central bank. The entire three rate are monetary policy instruments to control the money supply and credit. Difference between Bank rate, Repo rate and Reverse repo rate: S.No. Point of difference Bank rate Repo rate Reverse repo rate 1. Meaning of bank rate, reverse repo rate and repo rate It is a rate on which central bank provides loan to commercial bank. It is a rate on which commercial bank sell securities to commercial bank. There is a

Today I will discuss “Difference between Recurring Deposit and Fixed deposit”. The Recurring Deposit (RD) and fixed deposit (FD) is investment tool in which people can invest it and earn some interest. The fixed deposit is also known as term deposit because the money is invested for fixed period. Both the investment option is good to earn some money in the form of interest if the money is kept ideal. If a person has a regular income he can invest in recurring deposit very easily and if any person wants to invest in only one time than he/she can invest in fixed deposit. If interest on these investment is more than Rs. 10, 000 than the investment holder has to pay tax on it. There is a penalty on withdrawal of the amount from these investments before maturity period. S. No. Point of difference Recurring Deposit Fixed Deposit 1. What is recurring deposit and fixed deposit? It is an investment product in which small amoun

Now onward every Tuesday I will publish a post in which difference of two terms are discussed. Let's start today's post in which I will discuss "Difference between Capital Market and Money Market". Point of Difference Capital Market Money market 1. Meaning of Capital Market and Money Market It is a market in which buying and selling of long term securities to  It is a market in which new shares are issued. 2. Duration of a financial securities The duration of the financial securities is more than one or two year. The duration of the financial securities is less than a year. 3. The risk factor in market The risk factor is high in capital market because long term securities are traded and they are not easily converted into cash. The risk factor is low in money market because short term securities are traded and t