Terms used in banking business such as Product Life Cycle,Productivity,proprietary credit card,Prospectus etc

 

The terms used in banking business such as Product Life Cycle,Productivity,proprietary credit card,Prospectus etc.

 

 

 

This post explains about terms used in banking such as Principal,Privatisation,Product Life Cycle,Productivity,proprietary credit card,Prospectus,Prudent Man Rule,Public Debt,Public Sector,Purchasing Power Parity,Qualified Return Check ,Quoted Company etc. These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.

The terms used in banking business

 

 

Principal: Amount of debt that must be repaid. Also means a person who deals in securities on his own account and not as a broker.

 

Principal: The amount of money you borrow from a financial institution (for example a mortgage or loan), or you deposit in an account, such as a Guaranteed Investment Certificate (GIC).

 

The terms used in banking  business such as Product Life Cycle,Productivity,proprietary credit card,Prospectus etcPrincipal: The face or par value of a security. It does not include accrued interest.

 

Priority Sector Advances : consist of loans and advances to Agriculture, Small Scale Industry, Small Road and Water Transport Operators, Retail Trade, Small Business with limits on investment in equipments, professional and self employed persons, state sponsored organisations for lending to SC/ST, Educational Loans, Housing Finance up to certain limits, self-help groups and consumption loans.

 

Private equity: high risk and high return investment, holding large stakes in illiquid companies.

 

Private Sector: Private Sector is that part of the economy which is not owned by the government and is under the hands of private enterprise. In other words, private sector is not under direct government control. Private sector includes the personal as well as the corporate sector.

 

Privatisation: Privatisation is the antithesis of nationalisation. When the government owned public industries are denationalised and the disinvestment process is initiated, it is called privatisation.

 

Privatization: The sale of government-owned equity in nationalized industry or other commercial enterprises to private investors.

 

Pro Forma Statement: A financial statement based on assumptions usually made on the basis of past account relationships, how these relationships might change in the future, and likely financial developments. A pro forma would be used, for example, to determine the amount and timing of a company's future cash requirements.

 

Product Differentiation: Development of a variety of product configurations to appeal to a variety of consumer tastes.

 

Product Life Cycle: A conceptual model of the stages through which products or lines of businesses pass. Includes development, growth, maturity, and decline. Each stage presents its own threats and opportunities.

 

Product Mix: The composite of products offered for sale by an organization.

 

Productivity: The amount of physical output for each unit of productive unit.

 

Profit after tax (PAT): Profit before tax - provision for tax.

 

Profit before tax (PBT): (Net operating profit +/- realized gains/losses on sale of assets)

 

Promissory Note: A signed undertaking from one party containing a promise to pay a stated sum to a specified person or a company at a specified future date.

 

Promissory Note: Promissory Note is a promise / undertaking given by one person in writing to another person, to pay to that person , a certain sum of money on demand or on a future day.

 

proprietary credit card -- A private labeled credit card typically issued by a department store or petroleum company that can only be used at those specific outlets.

 

Proprietory trading: trading carried out using the firm’s capital on its own behalf.

 

Prospectus: A detailed report published by the Initial Public Offering company, which includes all terms and conditions, application procedures, IPO prices etc, for the IPO.

 

Prospectus: A document issued by a company prior to the sale of a new issue of securities. The prospectus gives detailed information about the company, the offering, the prospects, and the risks, as required by the Securities and ExchangeCommission.

 

Provisioning: Provisioning is made for the likely loss in the profit and loss account while finalizing accounts of banks. All banks are supposed to make assets classification and make appropriate provisions for likely losses in their balance sheets.

 

Prudent Man Rule: A long-standing common-law rule that requires a trustee who is investing for another to behave in the same way as a prudent individual of reasonable discretion and intelligence who is seeking a reasonable income and preservation of capital.

 

PSA Prepayment Model: The Public Securities Association prepayment model is used in the mortgage-backed securities market as a measurement of prepayment speed. The 100% PSA model assumes that a brand-new mortgage will prepay at an annualized rate of 0.2 percentage point in its first month and increase by 0.2 percentage point each month thereafter until the 30th month, at which time it reaches 6%, where it remains for the life of the mortgage. Sometimes referred to as standard prepayment assumption model, or simply PSA.

 

PSB:Public Sector Bank

 

PSE: Public Sector Enterprise

 

PSU: Public Sector Undertaking

 

Public Debt: Public debt represents borrowing by the state and public authorities. All loans taken by the public authorities constitute public debt.

 

Public Debt: The total outstanding debt of the federal government. May also refer to the total outstanding debt of the federal government along with that of states, municipalities, and other political subdivision.

 

Public Goods: Public goods are those goods which belong to the entire community. None of the individual of the society can be made deprived of using these public goods. National defence, Police, Street lighting etc. are examples of public goods.

 

Public Offering: The offering of securities for sale to the public.

 

Public Sector Bank: A bank fully or partly owned by the Government.

 

Public Sector: Public sector signifies those undertakings which are owned, managed and run by public authorities. Public sector includes direct government enterprise, the nationalized industries and public corporations. In this sector of the economy the government acts itself as an entrepreneur.

 

Purchasing Power Parity: The concept that homogeneous goods cannot have more than one price measured in any one currency. If the price increases domestically, the domestic currency will depreciate so that the price denominated in foreign currency remains the same.

 

Pure Conglomerate Merger: A combination of firms in non-related business activities that is neither a product-extension nor a geographic-extension merger.

 

Pure risk: a type of risk where the only consideration is the possibility of loss. Speculative risk in contrast offers the possibility of loss or gain.

 

Put Option: The right to sell the underlying securities at a specified exercise price on of before a specified expiration date.

 

Qualified Return Check (QRC): An unpaid return check prepared for automated processing. This means that either an additional strip of paper is added to the check, or the item is placed in a carrier envelope and the strip or carrier is encoded with the routing number of the Bank of First Deposit, the dollar amount of the check, and the value “2” or “5” in the EPC field of the MICR line.

 

Quick Asset: Those assets are quick assets which are liquid or nearly liquid in nature and easily be turned into cash.

 

Quotation, or Quote: The highest bid to buy or the lowest offer to sell a security in any market at a particular time.

 

Quoted Company: That company is called quoted company whose share prices are quoted on a stock exchange.

 

Rally: A brisk rise in the price of a security or a recovery in the market.

The above details describes about terms called in banking such as Principal,Privatisation,Product Life Cycle,Productivity,proprietary credit card,Prospectus,Prudent Man Rule,Public Debt,Public Sector,Purchasing Power Parity,Qualified Return Check ,Quoted Company etc These phrases may help importers and exporters on their day to day business activities. The readers can also add more information about terms used in overseas trade below this post.Terms used in banking business such as Pledged Assets,Port scanning,Portfolio,Poverty Line etc

 

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