Terms used in banking business such as Wholesale Price Index,Wire transfer,Yield to maturity,Zero Coupon Bonds etc

 

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The terms used in banking business such as Wholesale Price Index,Wire transfer,Yield to maturity,Zero Coupon Bonds etc.

 

Terms used in banking business such as Wholesale Price Index,Wire transfer,Yield to maturity,Zero Coupon Bonds etcThis post explains about terms used in banking such as variable rate ,Value Added Tax,View Only User,Venture Capital Fund,Warrant,When-Issued Basis,Wholesale Price Index,Wire transfer,Yield to maturity,Zero Coupon Bonds 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

Value Creation:The difference between the value of an investment and the amount of money invested by shareholders.

Variable Expenses:Costs of doing business that vary with the volume of business, such as advertising costs, manufacturing costs and bad debts.

variable rate -- An interest rate that changes and is determined by adding the index rate to the previously disclosed margin.

Variable Rate Loan or Mortgage: A rate of interest on a loan or mortgage that can go up or down during the term of your agreement. The interest rate usually changes as the prime lending rate changes.
Analyst: person who studies an industry sector and makes BUY, HOLD and SELL recommendations. Also, a different term referring to entry-level career position in many investment banks.

Variable Rate: A variable rate loan or credit agreement, calls for an interest rate that may fluctuate over the life of the loan. The rate is often tied to an index that reflects changes in market rates of interest. A fluctuation in the rate causes changes in either the payments or the length of the term.

VAT (Value Added Tax): VAT seeks to tax the value added at every stage of manufacturing and sale, with a provision of refunding the amount of VAT already paid at the earlier stages to avoid double taxation. In other words, the tax already paid can be claimed at the next stage of value addition.

VCF:Venture Capital Fund.

Venture Capital Fund: A fund set up for the purpose of investing in startup businesses that is perceived to have excellent growth prospects but does not have access to capital markets.

Venture Capital: Commonly refers to funds that are invested by a third party in a business either as equity or as a form of secondary debt.

Verifier: The individual responsible for completing the funds transfer. An Office of the Treasurer staff member is the verifier on most electronic funds transfers.

Vertical Merger: A combination of firms, which operate at different levels or stages of the same industry manufacturer mergers with a type company (backward integration).

View Only User (GAH): These are GAH employees (GAH Users) who have been provided with ‘View only’ rights by the PM. These employees have an aggregated view of all the activities and risk limits of all transactional users under the respective GAH. It also includes view of issuance details and aggregate view of bidding and allocation details of all transactional users.

Virtual Banking: Virtual banking is also called internet banking, through which financial and banking services are accessed via internet's World Wide Web. It is called virtual banking because an internet bank has no boundaries of brick and mortar and it exists only on the internet.

Virtual Banking:Internet banking is sometimes known as virtual banking. It is called so because it has no bricks and boundaries. It is controlled by the world wide web.

Virus- a computer program usually hidden in an existing program. Once the existing program is executed, the virus program is activated and can attach itself to other programs or files. Viruses can range from benign activities such as attaching a harmless message to performing malicious activities such as destroying all the data on a computer hard drive. Viruses are commonly distributed as e-mail attachments which activate when the attachment is opened.

Visible Supply: The total dollar volume of new municipal bond issues coming up for sale within the next 30 days.

Vital Statistics: Vital statistics refers to those data which are associated with vital events of masses like birth, death, marriage divorce etc.

VRS:Voluntary Retirement Scheme

Warrant: An option for a longer period of time giving the buyer the right to buy a number of shares of common stock in company at a specified price for a specified period of time.

Wealth Tax: Wealth tax is that tax which is imposed on the value of total assets but the wealth upto a certain limit is exempted from such tax.

Welfare State: It refers to a nation that provides to all at least the minimum standards in respect of education, health, housing, pensions and other social benefits.

When-Issued Basis (WIB): Describes securities that are traded before they are actually issued, with the stipulation that thetransactions are null and void if the securities are not issued. Usually abbreviated to "w.i." following a market quotation for suchsecurities.

Wholesale Banking: Wholesale banking is different from Retail Banking as its focus is on providing for financial needs of industry and institutional clients.

Wholesale Banking:It is similar to retail banking with a slight difference that it mainly focuses on the financial needs of the institutional clients and the industry.

Wholesale Price Index: Wholesale Price Index is that index which is calculated on the basis of wholesale prices. It is calculated in a similar way to the Retail Price Index.

Winding up:Winding up of a company is done by paying the company’s creditors, and then distributing monies left (if any) among the members.

Window Dressing: Financial adjustments made solely for the purpose of accounting presentation, normally at the time of auditing of company accounts.

Winning Bid: The successful bid for a particular issue. Generally, it produces the lowest net interest cost (NIC) to a municipalborrower or offers the highest premium in a single coupon bid.

Wire transfer: A same day transfer of funds between financial institutions, conducted through the Federal Reserve’s Fedline system.

Wire transfer:An electronic payment service for transferring funds (for example, through the Federal Reserve Wire Network or the Clearing House Interbank Payments System).

With the Standard Setting: ATM withdrawals and everyday, non-recurring debit card transactions (individual debit card purchases such as at the grocery store or a one-time online purchase), will only be authorized when we determine you have enough available funds in your account or in your linked Overdraft Protection account at the time of the transaction. Otherwise, we typically decline the transaction and we do not charge an Overdraft Item fee.For other types of transactions-like checks, Bill Pay and other electronic payments, as well as recurring debit card payments-we may pay transactions when you don't have enough available funds in your checking account or linked Overdraft Protection account at the time of the transaction.If we pay a transaction that's larger than your Available Balance and it overdraws your account, this typically results in a charge for each overdraft item, unless you deposit enough available funds that day to cover the overdraft.If we return the item unpaid, this typically results in a NSF: Returned Item fee.

withdrawal -- An amount of money taken out of an account.

Worm - a software program capable of reproducing itself and spreading from one computer to another. Worms take advantage of automatic file sending and receiving features found on many computers. Note: A virus requires human intervention to transport to other devices – Worms do not.

Yield (Internal rate of Return): The compound annual rate of return earned by an investment.

Yield to maturity (YTM) or Yield: The Yield to maturity (YTM) is the yield promised to the bondholder on the assumption that the bond will be held to maturity and coupon payments will be reinvested at the YTM. It is a measure of the return of the bond.

Yield to Maturity: The average annual yield on a security, assuming it is held to maturity; equal to the rate at which all principal and interest payments would be discounted to produce a present value equal to the purchase price of the bond.

Yield: The annual rate of return on an investment, expressed as a percentage of the investment. Income yield is obtained by dividing the current dollar income by the current market price for the security. Net yield, or yield to maturity, is the current income yield minus any premium above par or plus any discount from par in the purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

Yield:(1) A measure of the income generated by a bond. The amount of interest paid on a bond divided by the price. (2) The rate of discount which makes the present value of the stream of future returns plus the terminal value of the asset equal to the current market price of the asset.

Zero Coupon Bond: A bond with no coupon that is sold at a deep discount from par value.

Zero Coupon Bond:A bond issued at a discount (i.e. below par value), earning no interest but redeemable at its par value, thus providing a guaranteed capital gain.

Zero Coupon Bond:It is a bond that is sold at good discount as it has no coupon.

Zero Coupon Bonds: Zeros do not pay periodic coupon payments. They are sold at a discount from face value. Interest income,which is received at maturity, is the difference between the purchase price and the amount at maturity.

Zero Liability Protection:If your credit or debit card is lost or stolen, and you report the loss promptly, you may not be responsible for fraudulent purchases made with your card. There is no charge for the Zero Liability Protection program and it is available on all Bank of America consumer credit cards, debit cards, and Home Equity line of credit access cards.Claims may only be filed against posted and settled transactions subject to dollar limits and subsequent verification, including providing all requested information supporting fraudulent use claim. For debit card transactions, claims must be reported within 60 days of the statement.

The above details describes about terms called in banking such as variable rate ,Value Added Tax,View Only User,Venture Capital Fund,Warrant,When-Issued Basis,Wholesale Price Index,Wire transfer,Yield to maturity,Zero Coupon Bonds 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.

 


The above information is a part of Export Import Training online


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Comments


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