Terms used in banking business such as Special Drawing Rights,Special Purpose Vehicle,Spyware,Speculation etc


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The terms used in banking business such as Special Drawing Rights,Special Purpose Vehicle,Spyware,Speculation etc.


Terms used in banking business such as Special Drawing Rights,Special Purpose Vehicle,Spyware,Speculation etcThis post explains about terms used in banking such as Service Provider, Settlement, Share Capital,Shoulder surfing ,Site certificates,Statutory Liquidity Ratio,Special Drawing Rights,Special Purpose Vehicle,Spyware,Speculation 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

Service Provider: The organization which provides the outsourced service.

Settlement Date: Date of electronic funds transfer that determine the availability of funds.

Settlement: Conclusion of a securities transaction when a customer pays a broker/dealer for securities purchased or delivered, securities sold, and receive from the broker the proceeds of a sale.

Settlement: once a deal has been made and clearing taken place, stock and cash transfer between seller and buyer.

SEZ: Specific Economic Zone.

SFC:State Financial Corporation.

Shadow Price: It is an imputed value for a good based on the opportunity costs of the resources used to produce it such values are of particular significance in resolving problems of resource allocating with respect to the effect on welfare.

Share Capital: It is the amount of money raised by a company by issuing shares. The authorized share capital is the amount that a company is allowed to issue as laid down in its Articles of Association. The issued share capital is the amount actually issued i.e., the number of issued shares multiplied by their par value. Fully paid share capital is the amount raised by payment of the full par value of the issued shares.

Short Covering: Buying back securities that were previously sold, to make delivery on a short sale.

Short Hedge: A transaction that protects the value of an asset held by taking a short position in a futures contract.

Short Position: Investors sell securities in the hope that they will decrease in value and can be bought at a later date for profit.

Short Sale: The sale of a security that is not owned by the seller on the expectation that the security can be bought or borrowed . The short seller's intent is to profit by buying the security at a lower price than it sold for.

Short selling: when investors borrow an asset, such as shares, from another investor and then sell it in the relevant market hoping the price will fall. The aim is to buy back the asset at a lower price and return it to its owner, pocketing the difference.

Short-term Loan: Loan to a business for less than one year, usually for operating needs.

Shoulder surfing - the activity of anyone observing what you are doing on a computer or ATM. They may stand or sit closely behind you to watch you when you input personal details.

SICA:Sick Industrial Companies (Special Provisions) Act.


Simple interest: The interest calculated only on the principal funds that have been deposited in the account; no interest is earned on interest that has already been earned on the principal

Single Order Limit (SOL) for Trades: SOL shall mean the maximum order quantity (in terms of face value) that can be placed by the concerned user through a single order.

Single Tax System: It is a system in which all tax revenues are raised from one form of taxation.

Sinking Fund: A reserve fund set aside over a period of time for the purpose of liquidating or retiring an obligation, such as a bond issue, at maturity.

Site certificates - provide reassurance that the site being visited is genuine. A site certificate is required in the web browser and on the web server in order that a secure session can be started and communication can take place. To check the site certificate on a secure website, double-click the padlock symbol at the bottom right of your browser window to display site certificate information. For example, when you log on to the BoQ Internet banking site and double-click the padlock symbol, a window will appear that will show that the site certificate is issued to ‘www.boq.com.au’, issued by ‘verisign’ and the validity dates.

Slippage Ratio: (Fresh accretion of NPAs during the year/Total standard assets at the beginning of the year)*100

SLR - SLR stands for Statutory Liquidity Ratio. This term is used by bankers and indicates the minimum percentage of deposits that the bank has to maintain in form of gold, cash or other approved securities. Thus, we can say that it is ratio of cash and some other approved to liabilities (deposits). It regulates the credit growth in India.

SLR (Statutory Liquidity Ratio): It is amount that a commercial bank should have before giving credits to its customers which should be either in the form of gold,money or bonds.

Social Insurance Number (SIN): An identification number provided by the government of Canada to every Canadian who earns income and pays taxes.

Social Security: Provision by the state out of taxation of welfare assistance to those in need as a result of illness, unemployment, or old age compare national insurance refers to social security.

Socialism: The political doctrine that the means of production (machines, materials and output) should be owned by society and specifically either by the state, as in the case of nationalized industries or by the workers directly, as in the case of producer co-operatives.

Society for Worldwide Interbank Financial Telecommunications (S.W.I.F.T.): The major international financial telecommunications network that transmits international payment instructions as well as other international financial messages.

Soft Currency:A currency with limited convertibility into gold and other currencies, either because it is depreciating due to balance of payments difficulties or because controls have been placed on it to prevent the exchange rate falling.

Spam - unwanted and unsolicited email. The electronic equivalent of paper junk mail.

Special Assessment Bonds: Bonds that are paid back from taxes on a property that is being improved with funds financed by the bonds. The issuing governmental entity agrees to make the assessments and to earmark the tax proceeds to repay the debt on these bonds.

Special Drawing Rights (SDRs):It is a reserve asset (known as ‘Paper Gold’) created within the framework of the International Monetary Fund in an attempt to increase international liquidity, and now forming a part of countries official reserves along with gold, reserve positions in the IMF and convertible foreign currencies.

Special Purpose Vehicle (SPV): An entity which may be a trust, company or other entity constituted or established by a 'Deed' or 'Agreement' for a specific purpose.

Special Purpose Vehicle: A legal corporate entity created to buy loans from banks. It finances itself with securities issued to investors.

Special Tax (Unit Tax):It is a tax imposed per unit of a commodity rather than on the value of the commodity compare ad-valorem.

Special Tax Bond: A bond secured by a special tax, such as a gasoline tax.

Speculation: The process of buying investment vehicles in which the future value and level of expected earnings are highly uncertain.

Spread: difference between bid and offer price – one way in which banks make profits.

Spread: The difference between two figures or percentages. For example, the difference between the bid and asked prices of a quote or between the amount paid when a security is bought and the amount received when it is sold.

Spyware - any software which covertly gathers user information through the user's Internet connection without his or her knowledge, usually for advertising purposes. Spyware applications are typically bundled as a hidden component of freeware or shareware programs which can be downloaded from the Internet. Once installed, the spyware monitors user activity on the Internet and transmits that information in the background to someone else. Spyware can also gather information about email addresses and even passwords and credit card numbers. Also known as adware.

The above details describes about terms called in banking such as Service Provider, Settlement, Share Capital,Shoulder surfing ,Site certificates,Statutory Liquidity Ratio,Special Drawing Rights,Special Purpose Vehicle,Spyware,Speculation 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 Online Tutorial

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