In statistics, regression analysis is a statistical process for estimating the r

elationships among variables.

'Analysis Of Variance - ANOVA' A statistical analysis tool that separates the to
tal variability found within a data set into two components: random and systemat
ic factors. The random factors do not have any statistical influence on the give
n data set, while the systematic factors do.
In finance, a warrant is a security that entitles the holder to buy the underlyi
ng stock of the issuing company at a fixed exercise price until the expiry date.
Warrants and options are similar in that the two contractual financial instrumen
ts allow the holder special rights to buy securities. Both are discretionary and
have expiration dates. The word warrant simply means to "endow with the right",
which is only slightly different from the meaning of option.

Types of Derivative Instruments:

Derivative contracts are of several types. The most common types are forwards, f
utures, options and swap.
Forward Contracts
A forward contract is an agreement between two parties
a buyer and a seller to p
urchase or sell something at a later date at a price agreed upon today. Forward
contracts, sometimes called forward commitments , are very common in everyone li
fe. Any type of contractual agreement that calls for the future purchase of a go
od or service at a price agreed upon today and without the right of cancellation
is a forward contract.
Future Contracts
A futures contract is an agreement between two parties a buyer and a seller
to b
uy or sell something at a future date. The contact trades on a futures exchange
and is subject to a daily settlement procedure. Future contracts evolved out of
forward contracts and possess many of the same characteristics. Unlike forward c
ontracts, futures contracts trade on organized exchanges, called future markets.
Future contacts also differ from forward contacts in that they are subject to a
daily settlement procedure. In the daily settlement, investors who incur losses
pay them every day to investors who make profits.
Options Contracts
Options are of two types calls and puts. Calls give the buyer the right but not
the obligation to buy a given quantity of the underlying asset, at a given price
on or before a given future date. Puts give the buyer the right, but not the ob
ligation to sell a given quantity of the underlying asset at a given price on or
before a given date.
Swaps
Swaps are private agreements between two parties to exchange cash flows in the f
uture according to a prearranged formula. They can be regarded as portfolios of
forward contracts. The two commonly used swaps are interest rate swaps and curre
ncy swaps.
Interest rate swaps: These involve swapping only the interest related cash flows
between the parties in the same currency.
Currency swaps: These entail swapping both principal and interest between the pa
rties, with the cash flows in one direction being in a different currency than t
hose in the opposite direction.
SEBI Guidelines:
SEBI has laid the eligibility conditions for Derivative Exchange/Segment and its
Clearing Corporation/House to ensure that Derivative Exchange/Segment and Clear

ing Corporation/House provide a transparent trading environment, safety and inte

grity and provide facilities for redressal of investor grievances. Some of the i
mportant eligibility conditions are :
Derivative trading to take place through an on-line screen based Trading System.
The Derivatives Exchange/Segment shall have on-line surveillance capability to m
onitor positions, prices, and volumes on a real time basis so as to deter market
manipulation.
The Derivatives Exchange/ Segment should have arrangements for dissemination of
information about trades, quantities and quotes on a real time basis through at
least two information vending networks, which are easily accessible to investors
across the country.
The Derivatives Exchange/Segment should have arbitration and investor grievances
redressal mechanism operative from all the four areas/regions of the country.
The Derivatives Exchange/Segment should have satisfactory system of monitoring i
nvestor complaints and preventing irregularities in trading.
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Accounting conventions are standards, customs or guidelines regarding the applic

ation of accounting rules.
How it works/Example:
There are four widely recognized accounting conventions that guide accountants:
1. Be conservative. In other words, play it safe.
2. Disclose in full.
3. Be consistent. In other words, use the same method for calculating and repor
ting similar events.
4. Report everything that is important.