1, swap - , a swap is a derivative in which counterparties exchange certain benefits of one party's financial instrument for those of the

other party's financial instrument. 2. Currency swap- A currency swap involves exchanging principal and fixed rate interest payments on a loan in one currency for principal and fixed rate interest payments on an equal loan in another currency. 3. interest swap - It is the exchange of a fixed rate loan to a floating rate loan. The life of the swap can range from 2 years to over 15 years. 4. future a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today (the futures price or the strike price) with delivery occurring at a specified future date, the delivery date. a forward contract or simply a forward is a non-standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed today Strike and exercise price - strike price can be defined as the fixed price at which the owner of an option can purchase (in the case of a call), or sell (in the case of a put), the underlying security or commodity Systematic Risk, sometimes called market risk, aggregate risk, or undiversifiable risk, is the risk associated with aggregate market returns. Unsystematic Risk, sometimes called specific risk, idiosyncratic risk, residual risk, or diversifiable risk, is the company-specific or industry-specific risk in a portfolio, which is uncorrelated with aggregate market returns. A Lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset. HIRE PURCHASE (ABBREVIATED HP) is the legal term for a contract, in this persons usually agree to pay for goods in parts or a percentage at a time. Hire purchase differs from a mortgage and similar forms of lien Financial instrument : t is defined as 'any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity'. The Financial System is the system that allows the transfer of money between savers (and investors) and borrowers. A Financial Market is a mechanism that allows people and entities to buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect supply and demand.

A Zero-Coupon Bond (also called a discount bond or deep discount bond) is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. A bought out deal is a method of offering securities to the public through a sponsor (a bank, financial institution, or an individual) TREASURY BILLS (or T-Bills) mature in one year or less. Like zero-coupon bonds, they do not pay interest prior to maturity; instead they are sold at a discount of the par value to create a positive yield to maturity.. ABC ANALYSIS - it stands for Always Better Control. Policies based on ABC analysis: A ITEMS: very tight control and accurate records B ITEMS: LESS TIGHTLY CONTROLLED and good records C ITEMS: simplest controls possible and minimal records. The ABC analysis suggests that inventories of an organization are not of equal value An American depositary receipt (ADR) is a negotiable security that represents the underlying securities of a non-U.S. company that trades in the US financial markets. Individual shares of the securities of the foreign company represented by an ADR are called American depositary shares (ADSs). global depository receipt or global depositary receipt (GDR) is a certificate issued by a depository bank, which purchases shares of foreign companies and deposits it on the account. GDRs represent ownership of an underlying number of shares. ANNUITY (FINANCE THEORY): any terminating stream of fixed payments over a specified period of time In finance, THE BETA () of a stock or portfolio is a number describing the relation of its returns with those of the financial market as a whole. An asset has a Beta of zero if its returns change independently of changes in the market's returns the break-even point (BEP) exis the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even" buy back of share: The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buy back shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may be looking for a controlling stake. Capital gearing : degree to which a company acquires assets or to which it funds its ongoing operations with long- or short-term debt. Capital gearing is also known as "financial leverage".

The Operating Leverage is a measure of how revenue growth translates into growth in operating income. It is a measure of leverage, and of how risky (volatile) a company's operating income is. Leverage : The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment. COUPON RATE : the interest rate stated on a bond when it's issued. The coupon is typically paid semiannually. This is also referred to as the "coupon rate" or "coupon percent rate" A derivative instrument is a contract between two parties that specifies conditionsin particular, dates and the resulting values of the underlying variablesunder which payments, or payoffs, are to be made between the parties. A Hedge Fund is a private pool of capital actively managed by an investment adviser.[1] [2] Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators Factoring is a financial transaction whereby a business job sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. arbitrage ) is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices VENTURE CAPITAL (VC) is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as biotechnology, IT, software, etc.