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BUSINESS TERMINOLOGY - A - B

PUBLISHED BY: SURENDER KUMAR
OCTOBER 25, 2012

   
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 BUSINESS TERMINOLOGY - A - B

ARBITRATION

The act of adjudicating upon a dispute berween / among two or more parties by a competent person / tribunal / forum / court . For example, for labour disputes, typically, the disputes between the workforce and the management are taken to a Court of Arbitration. The person apointed to adjudicate upon such  a case is knwon as arbitrator.


 

ABRBITRAGE

The act of deriving financial benefit by buying and selling a certain commodity in two different markets at the same time.  

 

 

For instance, if a certain stock is quoting at Re. 100 /- at a particular time in the Bombay Stock Exchange and at Re. 101/- in the National Stock Exchange, buying from the former and selling in the latter would amount to arbitrage. However, such examples are very rare because such an arbitarge, if at all present, is plugged immediately due to market forces. Similarly, taking a personal loan to retire credit card rollover dues would be interest rate arbitrage because typically, the former carry a lower burden of interest rate vis a vis the latter.

 

APPRECIATION

The rise in the value of a physical (gold, real estate) or finncial asset (bond, stocks) with time. In currency markets, appreciation refers to the rise in the purchasing power of  a particular currency vis a vis a foreign currency in imports-export markets.

 

 

ASBA

Application Supported by Blocked Amount. A term used to describe the process of applying for an Initial Public Offer. In this process, the amount deposited by the investor is blocked by the bank and is released to the issuing company only when the shares are allocated. In the meantime, the invested amount keeps on earning interest during that duration of time. 

 

ANTI-TRUST LAW

Put simply, it is the US equivalent of the powers exercised by the Competition Commission of India.  Anti-trust laws work to maintain and nurture healthy market competition, prevent monopolies, cartels and other anti-competitive practices, decide such disputes and impose penalties, if required.

 

AMBUSH MARKETING

A form of marketing which involves riding piggyback on another company's marketing efforts to promote its own products. For example, the act of buying air time by a competitor around the slot booked by the principal sponsor, would constitute an act of ambush marketing. 

 

BASKET OF CURRENCIES

The group of foreign currencies in terms of which the Reserve Bank of India expresses the value of Indian rupee. The US dollar, pound and euro are part of this basket.

 

BRICS

The term refers to the emerging markets - Brazil, Russia, India, China. Analysts opine that this group of countries is expected to lead the next wave of global economic growth by posting superior growth rates.

 



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