Financial markets are dynamic environments where new instruments are constantly introduced and evolved to meet the diverse needs of investors and businesses. These “new financial instruments” play a significant role in resource mobilization and risk management, reflecting an increasing sophistication in financial transactions driven by factors like globalization and technological Read more
Factoring is fundamentally a financial service involving the conversion of credit bills into cash. It refers to the outright sale of accounts receivable to a factor or a financial agency. A factor is a firm that acquires the receivables of other firms, acting as a financial intermediary. This service is Read more
Mutual Funds are a significant part of the financial services sector, particularly in India, offering a way for individuals to invest in capital markets. A mutual fund is structured as a trust that pools the savings of many investors who share a common financial goal. The money collected is then Read more
Introduction to Venture Capital Financing Venture Capital (VC) financing is a new type of financial intermediary that emerged in India during the 1980s. It involves providing long-term financial assistance to projects established to introduce new products, inventions, ideas, and technology. Venture Capital finance is particularly suitable for risk-oriented businesses that Read more
Introduction to Financial Institutions In today’s financial services marketplace, a financial institution exists primarily to provide a wide variety of deposit, lending, and investment products to individuals, businesses, or both. They are defined as intermediaries that mobilize savings and facilitate the allocation of funds in an efficient manner. Financial institutions Read more
Book building is presented as an important price discovery mechanism used by corporates issuing securities. Its fundamental purpose is to discover the price of the issuer’s securities. It is described as one of the ways of raising finance by a company. Core Concept and Definition At its heart, book building Read more
Loan financing is presented as an important mode of finance raised by a company. Among the various types of loan financing, a significant source of debt financing for corporates is the syndicated loan. Core Concept and Definition A syndicated loan is essentially a loan that is availed from a group Read more
Bridge financing is described as a form of temporary financing. Its primary purpose is to cover a company’s short-term costs until regular long-term financing is secured. The term “bridge financing” is used because it acts like a bridge that connects a company to debt capital through short-term borrowings. Core Concept Read more
Loan financing is a fundamental mode by which companies raise funds. It is considered a part of Creditorship Securities, which refers to finance mobilized from creditors. Unlike equity financing where funds come from owners, loan financing involves borrowing money from external parties who become creditors of the company. Debentures and Read more
A debenture is fundamentally a document issued by a company acknowledging a debt. It is a certificate issued under the company’s seal that serves as evidence of this debt. Debentures are considered a part of Creditorship Securities, also known as debt finance, which refers to finance mobilized from creditors. The Read more