Category Archives: Banking Awareness

Financial Products in the Secondary Market

Financial Products in Secondary Market The following are the main financial products/instruments dealt in the secondary market. Equity : Equity, one of the important financial products is the ownership interest…

What is Secondary Market ?

Secondary Market : Capital market is divided into the Primary Market and the Secondary Market. Secondary Market refers to a market where securities are traded after being initially offered to the…

What is Primary Market ?

Primary Market : Capital market is dived into the Primary Market and the Secondary Market. Primary Market is a part of Capital market. Here the securities (shares/bonds/debentures) are offered to the…

What is Capital Market

Capital Market Capital Market is a market for long-term debt and equity shares. One can issue and trade capital funds compromising both equity and debt in this market. This also…

Stock Exchanges in India

Stock Exchanges : Stock exchanges are an Organised and regulated Financial market, in simpler terms an exchange where securities such as bonds, shares and notes were bought and sold by…

Types of Factoring

There are two types of factoring services, Recourse factoring (with recourse ) and non-recourse factoring (without recourse). In recourse factoring, in the case of non-payment of invoices by customers, the…

What is Factoring ?

Factoring is a service that is concerned with the financing and collection of account receivables in domestic and International trade. Factoring is a continuous arrangement in which receivables created out…

Non-Banking Financial Companies (NBFCs)

NBFCs are allowed to raise deposits from the public and lend through various instruments including leasing, hire purchase and bill discounting etc. These are licensed and supervised by the Central…

Primary Dealers (PDs)

Primary dealers also known as PDs, deal in government securities and deal in both primary and secondary markets. Their basic responsibility is to provide markets for government securities and strengthen…

Cooperative Banks

Initially set up to supplant indigenous sources of rural credit, particularly money lenders, today they mostly serve the needs of agriculture and allied activities, rural-based industries and to a lesser…

What is Rajiv Gandhi Equity Savings Scheme ?

Rajiv Gandhi Equity Savings Scheme (RGESS) is a new equity tax advantage savings scheme with the objective of encouraging the savings of small investors in the domestic Capital Markets. The…