Saturday, 23 August 2014

BASIC ACCOUNTING & FINANCE INTERVIEW SHORT QUESTIONS (191-200)



191 Market Capitalization : market capitalization means number of shares issued multiplied with market price per share.

192. Price Earning Ratio : the ratio between the share price and the post tax earnings of company is called as price earning ratio.

193. Dividend Yield : the dividend paid out by the company, is usually a  percentage of the face value of a share.

194  Market Risk : it refers to the risk which the investor is exposed to as a result of adverse  movements in the interest rates. It also referred to as the interest rate risk.

195  Re-Investment Risk : it the risk which an investor has to face as a result of a fall in the interest rates at the time of reinvesting the interest income flows from the fixed income security.  

196 Call Risk : call risk is associated with bonds have an embedded call option in them. This option hives the issuer the right to call back the bonds prior to maturity.

197  Credit Risk : credit risk refers to the probability that a borrower could default on            a commitment to repay debt or band loans

198 Inflation Risk : inflation risk reflects the changes in the purchasing power of the cash flows resulting from the fixed income security.

199 Liquid Risk : it is also called market risk, it refers to the ease with which bonds could be traded in the market.


200 Drawings : drawings denotes the money withdrawn by the proprietor from the business for his personal use.

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