A

An Asset-Liability Committee (ALCO) is a senior management or board-level committee responsible for managing a bank's balance sheet risks, including interest ra

An Asset Management Company (AMC) is a financial institution that pools money from multiple investors and deploys it into a diversified portfolio of stocks, bon

Anti-money laundering (AML) refers to the set of laws, regulations, and procedures designed to prevent the conversion of illegally obtained money into seemingly

ASBA (Applications Supported by Blocked Amount) is a SEBI-mandated process that allows investors to apply for IPOs, rights issues, and debt securities without i

An Automated Teller Machine (ATM) is a self-service electronic kiosk that allows customers to perform banking transactions without visiting a bank branch or int

An ATM card is a PIN-secured debit card issued by a bank that allows account holders to withdraw cash from Automated Teller Machines (ATMs) and make point-of-sa

The Aadhaar Enabled Payment System (AePS) is a payment and banking service that allows Aadhaar cardholders to withdraw cash, check account balance, and make tra

Abatement refers to a reduction in the amount of tax, penalty, or other charges that you owe, often granted by the government to provide relief. In India, for i

A bond trades above par when its market price exceeds its face value (also called par value or principal). This happens when the bond's coupon rate is higher th

Absenteeism is the habitual or frequent absence of an employee from work without valid reason or prior authorization. In banking and financial services, absente

Absolute value is the intrinsic worth of a company determined by analyzing its expected future cash flows and discounting them to today's rupees. Unlike relativ

Absorption costing is an accounting method that assigns all manufacturing costs—both variable and fixed—to products manufactured during a period. Under this app

An abstract of title is a chronological summary of all legal documents, ownership transfers, claims, and encumbrances affecting a specific property from its ori

Accelerated benefits are provisions in life insurance policies that allow policyholders to receive a portion of their death benefit while still alive, triggered

Acceptance is a contractual commitment by a buyer (usually an importer) to pay for goods at a specified future date, typically evidenced by signing or writing "

Accepting risk is a deliberate business decision to retain and manage the financial or operational consequences of a particular risk rather than transferring, a

Accidental means is an insurance policy condition that requires a covered loss to result from an unforeseen, unintentional event—not from a deliberate act or ne

Account history is the complete record of all transactions and activities within a bank account from its opening until the present date. It includes deposits, w

An account inquiry is a formal review of a bank account or credit account to verify its status, transaction history, and financial standing. Account inquiries a

Accounting is the systematic process of recording, classifying, summarizing, and reporting financial transactions of a business or organization to produce finan

The accounting cycle is the eight-step systematic process through which a company or financial institution identifies, records, and reports all financial transa

The accounting equation states that a company's total assets equal the sum of its liabilities and equity (capital). This fundamental principle ensures that ever

An accounting method is the systematic approach a business uses to record and report its revenues and expenses in financial statements. The two primary methods

Accounting policies are the specific methods, principles, and procedures that a company chooses to prepare and present its financial statements within a regulat

Accounting principles are the foundational rules and concepts that guide how financial transactions are recorded, reported, and interpreted by organizations. Th

Accounting software is a digital application that automates the recording, processing, and management of financial transactions and accounting records for a bus

An accredited investor is a person or organization that meets strict regulatory criteria and is permitted to invest in securities not available to the general p

Accretion is the gradual increase in the value of an asset, investment, or company over time through organic growth, acquisitions, or the accumulation of earnin

Accrual accounting is a method of recording business transactions at the moment they occur, regardless of when cash is received or paid. Under this system, reve

Accruals are expenses incurred or revenues earned in the current accounting period that have not yet been paid or received in cash, and therefore require adjust

Accrue means to recognize and record revenue or expense in the accounting books before the cash is actually received or paid. It is the process of accumulating

Accrued income is revenue earned by an individual or business in a specific accounting period, but not yet received in cash. Under accrual accounting, income is

Accumulated depreciation is the total amount of depreciation expense recorded against an asset since it was acquired or put into use. It is a contra-asset accou

Accumulation is the process of gradually building up a position in an asset, security, or investment over time through multiple transactions. In financial marke

An acquisition occurs when one company purchases another company by buying its shares, assets, or control stake, thereby gaining decision-making authority over

Active income is money earned through direct personal effort, work, or active participation in a business or profession. Examples include salaries, wages, bonus

An active index fund is a hybrid investment fund that starts with a basket of securities matching a benchmark index (like the Nifty 50 or Sensex) but then adds

Actuals are the physical commodities that form the underlying basis of a futures contract—the real goods being bought and sold, as opposed to the contract itsel

Actuarial science is the branch of mathematics and statistics that quantifies financial risk arising from uncertain future events, particularly in insurance, pe

Actuarial service is the application of mathematical, statistical, and financial analysis to measure and quantify the financial impact of uncertain future event

Ad infinitum is a Latin phrase meaning "forever" or "to infinity," used in finance to describe cash flows or returns that continue indefinitely without a termin

Ad valorem tax is a tax levied as a percentage of the assessed value of an asset, most commonly real property, personal property, or imported goods. The term co

Adjusted EBITDA is a company's operating profit after removing the impact of interest, taxes, depreciation, amortization, and one-time or non-recurring expenses

Adjustment is the deliberate intervention by a country's central bank to stabilize or modify its currency's exchange rate in the foreign exchange market. When a

Administrative law is the branch of public law that regulates the organisation, powers, functions and procedures of government agencies and executive authoritie

An advance payment is money paid by a buyer to a seller before goods are delivered or services are rendered. It protects the seller against credit risk and non-

Adverse selection occurs when one party in a transaction has more or better information than the other party, leading to an imbalance that distorts the deal. In

An advertorial is paid promotional content that is written and formatted to resemble editorial material such as a news article, feature story, or opinion piece,

An advisor account is an investment account where a qualified financial professional or firm manages the client's portfolio and provides personalized investment

An advisor fee is the charge paid to a financial or investment professional for providing personalized guidance on investment decisions, portfolio management, a

Advisory management is the practice of providing professional investment guidance and portfolio oversight to individuals, businesses, and institutional clients.

Adware is software that displays advertisements on your device screen and collects browsing data to serve targeted ads. It generates revenue by showing ads to u

An Affidavit of Title is a sworn legal declaration by a property seller confirming their sole ownership of the property, freedom from encumbrances, and absence

An affiliate is a company or entity that is connected to another company through ownership, control, or a common parent entity, but where one does not wholly ow

Affiliate fraud is the deliberate misrepresentation or manipulation of affiliate marketing activities to generate undeserved commissions without delivering genu

Affiliate marketing is a performance-based digital marketing model where third-party publishers (called affiliates) promote a company's products or services and

Against actual is a futures market transaction in which two parties exchange a futures contract for an equivalent cash position in the same underlying commodity

An agency problem arises when a person or entity (the agent) entrusted to act on behalf of another (the principal) has conflicting financial or personal interes

An agent bank is a financial institution authorised to perform banking and financial services on behalf of another bank, corporation, or individual. Agent banks

Aggregate demand is the total monetary value of all goods and services demanded by consumers, businesses, government, and net exporters in an economy at a given

An aggregator is a financial institution that purchases individual mortgages from multiple originators (typically banks and housing finance companies), pools th

An aggressor is a trader who immediately executes a buy or sell order at the current market price, taking liquidity from the market rather than providing it. Ag

Aging is an accounting method that categorizes a company's accounts receivable by the number of days invoices remain unpaid, helping businesses identify overdue

Agmark is India's official quality certification mark for agricultural products, issued by the Directorate of Marketing & Inspection (DMI) under the Agricultura

An aleatory contract is an agreement between two parties where the obligations and payouts depend entirely on the occurrence of an uncertain event that neither

Algorithmic trading is the use of computer programs and mathematical rules to automatically execute buy and sell orders in financial markets based on predefined

Allotment is the process of distributing a specified number of shares to underwriters, institutional investors, or applicants during an Initial Public Offering

An alpha generator is any investment security or asset that delivers returns above a chosen benchmark without adding proportional risk to your portfolio. It can

An altcoin is any cryptocurrency other than Bitcoin that operates on a blockchain and uses cryptographic security to facilitate peer-to-peer transactions. The t

An altered cheque is a negotiable instrument that has been deliberately and materially changed—such as the payee name, amount, or date—to commit fraud. Banks di

Alternative Dispute Resolution (ADR) is a structured process that allows insurance claimants and insurers to resolve disputes without going to court. ADR covers

Alternative investments are financial assets that sit outside the traditional categories of stocks, bonds, and cash. They include hedge funds, private equity, r

Alternative Minimum Tax (AMT) is a parallel tax system that ensures companies and eligible entities pay a baseline level of income tax even when they reduce the

The Altman Z-Score is a statistical model that predicts the likelihood of a company going bankrupt within two years by combining five weighted financial ratios

Amalgamation is the process by which two or more companies cease to exist as separate legal entities and combine to form an entirely new company, which inherits

An amendment is a formal change, addition, or correction made to an existing contract, agreement, or legal document without replacing the entire original docume

An American Express Card (AmEx) is a payment card issued directly by American Express, a global financial services company, rather than through a traditional ba

Amortisation is the process of spreading the cost of a loan or intangible asset over a fixed period through regular payments or accounting entries. In lending,

Analysis paralysis is a state of inaction where an investor or decision-maker becomes so focused on gathering and examining data that they fail to make a timely

Anarchy is the absence of a central authority or governing power capable of enforcing rules and settling disputes among sovereign states. In international relat

Anchoring is a cognitive bias in which an investor or financial professional relies too heavily on an initial piece of information—often irrelevant or outdated—

Annual accounts are the complete set of financial statements that a company must prepare and file at the end of each financial year to disclose its financial pe

An annual budget is a financial plan that estimates an organization's income and expenses for the upcoming financial year. It serves as a roadmap that aligns sp

Annual Percentage Rate (APR) is the yearly cost of borrowing money, expressed as a percentage of the principal amount. It includes the interest rate plus all ot

An annual report is a comprehensive document that a listed company must publish every financial year to disclose its financial performance, operational activiti

An annuity is a financial contract between an individual and an insurance company in which the individual pays a lump sum or regular premiums, and the insurer g

An antedate is a date deliberately placed on a cheque, promissory note, bill of exchange, or other legal/financial document that is earlier than the actual date

Applied Economics is the practical use of economic theories, models, and data analysis to solve real-world financial and business problems in industries, enterp

Apportionment is the systematic distribution of shared costs, revenues, or expenses across multiple cost centres, departments, or business units on a fair and p

Appraisal fraud is the deliberate misstatement of a property's value by an appraiser, buyer, seller, or other party to inflate or deflate its assessed price bey

Appraised value is an independent, professional estimate of a property's worth at a specific point in time, conducted by a qualified appraiser during the mortga

Appreciation is an increase in the value of an asset or investment over time. It occurs when the market price of a stock, bond, property, currency, or other cap

An appurtenance is a tangible item or right that is physically attached to or legally belongs with a principal property and transfers automatically when that pr

Arbitrage is the simultaneous buying and selling of the same or equivalent asset across different markets to profit from price differences, with zero or minimal

An arbitrageur is a trader or investor who profits from price differences of the same asset across different markets or time periods by executing simultaneous t

Arraignment is a formal court proceeding in which a defendant is brought before a judge, informed of the charges against them, and asked to enter a plea of guil

The Articles of Association (AoA) is the internal rulebook of a company that defines how it will be managed, how decisions will be made, and what rights and dut

Assessable profit is the income on which a taxpayer must pay income tax in a given financial year after accounting for allowable deductions and exemptions. It i

An asset is any resource of economic value owned or controlled by a person, business, or entity with the expectation that it will generate future cash flows, re

Asset allocation is the strategy of dividing an investment portfolio across different asset classes—equities, fixed income, and cash equivalents—based on your f

An asset class is a group of investments with similar legal treatment, risk-return characteristics, and market behavior that are grouped together for investment

Asset financing is a method by which a company borrows money using its existing balance sheet assets—such as accounts receivable, inventory, or short-term inves

Asset management is the professional service of investing and managing a client's money and securities with the goal of growing wealth while controlling risk. A

The asset turnover ratio measures how efficiently a company generates revenue from its total assets by dividing annual net sales by average total assets. A high

Asset-Backed Commercial Paper (ABCP) is a short-term money market security with a maturity of 90 to 270 days, issued by a special purpose vehicle (SPV) and back

Asset/liability management (ALM) is a strategic process used by financial institutions and organizations to align the timing and volume of cash inflows from ass

Asset/Liability Management (ALM) is a strategic framework that banks and financial institutions use to balance their assets and liabilities in a way that reduce

An assignor is a person, business, or entity that transfers its contractual rights, duties, or property interests to another party, called the assignee. The ass

Assimilation is the process by which newly issued shares are absorbed and distributed to public investors after an underwriter acquires them from the issuing co

An asteroid event is a sudden, unpredictable occurrence that has severe negative consequences for a business, characterized by high risk and outcomes that canno

Asymmetric information occurs when one party to a financial transaction has more or better information than the other party. In banking and finance, this knowle

An at-the-market (ATM) order is an instruction to buy or sell a security immediately at the current bid or ask price prevailing in the market. The order execute

Attachment is a court order that freezes or seizes a defendant's property (assets, bank accounts, vehicles, or real estate) before a final judgment is delivered

Attornment is the legal act by which a tenant formally recognizes and accepts a new property owner as their landlord following a change in ownership. In real es

Attrition is the gradual reduction in workforce or customer base that occurs when employees leave through retirement or resignation and are not replaced, or whe

An auction is a competitive bidding process in which a seller offers an asset, service, or property to multiple buyers, who submit bids to determine the final p

An audit is an independent examination of an organization's financial records, statements, and internal controls to verify their accuracy, completeness, and com

An Audit Committee is a sub-committee of a company's Board of Directors tasked with overseeing the accuracy and integrity of financial reporting, internal contr

Audit risk is the possibility that an auditor will issue an unqualified opinion on financial statements that contain material misstatements. It represents the g

An audit trail is a complete, chronological record of all transactions, activities, and system changes made by users within a financial or IT system. It documen

An auditor is an independent professional qualified to examine financial records, verify their accuracy, and confirm that an organisation complies with applicab

Austerity refers to a set of strict fiscal policies a government implements to reduce its budget deficit and control public debt levels, typically by cutting sp

Authorised capital is the maximum amount of share capital a company is permitted to issue to shareholders, as defined in its Memorandum of Association (MoA). It

Authorised share capital is the maximum rupee value or number of shares that a company is legally permitted to issue to investors, as stated in its Memorandum o

The authorization date is the specific date on which a credit card issuer approves a transaction initiated by a cardholder. It is the date the issuer's system c

An Authorized Participant (AP) is a financial institution or market maker licensed by an ETF issuer to create and redeem ETF shares directly, thereby managing t

An auto industry ETF is an exchange-traded fund that holds a basket of stocks from companies engaged in automobile manufacturing, component supply, distribution

Autocratic leadership is a management style in which a single leader makes decisions unilaterally with little or no input from team members, subordinates, or st

An Automated Valuation Model (AVM) is a computer-based system that estimates the market value of a property in seconds by analyzing historical data, comparable

An automatic savings plan is a banking arrangement in which a fixed sum of money is automatically transferred from a person's salary or current account to a des

An automatic stabilizer is a government fiscal mechanism—such as progressive income tax or unemployment benefits—that reduces the severity of economic booms and

Autonomous expenditure is spending that a household, firm, government, or foreign entity must make regardless of its current income or output level. These are b

The average collection period is the number of days a business takes to collect payment from customers after a sale has been made on credit. It measures how qui

The average daily balance method calculates interest or finance charges on a loan or credit facility by tracking the account balance at the end of each day duri

Average propensity to consume (APC) is the percentage of total disposable income that a household or individual spends on consumption of goods and services in a

Average return is the arithmetic mean of all returns generated by an investment over a specific period. It is calculated by adding together all the periodic ret

Average cost is the total cost of production divided by the number of units produced. It tells a business how much each unit costs to make, including both fixed

An abridged prospectus is a condensed summary document that captures the essential details of a full prospectus, filed with stock exchanges when a company makes

The acid test ratio measures a company's ability to pay its short-term obligations using only its most liquid assets—cash, receivables, and short-term investmen

An amortization schedule is a detailed table showing how a loan is repaid over time through a series of periodic payments, breaking down each payment into princ

An ANOVA test (Analysis of Variance) is a statistical method used to compare the means of three or more groups and determine whether differences between them ar

Artificial intelligence (AI) is the capability of machines to perform tasks that typically require human intelligence, such as learning, reasoning, pattern reco

An artificial neural network (ANN) is a computational system inspired by the structure and function of biological neurons in the human brain, designed to proces

Augmented Reality (AR) is a technology that overlays digital elements—images, text, 3D models, or interactive content—onto the real world as viewed through a de