CONCEPTS BUILDER!!!

HELLO EVERYONE

THIS THREAD HAS BEEN OPENED WITH ONLY ONE INTENTION TO CLEAR CONCEPTS OF EVERYONE!!

ITS QUIET SIMPLE.THERE ARE A LOT OF CONCEPTS WHICH WE COME ACROSS IN OUR DAILY LIFE, BUT WE DONT KNOW WHAT EXACTLY DO THEY MEAN, OR WHAT DO THE TERMS STAND FOR.THIS IS THE PLACE WHICH ONE CAN MAKE THEM CLEAR.

JUST WE EVERY MEMBER NEED TO POST AT LEAST ONE CONCEPT EVERYDAY WHICH ONE THINK'S EVERY ONE OVER HERE SHOULD KNOW. IT CAN BE FROM ANY CATEGORY, ANY SUBJECT, ANY THING BELOW THE SUN!!!

JUST A CONCEPT FROM EVERY MEMBER A DAY WILL HELP TO CREATE A COMPLETE CONCEPTS DIARY AND EVEN MORE THAN THAT WILL ENRICH OUR KNOWLEDGE.AS WE ALL KNOW THAT IN AN INTERVIEW THE INTERVIEWER CAN ASK ANY THING FROM ANYWHERE. SO LETS START THE PREPARATION FROM TODAY!!
ITS JUST A CONCEPT A DAY.

ITS A REQUEST TO MEMBERS,NOT TO POST ANY THING EXCEPT THE CONCEPTS.KEEP IT CLEAN.PLZ.
ALSO REGARDING ANY RECTIFICATIONS IN THE POSTS, PLZ PM TO THE PERSON WHO POSTED IT FOR EDITING IT, IF POSSIBLE.

EXPECTING A VERY GOOD RESPONSE FROM THE MEMBERS.
THANK YOU.

IPO - INTITIAL PUBLIC OFFER : its the first offer of equity shares ,during the lifetime of the company, that a company makes for subscription to the pubilc.

FPO - FOLLOW ON PUBLIc OFFER : its every offer of equity shares made by company to the public for subscription after its inital public offering(ipo).

Dumping : Act in which one country sells his products at a rate lesser than home markets than in foreign markets .

Eg : Chinese company sells battery for Rs.2 in china and Rs.1 in India.

BOOK VALUE : it is the net value of an organisation.it is the total value of all the assets of the company, that shareholders would theoritically receive if a company were liquidated today.

DIVIDEND : dividend represents a distribution of corporate earnings to the company's shareholder's.the profits are distributed to shareholders.

INTERIM DIVIDEND : dividend declared and paid between two annual general meetings of a company.this is declared by the board of directors, shareholders approval not required.

ANNUAL / FINAL DIVIDEND : dividend declared at the annual general meeting of the company, after the preparation of book of accounts.this is declared by the board of directors, but need to be approved by the shareholders.

Six Sigma : Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to represent standard deviation in statistics) from mean.
It allows for only 3.4 defects per million opportunities for each product or service transaction. Basically, a very high unrivalled efficiency level .

BPO : Business Process Outsourcing. Confused by many as the call centre industry.. it means outsourcing of any business process in an organisation.

Management By Objectives : Process through which specific goals are set collaboratively for the organization as a whole and ever unit and individual within it; the goals are than used as a basis for planning, managing organization activities, and assessing and rewarding contribution.

Angel Financing : Angels refers to private individuals who contribute their skills and money to start-up companies. Typically successful entrepreneurs, these investors offer expertise, experience/ contacts that can be invaluable to the new venture.

E- Learning : Learning and education through computers . Eg: www.ManagementParadise.com

KPO - Knowledge Process Outsourcing (KPO) is a form of outsourcing. It can be said that KPO is one step ahead of Business Processing Outsourcing (BPO). KPO firms provide domain-based processes and business expertise, rather than just process expertise.

In the future, it is envisaged that KPO has a high potential as it is not restricted only to Information Technology (IT) or Information Technology Enabled Services (ITES) sectors, and includes other sectors like Intellectual Property related services, Business Research and Analytics, Legal Research, Clinical Research, Publishing, Market Research, etc.

Greenshoe Option - Legally referred to as an over-allotment option, a provision contained in an underwriting agreement which gives the underwriter the right to sell investors more shares than originally planned by the issuer. This would normally be done if the demand for a security issue proves higher than expected.

A greenshoe option can provide additional price stability to a security issue, since the underwriter has the ability to increase supply and smooth out price fluctuations if demand surges too high.

The term is derived from the fact that the Green Shoe Company was the first to issue this type of option.

BONUS SHARES - In simple terms, a bonus share represents the extra or bonus number of shares that the existing shareholders are entitled to be given by the management of a company. A 3:1 bonus share allotment signifies 1 bonus share for every 3 shares held. After the bonus issue is done, the face value of the share remains unchanged but the market value goes down. Also the number of outstanding shares is increased.

STOCK SPLIT - A stock split basically means reduction in the face value of the share. For example, a share with face value of Rs 10 is now split into two with the face value now being Rs 5 each. This means that the total net worth of the company remains unchanged, but the number of outstanding shares increases and also the market value of the shares goes down.

American Depositary Receipts (ADRs)


An American Depositary Receipt (ADR) is a share of stock of an investment in shares of a non-US corporation. The shares of the non-US corporation trade on a non-US exchange, while the ADRs, perhaps somewhat obviously, trade on a US exchange. This mechanism makes it straightforward for a US investor to invest in a foreign issue. ADRs were first introduced in 1927.

Two banks are generally involved in maintaining an ADR on a US exchange: an investment bank and a depositary bank. The investment bank purchases the foreign shares and offers them for sale in the US. The depositary bank handles the issuance and cancellation of ADRs certificates backed by ordinary shares based on investor orders, as well as other services provided to an issuer of ADRs, but is not involved in selling the ADRs.

To establish an ADR, an investment bank arranges to buy the shares on a foreign market and issue the ADRs on the US markets.

For example, BigCitibank might purchase 25 million shares of a non-US stock. Call it Infosys Technologies Limited (INFOSYS). Perhaps INFOSYS trades on the Paris exchange, where BigCitibank bought them. BigCitibank would then register with the SEC and offer for sale shares of INFOSYS ADRs.

White Knight - In business, a white knight may be a corporation, a private company, or a person that intends to help another firm. There are many types of white knights.

The first type refers to the friendly acquirer of a target firm in a hostile takeover attempt by another firm. The intention of the acquisition is to circumvent the takeover of the object of interest by a third, unfriendly entity, which is perceived to be less favorable. The knight might defeat the undesirable entity by offering a higher and more enticing bid, or strike a favorable deal with the management of the object of acquisition.

In short, if Company T (target) is going to be acquired by Company H (hostile firm), but Company A (acquirer) can acquire ownership of Company T, then Company A would be acting as the white knight.

The second type refers to the acquirer of a struggling firm that may not necessarily be under threat by a hostile firm. The financial standing of the struggling firm could prevent any other entity being interested in an acquisition. The firm may already have huge debts to pay to its creditors, or worse, may already be bankrupt. In such a case, the knight, under huge risk, acquires the firm that is in crisis. After acquisition, the knight then rebuilds the firm, or integrates it unto itself.

In case of Arcelor-Mittal deal, Severstal has entered as the White Knight. Lets c how that saga ends...