Accounting?

• A comprehensive system for recording and summarizing business transactions.

• process of identifying, measuring, and reporting financial information of an entity
• is the act of recording and reporting financial transactions, including the origination of the
transaction, its recognition, processing, and summarization in the financial statements.
• a convincing explanation that reveals basic causes; "he was unable to give a clear
accounting for his actions"
• a system that provides quantitative information about finances
• accountancy: the occupation of maintaining and auditing records and preparing financial
reports for a business
• a bookkeeper's chronological list of related debits and credits of a business; forms part of
a ledger of accounts
• account: a statement of recent transactions and the resulting balance; "they send me an
accounting every month"

Practice Accounts & types

Practice Note?

A note written by a lawyer or judge to help explain a legal matter.

Contract Note?

• The first document signed on buying a house is sometimes a Contract Note, instead of a
Contract of Sale. ...

• The day that a transaction takes place, the broker sends the client a document detailing
the transaction, including full title of the stock, price, consideration and stamp duty (if
applicable).

• A document sent to a buyer or seller listing details of the transaction.

• Contract note (also called broker's note) which a broker is required to send to a client
recording the details of a purchase or sale of shares including the commission payable,
the basic charge, the uncertificated securities tax (UST) as well as any other mandatory
charges and the settlement ...

Promoter?

• someone who is an active supporter and advocate

• showman: a sponsor who books and stages public entertainments
• The person or company that is promoting the investment. This term has certain legal
meanings under securities law, but is generally used to describe anyone who has a
vested interest in raising investment capital for a venture, either because they are a
founder or because they are being paid a commission on the funds raised.

Share?

• A unit of ownership in an equity or mutual fund. This ownership is represented by

a certificate, which names the shareowner and the company or fund. The number
of shares a company is authorized to issue is detailed in its corporate charter.
Most mutual funds can issue unlimited shares.
• Certificate evidencing ownership of a fraction of the capital of the company that
issued it. Shares can yield dividends and entitle the holder to vote at general
meetings. They may be listed on a stock exchange. Also known as a stock or an
equity. Haut de page
Portfolio Management?

• The budgetary funding mechanism for all business intelligence projects. It includes all BI
projects and all the reporting and analysis projects ...

• The processes, practices and specific activities to perform continuous and consistent
evaluation, prioritization, budgeting, and finally selection of investments that provide the
greatest value and contribution to the strategic interest of the organization. ...

• The aim of Portfolio Management is to achieve the maximum return from a portfolio which
has been delegated to be managed by an individual manager or financial institution. The
manager has to balance the parameters which define a good investment ie security,
liquidity and return. ...

• management of an entire portfolio of risks with the objective of balancing risks and
preventing their concentration in any country or sector.

• Portfolio Management is a major responsibility at the corporate level geared at the

analysis of the basic characteristics of the Portfolio of businesses of a firm, in order to
assign priorities for resource allocation. ...

• The portfolio management process involves formulating, modifying and implementing a

real estate investment strategy in light of an investor's broader overall investment
objectives. It also can be defined as the management of several properties owned by a
single entity. ...

• A business process by which a business unit decides on the mix of active projects,
staffing and dollar budget allocated to each project. See also pipeline management.

Mutual Funds?

• A fund that pools the money of its investors to buy a variety of securities.

• A security that gives small investors access to a well-diversified portfolio of shares,

bonds, and other securities. Each shareholder participates in the gain or loss of the fund.
Shares are issued and can be redeemed as needed.

• Pools of investment money, managed by professionals, and invested in a wide range of

securities.

• Unit trust; a common type of collective investment vehicle....more on Mutual funds

• a professionally managed investment in a group of stocks and/or bonds that are selected
and diversified to meet the stated objective of the fund.

• One method of spreading risk in equity investments. These funds hold relatively large
ownership blocks in many companies and professionally manage the funds entrusted to
them.

• These are mutually owned funds invested in diversified securities. Shareholders are
issued certificates as evidence of their ownership and participate proportionately in the
earnings of the fund.

• Invented in the 1920s, mutual funds are pools of money managed by an investment
company or advisor. Different mutual funds have different goals. For example, funds may
seek growth, growth and income, specific market cap sizes, sectors, etc.

• The fund's investment strategy category as stated in the prospectus. There are more than
20 standardized categories.

• These are open-end funds that are not listed for trading on a stock exchange and are
issued by companies which use their capital to invest in other companies. Mutual funds
sell their own new shares to investors and buy back their old shares upon redemption. ...
 • A mutual fund is a pooling of investor (shareholder) assets, which is professionally
managed by an investment company for the benefit of the fund's shareholders. Each fund
has specific investment objectives and associated risk. ...

• are a method of investing in various underlying investments such as stocks, bonds,

mortgages, treasury bills and real estate. Mutual funds provide the advantages of
professional investment management, liquidity, investment record keeping and
diversification. ...

• Typically consist of a group of stocks, bonds, or money-market securities from more than
one source. There are three types—income funds )for people who need money to live
on); growth funds (pay low dividends or one—works best for investors who can leave
money in the fund so it can grow over ...

Securities

• Paper certificates (definitive securities) or electronic records (book-entry securities)

evidencing ownership of equity (stocks) or debt ...

• General name for shares and bonds of all types. Shares produce a variable dividend and
bonds a fixed interest.

• General name for stocks, bonds, or ownership rights, such as options or futures, usually
sold through a broker.

• The common name for stocks, bonds, mutual funds and other investment vehicles.

• A general term that covers a variety of interests, including shares of stock, bonds,
debentures, and other forms of interest.

• Bonds, notes, mortgages, or other forms of negotiable or non-negotiable instruments.

• In general, any evidence of (1) an interest in corporate stock or stock rights or (2) an
interest in any note, bond, debenture or other evidence of indebtedness issued by a
government or corporation. For certain tax purposes, however, the definition is more
limited.

• Stocks and bonds that investors may purchase. Stocks pay the investor dividends (or
cost him losses) and give him partial ownership in a corporation. Bonds pay the investor a
set amount of interest over a certain amount of time. ...

• The volume of shares traded as a percentage of total shares listed on an exchange

during a period, usually a day or a year. The same ratio is applied to individual securities
and the portfolio of individual or institutional investors.

• this term is used for stocks, shares, debentures, and so on where there is a right to
receive interest or dividends from the investment.

• A security is a certificate of ownership in an investment. It can be transferred from one

person to another. Examples include notes, bonds, stocks, futures, contracts or options.

• A financial instrument which represents a claim over real assets or a future income
stream. Such instruments are usually tradeable. Examples of securities include bonds,
bills of exchange, promissory notes, certificates of deposit and shares.

• Paper assets representing a claim on something of value, such as stocks, bonds,

mortgages, etc.

• these are financial instruments (such as bonds or stocks) that can be traded freely on the
open market. 'Securitization' refers to the pooling of loans or assets for subsequent sale
to investors.

• group term for bonds and equities.

 • It is simply another word for bonds; stock and short-term investments.

• various assets such as stocks, bonds and money markets that allow holders to participate
in earnings, distribution of property or other corporate assets

• Securities on which a fixed rate of interest is paid each year.

• Securities refers to stocks, bonds and all related items, including promissory notes,
mortgages and insurance policies, if maintained rather than surrendered for cash.

• A security is a financial asset, such as shares, government stock, debentures and unit
trusts. A marketable security is one which can be traded on a stock exchange, such as
stocks and shares. ...

• A large proportion of debt in advanced economies has become securities. Income

yielding paper is sold in a primary market, which channels funds from surplus to deficit
units. Securities are tradable claims against the deficit unit.

• General name for all stocks and shares of all types. In common usage, stocks are fixed
interest securities and shares are the rest, although strictly speaking the distinction is that
stock is denominated in money terms.

• issuance or sale of stocks or bonds, also includes initial public offerings (IPOs) if
significant information is included in the article, also includes debt vehicles that are
securities backed.

• has the meaning assigned to it in clause (h) of section 2 of the Securities Contracts
(regulation ) Act, 1956 (42 of 1956);

• The term used for any financial instrument issued by the company and traded on the
Stock Exchange.

Gross Profit & Net Profit

GROSS PROFIT = [OPENING STOCK + PURCHASE ( PURCHAS -

PURCHASE RETURN) + DIRCET EXPENSES] - [SALES ( SALES -
SALES RETURN)+ CLOSING STOCK].

NET PROFIT = [GROSS PROFIT + INCOMES] - [EXPENDITURE]

GROSS PROFIT INCLUDED THE DIRECT EXPENSES.

NET PROFIT INCLUDED ONLY INDIRECT EXPENSES.

CALCULATION :

1. NET PROFIT = GROSS PROFIT + ALL INCOMES - ALL

EXPENDITURE.

2. GROSS PROFIT = NET PROFIT + ALL EXPENDITURE - ALL INCOMES

The terms ‘Gross Profit’ and ‘Net Profit’ are used in accounts and financial forecasts. Gross Profit
is often abbreviated as GP and Net Profit as NP. It is important to understand the difference
between the two. In simple terms, gross profit relates to what you sell, and the profit you make
after paying for these. Net Profit, is the profit you have left after deducting all costs.