Definitions and ExplanationsWhat is Cash Flow? Cash flow is basically a financial term that involves all the cash of a particular company including those that are created or received and those that are spent as operations expense. And since it involves all the cash that a company is able to generate and spend, cash flow figures can [...]
What is HDFC? HDFC stands for “Housing Development Finance Corporation” and it refers to one of India’s biggest financial services organization. The HDFC Bank was incorporated back in 1994 and was one of the first to be allowed by the Reserve Bank of India to operate as a private organization. This came after India’s banking [...]
What is FDIC Insured? FDIC insured refers to the state or condition that you are already entitled to the different rights and privileges of the insurance provider. FDIC refers to the Federal Deposit Insurance Corporation. This organization is responsible for preserving and promoting the public confidence especially in the financial system of the United States [...]
What is cost of capital? Cost of capital is the expected return to project investors after providing funds for a particular business venture. In a business setup, the end goal always is to earn some profit from any activity or investment. If a business wants to spend on a new project using capital, it expects [...]
When listening to conversations on financial matters, the term equity is more than likely to come up. Most of us will be very familiar with the term but there is a very good chance that many among us cannot comfortably define it or explain what exactly equity is all about. The most basic definition of [...]
What is Escrow? Escrow is a form of transaction where a middleman or third party is involved in handling the transactions between two or more parties. The word “Escrow” comes from the French word “escroue” which literally means a piece of paper, which signifies a deed which the third party “holds on to” until a [...]
What is Quantitative Easing? Quantitative easing is a term used in finance and economics where a country’s central bank takes action to boost a country’s economy by increasing the supply of money. This is done when bank interests have gone to almost 0% and the desired result still has not been achieved. Quantitative easing was [...]
Not many people understand how credit scores are calculated, what qualifies one for a good credit score or a bad one. Mostly we simply accept what the report says without really understanding the reason for the rating awarded to us. The credit bureaus have a well defined guideline that is used to award credit scores. [...]
