Author Archives: Gopika

Capital Market Provides long term finance Finance may be used for acquiring fixed assets or for financing hard core working capital requirements Lending and borrowing are for real business purpose, diversification, expansion, modernisation, mechani- sation programmes, etc. Underwriting may be insisted and often comes to the picture Capital market instruments are Government Securities, Industrial SecuritiesContinue reading “DIFFERENCE BETWEEN CAPITAL MARKET & MONEY MARKET”

Introduction to Capital Market Financial market is a major component of the financial system of a country.It is a place where people and organisations wanting to borrow money are brought together with those having surplus funds. The financial markets may be classified into organised markets and unorganised markets. The organised markets are strictly supervised andContinue reading “CAPITAL MARKET”

Introduction about Money Market Money market is a market where money is bought and sold. It is a market forshort term money and financial assets that are close substitutes for money.The market does not have a place like the stock market or commodities market.The activity of trading is mostly done through telephones. Every organisation doingContinue reading “MONEY MARKET”

Society For Worldwide Inter Bank Financial Telecommunication (SWIFT) SWIFT is the Society for Worldwide Interbank Financial Telecommunication, a member- owned cooperative through which the financial world conducts its business operations with speed, certainty and confidence. More than 10,800 banking organizations, securities institutions and corporate customers in over 200 countries trust SWIFT every day to exchangeContinue reading “SOCIETY FOR WORLD WIDE INTERBANK FINANCIAL TELECOMMUNICATION [SWIFT]”

Bill of Exchange A bill need not be drawn on a printed form. Acceptance by the drawee is essential. A bill of exchange can be drawn on any person including banker. A bill is payable on demand or after date. A bill cannot be crossed. Days of grace is allowed. A bill cannot be countermanded.Continue reading “DIFFERENCE BETWEEN CHEQUE & BILL OF EXCHANGE”

Which are the Parties to the cheque? There are three parties to a cheque. They are Drawer : Drawer is the person who issues a cheque. He is always a customer of a bank. Drawee : Drawee is the bank on which a cheque is issued. He is always a banker. Payee : Payee isContinue reading “PARTIES TO THE CHEQUE”

Meaning and Definition of Cheques The banker opens a current and savings account for a customer. At that time, the customer is provided with a cheque book for operating his account. A cheque book contains 10 or 20 printed blank cheque leaves serially numbered. Customers are required to make use of these printed forms forContinue reading “CHEQUES”

What is Acceptance? Drawee is buyer of the goods upon whom the bill of exchange is drawn. If the drawee is ready to make payment on due date, he has to write the word “accepted” in the bill and put his signatures on it. After writing the word ‘accepted’ and putting signature, the drawee ofContinue reading “ACCEPTANCE”

Bill of Exchange (BOE) :-A bill of exchange is a written acknowledgement of the debt, written by the creditor and accepted by the debtor.) It is called a draft before its acceptance. Therefore, one of the underlying features of a bill of exchange is that it has to be accepted either by the person uponContinue reading “PARTIES TO A BILL OF EXCHANGE”

Bill of Exchange (BOE) As per Section 5 a bill of exchange” is “an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.” Classification ofContinue reading “CLASSIFICATION OF BILL OF EXCHANGE”