Question

Define THE 5  terms. Give examples where pertinent.

Finance

Deficit

Return

Capital Market

Institutional Investors

Answer 1

1 Finance is a broad term that will be reflecting the use of the money and allocation of the money. It is a term which is also related to study of money, banking, as well as credit and it is an important study which will be encompassing large amount of terms and studies.

2. Deficit will mean that when the expenses will be higher than the income and there would be higher amount of allocation than generation of income.

3. Return will be meaning that the rate at which money is earned on the investment. It is the rate which is very important in making financial decisions

4. Capital markets are those markets which are used for generation of capital and this could either be primary markets or secondary markets in nature.capital market of generally used for raising of long term capital in the form of equity or debt.

5. Institutional investors are are high networth investors who are trying to invest a large chunk of money into various company and they are trying to affect the trading to a very large limit due to high volume and high money. Institutional investors can be domestic institutional investor of foreign institutional investors.