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Market capitalization is the aggregate valuation of the company based on its current share price and the total number of outstanding stocks.

It is calculated by multiplying the current market price of the company's share with the total outstanding shares of the company. Market capitalization is one of the most important characteristics that helps the investor determine the returns and the risk in the share. It also helps the investors choose the stock that can meet their risk and diversification criterion.

For instance, a company has 20 million outstanding shares and the current market price of each share is Rs Stocks of companies are of three types. The stocks with a market cap of Rs 10, crore or more are large cap stocks. Company stocks with a market cap between Rs 2 crore and 10 crore are mid cap stocks and those less than Rs 2 crore market cap are small cap stocks. Mortgage-backed security MBS is a type of asset-backed security collateralised by a pool of mortgages. This essentially represents transfer of credit risk from a primary lender, typically the originating bank, to an investment bank.

The process involves purchase of mortgage loans by a bulge bracket investment bank from various loan originators and bundling them into pools. By purchasing such mo. A nation is a sovereign entity. Any risk arising on chances of a government failing to make debt repayments or not honouring a loan agreement is a sovereign risk.

Such practices can be resorted to by a government in times of economic or political uncertainty or even to portray an assertive stance misusing its independence. A government can resort to such practices by easily altering. It is an abbreviation for the term "British exit", similar to "Grexit" that was used for many years to refer to the possibility of Greece leaving the Eurozone.

Brexit refers to the possibility of Britain withdrawing from the European Union EU. The country will hold a referendum on its EU membership on June Why the Call for Referendum? When David Cameron became the prime minist. A soft loan is basically a loan on comparatively lenient terms and conditions as compared to other loans available in the market. These easier conditions might be in the form of lower interest rates, prolonged repayment duration, etc.

The repayment of these soft loans might also include interest holidays. This process of extending soft loans is also known as soft financing or conces. This is a theory which asserts that announcement of increased dividend payments by a company gives strong signals about the bright future prospects of the company.

An announcement of an increase in dividend pay out is taken very positively in the market and helps building a very positive image of the company regarding the growth prospects and stability in the future. Fallout risk or borrower fallout is one of the two components of pipeline risk, the other being price risk.

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Usually, a high fallout risk occurs when the finalisation of a mortgage deal is contingent upon another deal, such as the sale of a real estate asset. Shareholder value is the value enjoyed by a shareholder by possessing shares of a company.

It is the value delivered by the company to the shareholder. Increasing the shareholder value is of prime importance for the management of a company.

So the management must have the interests of shareholders in mind while making decisions. The higher the shareholder value, the better it is for. Quantity demanded is the quantity of a commodity that people are willing to buy at a particular price at a particular point of time. Different quantities can be demanded at different prices at a particular point of time.

When all the prices, along with quantity demanded, are drawn on a graph, the demand curve is formed. Quantity demanded can change at the same price depending upon f. Profitability index is a financial tool which tells us whether an investment should be accepted or rejected. It uses the time value concept of money and is calculated by the following formula. The accept-reject decision is made as follows: If PI is greater than 1, accept the investment. It is essentially the profit earned by the government by printing currency.

It can also be termed as a source of revenue for governments as the value of money printed is generally higher than the cost of producing it. As obvious, if the currency produced values more than the cost involved. Choose your reason below and click on the Report button.

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MID - S&P Mid Cap Index - MarketWatch

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Categories Glossary Economy Equity Insurance Budget Marketing Mutual Fund Space Technology Testing Human Resource Finance Real Estate Security Sports Commodity Software Development Analytics HR Entertainment Retail Shipping Astronomy Transportation Education Mathematics. Subscribe for Newsletters Subscribe. Suggest a new Definition Proposed definitions will be considered for inclusion in the Economictimes. Mark to Market Definition: Mark-to-market refers to the reasonable value of an account that can vary over a period depending on assets and liabilities.

Mark-to-market provides a realistic estimate of a financial situation. It has been a part of the generally accepted accounting principles in the United States since and it is regarded as gold standards in some areas.

Mark-to-market can also be defined as an accounting tool used to record the value of an asset with respect to its current market price. The mark-to-market principle was largely adopted during the 20th century. Mark-to-market is a tool that can change the value on either side of a balance sheet, depending on the conditions of the market.

Understanding Equities - Large Cap, Mid Cap and Small Cap Stocks Allocation - Asset Allocation Guide by Equitymaster

At the time of closing of market, the price assigned to each stock is the price that buyers and sellers decide at the end of the day. Many people agree that mark-to-market reflects the true value of an asset as it is decided with respect to the current market price. It can be problematic at times as the value of assets may vary every second due to changing market conditions and because buyers and sellers keep coming in and going out in an irregular fashion.

In mark-to-market, problems may occur when market-based measurements do not give the true value of an underlying asset. Problems occur mainly when a company or financial institution is forced to calculate selling prices of its assets and liabilities during unfavourable conditions, such as a financial crisis. Mutual fund schemes and stocks are marked to market on a daily basis.

MIBOR is the acronym for Mumbai Interbank Offer Rate, the yardstick of the Indian call money market. It is the rate at which banks borrow unsecured funds from one another in the interbank market.

At present, it is used as a reference rate for floating rate notes, corporate debentures, term deposits, interest rate swaps and forward rate agreements.

The pricing of overnight indexed swaps, a type of overnight interest rate swap used for hedging interest rate risk is based on overnight MIBOR. Based on the recommendation of the Committee for the Development of Debt Market, the National Stock Exchange NSE launched the Mumbai Interbank Offer Rate MIBOR and Mumbai Interbank Bid Rate MIBID in June, Subsequently, the NSE developed a benchmark rate for the term money market, like the day, 1-month and 3-month MIBOR.

The rate is computed by polling a representative panel of 30 banks and primary dealers and summarising the quotes that they provided. The next step involves identifying and isolating the noise by eliminating extreme values of the reference rates. Next, the bootstrapping technique is employed for computing the test statistic, namely the mean reference rate, and confidence intervals for the mean reference rates.

Bootstrapping is a non-parametric method and does not make any assumption about the distribution from which the mean reference rate is drawn. The FBIL overnight MIBOR rate will be administered by Financial Benchmarks India, an entity formed by FIMMDA, Foreign Exchange Dealers Association of India FEDAI and Indian Banks Association IBA.

The FBIL overnight MIBOR rate computed by the Clearing Corporation of India CCIL is based on trade-weighted interbank call money transactions on the NDS call platform of CCIL between 9 a. A minimum of 10 trades with a traded value of Rs crore is considered as the minimum threshold limit for the computation of FBIL overnight MIBOR. The weighted mean reference rate and the standard deviation are calculated for the traded rates. A range of reference rate is computed. The tails of the distribution outside the range are treated as outliers and eliminated from the computation.

The final volume weighted average rate together with standard deviation for the day is released at Not to be Missed Donald Trump softens stand on immigration, says will fix high-tech skilled inflow. GST roll out will be historic: Hiding your 'true' identity at work may harm your career significantly.

What are MidCap Stocks

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