Negotiated Dealing System (NDS)
What is the Negotiated Dealing System (NDS)? The Negotiated Dealing System (NDS) is a fully electronic trading platform that is instituted and operated by the Reserve Bank of India (RBI) with the mandate of facilitating the issuance and secondary trading of government-issued securities and other types of money market instruments. In February 2002,...
Macaulay Duration
What is Macaulay Duration? Macaulay duration is the weighted average of the time to receive the cash flows from a bond. It is measured in units of years. Macaulay duration tells the weighted average time that a bond needs to be held so that the total present value of the cash flows received is equal...
Arithmetic Mean
What is the Arithmetic Mean? The arithmetic mean is the average of a sum of numbers, which reflects the central tendency of the position of the numbers. It is often used as a parameter in statistical distributions or as a result to summarize the observations of an experiment or a survey. There are several types...
External Growth
What is External Growth? External growth (also known as inorganic growth) refers to growth of a company that results from using external resources and capabilities rather than from internal business activities. External growth is an alternative to internal (organic) growth. However, internal and external growth should not be considered opposites. The main advantage...
Merger
What is a Merger? A merger is a corporate strategy to combine with another company and operate as a single legal entity. The companies agreeing to mergers are typically equal in terms of size and scale of operations. Why do Mergers Happen? After the merger, companies will secure more resources and the...
