Distance MBA in Banking and Finance SimpliDistance
Distance MBA Banking and Finance Management Indian economy is witnessing strong growth. The financial sector is undergoing rapid changes. This sector comprises retail banks, commercial banks, insurance companies, non-banking financial companies (NBFC), co-operatives etc. The financial sector in India is predominantly a banking sector with commercial banks with more than 64% of the total assets in the financial system.
Investment banking is a term came into limelight in last few years. This is a special type of credit system which is equally popular in individuals and corporations. An aspiring finance management professional who wants to pursue a growing career after his distance MBA program, knowledge of investment banking is a key.
There are many career opportunities for candidates who are passionate and have right skills. Someone who wants to pursue a distance MBA in Banking and Finance or distance MBA in financial management would study different types of core subjects related to finance and banking.
Common/Equity Shares This is one of the most popular financial instrument. This is also referred to as ‘stock’. Equity shares represent ownership in a company. The shares are traded on stock exchanges like in NASDQQ, NSE, BSE etc. As the owners of stocks are part owners of the company, they can vote on important matters and even for electing the board of directors.
Preference Shares These are the shares which carry fixed rate of dividend but do not give the owner voting rights. Preference shareholders have a preference over equity shareholders for the payment of dividends and stakes on liquidation.
Bonds Bond is a long term obligation for an issuer. Issuer promises to pay the bondholder a fixed amount of interest called � coupon � each year, for a fixed time period. At the end of the time period called maturaty the bondholder gets the face value of the bond. This is like a loan taken by an issuer from the buyer of the bond and the interest is paid to him.
Zero Coupon Bond There are some bonds where the bond interest may not be paid out explicitly. In such cases the bond is issued at a discount to the face value of the bond. These are typically called as zero-coupon or discount bonds. In case of zero-coupon bonds, there is no intermediate payment of interest and whosoever holds the bond at the time of maturity gets paid the face value. The actual return called � yield � to the investor who sell the bond before maturity depends on difference between the market price and the issue price bond.
Mutual Funds Mutual funds is an indirect way of investing in stock market. Here the fund operators raise the money from the shareholders and invests in a group of assets. Every mutual fund has its own set objectives for its investments. They invest in equities like bluechip stocks, a particular sector like Pharma based on their themes. Mutual fund raise money by selling their units to the public and they invest money in various instruments like stocks or bonds or money market instruments and in return they receive an equity position in the fund.
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