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Finance GlossaryAbridged Prospectus
Abridged Prospectus
Definition of Abridged Prospectus
An abridged prospectus is a short version of a company prospectus. As per SEBI norms, a company looking to offer equity or debt to investors must file a prospectus.
This document contains crucial details that can help investors make investment decisions. But a regular prospectus is lengthy.
That’s why Section 2(1) of the Companies Act of 2013 came into effect. It directed companies to publish an abridged or shorter version of their prospectus.
This document contains crucial details that can help investors make investment decisions. But a regular prospectus is lengthy.
That’s why Section 2(1) of the Companies Act of 2013 came into effect. It directed companies to publish an abridged or shorter version of their prospectus.
Related Terms
T-Plus Settlement (T+1)
T-Plus Settlement is a settlement system in trading. The fund transfer takes place one business day after the trade. For instance, if you buy a stock on Monday, the transaction is completed on Tuesday. The T+1 system reduces risk in settlements and improves liquidity. It ensures that investors can access their money on securities faster.
High Dividend Yield Stocks
High Dividend Yield Stocks are shares of companies that generate above average dividends on top of regular market-based returns. These shares are known to be valued highly because they generate passive income as well as capital gains.
At The Close Or Closing Price
At the close or closing price is the last traded price of securities like stocks, ETFs, and others at the end of regular market hours.
For example, if a stock hit Rs. 4,500 at 3.30 PM (market close), then that is its price at the close also known as the closing price.
Unlike Adjusted Closing Price, at the close or closing price does not take into account price changes due to corporate actions.
For example, if a stock hit Rs. 4,500 at 3.30 PM (market close), then that is its price at the close also known as the closing price.
Unlike Adjusted Closing Price, at the close or closing price does not take into account price changes due to corporate actions.
Future Trading
Futures trading is the buying and selling of futures contracts on a recognized exchange or over the counter. Futures contracts are derivatives that oblige a trader to buy or sell the underlying security at a predetermined price and date.
Trading futures is possible for equity shares, commodities, currencies, as well as interest rates. Those who trade futures are generally classified as speculators or hedgers.
Speculators trade futures to make a profit. Hedgers delve into futures trading to manage risk, which simply means protecting themselves from unfavorable movements in the market.
Trading futures is possible for equity shares, commodities, currencies, as well as interest rates. Those who trade futures are generally classified as speculators or hedgers.
Speculators trade futures to make a profit. Hedgers delve into futures trading to manage risk, which simply means protecting themselves from unfavorable movements in the market.
Derivative
A derivative is a financial contract that is designed to derive its value from a single or group of underlying assets, generally between two parties or more. It contains a pre-agreed date of delivery and price.
The most common examples of a derivative contract are:
The most common examples of a derivative contract are:
- Futures
- Options
- Forwards
- Swaps
A derivative can be bought and sold on an exchange or over the counter. Since derivatives derive value from underlying assets, their price is known to fluctuate when the underlying asset gains or loses value.
Irredeemable Debentures
Irredeemable debentures are debt instruments that can not be sold unless the company is sold or shuts up shop. Those who hold irredeemable debentures will be paid an interest as long as the company operates its business.
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