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Finance GlossaryWorking Capital
Working Capital
Definition of Working Capital
Working capital represents a company’s short-term financial health and operational efficiency, calculated as current assets minus current liabilities. For instance, a business with sufficient working capital can comfortably pay suppliers and meet day-to-day expenses, while negative working capital may indicate liquidity challenges.
Related Terms
Bombay Stock Exchange
Established in 1875, Bombay Stock Exchange or simply BSE is a place where stockbrokers and traders can buy and sell securities like stocks, bonds, ETFs, and more. 5000+ securities are listed on BSE, which is the oldest stock exchange in India and Asia.
Ticker Symbol
A ticker symbol is a unique series of letters used to identify a security listed on an exchange. It helps investors and traders quickly locate and track a stock, ETF, or other listed instrument in market systems. Ticker symbols vary by exchange and are widely used in trading platforms and reports.
Takeover Bid
A takeover bid is an offer that an individual, company, or investor makes to acquire a controlling stake in another company. A takeover bid can be friendly, when the approval of the board is sought, or hostile, where the bid is placed directly to the shareholders without the consent of the management. Takeover bids are mostly used for expansion, strategic growth, or restructuring purposes.
Market Lot
Market Lot is the minimum number of shares or contracts that must be bought or sold in a single trade. It is set by the exchange to standardize trading. For example, if the market lot for a stock is 100 shares, trades must be placed in multiples of 100.
Capital Gains Exemption
Capital gains exemption is the tax break that a government offers on profits earned by selling assets. Generally, an investor must pay a tax on the short-term capital gains or long-term capital gains earned.
But in certain cases, the government allows investors to offset taxes. For example, if an investor sells property and reinvests the entire amount back again into another property, they can avail of capital gains exemption.
But in certain cases, the government allows investors to offset taxes. For example, if an investor sells property and reinvests the entire amount back again into another property, they can avail of capital gains exemption.
Treasury Bills (T-Bills)
Treasury Bills (T-Bills) are short-term debt instruments issued by the government with maturities typically ranging from a few days up to one year. They are considered low-risk investments and are sold at a discount to face value. The return is earned through the difference between purchase price and maturity value.
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