ISIN is the acronym for International Securities Identification Number; it is a 12 digit alpha numeric code which represents a security which can be stock, bond or any financial instrument. ISIN number helps in identifying a security and therefore it is of great help, the first 2 digits of ISIN represent the country code which is unique for every country, while the rest 9 digits are for identifying the issuer, type of security and company and last digit is check digit.
Finance Questions and Answers
5
Feb 12
What is Price Ceiling
Price ceiling refers to fixation of maximum price for a product or service, it is that price beyond which it is not allowed to rise. Price ceiling is usually imposed by the government when it feels that price of a good or service has reached unrealistic level. Price ceiling is used rarely by the governments because it distorts the basic premise of economics, which is price should be determined by demand and supply and not otherwise.
12
Jan 12
What is Earnest Money
Earnest money is a term which you will hear when you go for real estate investment. Earnest money is often paid by the buyer at the time of entering the contract with the seller. Earnest money forms a small percentage of total value of the purchase price of the real estate. Earnest money in a way gives assurance to both buyer and seller that the other party will not back out of the deal.
3
Jan 12
What is Time Value of Option
Time value of option refers to the difference between the premium paid for the option and intrinsic value of option, where intrinsic value of option refers to the amount which an option holder will get if he or she exercise the option today. The longer the option the more the time value of option, and as the time to expiration gets closer the time value of option begins to decline reaching 0 on the day of expiration of the option.
31
Dec 11
What is Current Bank Account
Current bank account is a bank account on which bank pays no interest; current accounts are non interest bearing accounts. Current account are generally opened by companies and by individuals running their business because under current account there are no restrictions on the number of transactions that is one can withdraw and deposit money without any restriction. However one has to maintain minimum balance which differs from bank to bank, failure to keep minimum balance attracts charges.