Money and banking is took as one of the most difficult section in exam as there are many terms which are not easily understood by the students. There are online resources available but these are all same copy pasted definitions with difficult words which are very difficult to understand.
In this blog, we will explain some terms of money and banking which are helpful for the preparation of banking exams. You can also visit Educity website to get more easy definitions of difficult terms of money and banking. You also get tips and tricks on their website oureducity which will be helpful for the preparation. Educity website is the most trusted source as on date for the preparation for the banking and similar exams.
Let’s discuss few terms now:
- Investment strategies in PE funding are following:
- Private Equity Fund: Private equity is composed of funds that are directly invested in private unlisted companies. Equity or shares are acquired by the PE fund in lieu of the funds provided and later on the equity is sold for a profit. No fixed interest is involved in the process.
- Leveraged buyouts: In leveraged-buyout type of funding, a PE firm buys majority control of an existing or mature firm, and later sells it at their convenience.
- Venture capital: In a venture-capital funding, investor –that may be venture capital firms or angel investors– invest in young, emerging companies, and normally do not obtain majority control.
- Growth capital: Growth capital is usually a minority investment, in relatively mature companies that need capital for expansion, restructuring operations, entering new markets or finance a significant acquisition.
- Distressed investments: In this type of PE, investment is made in companies which are either nearing bankruptcy or are already bankrupt.
- Mezzanine capital: Mezzanine capital a preferred private equity instrument that represents a claim on a company’s assets which is senior to that of the common shares.