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A mutual fund or unit investment trust that invests in a wide variety of securities,
and is allowed to have no more than 5% of its assets in a single company, or to have 10%
of a company s voting shares. Organization and coordination of the activities of an
enterprise in accordance with certain policies and in achievement of clearly defined
objectives. Management is often included as a factor of production along with machines,
materials, and money. According to the management guru Peter Drucker (1909-2005), the
basic task of a management is twofold: marketing and innovation. Practice of modern
management owes its origin to the 16th century enquiry into low-efficiency and failures
of certain enterprises, conducted by the English statesman Sir Thomas More (1478-1535).
Directors and managers who have the power and responsibility to make decisions to manage an
enterprise. As a discipline, management comprises of the interlocking functions of formulating
corporate-policy and organizing, planning, controlling, and directing the firm s resources to
achieve the policy s objectives. The size of management can range from one person in a small
firm to hundreds or thousands of managers in multinational companies. In large firms the board
of directors formulates the policy which is implemented by the chief executive officer. Some
business analysts and financiers accord the highest importance to the quality and experience
of the managers in evaluating an organizations current and future worth.
Written or oral agreement for a temporary transfer of a property (usually cash) from its owner (the lender)
to a borrower who promises to return it according to the terms of the agreement, usually with interest for
its use. If the loan is repayable on the demand of the lender, it is called a demand loan. If repayable in
equal monthly payments, it is an installment loan. If repayable in lump sum on the loan s maturity
(expiration) date, it is a time loan. Banks further classify their loans into other categories such as
consumer, commercial, and industrial loans, construction and mortgage loans, and secured and unsecured
loans. A written promise to repay the loan is called a promissory note. Land and anything fixed, immovable,
or permanently attached to it such as appurtenances, buildings, fences, fixtures, improvements, roads, shrubs
and trees (but not growing crops), sewers, structures, utility systems, and walls. Title to real estate
normally includes title to air rights, mineral rights, and surface rights which can be bought, leased, sold,
or transferred together or separately. Also called real property or realty.
Any currency other than the local currency which is used in settling international transactions. Also called
foreign currency. System of trading in and converting the currency of one country into that of another. See
also foreign exchange market. Network of banks, discount houses, institutional investors, and money dealers
who borrow and lend among themselves for the short-term (typically 90 days). Money markets also trade in highly
liquid financial instruments with maturities less than 90 days to one year (such as bankers acceptance,
certificates of deposit, and commercial paper), and government securities with maturities less than three years
(such as treasury bills), foreign exchange, and bullion. Unlike organized markets (such as stock exchanges)
money markets are largely unregulated and informal where most transactions are conducted over phone, fax, or
online. Long-term borrowing and lending markets are called capital markets. Financial market that works as a
conduit for demand and supply of (primarily) long-term debt and equity capital. It channels the money provided
by savers and depository institutions (banks, credit unions, insurance companies, etc.) to borrowers and
investees through a variety of financial instruments (bonds, notes, stocks) called securities. A capital market
is not a compact unit, but a highly decentralized system made up of three major parts: stock market, bond market,
and money market. It also works as an exchange for trading existing claims on capital in the form of shares.
Actual or conceptual (see marketspace) place in commercial world where forces of demand and supply operate,
and where buyers and sellers interact (directly or through intermediaries) to trade goods, services, or
contracts or instruments, for money or barter. Markets include mechanisms or means for determining
price of the traded item, communicating the price information, facilitating deals and transactions,
and effecting distribution. Market for a particular item is made up of existing and potential customers
who need it and have the ability and willingness to pay for it. All markets, ultimately, consist of people.
Also called marketplace.
Documented or undocumented knowledge, creative ideas, or expressions of human mind that have commercial
(monetary) value and are protectable under copyright, patent, servicemark, trademark, or trade secret laws
from imitation, infringement, and dilution. Intellectual property includes brand names, discoveries, formulas,
inventions, know how, registered designs, software, and works of artistic, literary, or musical nature. It
is one of the most readily tradable property in the internet (digital) marketplace.
