Mutual
Fund
| Net
Asset Value (NAV) |
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Net Asset Value is the market
value of the assets of the scheme minus its liabilities.
The per unit NAV is the net asset value of the scheme divided
by the number of units outstanding on the Valuation Date.
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| Sale
Price
Is the price you pay when you invest in a scheme. Also called
Offer Price. It may include a sales load. |
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| Repurchase
Price
Is
the price at which a close-ended scheme repurchases its
units and it may include a back-end load. This is also called
Bid Price. |
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| Redemption
Price
Is
the price at which open-ended schemes repurchase their units
and close-ended schemes redeem their units on maturity.
Such prices are NAV related. |
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| Sales
Load
Is
a charge collected by a scheme when it sells the units.
Also called, ‘Front-end’ load. Schemes that do not charge
a load are called ‘No Load’ schemes. |
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| Repurchase
or ‘Back-end’ Load |
| nbsp;
Is a charge collected by a scheme when it buys back the
units from the unit holders. |
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Venture Capital
Initial/Seed
Capital- Small amount of capital provided to the entrepreneur
for concept testing.
First
Stage - Funds raised to initiate
commercial manufacturing and sales, after initial capital runs out.
Second
Stage - Usually to fund working
capital for initial expansion.
Third
Stage - Funds provided for major
growth plans, generally used for capacity expansion, marketing and
working capital.
Follow-on/Later
Stage
- Subsequent investment made by an investor who already has an exposure
in the company.
Buyout - Funds provided to enable
acquisitions.
Secondary
Purchase
- Purchase of already issued company shares from an existing shareholder.
Bridge/Mezzanine - Financing a company
just before its IPO.
IPO/Initial
Public Offering - A company's first offering of stock to the public.
Equity
Related Loan - Convertible debt.
Private
Placement
- Sale of securities to a small group of "informed" investors.
Secondary
Public Offering - Any offering subsequent to IPO.
Underwriting - An investment bank acting
as underwriter sells securities from the issuer to the public to
ensure successful distribution. The types of underwriting are best
efforts and firm commitment. With best efforts, the underwriters
have the option to buy and authority to sell securities, or if unsuccessful,
may cancel the issue and forgo any fees. This arrangement is more
common with speculative securities and with new companies. With
a firm commitment, the underwriters purchase outright the securities
being offered by the issuer.
Venture
Capital
- Capital with which investors fund early stage, more risk oriented
businesses, on the basic premise of high risk, high return.
Angels - High networth individuals
who provide seed money.
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