Simplifying Financial Jargons

Simplifying Financial Jargons




While you dont have to be an automobile engineer to drive a car, you need to at least learn how to use the clutch, brake, accelerator, steering wheel and various other functions. You would also need to know traffic rules and how to follow road etiquette. Its the same with finance too. You may not know how to structure hybrid financial products or price equity for an initial public offering but as long as you can understand what kind of risk and return various investment products may carry and how to invest and disinvest in them youre fine. Unfortunately, most people have the misconception that finance is complicated and best left to experts. Managing the finances of the corporate or running a bank is best left to experts but as individuals who invest our hard earned money. We have the right and in fact the duty to understand what goes on financial system. This book is an attempt to simplify jargon related to finance which creates mental blocks to understanding concepts and structures. It is presented in the form of conversation between various people and me. To hold your interest, I meet different people at fresh locations under changing circumstances and explain a concept within a context. We trust this book will enhance your understanding of the world of finance and create a healthy curiosity about it. And, if the next time you are reading a financial news paper or overhear a conversation with some financial jargon and are able to truly understand, interpret and act on it, we will feel that the effort behind this book was well worth it.

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