Tag - Financial terms

SCN-3 “SECURITIZATION”

Hello Readers, Welcome to the SCN Series. Today’s Topic is: Securitization It is the process of converting the illiquid assets of the company into the securities. The company (originator) transfers its illuquid financial assets to the Asset Reconstruction Company (ARC) which in turn pay cash to the originator and then ARC with the involvement of Special Purpose Purpose Vehicle (SPV) convert the assets into securities and sell the same to the investors. #Originator gets immediate cash for illiquid assets. #The money collected from issuing of securities [...]

SCN-2 “Financial Leverage”

Hello Readers, Welcome to the SCN Series. Today's Topic is: Financial Leverage It basically relates to process of borrowing capital i.e. the debt and equity securities by the company. The more the debt, the more is the financial leverage. Higher financial leverage means higher interest payments by the company which is considered as little bit risky in terms of the growth of the company. For Tax Consultancy, Mail us at at [email protected]

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