Date 18th June 2008

Assigned to Terminology
Diversification

1 Prashant kollimarla
supply chain management

2 Chandrahar Biradar
spinn off
3 Bandi Sirisha
market capitalization
4 Ch. Ravi Kumar
treasury stock
5 K. Naresh Kumar
red herring processpectus

6 Satyam Aadepu
merger(horizantal and vertical)

7 Rayapati Ajay Kumar

affiliate and subsidiary difference

8 Ch. Mahidhar
9 Mupparaju Dilip Kumar credit rating
independent director
10 Lingam Rama Krishna
Lead Director

11 Settipalli Konda Reddy

 greenshoe option

12 Balla Sathish
shares buy back

13 T. Prasad
current ratio and P/E ratio

14 V.S.S.R.K. Prasad
15 A.Subba Rao mutual fund-gilt fund
stock certificate

16 P. Ramana Kumar
bridge finance

17 Parvatha Vijayalakshmi
quorum

18 S.Rajasekhar

Date 19th June 2008

Assigned to Terminology
Seed Capital
1 Prashant kollimarla
Lead Investor
2 Chandrahar Biradar
Angel Investor
3 Bandi Sirisha
4 Ch. Ravi Kumar Hedge
5 K. Naresh Kumar Eating Stock
6 Satyam Aadepu rights issue
7 Rayapati Ajay Kumar Pari Passu
Forex
8 Ch. Mahidhar
9 Mupparaju Dilip Kumar Bullion
10 Lingam Rama Krishna Derivative
 Dividend Payout Ratio

11 Settipalli Konda Reddy

Shadow Stock

12 Balla Sathish
13 T. Prasad Surplus Funds
14 V.S.S.R.K. Prasad Sunk Cost
15 A.Subba Rao Strong Currency
16 P. Ramana Kumar Striking Price
17 Parvatha Vijayalakshmi Strategic alliance
Stock Split

18 S.Rajasekhar
 Definition
Diversification is the process of entering new business markets with new products. Such efforts may be undert
either through acquisitions or through extension of the company's existing capabilities and resources. Acquisiti
generally used more frequently by big companies than smaller ones, since most acquisitions require a degree o
financial leverage and health that only larger firms can bring to bear.
Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of th
supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw mate
work-in-process inventory, and finished goods from point-of-origin to point-of-consumption.
An independent company created from an existing part of another company through a divestiture, such as a sa
distribution of new shares(division of a company or organization becomes an independent business)
M. Cap: Market Capitalisation represents the aggregate value of a company or stock. It is obtained by multiply
the number of shares outstanding by their current price per share.
Stock that has been repurchased by the issuing company. These shares don't pay dividends, have no voting rig
and should not be included in shares outstanding calculations.

"Red Herring Prospectus is a prospectus which does not have details of either price or number of shares being
offered or the amount of issue. This means that in case the price is not disclosed, the number of shares and th
upper
In the and
purelower
senseprice bands
of the term,are disclosed.
a merger On thewhen
happens othertwo hand, an issuer
firms, can state
often about the issue
the same size,size andtothe
agree gonumb
forwa
shares are determined later. Its name comes from the warning,
as a new single company rather than remain separately owned and operated. printed in red. An RHP for and FPO can be file
with the RoC without the price band and the issuer, in such a case will notify the floor price or a price band by
of ankind
This advertisement
of action is one
more day prior toreferred
precisely the opening
to asof
a the issue.ofInequals."
"merger the case of book-built
Both companies' issues,
stocksit are
is asurrendere
process o
price discovery and the price cannot be
and new company stock is issued in its place. determined until the bidding process is completed. Hence, such details
not shown in the Red Herring prospectus filed with the RoC in terms of the provisions of the Companies Act. O
on completion
Types of Merger of the bidding process, the details of the final price are included in the offer document. The offer
document
------------------thereafter with ROC is called a prospectus."
filed
Horizontal merger: Two companies that are in direct competition in the same product lines and markets.
Vertical merger: A customer and company or a supplier and company.

Subsidiary: A company in which majority voting stock is controlled by another company, then it is termed as
Subsidiary. Affiliate: Its the relationship between two companies when one company owns substantial interest,
less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a
company.
A director who does not have any other material pecuniary relationship with the company apart from drawing h
remuneration
Lead Director: The Lead Director shall be an Independent Director. He will oversee the Board of Directors
discharges its responsibilities, ensure that the Board of Directors evaluates the performance of management
objectively and that the Board of Directors understands the boundaries between the Board of Directors and
management responsibilities. Responsibilities:
--> Preside at Executive Sessions
--> Call Meetings of Independent Directors.
--> Function as Liaison with the Chairman.
--> Be available for consultation and direct communication with the Company's shareholders.
--> Participate in flow of information to the Board such as board meeting agendas and schedules.
--> Recommend Outside Advisors and Consultants.
A provision contained in an underwriting agreement that gives the underwriter the right to sell investors more
shares than originally planned by the issuer. This would normally be done if the demand for a security issue pr
higher than expected. Legally referred to as an over-allotment option. A greenshoe option can provide addition
price
Shares stability
Buyback: to a security issue because the underwriter has the ability to increase supply and smooth out pric
fluctuations if demand surges. Greenshoe
Buyback options
is reverse typically
of issue allow underwriters
of shares by a company towhere
sell upitto 15%to
offers more
takeshares th
back its
the original number set by the issuer, if demand conditions warrant such action. However, some
shares owned by the investors at a specified price; this offer can be binding or optional to the investors. issuers prefer
to include greenshoe options in their underwriting agreements under certain circumstances, such as if the issue
Objectives:
wants to fund i. To increaseproject
a specific withholding
promoters a fixed amount of cost and does not want more capital than it originally
sought. The term is derived
ii. Increase earning per share from the fact that the Green Shoe Company was the first to issue this type of optio
iii. Rationalise the capital structure by writing off capital not represented by available assets.
iv. Support share value
v. To thwart takeover bid
vi. To pay surplus cash not required by business
Current Ratio - a measure of the degree to which current assets cover current liabilities (Current Assets / Curre
Liabilities). A high ratio indicates a good probability the enterprise can retire current debts. A ratio of 2.0 or hig
is a comfortable financial position for most enterprises.

Bridge financing is a method of financing, used to maintain liquidity while waiting for an anticipated and reason
expected inflow of cash. Bridge financing is commonly used when the cash flow from a sale of an asset is expe
after the cash outlay for the purchase of an asset. For example, when selling a house, the owner may not rece
the cash for 90 days, but has already purchased a new home and must pay for it in 30 days. Bridge financing
covers the 60 day gap in cash flows. Another type of bridge financing is used by companies before their initial p
offering, to obtain necessary cash for the maintenance of operations. These funds are usually supplied by the
investment bank underwriting the new issue.

Definition
Seed Capital is the money used to purchase equity-based interest in a new or existing company. This seed cap
usually quite small because the venture is still in the idea or conceptual stage.
A company's principal provider of capital, such as the entity which originates and structures a syndicated deal.

An affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or
ownership equity.

Two securities or obligations having equal rights to payment.

The market in which currencies are traded. The forex market is the largest, most liquid market in the world wit
average traded value that exceeds $1.9 trillion per day and includes all of the currencies in the world.
Dividend Payout Ratio: The Payout Ratio provides an idea of how well earnings support the dividend
payments. More mature companies tend to have a higher payout ratio. Mathematically DP Ratio:
Dividends/Net Income (Or) Yearly Dividend Per Share/Earnings Per Share
A “shadow stock” plan---also called “phantom stock”--is a way to give employees the benefits of stock options
without the actual stock. It’s a perfectly legitimate form of deferred compensation. Each employee who particip
in the plan is granted a certain number of stock units. Each unit reflects a percentage of the total value of the
company. (A share of phantom stock would have the same value as a share of the company's common stock.)
maturity, the employee is paid a cash bonus based on how much the stock--and the value of the company--gro
However, that does not have stock traded either on exchange or over the counter.

A corporate action in which a company's existing shares are divided into multiple shares. Although the number
shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same comp
to pre-split amounts, because no real value has been added as a result of the split.

In the U.K., a stock split is referred to as a "scrip issue", "bonus issue", "capitalization issue" or "free issue".

For example, in a 2-for-1 split, each stockholder receives an additional share for each share he or she holds.

One reason as to why stock splits are performed is that a company's share price has grown so high that to man
investors, the shares are too expensive to buy in round lots.

For example, if a XYZ Corp.'s shares were worth $1,000 each, investors would need to purchase $100,000 in o
to own 100 shares. If each share was worth $10, investors would only need to pay $1,000 to own 100 shares.