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Showing posts with the label Terminology

Tangible Vs intangible goods

  Tangible goods are physical items or products that can be seen, felt, and touched. Examples of tangible goods include furniture, clothing, toys, food, and electronics. Intangible goods are products that have no physical form or substance. Examples of intangible goods include services, such as consulting, legal advice, and entertainment, as well as digital products, such as software and digital media.

comodity

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What is a Commodity? If we look at the legal definition of a commodity, it is defined as ‘ a tangible item that may be bought or sold; something produced for commerce’ . Therefore, commodities are considered to be marketable goods or wares, such as raw or partially processed materials, farm products, or even jewellery. Intangibles, such as human labour, services, or marketing & advertising, are typically not considered to be commodities. Where, when and what – the fundamentals of commodity pricing? End-users buy physical commodities to meet staple needs. The commodity has to be fit for purpose and it needs to be available. These requirements determine the three pillars for pricing:  • Where: delivery location  • When: delivery timing  • What: the product quality or grade  Commodity trading firms bridge gaps between producers and consumers based on these three pillars, through transformations in space, time and form.  • Space: transport...

Mutual funds, Bullions and certificates

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what are mutual funds? a mutual fund is a pool of money provided by individual investors, companies, and other organizations. A fund manager is hired to invest the cash the investors have contributed, and the fund manager's goal depends on the type of fund; a fixed-income fund manager, for example, would strive to provide the highest yield at the lowest risk. Mutual funds give small or individual investors access to professionally managed portfolios of equities, bonds and other securities. Each shareholder, therefore, participates proportionally in the gains or losses of the fund. Mutual funds pool money from the investing public and use that money to buy other securities, usually stocks and bonds. The value of the mutual fund company depends on the performance of the securities it decides to buy. So, when you buy a unit or share of a mutual fund, you are buying the performance of its portfolio or more precisely, a part of the portfolio's value. Mutual funds what is bullion?  ...

Supergene

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supergene  In ore deposit geology, supergene processes or enrichment are those that occur relatively near the surface as opposed to deep hypogene processes. Supergene processes include the predominance of meteoric water circulation with concomitant oxidation and chemical weathering. The descending meteoric waters oxidize the primary (hypogene) sulfide ore minerals and redistribute the metallic ore elements. Supergene enrichment occurs at the base of the oxidized portion of an ore deposit. Metals that have been leached from the oxidized ore are carried downward by percolating groundwater, and react with hypogene sulfides at the supergene-hypogene boundary. The reaction produces secondary sulfides with metal contents higher than those of the primary ore. This is particularly noted in copper ore deposits where the copper sulfide minerals chalcocite Cu2S, covellite CuS, digenite Cu1.8S, and djurleite Cu31S16 are deposited by the descending surface waters. Azurite and Malach...

Options, Call & Put options, futures

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Option –  the right to buy or sell a futures contract at a particular price. The right to buy a futures contract is called a Call Option. The right to sell a futures contract is called a Put Option. The price chosen for which to buy or sell is called the Strike Price. The price paid for the right is called the Option Premium. Example of Call option order: Buy one contract November wheat call - €250 strike at €15 premium. Call Option  A contract which gives the purchaser the right, though not the obligation, to purchase the underlying security at a specific price within a specific time frame Suppose the Infosys is currently trading at INR 900. A trader thinks that the current price of Infosys is undervalued and expected to increase in the future. In this case, he buys the call option of Infosys and pays a premium to the call seller. Suppose the price of Infosys increases to INR 1000 at expiry. Then the buyer will exercise the option since he has the right to exercise. ...

Plutonic, Anatetic, Orthomagmatic

Plutonic : formed by solidification of magma deep within the earth and crystalline throughout. Anatectic : of or relating to anatexis   Anatexis : any process by which plutonic rocks are dissolved and again converted into magmas         O rthomagmatic   : Applied to the stage during which the main mass of silicates crystallizes from a magma . The stage can be divided into an early  Orthomagmatic stage, during which anhydrous silicate minerals crystallize, and a late Orthomagmatic stage, during which anhydrous and hydroxyl-bearing silicate minerals crystallize.

Cratons/ Archean

cratons A craton from Greek : κράτος kratos "strength") is an old and stable part of the continental lithosphere , where the lithosphere consists of the Earth's two topmost layers, the crust and the uppermost mantle . Having often survived cycles of merging and rifting of continents , cratons are generally found in the interiors of tectonic plates . They are characteristically composed of ancient crystalline basement rock , which may be covered by younger sedimentary rock . They have a thick crust and deep lithospheric roots that extend as much as several hundred kilometres into the Earth's mantle .  The term craton is used to distinguish the stable portion of the continental crust from regions that are more geologically active and unstable. Cratons can be described as shields, in which the basement rock crops out at the surface, and platforms , in which the basement is overlaid by sediments and sedimentary rock. The word craton was first proposed by th...

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