Money and Banking (part – II)

• The Nikkei is Japan's leading stock index comprised of the country's top 225 blue-chip stocks.
• The Nikkei is a price-weighted index, which means the index is an average of the share prices of all the companies listed.
• Some of the best-known companies listed in the Nikkei are Sony Corporation, Canon Inc, Nissan Motor Company, and Honda Motor Company.
• Another Japanese stock index is the Tokyo Price Index (or TOPIX), which is a capitalization-weighted index that includes all the stocks in the Tokyo Stock Exchange.

• The S&P 500 Index features 500 leading U.S. publicly traded companies with a primary emphasis on market capitalization.
• The S&P 500 Index was launched in 1957 by the credit rating agency Standard and Poor's.
• The S&P is a float-weighted index. The market capitalizations of the companies in the index are adjusted by the number of shares available for public trading.
• The S&P 500 is considered one of the best gauges of large U.S. stocks and even the entire equities market because of its depth and diversity.
• You can't invest directly in the S&P 500 because it's an index but you can invest in one of the many funds that use it as a benchmark and track its composition and performance.

Hence, option (d) is the correct answer.

Shcomp (Shanghai Stock Exchange Composite Index) is the index of Shanghai share market.

Brent blend is the name of one of two internationally-recognized types of crude oil that are used as benchmarks for prices of crude oil. Brent Blend comes from the North Sea and is considered a light, sweet crude oil. Brent blend is more than half of the crude oil traded internationally, so it is a logical choice to be the benchmark for crude oil pricing.

Here are certain features of debentures you should know:
1. Fixed maturity date: Debentures have a specific maturity date, indicating when the issuer must repay the principal amount to the debenture holders. This date is predetermined and provides clarity on when investors can expect to receive their initial investment back.
2. Interest payments: Debentures typically pay periodic interest to investors. This interest can be fixed, meaning it remains constant throughout the debenture's life, or it can be variable, in which case it fluctuates based on market conditions or a predefined formula
3. No ownership rights: Debenture holders are creditors of the issuer, not owners. They do not have any ownership or voting rights in the issuing company or organisation. Their relationship with the entity is that of a lender.
4. Secured or unsecured: Debentures can be secured or unsecured. Secured debentures are backed by the issuer's assets, which serve as collateral, providing a level of security for the principal amount and interest payments. Unsecured debentures (also known as "unsecured debentures" or "debenture stock") lack collateral and are riskier but often offer higher interest rates to compensate for the increased risk.
5. Transferability: Debentures are generally transferable, meaning investors can sell, trade, or transfer them to other parties in the secondary market. This feature enhances liquidity and allows investors to exit their investments if needed.
6. Various types: Debentures come in various forms, each with unique characteristics. These include convertible debentures, non-convertible debentures, redeemable debentures, and irredeemable debentures The specific type of debenture affects its terms and conditions, such as conversion rights, redemption provisions, and interest rates.