Meaning of Privatization and Present Value – Banking Terms

By | December 17, 2018

#Daily_One_Banking_Term
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Present Value:
▪️ The amount to which a future deposit will discount back to present when it is depreciated in an account paying compound interest.

Present Value of an Annuity:
▪️ The amount to which a stream of equal cash flows that occur in equal intervals will discount back to present when it is depreciated in an account paying compound interest

Price/Earnings Ratio (P/E):
▪️ The measure to determine how the market is pricing the
company’s common stock. The price/earnings (P/E) ratio relates the company’s earnings per share (EPS) to the market price of its stock.

Privatization:
▪️ The sale of government-owned equity in nationalized industry or other commercial enterprises to private investors.

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