If anyone wants to register a new business/ company, there are basically three options available, for instance, a private limited company or one-person company or public limited company. If you are a budding entrepreneur or just curious to know the difference between a public and private company or you might be a student.
In this article, we will discuss the difference between bank rate and repo rate. Sometimes the commercial banks or other financial institutions suffer a liquidity crunch (shortage of funds). Hence in such circumstances, banks or financial institutions borrow the funds from the Reserve Bank of India (RBI), the Central Bank of India.
There is plenty of example of Bailment in our day to day life. We borrow our friend’s bike or car or anything for personal uses is an example of Bailment. For the time being, in this article, we will study the difference between bailment and pledge.
But before we go ahead let us first understand the meaning and definition of pledge and bailment in short so that their differences can be grabbed easily.
Both Pledge and Mortgage are two different methods of creating a charge on securities of the borrowers as collateral against a loan provided by the commercial banks or financial/lending institutions. However, there is some key difference between Pledge and Mortgage.
There always need some securities when it comes to the requirement of a loan/debt from any financial institution. When anybody/borrower approaches the banks or finance companies to get a loan, the banks ask for some security.
The investors are suggested to diversify their portfolio into both equity funds (shares) and debt funds (bonds) to bypass the risks of loss as well as to magnify or stabilize the tentative returns. Therefore, one should clearly understand the difference between shares and bonds.
A right decision on the right investment opportunity could get you one step ahead in future. A right profitable investment act as an additional source of income in this environment to beat inflation.
There are two kinds of people in the society, one has a mindset to earn money by taking any amount of risk whereas the second one is those people who have a mindset to get fewer returns provided their investment must be secured.