BIZ Archives

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BIZ Archives About Money and Finance Siddhant Infocom 1st Edition Collected and compiled by: Prashant Khopkar

Transcript of BIZ Archives

Page 1: BIZ Archives

BIZ Archives About Money and Finance

Siddhant Infocom

1st Edition Collected and compiled by: Prashant Khopkar

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Introduction 6 .........................................................Getting Started 6 ..................................................................................................................

Financial Events 7 ..................................................In no particular chronology 7 .................................................

AOL - Time Warner Merger 7 .............................................................................................Baring Bank 7 .......................................................................................................................Silver Thursday 8 .................................................................................................................The California Gold Rush 8 .................................................................................................The Mississippi Bubble 8 ....................................................................................................South Sea Company 9 ..........................................................................................................WorldCom 9 .........................................................................................................................Arthur Andersen 9 ...............................................................................................................2003 MF Scam 10 ................................................................................................................Black Tuesday 10 .................................................................................................................European Union 10 ..............................................................................................................Enron 10 ...............................................................................................................................Interesting Facts and Facets 11 ...........................................................................................Trending in March 2016 11 ..................................................................................................

Glossary of Banking Terms 12 ................................A Collection 12 ..........................................................................

Annual Percentage Rate 12 ..................................................................................................Asset 12 ................................................................................................................................Bill of Exchange 12 ...............................................................................................................Bank Bill 12 ..........................................................................................................................Bank Draft 12 .......................................................................................................................Bond 12 ................................................................................................................................Book Value 12 ......................................................................................................................Bridging Loan 12 ..................................................................................................................Buy-back 12 ..........................................................................................................................Capital 13 .............................................................................................................................Capital market 13 .................................................................................................................Certificate of Deposit 13 ......................................................................................................Cheque 13 .............................................................................................................................

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Collateral 13 .........................................................................................................................Commercial Deposits ( CD’s ) 13 .........................................................................................Correspondent Banking 13 ..................................................................................................Credit 13 ...............................................................................................................................Credit Grading 13 .................................................................................................................Credit rating 13 ....................................................................................................................Credit Transfer 13 ................................................................................................................Creditor 14 ...........................................................................................................................Currency 14 ..........................................................................................................................Debenture 14 ........................................................................................................................Debtor 14 ..............................................................................................................................Default 14 .............................................................................................................................Depreciation 14 ....................................................................................................................Devaluation 14 .....................................................................................................................DIBOR 14 .............................................................................................................................Direct Credit 14 ....................................................................................................................Direct Debit 14 .....................................................................................................................Dividend 14 ..........................................................................................................................Documentary Credits 14 ......................................................................................................Electronic Funds Transfer (E.F.T.) 15 .................................................................................E.F.T.P.O.S. 15 .....................................................................................................................Endorsement 15 ...................................................................................................................Equity 15 ..............................................................................................................................Eurocheque 15 .....................................................................................................................Exchange Rate 15 .................................................................................................................Export Credit 15 ...................................................................................................................Factoring 15 .........................................................................................................................Floatation 15 ........................................................................................................................Forward Market 15 ..............................................................................................................Forward Rate Agreement 15 ...............................................................................................Garnishee Order 16 ..............................................................................................................GIRO 16 ................................................................................................................................Guarantee 16 ........................................................................................................................Hedging 16 ...........................................................................................................................Hire Purchase 16 ..................................................................................................................

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Instalment Credit 16 ............................................................................................................Interbank Market 16 ............................................................................................................Interest Rate 16 ....................................................................................................................Interest Rate Future 16 ........................................................................................................Interest Rate Option 16 .......................................................................................................Leasing 16 ............................................................................................................................Legal Tender 17 ....................................................................................................................Letter of Credit 17 ................................................................................................................Liabilities 17 .........................................................................................................................Liquidity 17 ..........................................................................................................................Maturity 17 ...........................................................................................................................Money Market 17 .................................................................................................................Money Order 17 ...................................................................................................................Money Transmission 17 .......................................................................................................Mortgage 17 ..........................................................................................................................Negotiable Instrument 17 ....................................................................................................Net Worth 17 ........................................................................................................................Overdraft 18 .........................................................................................................................Principal 18 ..........................................................................................................................Promissory Note 18 .............................................................................................................Provisions 18 ........................................................................................................................Rate 18 .................................................................................................................................Reserves 18 ..........................................................................................................................Revaluation 18 .....................................................................................................................Rights Issue 18 .....................................................................................................................Roll-over 18 ..........................................................................................................................Scrip Issue 18 .......................................................................................................................Security 18 ............................................................................................................................Securities 18 .........................................................................................................................Securitisation 19 ..................................................................................................................Spot Market 19 .....................................................................................................................Standing Order 19 ................................................................................................................SWAP 19 ...............................................................................................................................S.W.I.F.T. 19 ........................................................................................................................Syndicated Loans 19 ............................................................................................................

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Term Deposit 19 ...................................................................................................................Term Loan 19 .......................................................................................................................Traveller’s Cheque 19 ...........................................................................................................Unit Trust 19 ........................................................................................................................Underwrite 19 ......................................................................................................................Value Dating 20 ...................................................................................................................Variable Rate 20 ..................................................................................................................Waiver 20 .............................................................................................................................Working Capital 20 ..............................................................................................................Write-off 20 .........................................................................................................................Yield 20................................................................................................................................

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Introduction This is just a small experiment about the business world has taken its course. The topics discussed will reflect my rudimentary, incomplete and inaccurate knowledge of economy and finance. I have gained this so far, so little insight by observing closely the BFSI industry verticals during my 25+ years career in Software industry. My reflections are my personal views and hence if they are not appealing or defamatory in nature, kindly ignore my unintelligent endeavour. Well, in case you think that this content is useful or debatable, I shall be happy to help by making myself available for discussion. I firmly believe that the world is a very dynamic and we may have different views on these matters. There can be a healthy difference in opinion and chances are that all of them being correct in their own way.

Getting Started There have been lots of ups and downs in our known universe. Man has been evolved pretty recently in comparison to the age of the universe and his science, commerce, industry and economic activity is yet further towards his late history. So, our understanding of the universe is so though good, may not be good enough.

Going by the above, the information that I present here as an individual is both inadequate and non-resilient.

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Chapter One

Financial Events In no particular chronology

This specific chapter depicts Global Financial events that mark significant milestones for development of economical model that we experience today in the world around us. The information has been compiled from different sources such as magazines, printed diary of stock broking house, etc. Hope it serves the purpose of quenching your curiosity and add to your already rich reservoir of knowledge.

AOL - Time Warner Merger • This merger in January 2000 was the largest merger in corporate history • Resulted in the world’s largest media and entertainment conglomerate • The merger structure led to each original company merging into newly created entity • The smaller AOL bought out the larger Time Warner for US$164bn • After the merger, the profitability of the ISP division (America Online) decreased • The following year it suffered a loss of US$99 billion - largest loss ever reported by a

company• In response to the huge loss in 2002, the company dropped the “AOL” from its name• Steve Case was removed as the Executive Chairman in favour of Richard Parsons

Baring Bank • It was founded in 1762 and was the oldest Merchant Banking company in London• Nick Leeson - a derivatives trader falsified trading records in bank’s computer systems• Using the hidden “five-eights account,” he began to aggressively trade derivatives on

SIMEX• He used money entrusted to bank by subsidiaries for use in their own accounts• Leeson’s activities generated losses totalling GBP827 million (US$1.4 billion)• The Bank of England attempted a weekend bailout but it was unsuccessful• The Bank was declared insolvent in February 1995 and got purchased by ING for a

mere GBP 1• The collapse was dramatic and employees around the world did not receive their

bonuses

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Silver Thursday • Occurred in March 27, 1980 when Hunt Brothers attempted to corner the Silver Markets• Hunt Brothers believed that only ‘hard’ assets provided protection against government

induced inflation• They started accumulating Silver and 1980 held one-third of the world’s supply of Silver• When Silver prices slid, they failed to meet huge margin calls on their futures contracts• Culminated in a 50% one-day decline on exchanges, leading to huge losses for

speculators• The price on the day plummeted from $21.62 to $10.80• The Hunt Brothers lost hundreds of millions of dollars through their speculation in silver• In 1988 they declared bankruptcy, as the family’s fortune declined following the debacle

The California Gold Rush • In 1848, a foreman found pieces of shiny metal along the American River• New spread and some 300,000 people from around the world rushed to California• These early seekers called “forty-niners,” travelled by sailing ships and in covered

wagons• Forty-niners faced hardship and often death on the way to the gold fields• By April 1850, most of the easily accessible gold had been collected and rush ended• Attention turned to the task of extracting the gold from more difficult locations• The rush resulted in the admission of California as a state in 1850• San Francisco grew from a tiny hamlet of tents to a boomtown

The Mississippi Bubble • Around 1715, France was bankruptcy by wars & approached Scottish businessman Law

for help • In 1716, Law established the Banquet Generale, modelled after a successful bank of

Amsterdam• In 1717, acquired control of the Mississippi Company of France • It was granted monopoly by French government on trade with West Indies and North

America• Law launched as a scheme which led to wild speculation on the shares of the company

in 1719• Share prices rose from 500 to 15,000 livres, and the ailing French economy saw

financial stability• In May 1720, the stock price fell to 500 livres and ended in a financial collapse • By the end of 1720, the Regent Phillippe II of Orleans dismissed Law, who then fled

from France

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South Sea Company • Dubbed the "Enron of England”, its collapse was one of history’s worst financial crisis • It was created to convert GBP 10 million of Britain Government’s was debt into its own

shares• In return it got 6% in interest and exclusive trading rights in the South Seas• It issued shares to finance operations and gain investors and the shares quickly got

consumed• Investors had no quibble, despite it having a highly inexperienced management team• The management started hyping the stock and the share price kept skyrocketing• Price peaked at GBP1050 in June 1720, before crashing due to panic selling of the

shares• It continued its management as a part of the National Debt until it was abolished in the

1850s

WorldCom • Its growth was fueled primarily through acquisition during the 1990s• Announced its US $ 37 billion merger with MCI in 1997 - the largest merger in US

History• For a time, it was the United States’ second largest long distance phone company• Overstated cashflow by booking $3.8 billion in operating expenses as capital expenses• Under-reported ‘line-costs’ by capitalising these costs rather than properly expensing

them• Gave founder Bernard Ebbers $400 million in off-the-books loans• Was the biggest bankruptcy in US & filed for Chapter 11 bankruptcy protection in July

2002• Got purchased by Verizon Communications with the deal closing in 2006

Arthur Andersen • Once one of the “Big Five” accounting firms • The consulting wing of the firm became increasingly important during the 1970s and

1980s• Was alleged of fraudulent accounting and auditing of many firms including Enron • Its indictment put a spotlight on its faulty audits of other companies, most notably

WorldCom• Its reputation was so badly tarnished that no company wanted Andersen’s name on an

audit• From 85,000 employees worldwide, it got down to around 200 based primarily in

Chicago• Was renamed to Accenture on January 01, 2001 • Surrendered its licenses to practice as Certified Public Accountant in August 2002

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2003 MF Scam • Began with complaint against Canary Capital Partners LLC in September 2003 • It was charged with engaging “late trading” in collusion with a major bank in America • The bank allowed Canary to purchase fund shares after 4:00 p.m. at that day’s closing

price• Some companies were charged with market timing trading for favoured clients • Canary settled the complaint for US $40 million, while neither admitting nor denying

guilt• SEC’s investigation of the matter revealed the practice of front-running • On April 28, 2003, every major US investment bank was found to have aided fraud • The firms were fined a total of $1.4 billion by the SEC

Black Tuesday • October 19th, 1929 - notorious for being the worst day in US stock market • It marked one of the most devastating stock market crashes in American History • It is considered by many to be the beginning of the Great Depression • The market lost $14 billion, 10 times the annual budget of the federal government • The impact was such that the market did not return to pre-1929 levels until late 1954 • The loss was far more than the U.S. had spent in all of World War I • It led to the Institution of landmark financial reforms and new trading regulations

European Union • It owes its base to Maastricht Treaty, entered into force on November 1, 1993 • Created a single market to enable free movement of people, goods, services & capital • It let to the union of twenty-seven member states over time • To join it, a country must meet the criteria defined at the Copenhagen European

Council• In 1993 a single currency - Euro - was introduced and was adopted by thirteen (13)

members• It represents its members in the WTO and observes at G8 summits and at the UN • It has also developed a role in foreign policy, and in justice and home affairs • With almost 500 million citizens it generates nearly 31% share of the world’s GDP

Enron • Founded in 1985 through merger of two natural gas pipeline companies • Fortune name it “America’s Most Innovative Company” for six consecutive years • Was one of the world’s leading companies, employing around 22,000 people • Took advantage of accounting limitations to portray a rosy picture of its performance • Many of its recorded assets and profits were inflated, or wholly fraudulent and non-

existent• Its management made a series of self-interested off-the-books deals to raise capital • Moved from being valued at $80 billion to being a penny stock • Filed a bankruptcy in December 2001

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Interesting Facts and Facets In older days, the massive projects that used to be of epic proportions often ran from one generation to another before completing; in the modern world today, their scale have grown and completion periods have shrunk considerably shorter due to an advent in technology, engineering and innovations that serve us.

The Conclusion Many of the world events happen simultaneously seldom giving us the chance to adjust or to predict their combined or composite outcomes. There are many a possibilities in view of World Wars I & II, subsequent change in trades and technologies implied sift in priorities and so on.

There isn't anything such as final outcome in the Financial Jungle. The events presented here serve as an outline. These events have shaped the modern markets & evolved our economy.

Trending in March 2016 There are present scams and scandals occurring in India such as…

• Business tycoon Vijay Mallya fleeing abroad with his 9000 Crore of debt with various banks in India at the beginning of March, 2016.

• Indian financial system put under stress as scrutiny reveals that there is another scam of INR 2200 Lakh Crores lurking as about 100 people including some parliament ministers have evaded taxes by falsely showing their income is from agricultural produce.

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Chapter Two

Glossary of Banking Terms A Collection

Annual Percentage Rate • The total cost of credit expressed as an annual percentage amount of the Credit

extended.Includes: Documentation Fee / Arrangement Fee / Acceptance Fee

Asset • The thing of value owned by a company or an individual.

Bill of Exchange • A written from one person (the Drawer) to another (the Drawee) requiring the Drawee to

pay a specified sum, on demand or on a specified date, to the Drawer.

Bank Bill • A Bill of Exchange issued by a Bank on behalf of a Company, as a promise to pay

specific amounts by a due date, usually 30, 60, or 90 days ahead. The recipient pays less than the face value of the Bill (discounted value) and may hold it on collection on maturity, or sell it at a discount to another party.

Bank Draft • An order from a buyer from his/her Bank to make a payment to the Bank of the seller

from whom goods are ordered.

Bond • An interest bearing certificate issued by a Corporation or Government.

Book Value • The original cost of an item less the cost of Depreciation to date.

Bridging Loan • A short-term, temporary loan to tide a borrower over until money promised from

elsewhere is forthcoming.

Buy-back • An agreement, between a seller and a buyer, that the seller will repurchase a security

within a specified time at a pre-determined price.

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Capital • The value of a Company, measured as the excess of Total assets over total liabilities;

the value of an investment.

Capital market • A financial market where business obtain funds for long-term investment, and where

shares and bonds are traded.

Certificate of Deposit • A promise by Bank to pay a specific amount by a specific date; a negotiable instrument

which can be bought and sold.

Cheque • A written, unconditional order from one person (the Drawer) to another (the Drawee -

usually a Bank) to pay a sum of money to the bearer or named recipient.

Collateral • Assets submitted by a borrower as additional security for a loan.

Commercial Deposits ( CD’s ) • Securities issued by banks to raise funds on the wholesale money market, and which

can be traded by investors.

Correspondent Banking • An arrangement whereby a resident bank will act as agent or ‘Correspondent’ for

another, which is not resident in that country, in the provision of payment and other services.

Credit • The use of someone else’s funds in exchange for a promise to repay, usually with

interest, at a later date.

Credit Grading • The process of evaluating a loan application.

Credit rating • A measurement of the creditworthiness of an individual or business. Based significantly

on the applicant’s loan repayment history as recorded by financial institutions individually, or centrally by a credit reference agency.

Credit Transfer • Instruction by an individual or business to a Bank to credit a specified third-party

account with a specified amount.

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Creditor • A person or business to whom a debtor owes money.

Currency • Coins, Notes and Cheques accepted within a country as its medium of exchange.

Debenture • A fixed interest bond issued by borrowing companies to medium / long term investors.

Debtor • A person or business from whom a creditor is owed money.

Default • Failure to repay a loan on schedule.

Depreciation • A decrease in the value of a fixed asset, i.e., plant, machinery and buildings as

expressed in a company’s accounts; or in the value of a country’s currency relative to others.

Devaluation • A downward movement in the exchange rate or international value of a currency;

reverse of revaluation.

DIBOR • The Dublin Inter-Bank Offer Rate is one of the wholesale rates quoted on the interbank

market where banks with surplus funds lend to banks with funds deficit.

Direct Credit • An arrangement allowing a regular, direct lodgement to a person’s bank account by way

of payment, e.g., Salary, from another person or company.

Direct Debit • An instruction to a Bank from a customer to debit his/her account with the amount (fixed

or variable) demanded by a named creditor; e.g., payment of telephone bills, monthly rental.

Dividend • The part of company’s profit paid out to its shareholders or owners.

Documentary Credits • Provision of credit to buyer on the strength of documentation providing that he has title

to the goods; a method by which banks finance trade.

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Electronic Funds Transfer (E.F.T.) • The transfer of funds by means of electronic messages instead of by traditional means,

such as cash or cheques.

E.F.T.P.O.S. • Electronic Funds Transfer at Point of Sale is carried out by means of a Debit Card which

has the effect of automatically debiting a payment from the customer’s bank account and crediting a retailer’s bank account.

Endorsement • A signature at the back of a cheque which transfers ownership of the cheque from the

signatory to the bearer.

Equity • Funds supplied by the owners of a business.

Eurocheque • A guaranteed multi-currency cheque which can be written out in 40 different currencies ,

allowing direct payment and withdrawal of cash.

Exchange Rate • The price of one country’s currency in terms of another.

Export Credit • A loan to an exporter to tide the business over the time between sending goods abroad

and receiving payment for the goods.

Factoring • The practice whereby a business sells the debt owing to it to a factor (e.g., Bank) and

raises finance in the process. The factor’s profit comes from collecting more than the discounted price paid for the debts.

Floatation • The process of company’s “going public” whereby its shares are listed on Stock

Exchange and available for investment by institutions and members of the public.

Forward Market • A market where traders can contract to purchase or sell financial product or foreign

currencies for a pre-determined price at a future date.

Forward Rate Agreement • An agreement between two parties, where each agrees to indemnify the other for an

adverse rise or fall in interest rates, based on a pre-defined settlement amount for a pre-defined period in the future. FRA’s enable risk managers to efficiently lock into the future interest rates for periods of upto twelve months.

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Garnishee Order • A court order forbidding a Bank to release money that it holds in the account of a

customer for as long as that customer owes another person.

GIRO • A payment system organised by a group of banks, or a postal authority, which allows

customers of one bank to make payments to customers of another bank without the use of cash or cheques.

Guarantee • An understanding by a third party to be responsible for a loan should the borrower fail to

repay. To be legally binding a guarantee must be made in writing.

Hedging • Behaviour in the money and/or in the foreign markets designed to reduce the risk of

loss from future price movements; e.g., company due a payment in one currency in a month’s time might “hedge” against a devaluation in that currency by selling it now for a known quantity of another currency.

Hire Purchase • The combination of hiring and purchasing which sees the purchaser hiring a product in

return for a series of regular payments; when these are finished, the product automatically becomes the property of the purchaser.

Instalment Credit • Credit which is repaid over a period in regular, equal instalments.

Interbank Market • Means by which banks with surplus funds can lend to banks with a funds deficit.

Interest Rate • The cost/price of borrowing money, expressed as a percentage per year of the amount

borrowed (principal).

Interest Rate Future • An arrangement by which parties enter into a contract to protect themselves against

interest rate fluctuations for specific amounts and contract periods.

Interest Rate Option • An Agreement giving the buyer the option to purchase government bonds at a pre-

determined price and stage of maturity; provides the buyer with the opportunity to benefit from rising interest rates and to avoid the risk of lower rates.

Leasing • The hiring of capital goods or equipment to avoid the cost of buying them all at once.

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Legal Tender • Money which must, by law, be accepted in payment of debts.

Letter of Credit • An undertaking by a bank to third party to pay a customer’s debts as they become due

and are presented; frequently used in international trade as a means of payment for imports and exports.

Liabilities • Debts owed by, an individual or company, to others.

Liquidity • Relates to the ability of a financial institution to repay depositors on demand or short

notice. Banks are required to maintain a stock of liquid assets , i.e., assets that can be readily turned into the most liquid asset of all i.e., cash.

Maturity • The life expectancy of a loan.Original maturity is the length of time from the beginning of

a loan to the date of the last repayment. Residual maturity is from the present to the final payment.

Money Market • The market on which money is traded. Wholesale: Banks and other big corporate dealers borrow and lend large amounts.Retail: Financial institutions lend in smaller amounts with their retail customers.

Money Order • Financial instrument used to remit money to persons who do not hold a bank account or

whose account number is unknown; the order can be cashed or lodged to an account.

Money Transmission • The process of transferring money between accounts.

Mortgage • Loan provided for house purchase; also a legal document by which borrowers pledge

their homes other property as security against which to borrow from financial institutions.

Negotiable Instrument • A financial instrument, the ownership of which can be passed from one owner to

another; bank note, cheque, certificate of deposit, etc.

Net Worth • The value of a company calculated by subtracting its outstanding liabilities from the

current value to its total assets. If this figure is negative, the company is technically insolvent.

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Overdraft • An arrangement authorising a bank customer to draw funds, up to a specified limit, in

excess of current account balances.

Principal • The face value of a loan; to be distinguished from interest, which is the amount paid

each year for use of the principal sum.

Promissory Note • A legally binding promise between two parties that one will pay the other a stated

amount at a future date.

Provisions • Money that banks set aside, out of their earnings / profits, to meet likely costs such as

defaulting borrowers.

Rate • Rate of charge or cost of money, either to borrow it (Interest rate) or to change it from

one form or currency to another (Exchange rate).

Reserves • Bank / Company profits which are not distributed to shareholders as dividends can be

put into reserve and / or can be retained as bank / company capital (Retained earnings).

Revaluation • An upward movement in the exchange rate or international value of a currency; reverse

of devaluation.

Rights Issue • A new issue of company shares offered first to existing shareholders of the company at

a discount to their market price.

Roll-over • Extension of a loan beyond the final payment date originally agreed.

Scrip Issue • A gift of free shares to a company’s existing shareholders in proportion to their stake in

the company.

Security • Assets such as house deeds, life policies and shares, pledged in support of a loan.Securities • Financial assets which pay income to investors in the form of interest or dividends; e.g.,

commercial deposits, government stock.

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Securitisation • Process whereby various types of loan including commercial and housing mortgages

are packaged, underwritten and sold to investors in the form of securities.

Spot Market • That part of financial markets requiring immediate ( spot ) settlement.

Standing Order • An instruction from a customer to his/her bank to make a regular payment of a fixed

amount from his/her account to another specified account.

SWAP • A financial arrangement which enables a company to exchange the denomination of its

debt from one currency to another (currency swap), or between fixed or floating interest rate (interest rate swap), or a combination of both.

S.W.I.F.T. • The Society for Worldwide Inter-Bank Financial Telecommunications is a network of

thousands of banks worldwide which facilitates the telegraphic transmission of instruction “messages” for the payment / transfer of funds on behalf of bank customers.

Syndicated Loans • Large loans backed by a consortium of international banks to spread the risk.

Term Deposit • A deposit lodged by a customer with a bank for a minimum, mutually agreed period of

time, and on which the bank pays a set rate of interest.

Term Loan • A Loan granted for a specific purpose and repayable by negotiated amounts within a

fixed-period.

Traveller’s Cheque • A cash substitute acceptable almost anywhere in the world.

Unit Trust • A financial arrangement such as cash management, equity or property trust which

allows small investors to have their funds pooled and potentially earn a greater return than they could separately.

Underwrite • An agreement to buy, alone or as part of a syndicate, the whole of a bond or share

issue.

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Value Dating • The process which determines date on which value is actually given for funds moving

from one account to another.

Variable Rate • An interest rate that varies over time in line with some benchmark (floating rate), as

against a fixed rate.

Waiver • An agreement by a lender to overlook a borrower’s failure to meet certain conditions

attached to the granting of a loan; conditions which, without waiver, would give the lender the right to declare the loan in default.

Working Capital • The capital that a company uses to work with in running its day-to-day business.

Write-off • A decision by a lender, in the event of an un-recoverable loan, to write the loan off its

balance sheet by reducing its assets by the value of the loan.

Yield • The word used to refer to the annual return on an investment, expressed as a

percentage.

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