Company analysis
What is related party transaction?
Business done between a company and people connected to it.
Explained in more detail
Deals with entities owned by promoters or directors are not automatically wrong, and they are where money most often leaks out of a listed company. They are disclosed in the annual report and are worth reading every year.
An example
For instanceA company paying rent to a building owned by its promoter family.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time related party transaction appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.