Treasury Bonds A treasury bond, or t bond for short, is a U.S. government debt security that is generally long term with regard to its maturity. t bonds generally have a maturity of ten years or more, and pay coupons as well as principal when they mature. Treasury Bonds (T bonds) Explained A Treasury Bond
Treasury Bills Treasury bills are a short term government treasury security which has a maturity of less than a year. T-bills do not generally pay coupons or interest much like zero coupon bonds. Treasury Bills (t bills) Explained Because treasury bills do not pay coupons they are sold at a discount in an auction held
See Also: Trade Credit Trade Account Exchange Traded Funds Currency Exchange Rates Currency Swap Trade Finance Definition Trade Finance is the movement of assets, transactions, or investments overseas into other markets. To ensure the safety of a purchaser or seller trade finance, banks often provide a needed service to make the transactions as meaningful and
See Also: Bottom Up Approach How to Prepare an Investor Package Common Stock Definition Debt Service Coverage Ratio (DSCR) Consumer Price Index (CPI) Prepare an Investor Package Top Down Approach Definition A top down approach definition is the act of seeking out securities by first looking at global economics, industry, and then individual companies. Finally,
Synthetic Stock Definition Synthetic stock is created when a holder of a call and put option simulates the stock when that holder buys and sells the options accordingly. Without participating in the market the holder can stand to make a gain. Then, they can invest in the stock as long as the expiration has not
See Also: Efficient Market Theory Effective Rate of Interest Calculation Coupon Rate Bond Discount Rate Federal Funds Rate Definition Sharpe Ratio Definition The sharpe ratio definition is the excess return or risk premium of a well diversified portfolio or investment per unit of risk. Measure sharpe ratio using standard deviation. You may also know this
See Also: Secondary Market Securities Act of 1933 New York Stock Exchange (NYSE) Primary Market Sarbanes Oxley Act of 2002 (SOX) Securities Exchange Act of 1934 The Securities Exchange Act of 1934 deals with the regulation of secondary market transactions, or outstanding securities in the market (which can be traded on a daily basis). The Securities and
See Also: Preferred Stocks Initial Public Offering (IPO) Stock Options Basics Intrinsic Value – Stock Options Insider Trading Preemptive Subscription Rights Definition Preemptive subscription rights give existing shareholders the opportunity to purchase new share offerings before they are available to the investing public. You can also call it preemption rights or subscription rights. Basically, when
See Also: New York Stock Exchange (NYSE) Generally Accepted Accounting Principles (GAAP) American Institute of Certified Public Accountants – AICPA Financial Accounting Standards Board (FASB) Full Disclosure Principle Corporate Veil Investment Banks Treasury Stock Accounting Fraud Targeted Securities and Exchange Commission (SEC) Definition The Securities and Exchange Commission (SEC) is a U.S. government agency that
Stock Options Definition A stock option is a financial instrument that gives its holder the right but not the obligation to buy or sell a security for a set price on or before a set date. Stock options are traded on financial bonuses. A stock option contract typically consists of no less than 100 options.
See Also: Finance Beta Definition Hedging Risk Common Stock Preferred Stock Stock Options Risk Premium Definition Risk premium is any return above the risk-free rate. The risk-free rate refers to the rate of return on a theoretically riskless asset or investment, such as a government bond. All other financial investments entail some degree of risk,
See Also: Common Stock Definition Intrinsic Value – Stock Options Stock Options Basics Treasury Stock (Repurchased Shares) Reverse Stock Split A reverse split is a procedure that is the exact opposite of a stock split. It involves reducing the number of shares for the corporation while maintaining the same market value. However, the cost per
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