CONTRACTION RISK
Peril the holder of a fixed income security faces once borrowers escalate the interest rate at which they repay the security’s maturity value. A portion of prepayment risk, it increases as the interest rates decrease because it may generate an incentive for the borrower to pay all or part of the outstanding balance, resulting to reduction of the debt instrument’s life span. As interest rates decline, the possibility of prepayment climbs.
POPULAR TERMS
Accumulation Area
A price where the investors purchase shares of a particular stock. It is usually determined by the looks of the volume and its price. Some analysts ...
SEC Form DEF13E3
SEC Form DEF13E3 is a form which is used as an initial preliminary statement for a company or affiliate that is turning private. “Going priva ...
Transaction
1. Deal between a buyer and a seller to exchange a product, service, or financial instrument.
2. In accounting, an event or condition aff ...
IRS Publication 596
A document that gives information on the earned income credit (EIC) offered to individuals who earn below $51,567. To be eligible to receive EIC, a ...
Depository Trust Company Tracking - DTCT
A service, used by underwriting firms, that provides a method of tracking the exact path of purchases and sales of newly issued securities.
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SEE FOREX TUTORIAL
Digesting Financial Statements: Working Capital
Analysts and investors look at the working capital and its trends to measure a company’s financial performance. This metric determines a busi ...
Principles of Trading: Well Known Trading Instruments
Traders look at two primary factors when choosing the instruments they desire to trade: liquidity and volatility. Liquidity is the extent to which ...
Health Savings Account: Eligibility
We discussed the fundamental information regarding HSAs. Now, we shall tackle the qualifications for opening an HSA.
Any person can utili ...
Student Loans: Loan Repayment
Students, soon after your graduation, you need to enter the repayment phase. In other words, you have to start paying off your student loans. This ...
Students, How Much Can You Afford to Borrow?
You are about to finish high school. The financial aid office of the university you are considering gave you a financial aid. You are also qualifie ...
