INVERTED SPREAD
A situation in which a short-term instrument generates a higher rate than a long-term instrument. To compute, subtract the longer term by the shorter term. As a result, the shorter term instrument is yielding a higher return rate than the longer one. The inversion can be caused by the overall supply and demand for some instruments or economic fluctuations. This is different from a normal market where a long-term instrument should yield higher returns to compensate for time.
POPULAR TERMS
Sprinkling Provision
Sprinkling provision is a life insurance agreement provision. In it, trustees are enabled to disperse death benefits among the beneficiaries within ...
Emergence Plan
Firm’s formal strategy to exit Chapter 11 bankruptcy, which in a sense leaves the company sturdier than it was prior to declaring bankruptcy. ...
Unified Tax Credit
Unified Tax Credit is a tax credit given to every American citizen by the Internal Revenue Service. It allows every individual to gift a particular ...
Delivery Point
It is the place where the commodity will be delivered.
Average Price
A bond's price average which is calculated by summing up the face value of the price paid for it and dividing it by two. Average price ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
Ethical Investing: Looking Into Ethical Investments
For studying socially responsible investments, the key word is ethics, of course.
View every corporate webs ...
Principles of Trading: Record Keeping and Taxation
It is imperative for every trader to maintain a precise, organized, and latest trading-related records. Hence, traders should keep both hard and di ...
Choosing Your Bank
Now that you’ve learned the basics of banking and the importance of it, you are now ready to put your money in a bank. But which bank should ...
Introduction to Inflation
I asked my grandparents about the cost of living during World War II. They told me people during that period could buy a house for $5,000, a car fo ...
Buying a Home: Closing the Deal
It’s almost done! With just a few steps away, the house that you have been dreaming of will be yours.


