TERMINATION CLAUSE
Provision in a swap contract outlining the consequences for defaulting on or ending early the contract. The clause can make the party responsible for early termination by making him pay damages to other counterparty. There are three ways to calculate these damages or termination payments: agreement value method, formula method or indemnification method.
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Concentration Ratio
Ratio indicating the relative size of companies in respect to their industry in general. Low concentration ratio denotes higher competition among t ...
Back-To-Back Letters Of Credit
Two letters of credit (LCs) utilized together to aid a merchant in financing the buying of services or equipment from a subcontractor. With the aut ...
Stock Market Crash of 1987
Rapid and one of the most severe downturn in stock prices which took place on October 19, 1987. Following five days of intensifying stock market pl ...
Z-Score
“Z-Score” is a statistical measurement showing the relationship of the score to the mean. It can be positive or negative, which means t ...
Premium
The total cost of an option.
The difference between the higher price paid for a fixed-income secur ...
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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: Determining the Amount You Can Afford
You have decided to buy a house, choose the best location, and select a home suitable for you needs. It is high time to determine the amount you ca ...
Buying a Home: Writing an Offer
You’re down to the last four steps to buying your dream house. Now, you need to write an offer and the seller has to accept it. Take into acc ...
Featured Investment: Annuity
Featured Investment: Annuity
Investments are what trading is all about. And knowing about the various a ...
