by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Straight Through Processing?Straight-Through Processing (STP) is a method used to speed up financial transactions processing time, by processing without manual intervention (straight-through), by financial companies. The main goal of STP is its ability to...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Tight Market?A tight market is defined as a market with high trading volume and narrow bid and ask margins. One characteristic of the tight market is abundant liquidity and high competition on both the buyers and sellers part. The term may also indicate a...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Spot Market?In the spot market, financial instruments or commodities are traded for cash and delivered at the instant it was sold. A spot market is otherwise called the cash market or physical market, this is a place where a financial instrument is traded,...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Medium Term?A Medium-term is a term used in investment to describe an investment holding period of between 1 to 3 years. The time horizon in a medium-term investment is intermediate, the investor is expected to receive the return on investment and the...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is an Original Issue Discount?An original issue discount (OID) is when the companies sell their face value bonds at a discount. Often bonds are sold at maturity for a sum less than their stated value; the difference is the OID, which becomes the buyer’s...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is an Overseas Private Investment Corporation?An Overseas Private Investment Corporation (OPIC) is a government body of the United States which was established in 1971, that offers medium to long-term funding for projects in developed and emerging markets,...
