by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Commodity Swap?Commodity swap refers to a financial transaction between two parties who agree to exchange commodity prices cash flow so that they can manage commodity price-related risks. Commodities involved in swaps include livestock, precious metals, or...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Commodity Price Risk?Commodity price risk refers to financial losses that may occur to both the consumer, and the producer when there is a change in commodity prices. A risk for the buyers is that the prices for commodities may be high. Take an example of...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Brokerage Account?A brokerage account is a taxable account that an investor opens under a certified brokerage firm for investment purposes. The investor can deposit money by writing checks or linking the account to their savings account. The brokerage firm...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Below Par?Below par is a concept used for a bond in case its market price is lower than its par or face value, that is $1000 in most of the cases. Since the price of bonds is ascertained as a specific percentage of principal value, any price that is lower than...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Bear (Investor)?A bear is a term used for an investor who aims to be in a profitable position with a fall in stock prices in the market. Bears are usually considered to be pessimistic regarding a specific market condition. For instance, if an investor...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Basis Point?Basis point (BPS) is a commonly used unit for measuring interest rates as well as other percentages used in the finance sector. One basis point tells how much percentage change a financial instrument has experienced. It is equivalent to 0.01% or...
