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Accreting Principal Swap – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is an Accreting Principal Swap?An Accreting Principal Swap, variously known as accreting swap, accumulation swap, construction loan swap, drawdown swap, or step-up swap is an interest rate swap that involves an exchange of cash flows between two counterparties...

Absolute Breadth Index – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the Absolute Breadth Index?Absolute Breadth Index (ABI) is an indicator to measure the market volatility without factoring in price direction. It is a momentum indicator which tracks the movement of the stocks on the exchange but not their directions. The...

Effective Yield – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Effective Yield?The total yield of a bond when the bondholder reinvests the interest of the bond is referred to as effective yield. Effective yield is often higher than the nominal yield, this is because it is the total yield a bondholder receives on the...

Across the Board (Finance) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Across the Board?The term, across the board, is a market-wide directional movement, or a market condition where the majority of sectors and stocks move in exactly the same directions. Usually, market-wide events bring about these movements. The phrase now...

Bermuda Option – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Bermuda Option?A Bermuda option refers to an exotic option type which is only exercisable to predetermined dates, usually on a day per month. Bermuda options are a blend of European and American options. Bermuda is can be exercised at the expiration date,...

Balanced Fund – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Balanced Fund?A balanced fund merges a bond component, a stock component, and occasionally a money market component all in one portfolio. Usually, these hybrid funds stick to a somewhat fixed mix of bonds and stocks which shows either moderate equity, or...
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