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At the Money Forward Option – Explained

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

What is an At-the-Money Forward Option?An option is At the money (ATM) when the options strike price is exactly the same as the price of the underlying security. Both call and put options can be at the money. If an option is at the money, that means it doesn/t have...

Accelerated Bookbuild – Explained

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

What is Accelerated Bookbuild?An accelerated bookbuild is a method whereby the offering of new shares in the equity or capital market is done within a short period. The bookbuild of the offering is completed quickly, often within 48 hours or less. This method provides...

Accumulation Option – Explained

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

What is an Accumulation Option?An Accumulation Option is a provision of life insurance policies that enables policyholders enjoy dividends on their policies through the reinvestment of dividends to earn interest. The accumulation option enhance accruing interest or...

Amortizing Swap – Explained

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

What is an Amortizing Swap?An Amortizing Swap is an instance of interest rate swap in which the notional principal amount decreases during the life cycle of the swap. Usually, two parties are involved in an amortization swap deal, there is also an agreed schedule or...

Average Annual Current Maturities – Explained

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

What are the Average Annual Current Maturities?Basically, the current maturities of long-term debt tells the period of time that the bond has until its maturity date. Usually, it indicates the part of the long-term debt that will mature or come due in the next 12...

ABC Agreement – Explained

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

What is an ABC Agreement?An ABC Agreement refers to a contract holding between an investment house and an employee. An investment house is also known as a brokerage firm while an employee is known as the broker of an investment house. The contract contains the...
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