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Swap (Finance) – Explained

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

What is a Swap?A swap refers to an exchange of a financial instrument between two parties. It is usually in the form of a derivative contract, and it takes place at a predetermined time as specified in the contract. Swap may be anything that ranges from cash flow,...

Equity Indexed Annuity – Explained

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

What is an Equity Indexed Annuity? An Equity Indexed Annuity (EIA), often referred to as a fixed indexed annuity or simple indexed annuity, is a type of unconventional financial asset that is typically considered as an alternative to conventional investment assets...

Variable Annuity – Explained

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

What is a Variable Annuity?A variable annuity refers to an annuity contract type which allows for capital accumulation on a deferred tax basis. Contrary to a fixed annuity which offers an interest rate that is guaranteed, as well as, a minimum annuity payment,...

Interest Rate Swap – Explained

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

What is an Interest Rate Swap?An interest rate swap is a form of contract where the parties agree to exchange or swap the interest payments on two securities. It is primarily a tool used by bond investors. A company that has issued corporate bonds seeks to improve its...

Hedge Fund – Explained

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

What is a Hedge Fund?A hedge fund is a portfolio of investments that uses pooled funds from accredited investors or institutional investors in a bid to earn returns for investors. Hedge funds are regarded as aggressively managed funds because it employs the use of...

Investment Advisor – Explained

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

What is an Investment Advisor?An investment advisor offers investment or financial advice to clients, this is a professional who gives financial recommendations and investment analysis for clients. After analyzing a security or an investment as well as the risks it...
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