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Commingled Fund – Explained

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

What is a Commingled Fund?A commingled fund is a type of investment fund which invests the capital of its participants in other different investment funds. An investment fund can directly invest in financial products like stocks and bonds. Commingled funds don’t...

Commodity Futures Modernization Act – Explained

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

What is the Commodity Futures Modernization Act?CFMA is a law in the US that was enacted in 2000 and deregulated under the derivatives of the OTC (over-the-counter). The law enables the “sophisticated parties to enter into trade contracts without inspection as...

Collateralized Loan Obligation – Explained

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

What is the Collateralized Loan Obligation?A CLO is a security that is backed up by the collateral of a set of debt instruments like bonds and mortgages. It is a credit derivative.How Does a Collateralized Loan Obligation Work?The issuer of the CDO mainly uses it in...

Chicago Board of Trade – Explained

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

What is the Chicago Board of Trade?The Chicago Board of Trade is a form of commodity exchange established in 1848 in cases where both financial and agricultural contracts have been closed. Previously, CBOT was being traded only in agricultural products like maize,...

Certificate of Deposit – Explained

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

What is a Certificate of Deposit?Certificate of Deposit is a financial document or contract offered by a financial institution normally with a fixed return over a particular period of time. US is the pioneer country that started issuing a Certificate of Deposit back...

Call Option – Explained

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

What is a Call Option?A call option gives a buyer the right to purchase an asset in the future from the seller of the financial option at a pre-established price. The buyer doesnt acquire the obligation but instead the right to buy an underlying asset, which is the...
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