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Accrued Interest Bond – Explained

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

What is an Accrued Interest Bond?The accrued interest of a bond is the amount of interest earned on the bond but awaiting payment. This interest is accumulated from when a bond coupon is issued. In bond trading, the buyer pays the seller the market price of the bond...

Accumulation Period – Explained

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

What is an Accumulation Period (Investment)?Accumulation period refers to the period in which annuitants make contributions to their annuity accounts as an investment method in retirement savings. This is as per the context of insurance.How Does an Accumulation Period...

Warrant (Finance) – Explained

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

What is a Warrant?A warrant is defined as permit that investors or employees have to buy or sell a number of ownership interest in the company at a strike price at a period in time. Most investors are attracted to warrants, this is because it gives them the right to...

Weak Form Market Efficiency – Explained

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

What is Weak Form Market Efficiency?Weak form market efficiency, also known as he random walk theory is part of the efficient market hypothesis. The efficient market hypothesis concerns the extent to which outside information has an effect upon the market price of a...

ABX Index – Explained

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

What is the ABX Index?The ABX index is an economic reference point that gauges the monetary worth of the investment market for subprime mortgages with lowered interest rates. The index comprises 20 residential mortgage-backed securities or RMBS.How does the ABX Index...

Above Par (Bond Price) – Explained

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

What is Above Par Bond Price?Above par is the term used to describe the price of a bond that is trading at a premium above its face value. It happens when the income distributions of a bond are above those of others available in the market. It is caused by declined...
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