Term of the day

***ROHAN KACHALIA***

TERM OF THE DAY

Corporate Bond

A type of bond issued by a corporation. Corporate bonds often pay higher rates than government or municipal bonds, because they tend to be riskier. The bond holder receives interest payments (yield) and the principal, usually $1000, is repaid on a fixed maturity date (bonds can mature anywhere between 1 to 30 years). Generally, changes in interest rates are reflected in bond prices. Bonds are considered to be less risky than stocks, since the company has to pay off all its debts (including bonds) before it handles its obligations to stockholders. Corporate bonds have a wide range of ratings and yields because the financial health of the issuers can vary widely. A high-quality Blue Chip company might have bonds carrying an investment-grade rating such as AA (with a low yield but a lower risk of default), while a startup company might have bonds carrying a "junk bond" rating (with a high yield but a higher risk of default). Corporate bonds are traded on major exchanges and are taxable.

reminicism

nice to learn something in finance..m kinda technical so bounces me...lol
next time ..wat abt james bond?

***ROHAN KACHALIA***

TERM OF THE DAY

Options Trading

The act of engaging in trade of securities, specifically in the
options market. Investors are given the choice to buy or sell the
security at a specific price by a specific time, but they are not
required to do so.

***ROHAN KACHALIA***

TERM OF THE DAY

Mark to Market

Recording the price or value of a security, portfolio, or account on a daily basis, to calculate profits and losses or to confirm that margin requirements are being met.

***ROHAN KACHALIA***

TERM OF THE DAY

Leads and lags

The increase or decrease in the speed of payments received from foreign exchange transactions. The speed of payments increases if the exchange rates increase, and decrease if the exchange rates decrease. If investors expect the exchange rate to increase, they might rush payments ("leads") in order to improve their position. If they expect rates to fall they might wait on the payments ("lags").

***ROHAN KACHALIA***

TERM OF THE DAY

Index

A statistical indicator providing a representation of the value of the securities which constitute it. Indices often serve as barometers for a given market or industry and benchmarks against which financial or economic performance is measured.

***ROHAN KACHALIA***

TERM OF THE DAY

RTGS

Real Time Gross Settlement System A system that streamlines that settlement of large-value transactions between banks and other financial institutions. Instead of moving physical amounts of cash, the banks transfer funds electronically. When one bank transfers money to another, the funds are immediately credited to the second bank and debited to the first.

***ROHAN KACHALIA***

TERM OF THE DAY

Holding Period

The length of time an asset was held (the time between the trade date of the purchase and the trade date of the sale). The holding period determines whether a gain or loss is short-term or long-term for tax purposes. A long-term holding period is one year and one day. The short-term holding period is less than one year.

***ROHAN KACHALIA***

TERM OF THE DAY

Angel Investor

An individual who provides capital to one or more startup companies. The individual is usually affluent or has a personal stake in the success of the venture. Such investments are characterized by high levels of risk and a potentially large return on investment.

***ROHAN KACHALIA***

TERM OF THE DAY

Law of One price

An economic rule which states that in an efficient market, a security must have a single price, no matter how that security is created. For example, if an option can be created using two different sets of underlying securities, then the total price for each would be the same or else an arbitrage opportunity would exist.