Finance

Swap Spread

Swap Spread

The difference between the fixed portion of a given swap and the yield on sovereign debt security with a comparable maturity is the swap spread. Since government bonds (e.g. US Treasury securities) are considered risk-free securities, the risk levels perceived by the parties to the swap agreement.....

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Total Return Swap (TRS)

Total Return Swap (TRS)

Total Return Swap, or TRS (especially in Europe), or ‘Total Return Swap Rate’ (TRORS), or ‘Cash Settled Equity Swap’ is a swap deal in which one party makes payments, either fixed or variable, on the basis of a fixed rate, while the other party makes payments on the basis of the return of.....

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Total Shareholder Return (TSR)

Total Shareholder Return (TSR)

The total amount of money that a shareholder will make from each individual stock is the total shareholder return (TSR), or simply known as ‘total stock return’. In order to display the overall return to the shareholder as an annualized percentage, it incorporates share price appreciation and.....

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Return On Total Assets (ROTA)

Return On Total Assets (ROTA)

Return on total assets (ROTA) is a profitability ratio, also known as the return on assets ratio, which calculates the net income created by total assets over the period by comparing the net income to the average total assets. In using company assets to produce revenues, ROTA provides analysts wi.....

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Value of Risk

Value of Risk

Value of risk (VOR) is the financial gain that a risk-taking operation can offer to an organization’s stakeholders. Value of risk refers to the economic profit that a company can benefit by performing a risk-taking operation. Businesses carry out numerous operations at all times, such as th.....

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Downside Risk

Downside Risk

The financial risk associated with losses is downside risk; it refers to the possibility that the price of an asset or security will decline. It is an estimate of the ability of a security to experience a decrease in value if the dynamics of the market change or the sum of losses that may be [&he.....

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Dollar-Cost Averaging (DCA)

Dollar-Cost Averaging (DCA)

Dollar-Cost Averaging (DCA) is an investment technique used by investors who want to minimize their investment by reducing the effect of uncertainty and thus reducing their exposure to risk. The constant dollar plan (in the US), pound-cost averaging (in the UK), and unit cost averaging, increment.....

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Automatic Bill Payment

Automatic Bill Payment

Automatic bill payments are ongoing money transfers approved on a regular basis by a client to pay those vendors. It enables us to automatically pay our bills each month with our Discover card. Payments are also scheduled on a monthly basis for consumers to pay different types of bills, such as m.....

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Automatic Investment Plan (AIP)

Automatic Investment Plan (AIP)

An Automatic Investment Plan (AIP) is an investment program that enables investors, at regular intervals, to add money to an investment account to be invested in a predetermined strategy or portfolio. In investing, there is only one certainty: stock and bond prices can fluctuate. In any case, eve.....

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Robo-Advisor

Robo-Advisor

Online investment management services that employ mathematical algorithms to provide financial advice with minimal human involvement are Robo-advisors (also spelled Robo-advisor or roboadvisor). Based on mathematical principles or algorithms, they offer automated financial advice. These algorithm.....

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Managerial Finance

Managerial Finance

In order to decide how they can affect an organization internally as well as externally, managerial finance can be characterized as the process of gauging finance techniques. It is the branch of finance that is concerned with the implementation of finance techniques by management. Sound monetary .....

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Insurance – brief overview

Insurance – brief overview

Insurance is a compulsory method of laying by something as a provision against the future. It carries some degree of insurance security against adverse circular stances. It is now a branch of business that covers all kinds of future risk – the risk of life and limbs, as well as of loos through .....

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