Financial Crisis
The definition of a financial crisis is applied broadly to various situations in which some loan companies or assets suddenly lose a large part with their value. From the 19th and early 20th centuries,...
Commodities Exchange
A commodities exchange is an exchange where commodities and derivatives merchandise is traded. Most commodity markets around the world trade in raw materials and agricultural products (like wheat, barley, sugar, maize, cotton, cocoa, coffee,...
Bond
In finance, a bond can be a negotiable certificate that acknowledges the indebtedness from the bond issuer to the holder. It really is negotiable since the ownership with the certificate can be transferred from...
Public Finance
Public finance’s purview is generally considered a three fold thing. Every component of public finance is about how the government affects something, but the sections it affects are different from one another. For one,...
Hedge
To hedge is to take a futures position that is equal and opposite to a position held in the cash market. The objective is to mitigate the risk of an adverse move in prices....
Financial regulation
Outline of the U.S. financial regulatory system Federal Reserve System The Federal Reserve System, often referred to as the Federal Reserve or simply “the Fed,” is the central bank of the United States. It...
Credit derivative
Overview of Credit Derivatives A credit asset is the extension of credit in some form: normally a loan, accounts receivable, installment credit or financial lease contract. Every credit asset is a bundle of risks...
Options
An option in finance is a financial derivative product that represents a contract sold by the option writer to another party (option holder). An option contract gives the buyer the right –not the obligation...
Swaps
Swap, in finance, refers to a derivative product in which the parties to the contract agree to exchange cash flows of each other’s financial instruments. The benefits arising out of a swap contract depend...
Finance
Finance is the management of money and other valuables, which can be easily converted into cash. Finance is a simple task of providing the necessary funds (money) required by the business of entities like...
Financial market participants
Financial market participants range from banks and other lending institutions to entities at the federal level. In the U.S., the federal government is the largest market participant through it’s varies entities and sponsored agencies....
Clearing house
According to 15 USCS § 78c (23) (A) the term ‘‘clearing agency’’ means any person who acts as an intermediary in making payments or deliveries or both in connection with transactions in securities or...
Securities
The study of stocks and the stock market must necessarily begin with defining what stocks are. Stocks are equity securities, signifying that the owners of such securities have an equity (ownership) position—a “piece of...
Commodity market
Trading of commodities consists of direct physical trading and derivatives trading. Commodities include a range of diverse products. More recently there has been growing sophistication of commodities investments with the introduction of new “exotic”...
High-yield debt
High yield debt is essentially non-bank debt that does not carry an investment grade rating and that typically bears interest at a higher rate as compared to investment grade issues. The minimum rating for...