A swap is an over-the-counter agreement between institutions to "swap" one thing for another, usually the cash flow related to interest-bearing instruments.
Given the negotiable and over-the-counter nature of swaps, there are many permutations and manifestations of this concept. The most common is the interest rate swap, in which the counter-parties agree to pay the interest due on principal amounts which are not exchanged.
These are done as a hedging strategy against interest rate risk, and are transacted intercontinentally, usually, between one party who has a fixed interest rate and another party which has a variable interest rate. In such a way, institutions can diversify their exposure to interest rates around the world.
Simply put, insider trading is the crime of trading in a company’s stock based on information not available to the public
VIX is the ticker of the volatility index of the S&P 500. It serves as a gauge of market sentiment (a.k.a. “fear gauge”)
The Dividend Discount Model (DDM) is a method for valuing a stock, that looks at expected future dividend payouts
Preferred stock are dividend-paying equity shares issued by corporations, which pays a dividend with a higher priority
A high volume of loans issued to those who were unable to repay them contributed to the subprime meltdown of 2007-2009
The current yield on a bond takes into account its annual interest payment but also the price at which it can be sold
The Federal Reserve Bank is a 12-bank system in the United States that plays the role of the country’s central bank
Market risk is the chance that an investment will not maintain its value when it is dependent on the many factors...
Investment advice may included recommendations of certain stocks of funds to pick, or when to buy and sell securities
No-Cost Mortgages waive the initial closing costs by making a repayment structure for those costs into the interest rates