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APY is an annualization of an interest rate which may be assessed on a different schedule, such as on a monthly basis, and is useful for comparing debt and loan agreements that use different schedules.
Annual Percentage Yield is a way to compare products and loans with different interest rates and different schedules for calculating the interest. It is a calculation of the effective annual rate, and it takes into account the effects of compounding interest, which a similar calculation for APR (Annual Percentage Rate) does not do.
Because it takes compounding into account, the APY is going to be higher than the APR, and this may be important for consumers to understand, since banks may quote the lower APR, but the consumer may pay the higher APY in effect. APY and APR can also be helpful when comparing savings accounts, checking accounts, and so forth.
A short position is a sale made by an investor for a security which he or she will deliver to the buyer in the near future
Employees do not have control of their own accounts in a Cash Balance plan, but they can possibly influence contribution
FICA is a tax on employees and employers that funds the Social Security and Medicare programs of the United States
Generally speaking, Medigap policies are not cheap, since they cover all (or most) of the out-of-pocket costs for...
A business with a fast ‘cash conversion cycle’ can efficiently use funds to fulfill the different needs of the business
At their conception, ETFs only tracked indexes, but today there is also demand for actively-managed ETFs
Accommodation Trading is when two traders enter into a non-competitive trade agreement which disregards the current price
Required Rate of Return is the return that investors will expect to earn on their money, given the risk and costs involved
With every day that passes, bitcoin is becoming a more usable and accepted form of payment for a variety of goods and services
Initial Coin Offerings are ways for new cryptocurrency or other technology companies to raise capital and put their coins into circulation