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A rate swap is the exchange of cash flows on underlying principals which are not exchanged. It is an over-the-counter contract between two institutions to trade the cash flows on two comparable principal amounts, but not to exchange the actual principal amounts.
Institutions might prefer this arrangement because they only have access to floating interest rates or are overweight in them and would prefer to have some fixed rate interest cash flow, or vice versa. These swaps might occur between banks on opposite sides of the world to take advantage of rates elsewhere or to simply diversify their risks.
Oversold describes a situation in which a security has an inherent value greater than it's price, due to low demand
Double and triple ETFs are also known as leveraged ETFs, and their goal is to magnify the performance of the index...
Active management is when an investor or money manager attempts to outperform an index or benchmark using tactic strategy
Keoghs can hold a wide range of investments, and it will mostly depend on your plan trustee
Some hedge funds will require investors to fit the Qualified Purchaser criteria, which requires a portfolio of $5 million
The “Shanghai” is an index measuring all shares that are traded on the Shanghai Stock Exchange (China)
A Real Estate Investment Trust (REIT) is a pooled investment with a high dividend yield that invests in real estate
The FCPA is a law designed to prevent US-based companies from engaging in corrupt practices abroad
The home market effect (HME) is a theoretical term used in trade theory economics, describing the concentration of an...
Divorce can be hard. Publication 504 walks through the various choices available to those who are divorced or separated