Tag: instruments

DefinitionParticipatory Notes commonly known as P-Notes or PNs are instruments issued by registered foreign institutional investors to overseas investors, who wish to invest in...

DefinitionA call option, often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of...

What is 'Partially Convertible Debenture - PCD' A type of convertible debenture, part of which will be redeemed by the issuing company...

What is 'Variable Rate Demand Note - VRDN' A debt instrument that represents borrowed funds that are payable on demand and accrue...

What is 'Fairway Bond' A type of bond that accrues interest if the embedded index or interest-rate option underlying the bond remains...

What are generic securities and why are they important Generic securities are financial instruments that are not tied to a specific company or asset. Instead,...

What is 'Take-Out Lender' A type of financial institution that provides a long-term mortgage on property. This mortgage will replace interim financing,...

What is a 'Warrant' A warrant is a derivative that confers the right, but not the obligation, to buy or sell a security – normally...

What is an underlying option security An underlying option security is a security that can be used as collateral for options contracts. The most common...

What is an Ultra-Short Bond Fund Ultra-short bond funds are a type of fixed income mutual fund that invests in bonds with short-term maturities, typically...