Definition
Interest rates are the percentage of a loan that a lender charges for borrowing money. The interest rate is the cost you pay each year to borrow money, and is typically represented as an annual percentage rate (APR). Lenders...
Debt means anything that is either owed and/or due. The parties to any debt are referred to as lenders i.e. those who give, and borrowers or those who receive loan.
Usage
Debt is used both by corporate entities as well as private parties as a means of making...
Premium, in the simplest of terms, is the total cost of any option. It is basically the sum of your option’s time and intrinsic value. When it comes to insurance, it is the amount that is required by an...
Inflation is well defined as a sustained increase in the general level of prices for goods and services wherein the purchasing power falls. It is measured as an annual percentage increase. As inflation rises, every penny you own buys...
What is a 'Sale' A sale is a transaction between two parties where the buyer receives goods (tangible or intangible), services and/or assets in exchange for money. It can also refer to an agreement between a buyer...
DefinitionA mortgage loan or, simply, mortgage is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the...
What is 'Quid'
The pound sterling, sometimes known as the British pound, is the currency of the United Kingdom, and the quid is a slang name for it. Quids are 100 pence, and it is said to have originated from...
What does 'Underlying' mean
Underlying, in equities, is the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock. The price of the underlying is...
What is a 'Range' The difference between the low and high prices for a security or index over a specific time period. Range defines the price spread for a defined period, such as a day or year,...
Definition
In finance, amortization refers to the process of paying off a debt over time by making scheduled, periodic payments of principle and interest. To amortize a debt is to "put it out of its misery." In accounting, amortization is...