Funded Debt
What is funded debt Funded debt is a type of long-term borrowing that is typically used by governments and large corporations to finance major capital expenditures. The terms of the loan are typically 20 years or more, and the interest payments are often tax-deductible. Because of the long-term nature of the loan, it is important to carefully consider the repayment...
Lockbox Banking
What is Lockbox Banking Lockbox banking is a type of banking service typically used by businesses to speed up the receipt of payments. With lockbox banking, businesses send their payments to a post office box that is managed by a bank. The bank then processes the payments and deposits them into the business's account. This can save businesses both time...
Commingled Fund
What is a commingled fund and what are its benefits A commingled fund is a type of investment vehicle that pools together money from multiple investors and invests it in a variety of assets. The main advantage of investing in a commingled fund is that it provides economies of scale, which can lower expenses and increase returns. In addition, commingled...
Investment Objective
What is an investment objective and why do you need one Before making any investment, it is important to have a clear investment objective. This is a statement of what you hope to achieve through your investment. It should be specific, measurable and realistic. Without an investment objective, it can be difficult to determine whether an investment is successful. For...
Bullish Abandoned Baby
What is a bullish abandoned baby and how can you spot one An abandoned baby is a candlestick pattern that is considered to be a bullish signal. The pattern is formed when there is a gap down followed by a candlestick with a small body that gapped up from the prior candlestick. The pattern is considered to be bullish because...
Asset Swap
What is an asset swap An asset swap is a type of financial transaction in which two parties exchange two different assets in order to receive desired risk, return, or cash flow characteristics. One common type of asset swap is a interest rate swap, in which one party agrees to pay a fixed interest rate in exchange for another party's...
Growth and Income Fund
What is a Growth and Income Fund A growth and income fund is an investment fund that seeks to provide both capital appreciation and dividend income. The fund invests in a diversified portfolio of stocks, with a focus on companies that are growing earnings at a faster rate than the overall market. While growth stocks typically have higher price-to-earnings ratios...
Horizontal Spread
What is a horizontal spread and how can it be used in trading options A horizontal spread is an options trading strategy that involves buying and selling options with different strike prices but with the same expiration date. The purpose of a horizontal spread is to hedge against price movements in the underlying asset or to take advantage of differentials...
Floating Charge
What is a Floating Charge and how does it work A floating charge is a type of security interest that gives the holder the right to take possession of And use certain assets of the debtor, but does not give the holder ownership rights. The most common type of assets subject to a floating charge are inventory and accounts receivable. Floating...
Opening Range
What is the opening range and why is it important The opening range is the range of prices at which a security trades during the first period of the day. The opening range is important because it sets the stage for the rest of the trading day. After the opening range is established, traders will watch for signs of breakout...