By means of ABCP, securitization is applied to short-term corporate funding. Asset-backed commercial paper (ABCP) is commercial paper (CP) that is issued by a bankruptcy-remo...
The difference in the required yield of a financial instrument relative to its benchmark is a yield spread, it reflecting the difference in the creditworthiness of an issue and/or...
The yield curve is a graph plotting the observed yields to maturity of the most recently issued (“on-the-run”) benchmark debt securities in a market – generally central government...
A stock split is an increase in the number of a company’s outstanding shares while proportionately decreasing each individual share’s book value by decreasing the par or stated val...
Stock funds invest chiefly in the stock (equity) of different publicly traded companies, generally with the objective of long-term growth through capital gains. They are actively...
A stock dividend is a pro rata distribution of a company’s own shares to its shareholders in place of or in addition to a cash dividend and achieved by transferring a certain value...
What is a security market line?
The CAPM enables the plotting of a security market line (SML), which illustrates that the expected return on an individual investment (E) is directly proportional to its relative c...
The distribution of subscription rights to existing shareholders in proportion to their ownership interest is a rights offering. The period of time in a rights offering during whi...
Money market instruments are usually high-quality relatively large-denomination debt instruments issued by corporations, government entities and financial institutions having an or...
A lease is a contractual financing arrangement in which one party – the lessee – is granted the right to possess and use a specific asset or group of assets owned by another party...
