Category Archives: Business

Bonds are loans that investors make to corporation and goverments. The borrowers get the cash they need while the lender earn interest. Has fixed maturity date when the bond expires and the loan must be paid back in full at … Continue reading →

In probability theory and statistics, the marginal distribution of a subset of a collection of random variables is the probability distribution of the variables contained in the subset. The term marginal variable is used to refer to those variables in … Continue reading →

In the study of probability, given two random variables X and Y that are defined on the same probability space, the joint distribution for X and Y defines the probability of events defined in terms of both X and Y. … Continue reading →

The notional amount (or notional principal amount or notional value) on a financial instrument is the nominal or face amount that is used to calculate payments made on that instrument. This amount generally does not change hands and is thus … Continue reading →

To debit or credit on a daily basis a margin account based on the close of that day’s trading session. In this way, buyers and sellers are protected against the possibility of contract default. www.unitedfutures.com/futuresTerms.htm   Describes the daily settlement … Continue reading →

Fair value, also called fair price (in a commonplace conflation of the two distinct concepts), is a concept used in accounting and economics, defined as a rational and unbiased estimate of the potential market price of a good, service, or … Continue reading →

Risk inherent to the entire market of segment of market

The risk of price change dure to unique cricumstances of percific securities as opposed to the overall market. This risk can be virtually eliminated from a portfollio through dirvesification… also called un systematic risk

What Does Default Risk Mean? The event in which companies or individuals will be unable to make the required payments on their debt obligations. Lenders and investors are exposed to default risk in virtually all forms of credit extensions. To … Continue reading →