Constant Maturity Swap (CMS) A constant maturity swap, also known as a CMS in the financial world, is a swap that allows the buyer to set the duration of…
Call Swaption (Finance) The holder of a call swaption, also known as a call swap option, has the right but not the duty to enter into a swap…
Put Swaption (Finance) A put swaption is also known as a payer swaption, and it differs from a call (receiver) swaption. It’s also known as a payer swaption…
Call Option Options are contracts that offer a buyer the right to buy or sell the underlying asset, or the security on which a derivative contract is…
Understanding Synthetic Options Portfolios or trading positions containing a variety of securities that, when combined, resemble another position are known as synthetic options. Although options may help traders…
Incentive Stock Option (ISO) An incentive stock option (ISO) is a corporate opportunity that allows employees to purchase shares of company stock at a reduced price with the possibility…
Early Exercise (Finance) The process of buying and/or selling shares of a particular stock that contain the underlying terms of a corresponding options contract before its expiration date…
Profitability Ratios Profitability ratios are a series of financial metrics that calculate a company’s profit and determine its ability to produce income (profit) in relation to sales,…
Seasoned Equity Offering Any issuance of shares that occurs after a company’s initial public offering (IPO) on the stock market is referred to as a seasoned equity offering…
Seasonally Adjusted Annual Rate (SAAR) The seasonally adjusted annual rate (SAAR) is a rate that is expressed as an annual total and is adjusted to take into account normal seasonal…
Revolving Credit Facility (RCF) A revolving credit facility, also known as a “RCF”, is a line of credit negotiated between a bank and a company, in which the bank…
Evergreen Loan An evergreen loan, also known as a revolving loan, revolving credit facility, or standing loan, is a form of loan in which the borrower receives…