Constant Maturity Swap (CMS)

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)

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)

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

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

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)

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)

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

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

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)

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)

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

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…
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