Swap Spread The difference between the fixed portion of a given swap and the yield on sovereign debt security with a comparable maturity is the swap spread.…
Total Return Swap (TRS) Total Return Swap, or TRS (especially in Europe), or ‘Total Return Swap Rate’ (TRORS), or ‘Cash Settled Equity Swap’ is a swap deal in which…
Total Shareholder Return (TSR) The total amount of money that a shareholder will make from each individual stock is the total shareholder return (TSR), or simply known as ‘total…
Return On Total Assets (ROTA) Return on total assets (ROTA) is a profitability ratio, also known as the return on assets ratio, which calculates the net income created by total…
Value of Risk Value of risk (VOR) is the financial gain that a risk-taking operation can offer to an organization’s stakeholders. Value of risk refers to the economic…
Downside Risk The financial risk associated with losses is downside risk; it refers to the possibility that the price of an asset or security will decline. It…
Dollar-Cost Averaging (DCA) Dollar-Cost Averaging (DCA) is an investment technique used by investors who want to minimize their investment by reducing the effect of uncertainty and thus reducing…
Automatic Bill Payment Automatic bill payments are ongoing money transfers approved on a regular basis by a client to pay those vendors. It enables us to automatically pay…
Automatic Investment Plan (AIP) An Automatic Investment Plan (AIP) is an investment program that enables investors, at regular intervals, to add money to an investment account to be invested…
Robo-Advisor Online investment management services that employ mathematical algorithms to provide financial advice with minimal human involvement are Robo-advisors (also spelled Robo-advisor or roboadvisor). Based on…
Managerial Finance In order to decide how they can affect an organization internally as well as externally, managerial finance can be characterized as the process of gauging…
Insurance – brief overview Insurance is a compulsory method of laying by something as a provision against the future. It carries some degree of insurance security against adverse circular…