Floating stock refers to the number of shares available for trading in the market of a particular stock. Floating stock can be calculated by subtracting restricted stock and closely-held shares from a company’s total no. of outstanding shares. Closely-held shares are...
The measure of the degree of the curve between the relationship of Bond prices and bond yields is known as Convexity. Convexity helps us in demonstrating how the rate of interest changes with Bond. It is also used as a risk management tool by the portfolio managers to...
Before knowing about the Dirty price, we have to know about some basic terminology. Let’s look into that – Investment When a private company starts an entrepreneurial business or wants to enlarge the boundary or government takes an initiative, they need a...
Convertible bonds refer to the type of bonds that provide the bondholder with the right of converting them into no. of shares of equal value. It could also be known as convertible debt or convertible notes. Companies with a lower credit rating and higher growth...
As described by its name, clean price is the financial term for the actual price of a bond excluding all the collected interest since the issue of the bond or its last coupon payment. Bonds Clean price never includes the accrued (collected) interest between any coupon...
A call provision is a stipulation on the contract for a bond—or other fixed-income instruments—that allows the issuer to repurchase and retire the debt security. According to Investopedia In simple layman terms, A Call provision allows the issuer to pay off or buy...
![Floating Stocks [Explained]](https://mybankinginformation.com/wp-content/uploads/2019/10/flating-stocks-1080x675.png)
![What is Convexity [Explained]](https://mybankinginformation.com/wp-content/uploads/2019/10/CONVEXITY-EXPLAINED-2-1080x675.png)
![Bonds Clean Price [Explained]](https://mybankinginformation.com/wp-content/uploads/2019/10/CLEAN-PRICE-IN-BONDS-1080x675.png)
