What is the Term Structure Of Interest Rates? The term structure of interest rates is commonly known as the yield curve. When you invest money into interest-bearing security, the amount of interest paid will vary depending on the length of the investment term. In other words, a savings bond with […]
Trading Basics
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Common Stock vs Preferred Stock There are many differences between common stock vs preferred stock. However, a key difference has to do with voting rights. Preferred stock usually does not give shareholders voting rights. Common stock does, usually at one vote per share owned. Many investors know quite a bit […]
What Determines Stock Price? What determines stock price? Every time a stock is sold, the exchange records the price at which it changes hands. If a few seconds or minutes later another trade takes place, the price at which that trade is made becomes the new market price, and so […]
What is a Reverse Auction? A Reverse auction is initiated by the buyer – usually large corporations and governments. Suppliers then bid in real-time driving the price down. A reverse auction is a type of auction in which sellers bid for the prices at which they are willing to sell their goods and […]
What Is Equilibrium Price? Equilibrium is the state in which market supply and demand balance each other. As a result, prices become stable. The equilibrium price is that stable price which, if attained in the market, will be maintained. At least until some disturbing factor causes a change in demand […]
What Are Debt Securities? Debt securities are debt instruments that can be bought or sold between two parties. Basic terms are defined, such as the amount borrowed, interest rate, maturity date, and renewal date. Debt securities are issued by corporations, governments, governmental agencies, or other organizations. Each one is essentially […]