COLLATERAL
Asset pledged by a borrower to lender seeking a loan. The lender can seize the collateral to recover losses should the borrower stop from making loan payments. Since it gives some security to the lender in the event the borrower defaults on his obligation, normally, loans secured with a collateral have lower interest rates than unsecured ones.
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Housing Bubble
A run-up in housing prices fueled by demand, speculation and the belief that recent history is an infallible forecast of the future. Housing bubble ...
Low Exercise Price Option - LEPO
A call option for investors that has a price of 1 cent with an agreement to buy 1000 shares. This cannot be executed until its expiry. It works lik ...
Callable Security
A security with an enclosed call provision that gives the person who issues to redeem or repurchase the security by a particular period. Since the ...
Shadowing
Shadowing is the creation of values for variables that are not dependent strictly to market value. This means that these variable have market value ...
Pass-Through Rate
Pass-through rate is the net
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Student Loans: Repaying Debts Faster
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