FLOATING RATE FUND
A type of mutual fund that invests in financial instruments with variable or floating interest rate. A floating rate fund invests in bonds and debt instruments whose coupons fluctuate in line with the underlying level of interest rates, as opposed to fixed-rate coupons. The biggest advantage of a floating rate fund is its lower degree of sensitivity to changes in interest rates compared with a fund or instrument with a fixed coupon rate. Floating rate funds appeal to investors when interest rates are rising, since this will result in a higher level of interest or coupon payments. They are far less appealing when interest rates are declining.
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Robert C. Merton
American economist who won the 1997 Nobel Memorial prize in Economic Sciences, along with Myron Scholes, for developing the Black-Sholes model, whi ...
Buy Stops Above
Recommendation to purchase a given security once a security’s price surpasses a particular resistance level by putting a buy stop order at th ...
Admitted Company
An insurance company admitted and allowed by an another state to transact insurance business despite having a domiciled status on an another state. ...
Black Box Model
Computer program, process, or system processing the information entered by the user using pre-programmed logic in order to produce the user’s ...
Form 3903
A form issued by the IRS and used by taxpayers to deduct moving expenses related to taking a new job.
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SEE FOREX TUTORIAL
Buying a Home: Choosing the Best Location
The first consideration when buying a new house is choosing the place where you want to live, regardless if this will serve as an investment or upg ...
The Types of Stock
Now that you’ve learned the basics of stocks, what it is, and how it works, we can now learn more about them. The next thing you need to know ...
A Guide to Your Personal Income Tax: Essentials
In the United States, the progressive tax system is one of the most important yet misunderstood concepts of tax planning. Whenever people are asked ...
A Primer on Retirement Planning
Every person dreams of enjoying their lives once they reach their golden years. Most people desire living in a house with a beach front view or a m ...
Ethical Investing: Leaving an Ethical Imprint
After selecting the rightful ethical investments and making it work, it is about to decide how to disburse your assets after you die. You have two ...
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