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Fixed Income

External Financing

In the world of finance, projects can be funded through the issuance of new securities, which can be in the form of debt or equity. Debt securities involve borrowing money which is to be repaid with interest, while equity securities represent ownership in a company. Both options have their advantages and it is important to carefully consider the best approach for each project. Let's delve deeper into the nuances of financing through securities.

When a company needs to raise funds for a new project, it can issue debt securities such as bonds or loans. These securities come with a fixed interest rate and a specified maturity date, making them a predictable source of financing. On the other hand, equity securities, which include stocks and shares, offer ownership in the company and potential for dividends. However, they also come with the risk of fluctuating returns.

The decision to issue debt or equity securities depends on various factors such as the financial stability of the company, the current market conditions, and the

The term "basis point" is commonly used in the financial world to measure changes in the yield of bonds. It represents a change of 0.01 percent, which may seem small, but ca...

In the world of finance, there is a key term that holds significant weight - investment performance. It is a metric used to assess the success of an investment over a certai...

Reinvestment Risk

In finance, there is a concept of risk that arises from uncertainty in the interest rate. This refers to the potential impact on future cash flows caused by fluctuations in ...

Settlement Risk

Counterparty risk is a term used in finance to describe the potential for a party to fail to meet their financial obligations. This can occur in a variety of situations, suc...

Early payment of a debt is known as prepayment. It means paying off a loan or debt before the agreed-upon due date. This can happen for various reasons, such as wanting to a...

Market risk is an essential concept in finance that measures the potential for financial loss due to market fluctuations. It is a crucial aspect of risk management, and unde...

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Mutual Funds

All terms and concepts related to mutual funds, which are investment vehicles that pool funds from m

Credit Cards

All terms and concepts related to the use, features, and management of payment cards allowing users

Public Offerings

All terms related to a company selling its shares or bonds to the public for the first time (IPOs) o

Gold

All terms and concepts related to the precious metal gold, including its price, trading, investment,

IPO

All terms and concepts related to the process in which a private company offers its shares to the pu

Property

The "Property" category in finance encompasses all aspects related to real estate and tangible asset

Derivatives

All terms & concepts related to financial contracts whose value is based on an underlying asset,

Retirement Planning

All terms and concepts related to the process of saving and investing to ensure financial security a

Financial Terms

A comprehensive resource containing definitions and explanations of terms, concepts, and jargon used

Stocks

All terms and concepts related to stocks, also known as equities, which represent ownership shares i

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