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Components of Tier-2 Capital

Tier-2 capital (aka gone concern capital or supplementary capital) is a layer of capital (for a bank or financial institution)...

Fungible Commodities: Concept and Examples

A fungible commodity is a commodity that is currently, or may in the future become, an underlying of recurrent/ tradable...

Fungible Securities: Examples

Fungible securities: a type of securities that are interchangeable with other securities belonging to the same class or series. In...

Simple Order Book: an Example

A simple order book is an order book that only contains the basic components: sizes and prices. It is a...

Difference Between Issuer and Originator

An issuer (of a debt instrument or a similar types of instruments) is an entity that creates marketable financial instruments...

Similarities Between Options and Futures

An option is a derivative contract granting its owner (holder) the right, but not the obligation to buy (for a call option) or…

Difference Between LIBOR and SOFR

LIBOR (London Interbank Offered Rate) is an interbank rate used as a benchmark or reference rate for short-term interest rates....

Gain or Loss on Disposal of an Asset

Gain or loss on disposal of an asset (particularly a non-current asset) is the difference between the sale price (sales...

Examples of Investment Property

An investment property is a type of property (land or a building—or part of a building—or both) that is held...

Types of SOFR

SOFR (secured overnight financing rate); is a broad reference rate that measures the cost of borrowing money overnight collateralized by...