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Examples of Financial Assets

A financial asset is an asset that has no physical characteristics, but rather derives its value from a monetary basis,...

Difference Between Credit Swap and Credit Contingent Swap

A credit default swap (CDS) or credit swap is defined as a swap entered into by two counterparties, a buyer...

Difference Between Credit Default Swap and Credit Contingent Swap

A credit default swap (CDS) or credit swap is defined as a swap entered into by two counterparties, a buyer...

Debt/ Equity Bifurcation Accounting

Debt/ equity bifurcation is the splitting of specific, purported debt instruments into part debt and part equity and the treatment...

Difference Between Net Income and Cash Flows

The income statement displays the financial result of a company's operations over the course of its financial year or a...

Difference Between Differential Cost and Incremental Cost

Differential cost and incremental cost are two different concepts, though at times they are interchangeably used. The former is defined...

Meaning of a Haircut

Haircut has different meanings in different contexts. In relation to repo transactions, haircut (repo haircut) is the collateral (repo collateral)...

Difference Between Effectiveness and Efficiency

Effectiveness is simply defined as doing the "right" things, while efficiency revolves around doing things "right". In the broader context...

Difference Between Syndication and Consortium

A syndication/ syndicate (loan syndication) is a group of financial institutions (e.g., banks) that "collectively" lend money (a loan) to...

Breakeven on Long Straddle

A long straddle is a straddle whereby two options (a call and a put) are simultaneously purchased on the same...