What is an Equity Futures Contract? Equity futures definition: An equity futures contract is a financial arrangement between two counterparties to buy or sell equity at a specified date, amount, and price. Finance professionals use these instruments to capitalize on stock price movements or protect portfolios against market volatility — all without direct share ownership….
What is a Fixed Income Forward Contract? A fixed income forward contract refers to an agreement between two counterparties to buy or sell a fixed income instrument at a specified date, price, and amount in the future. The contracts are used for speculation or hedging purposes by locking in the fixed income delivery price today….
What is a Cross Purchase Agreement? A cross purchase agreement is when a company’s shareholder or business partner agrees to purchase the shares of another shareholder or business partner who leaves the company due to death, retirement, or incapacitation. Before the shareholder or business partner leaves the company, they would agree to let their shares…
What is a Cross Currency Transaction? A cross currency transaction involves the use of more than one currency. For example, you may be involved in a cross currency transaction in order to convert one currency into another currency. Previously, an individual who wanted to exchange one currency into another currency would need to convert their…
What is Cross Currency Settlement? Cross currency settlement refers to a transaction or cross currency pair that does not use the U.S. dollar. In an international foreign exchange market, also known as a spot market, buying and selling foreign currencies means that there will be two currencies involved in the transaction. Therefore, currencies are traded…
What is Networking for University Students? Learning how to network effectively is critical for university students seeking internships and summer opportunities. Job search websites today give students access to many options when it comes to deciding where they would like to apply for internships within the finance industry. However, this is a double-edged sword as…
What is a Treasury Bond? A Treasury bond (or T-Bond) is a long-term government debt security issued by the U.S. Treasury Department with a fixed rate of return. Maturity periods range from 20 to 30 years. T-bond holders receive semi-annual interest payments (called coupons) from inception until maturity, at which point the face value of…
What is Arc Elasticity? Arc elasticity is the sensitivity of one variable to another between two points on a curve. It is often used in the context of the law of demand to measure the inverse relationship between price and demand. Arc elasticity measures the responsiveness of demand to price changes over a range of values….
What is a Quant Fund? A quant fund (short for quantitative fund) is an investment fund that uses mathematical and statistical techniques together with automated algorithms and advanced quantitative models to make investment decisions and execute trades. There is no human intellect and judgment involved in investment selection and related decisions. Quant funds operate using…
