Junior Security
What is a Junior Security? A junior security is a security that ranks lower in priority and seniority when contrasted against other securities. It typically comes with a lower priority claim against the assets and incomes of the issuer than other securities. If a company files for bankruptcy and liquidates its assets, it must follow...
Junior Company
What is a Junior Company? A junior company can be defined as a small entity or firm whose sole business activities include the development, exploration, and research of natural resources. Junior companies are comparable to start-ups in the sense that both entities are searching for growth funding or seeking to exit through being purchased by...
Federal Discount Rate
What is the Federal Discount Rate? The federal discount rate is the rate that central banks charge banks and deposit-taking institutions to borrow money from the central bank to deal with very short-term shortages of liquidity in meeting reserve requirements on a collateralized basis via a lending channel called the discount window. In the U.S....
Financial Risk Manager (FRM®)
What is a Financial Risk Manager (FRM®)? A Financial Risk Manager (FRM®) is an accreditation offered by the Global Association of Risk Professionals (GARP) that certifies the understanding of risk management concepts that are validated by international professional standards. Broadly speaking, financial risk management is the active process by which the economic value of a...
Flat Yield Curve
What is the Flat Yield Curve? A flat yield curve is a type of yield curve that occurs when anticipated interest rates are steady, or short-term volatility outweighs long term volatility. It signifies that the difference between yields on short-term and long-term bonds minimize, in effect giving no incentives for investors and lenders to lend...
