Business Deal
What is a Business Deal? A business deal refers to a mutual agreement or communication between two or more parties who want to do business. The deal is usually carried out between a seller and a buyer to exchange items of value such as goods, services, information, and money. It is considered to be completed...
American vs European vs Bermudan Options
What are American vs European vs Bermudan Options? There are different types of options that differ in terms of their exercise restrictions. The three basic types are American, European, and Bermudan options. Let’s explore American vs European vs Bermudan options to find out how they are different from one another. Options are exactly what they...
Open-end vs Closed-end Mutual Funds
What are Open-end vs Closed-end Mutual Funds? Many investors consider open-end vs. closed-end mutual funds similar due to both mutual funds allowing them an inexpensive way to pool capital together and invest in a diversified, professionally managed portfolio of securities. However, it is key to realize that there are substantial differences that affect the returns...
Transaction Risk
What is Transaction Risk? Transaction Risk is the exposure to uncertainty factors that may impact the expected return from a deal or transaction. It can include but is not limited to foreign exchange risk, commodity, and time risk. It essentially encompasses all negative events that can prevent a deal from happening. A deal with a...
Negative-Yielding Bonds
What are Negative-Yielding Bonds? Negative-yielding bonds are bonds that cause bondholders to lose money when they mature. This happens when holders of such bonds will end up with less money than what they used to purchase them. In 2019, the amount of negative-yielding bonds in the global market is $13 trillion. How do Negative-Yielding Bonds...
