Straight-Through Processing (STP)
What is Straight-Through Processing (STP)? Straight-through processing (STP) is an automatic solution for seamless electronic transactions and interactions without manual intervention. STP is commonly used by financial institutions to reduce transaction time and stock markets to facilitate seamless initiation and settlement of securities without manual intervention. The straight-through processing’s infrastructure provides fully electronic and smooth...
Call Premium
What is a Call Premium? A call premium refers to the amount above par value an investor receives when the debt issuer redeems the security earlier than its maturity date. If a security is redeemed before it reaches maturity, the owner of the security loses the incremental profits that would’ve been generated. The call premium...
Call Price
What is a Call Price? A call price refers to the price that a preferred stock or bond issuer would pay to buyers if they chose to redeem the callable security before the maturity date. The price is set during the issuance of the security and mentioned in the prospectus of the issue. Call price...
Call Loan Rate
What is the Call Loan Rate? The call loan rate refers to the short-term interest rate that the banks charge on the loans made to brokers for funding the margin loans by the brokers to their clients. Since brokers seek to make a profit on their own margin loans, they provide margin loans at a...
Call Market
What is the Call Market? The call market refers to a market where trading does not take place continuously, but only at specified times during the trading day. Prices are dictated by the exchange rather than by bids and offers. In the call market, orders are aggregated and collected at designated intervals instead of trading...
