Growth Equity
What is Growth Equity? Growth equity (also known as growth capital or expansion capital) is a type of investment opportunity in relatively mature companies that are going through some transformational event in their lifecycle with potential for some dramatic growth. Uses of Growth Equity Growth capital is utilized by businesses to subsidize the expansion of...
Embedded Option
What is an Embedded Option? An embedded option is a provision in a financial security (typically in bonds) that provides an issuer or holder of the security a certain right but not an obligation to perform some actions at some point in the future. The embedded options exist only as a component of financial security...
Matrix Pricing
What is Matrix Pricing? Matrix pricing is an estimation technique used to estimate the market price of securities that are not actively traded. Matrix pricing is primarily used in fixed income, to estimate the price of bonds that do not have an active market. The price of the bond is estimated by comparing it to...
Blockage Discount
What is a Blockage Discount? Blockage discount – also sometimes referred to as the blockage factor – is the discounted price or value the market gives stocks when a block of shares is sold. The exact number of shares constituting a block varies. However, any time more than 10,000 shares of a company’s stock are...
Non-Callable Bond
What is a Non-Callable Bond? A non-callable bond is a bond that is only paid out at maturity. The issuer of a non-callable bond can’t call the bond prior to its date of maturity. It is different from a callable bond, which is a bond where the company or entity that issues the bond owns...
