Half Stock
What is Half Stock? Half stock is an equity security sold at a par value that is 50% of the normal value. The two types of equity where half stocks are found are common stock and preferred stock. A half stock acts just like its counterpart, regular common or preferred stock, except it...
Floating Stock
What is Floating Stock? Floating stock is described as the aggregate shares of a company’s stock that are available in the open market. It represents the number of outstanding stock or shares available to the public for trading and does not include closely held shares or restricted stock. A company with a low number of...
Floating Exchange Rate
What is a Floating Exchange Rate? A floating exchange rate is an exchange rate system where a country’s currency price is determined by the foreign exchange market, depending on the relative supply and demand of other currencies. A floating exchange rate is not restrained by trade limits or government controls, unlike a fixed exchange rate....
Floating Rate Fund
What is a Floating Rate Fund? A floating rate fund is a type of mutual fund that invests in securities paying fluctuating interest rates. Floating rate funds primarily invest in debt instruments like loans and bonds. The fluctuation in rates of interest generates worthy returns for investors. Each financial instrument that the floating rate fund...
Forward Market
What is a Forward Market? A forward market is a marketplace that offers financial instruments that are priced in advance for future delivery. It tends to be referenced as the foreign exchange market, but it can also apply to securities, commodities, and interest rates. How a Forward Market Works Forward markets create forward contracts. The...
