Equity Capital Market (ECM)
What is the Equity Capital Market? The equity capital market is a subset of the broader capital market, where financial institutions and companies interact to trade financial instruments and raise capital for companies. Equity capital markets are riskier than debt markets and, thus, also provide potentially higher returns. Instruments Traded in the Equity Capital Market...
S&P – Standard and Poor's
What is Standard and Poor’s (S&P)? Standard & Poor’s is an American financial intelligence company that operates as a division of S&P Global. S&P is a market leader in the provision of financial market analysis, particularly in the provision of benchmark and investable indices and credit ratings for companies and countries. The S&P Global division...
Variable Coupon Renewable Note (VCR)
What is a Variable Coupon Renewable Note (VCR)? A variable coupon renewable note (VCR) is a type of fixed-income security that is renewable. Its distinguishing characteristic is that the return, which is known as the variable coupon rate, is subject to periodic revisions. Other features of VCRs include embedded put options. What is Coupon Rate?...
Real Estate Investment Trust (REIT)
What is a Real Estate Investment Trust (REIT)? A real estate investment trust (REIT) is an investment fund or security that invests in income-generating real estate properties. The fund is operated and owned by a company of shareholders who contribute money to invest in commercial properties, such as office and apartment buildings, warehouses, hospitals, shopping...
Abnormal Return
Introduction In finance, understanding key metrics and concepts is crucial for investors navigating the market. Investors, both experienced and new, always aim to improve returns and manage risk. Abnormal returns, also known as excess returns, are a critical aspect. This article explores abnormal returns, detailing what excess returns involve, how they differ from risk-free rates,...
