The second leg is typically based on the LIBOR, a fixed rate, or another equity's or index's returns. An equity swap can be used to transfer both the credit risk and themarket risk of an underlying asset. But liquidity and flexibility, the nimblene... Read more
We developed a novel platform for testing competitive decision making in a simulated Dutch auction. The platform allows manipulation of three fundamental design features—start price, rate of price change and size of price change [see Cox et al. ] an... Read more
In other words, you always need the variance of returns for each asset, the covariance between each pair of assets, and the investment weights. Portfolio variance is a measurement of risk, of how the aggregate actual returns of a set of securities m... Read more
Note that i is the change in the term structure of interest rates and not the yield to maturity for the bond, because YTM is not valid for an option-embedded bond when the future cash flows are uncertain. This bond duration tool can calculate the Ma... Read more
Interest – Annuities occur over time, and thus a given rate of return is applied to capture the time value of money. The six potential variables included in an annuity calculation are the present value, the future value, interest, time , payment amo... Read more
However, there are many reasons why companies engage in divestitures, and not all of them have a positive impact on the company. Employees constitute one of the largest operating expenses of a company. The HR function plays a pivotal role in helping... Read more
In Lea v. Yard, 4 U.S. 95 (Pa. 1804), the court held that the auctioneer’s bond is intended, by law, for the benefit of private customers, as well as for securing the duties payable to the government. Similar to an ordinary sale, in an auction... Read more
A code of ethics encourages ethical conduct, business honesty, integrity, and best practices. Individuals should be detail-oriented and have the ability to review and analyze large data sets in short order. Compliance officers in other sectors have... Read more
If you do not have family or friends with the means to help, debt financing is likely the easiest source of funds for small businesses. As your business grows or reaches later stages of product development, equity financing or mezzanine capital may... Read more
If you're something of a riverboat gambler, you may prefer equity products. If you still have your first piggy bank and it still contains the first pennies you ever owned, the safer fixed-income track may be better for you. The principal of a bond –... Read more