The economy moves in a cycle and has four stages: expansion, peak, contraction, and trough. In the expansion phase, the economy grows rapidly until it reaches the peak stage. Then it slows down in the contraction stage and hits the...

The current yield is the return investors can expect from a bond investment in the next year. Using this, one can tell whether the bond trades at a discount or premium.  What is Current Yield? Current yield is a measure...

What is the credit market? The credit market is a financial market where the government and companies issue debt to investors to raise money. Here, the investors buy and sell securities, mostly in the form of bonds. Also, in a...

There are different refinancing debt instruments available in the financial market. Issuers can choose any type of debt instrument to raise capital based on their requirement. Also, this gives different investors opportunities to invest in various instruments creating a portfolio...

What are Convertible Securities? Convertible securities are financial instruments that can change from one form to another. In other words, they are securities that can be converted into equity shares at the time of maturity. The holder has the option...

A company issues debentures to raise capital from the public as a loan. A company can issue any type of debenture based on its requirement. A convertible debenture is one among them, which is a hybrid debt instrument that strikes...

A company issues bonds to raise capital from the public as a loan. A company can issue any bond based on its requirement. A convertible bond is one among them, which is a hybrid debt instrument that strikes a balance...

What are Common Stocks? Common stock, also known as ordinary shares or common shares, is a security that reflects the investor's ownership of a company. Holding this stock offers investors the power to elect the company's board of directors and...