What is Interest Rate Swap? An interest rate swap (IRS) is a type of derivative contract where the two counterparties agree to exchange one stream of future interest payments for another based on the specific principal amount. Generally, these contracts...

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...

Various financial ratios help analyze a company fundamentally before investing. One of those financial ratios is Earnings Per Share (EPS). EPS compares the company's profit and the number of outstanding shares. What is Earnings Per Share? Earnings per share refer...

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...

What is Share? A share means a unit representing a partial ownership stake in the company. Investors owning them are called shareholders. Equity and preference shares are popular types of shares. Both provide the company with funds and shareholders with...

A capital market is a financial market where long-term debt or equity-backed securities are bought and sold. Suppliers are people/organisations with the capital to lend or invest. Banks and investors are common examples. Securities Exchange Board of India (SEBI) governs...

What is Arbitrage? Arbitrage is the practice of buying an asset in one market and simultaneously selling it in another, but at a higher price. As a result, the transitory difference in share price benefits the traders.Stocks, commodities, and currencies...

Every investor invests in different financial instruments across asset classes with different levels of return. Every instrument has a certain level of risk associated with it, and investors also have a certain risk tolerance level. Thus, diversifying your assets is...