Finance

In the financial industry, an investor’s margin is the collateral they must deposit with their broker or exchange to cover the credit risk they provide to the broker or exchange. Investors take on credit risk whenever they borrow money from their broker to purchase financial products, borrow financial instruments to sell short, or enter into […]

Debentures are long-term debt instruments that an organisation can issue to investors. There are two main types of debentures, convertible and nonconvertible. First, let’s define Non-Convertible debentures and see how they differ from Convertible debentures. For the purpose of raising capital, businesses would sometimes issue debentures to investors in the form of long-term loans. They

Payouts made to stockholders by publicly traded firms. The company draws funding from its bottom line. Typically, the company provides these bonuses from the remaining profit after meeting necessary expenses, and they can take the form of cash, currency equivalents, shares, etc. The company’s board of directors sets the dividend rate and must also gain

When purchasing a bond, there is usually a specified maturity date. Upon reaching that date, you will receive your principal in full, with no additional interest payment. However, bonds that are permanent do not mature. What is a perpetual bond? How do they work? What are some examples? All of these questions and more will