Financial Terms You Need To Know
Derivatives refer not to calculus (though calculus helps to calculate their value) but to financial instruments for trading risks. Interest is not necessarily interesting. Stocks are not alive nor are they holding places for criminals. Zeroes can be quite valuable. CDs don’t contain music. Yield curves are sometimes straight lines. Principal is a sum of money or an owner, not the administrative head of a high school.
In finance, unlike in retail or publishing, returns are a good thing. Military-style acronyms and jargon also abound: 4X, A/I, Basel II, B.I.G., CAMELS, CRA, DIDMCA, FIRREA, GDP, IMF, LIBOR, m, NASDAQ, NCD, NOW, OTS, r, SOX, TIPS, TRAPS.
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