An agreement to swap cash flow sequences for a predetermined amount of time is known as a swap.
An equity warrant gives a lender the option to buy a predetermined number of shares at a predetermined price per share (e.g., exercise price) or a specific percentage of the firm (usually between 1-5%). As a result, they resemble call options in the stock market.
An investor who purchases a convertible bond has the option or duty to convert the bond into a predetermined number of shares of the issuing business at specific points during the bond's tenure. It is a hybrid security that combines aspects of equity and debt.
A master note, sometimes known as a master global note, is a document that lists all the securities that were issued in accordance with a certain debt issuance plan.
A collar in finance is an option strategy that establishes a range for the potential positive or negative returns on an underlying. A collar strategy, which consists of long put options financed with short call options, is one technique to protect against potential losses.
Although the entity re-invoicing the given services did not perform them, the goal of re-invoicing is to shift the costs spent by the re-invoicing company onto the entity that actually used the given services.
A sinking fund is a collection of funds that have been put up or saved to pay off bonds or debts. A corporation that issues debt will eventually have to pay that debt back, and the sinking fund lessens the burden of a significant outlay of revenue.
