Key Rate Duration
What is 'Key Rate Duration' The duration of an asset or portfolio at a certain maturity point throughout the whole yield curve is measured by the key rate duration. When all other maturities are held constant, the key rate duration may be used to determine how sensitive a bond's price is to a one percent change in yield for a...
Abend
What is 'Abend' An unexpected end to a computer program that results in the system crashing or closing down. Derived from the abbreviated version of the term "abnormal end", abend crashes in a business setting can cost companies a significant amount of money. This is why many information technology (IT) departments spend a lot of resources to...
Warrant
What is a 'Warrant' A warrant is a derivative that confers the right, but not the obligation, to buy or sell a security – normally an equity – at a certain price before expiration. The price at which the underlying security can be bought or sold is referred to as the exercise price or strike price. An American warrant can be exercised at...
Alpha
Source: WikipediaLast Sourced: 2021-02-01This Article has been Edited for AccessibilityAlpha Alpha /ˈælfə/ (uppercase .mw-parser-output .polytonic{font-family:"SBL BibLit","SBL Greek",Athena,"EB Garamond","EB Garamond 12","Foulis Greek","Garamond Libre",Cardo,"Gentium Plus",Gentium,Garamond,"Palatino Linotype","DejaVu Sans","DejaVu Serif",FreeSerif,FreeSans,"Arial Unicode MS","Lucida Sans Unicode","Lucida Grande",Code2000,sans-serif}Α, lowercase α; Ancient Greek: ἄλφα, álpha, modern pronunciation álfa) is the first letter of the Greek alphabet. In the system of Greek numerals, it has a value of...
National Association of Mortgage Brokers (NAMB)
What is 'National Association of Mortgage Brokers - NAMB' An organization that protects the interests of mortgage brokers in the United States and encourages its members to maintain high levels of professionalism and ethical standards. As part of its commitment to upholding a professional code of ethics, the National Association of Mortgage Brokers (NAMB) provides mortgage brokers with educational opportunities...
Tax Deduction
What is a tax deduction and how does it work A tax deduction is an expense that can be subtracted from your taxable income. This reduces the amount of taxes you owe. For example, let's say you earn $50,000 per year and you have $5,000 in deductions. This means that you would only be taxed on $45,000 of income. There...
Magna Cum Laude
What is 'Magna Cum Laude' Magna cum laude is an academic level of distinction used by educational institutions to signify an academic degree that was received "with great honor." Explaining 'Magna Cum Laude' The guidelines by which each level of academic honors is achieved differs between academic institutions; however, every university or college outlines its...
Back-End Ratio
What is the 'Back-End Ratio' An indicator of how much of a person's monthly income is dedicated to debt repayment is the back-end ratio, also known as the debt-to-income ratio. A person's total monthly debt comprises expenditures such as mortgage payments (principal plus interest, taxes, and insurance), credit card payments, child support, and other loan payments, among other things. Lenders...
Diversification
Diversification is a technique that deals with risk management by mixing a wide range of investments in a single portfolio in hope that the sheer number of investments can result in higher returns with low risks. In other words, if a number of investments can yield greater results, they may neutralize the loss from an individual investment in the...
National Association of State Boards of Accountancy (NASBA)
What is 'National Association Of State Boards Of Accountancy - NASBA' A U.S. nonprofit group founded in 1908 that seeks to enhance the effectiveness of the state boards of accountancy. Public accountancy is regulated at the state level, with each state maintaining an independent board of accountancy that oversees the profession. NASBA assists the 55 state boards...