The Fx options trading Questions

Category: glossary , Asked by: Alex S. From Canada

A: The amount of time left for the repayment of a loan or contract or the initial term length of a loan. Tenor can be expressed in years, months or days. For example, if a bank loan is initially extended with a five-year tenor, after three years, the loan will be said to have a tenor of two years. Tenor is sometimes used interchangeably with "maturity", although tenor is not often used to describe the terms of fixed-income instruments such as government bonds and corporate bonds. Instead, non-standardized contracts like insurance policies and bank loans tend to be described in terms of tenor.

Category: glossary , Asked by: Annabelle G. From Namur, Belgium

A: a "down payment " is A type of payment made in cash during the onset of the purchase of an expensive good/service. The payment typically represents only a percentage of the full purchase price; in some cases it is not refundable if the deal falls through. Financing arrangements are made by the purchaser to cover the remaining amount owed to the seller. Making a down payment and then paying the rest of the price through installments is a method that makes expensive assets more affordable for the typical person. For example, because houses are extremely expensive assets, home buyers typically pay down payments that equal 5-25% of the total value of a home. The remaining 75-95% of the price will be covered by a bank or other financial institutions through a mortgage loan.

Category: glossary , Asked by: Mckenzie F. From Sheffield, United Kingdom

A: the "special dividend " is A non-recurring distribution of company assets, usually in the form of cash, to shareholders. A special dividend is larger compared to normal dividends paid out by the company. Also referred to as an "extra dividend". Generally, special dividends are declared after exceptionally strong company earnings results as a way to distribute the profits directly to shareholders. Special dividends can also occur when a company wishes to make changes to its financial structure or to spin off a subsidiary company to its shareholders. For example, GenTek Inc. issued a special cash dividend of $31 per share on Mar 16, 2005, in order to restructure toward a more debt-based financing mix.